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HomeMy WebLinkAboutAgenda Packet_2025-07-15City Council and Regular Adjourned and Special Housing Authority Meeting Packet July 15, 2025 CLOSED SESSION MEETING - 4:00 PM REGULAR OPEN MEETING - 5:30 PM (Immediately following the Closed Session Meeting) CITY COUNCIL CHAMBER 22 Civic Center Plaza Santa Ana, CA 92701 Valerie Amezcua Mayor Thai Viet Phan Councilmember —Ward 1 Jessie Lopez Councilmember - Ward 3 Johnathan Ryan Hernandez Councilmember - Ward 5 Benjamin Vazquez Mayor Pro Tem - Ward 2 Phil Bacerra Councilmember - Ward 4 David Penaloza Councilmember - Ward 6 Mayor and Council telephone: 714-647-6900 Agenda item inquiries: 714-647-6520 Sonia R. Carvalho Alvaro Nunez City Attorney City Manager Jennifer L. Hall City Clerk In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, ®contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City's website — www.santa-ana.org/agendas-and-minutes. City Council 1 7/15/2025 CITY VISION AND CODE OF ETHICS The City of Santa Ana is committed to achieving a shared vision for the organization and its community. The Vision, Mission and Guiding Principles (Values) are the result of a thoughtful and inclusive process designed to set the City and organization on a course that meets the challenges of today and tomorrow, as follows: Vision - The dynamic center of Orange County which is acclaimed for our: Investment in youth • Safe and healthy community • Neighborhood pride • Thriving economic climate - Enriched and diverse culture • Quality government services Mission - To deliver efficient public services in partnership with our community which ensures public safety, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents. Guiding Principles - Collaboration • Efficiency • Equity • Excellence • Fiscal Responsibility - Innovation • Transparency Code of Ethics and Conduct - At the Special Municipal Election held on February 5, 2008, voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: - Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency City Council 2 7/15/2025 Members of the public may attend the City Council meeting in -person or join via Zoom. As a courtesy to the public, the City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet, or smart phone via YouTube LiveStream at https://www.youtube.com/cityofsantaanavideos/ or on CTV3, available on Spectrum channel 3. PUBLIC COMMENTS — Members of the public who wish to address the City Council on closed session items, items on the regular agenda, or on matters which are not on the agenda but are within the subject matter jurisdiction of the City Council, may do so by one of the following ways: • MAILING OPTION written communications — Public comments may be mailed to: Office of the City Clerk, 20 Civic Center Plaza M-30, Santa Ana, CA 92701. All written communications received via mail two (2) hours before the scheduled start of the meeting will be distributed to the City Council and imaged into the City's document archive system which is available for public review. • SENDING E-MAIL OPTION — Public comments may be sent via email to the City Clerk's office at eComment@santa-ana.org. Please note the agenda item you are commenting on in the subject line of the email. All emails received two (2) hours before the scheduled start of the meeting will be distributed to the City Council and imaged into the City's document archive system which is available for public review. • LIVE VIRTUAL OPTION — As a courtesy, members of the public may provide live comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type the following address into your web browser https://us02web.zoom.us/j/315965149. To join the Conference Call: Dial (669) 900- 9128 and enter MEETING ID: 315 965 149#. You will be prompted by the City Clerk when it is time for a: i) closed session item, ii) agenda/general comments, iii) special agenda item, or iv) for Housing Authority item. You may request to speak by dialing *9 from your phone or you may virtually raise your hand from Zoom. After the Clerk confirms the last three digits of the caller's phone number or Zoom ID and unmutes them, the caller must press *6 or microphone icon to speak. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak, unless due to the number of speakers wanting to speak a decision is made to provide a different amount of time to speak. • IN -PERSON OPTION - Members of the public can provide in -person comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting in -person. Public comments are limited to three (3) minutes per speaker, unless a different time is announced by the presiding chair. Speakers who wish to address the Council must do so by submitting a "Request to Speak" card by 4:00 p.m. for Closed Session items and by 5:45 p.m. for all other designated public comment periods as listed below. Cards will not be accepted after the Public Comment Session begins without the permission of the presiding chair. City Council 3 7/15/2025 The following designated public comment periods are: 1. LIVE PUBLIC COMMENTS ON CLOSED SESSION ITEMS —You can provide live comments on closed session items by joining Zoom or the Conference Call as described in the LIVE or IN -PERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 3:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL and raise your hand BY 4:00 p.m. Speakers who are not in the speaker queue with their hand raised by 4:00 p.m. will not be permitted to speak. 2. LIVE PUBLIC COMMENTS ON REGULAR AGENDA ITEMS AND NON -AGENDA ITEMS (GENERAL PUBLIC COMMENT) —You can provide comments by joining Zoom or the Conference Call as described in the LIVE or IN -PERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 3:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL and raise your hand PRIOR TO 5:45 p.m. Speakers who are not in the speaker queue with their hand raised by 5:45 p.m. will not be permitted to speak. 3. LIVE PUBLIC COMMENTS ON HOUSING AUTHORITY ITEMS —You can provide comments by joining Zoom or the Conference Call as described in the LIVE or IN -PERSON PUBLIC COMMENTS OPTION above. Speakers not in the queue by 5:45 p.m. will not be permitted to speak. TRANSLATION SERVICES - Spanish interpreting services are provided at City Council meetings. Simultaneous Spanish interpretation is provided through the use of headsets and consecutive interpretation (Spanish -to -English) in addition to those wishing to address the City Council at the podium. La ciudad provee servicios de interpretacion al espanol en las juntas del Consejo. La interpretacion simultanea al espanol se ofrece por medio del use de audifonos y la interpretacion consecutiva (espanol a ingles) tambien esta disponible para cualquiera que desee dirigirse al consejo municipal en el podio. About the Agenda To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball) or download a pdf (the cloud symbol with the down arrow ). City Council 4 7/15/2025 CLOSED SESSION CALL TO ORDER ATTENDANCE Council Members Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Mayor Pro Tern Benjamin Vazquez Mayor Valerie Amezcua City Manager Alvaro Nunez City Attorney Sonia R. Carvalho City Clerk Jennifer L. Hall ROLL CALL ADDITIONS\DELETIONS TO CLOSED SESSION PUBLIC COMMENTS — Members of the public may address the City Council on Closed Session items. RECESS — City Council will recess to Closed Session for the purpose of conducting regular City business. CLOSED SESSION ITEMS — The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL —EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: A. City of Santa Ana v. Orange County Association for Mental Health, et al., Orange County Superior Court, Case No. 30-2020-01124174 B. Arch Insurance Company v. City of Santa Ana, Orange County Superior Court, Case No. 30-2024-01436141 2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Confidential Association of Santa Ana (CASA) 3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Santa Ana Management Association (SAMA) City Council 5 7/15/2025 4. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Service Employees International Union Full -Time Employees Unit (SEIU) 5. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Service Employees International Union Local 721, Part -Time Non -Civil Service Employees Unit (SEIU-PTNCS) 6. CONFERENCE WITH LEGAL COUNSEL— POTENTIAL INITIATION OF LITIGATION pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9: One (1) case RECONVENE — City Council will reconvene to continue regular City business. CITY COUNCIL REGULAR OPEN SESSION CALL TO ORDER ATTENDANCE Council Members Mayor Pro Tern Mayor City Manager City Attorney City Clerk ROLL CALL PLEDGE OF ALLEGIANCE WORDS OF INSPIRATION Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Benjamin Vazquez Valerie Amezcua Alvaro Nunez Sonia R. Carvalho Jennifer L. Hall Mayor Amezcua Pastor Angie Aparicio ADDITIONS\DELETIONS TO THE AGENDA CEREMONIAL PRESENTATIONS 1. Proclamation presented by Mayor Amezcua proclaiming July as Parks and Recreation Month City Council 6 7/15/2025 2. Certificates of Recognition presented by Mayor Pro Tern Vazquez recognizing Chicanxs Unidxs for Exceptional Service to the Community 3. Certificates of Recognition presented by Councilmember Bacerra recognizing Orange County Fire Authority's Best and Bravest for Outstanding Contributions to the Community 4. Proclamation presented by Councilmember Phan honoring Nabil Saba in Recognition of his Retirement and 25 Years of Dedicated Service to the City of Santa Ana CLOSED SESSION REPORT — The City Attorney will report on any action(s) from Closed Session. PUBLIC COMMENTS — Public comments will be held during the beginning of the meeting for ALL comments on agenda and non -agenda items. I CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 5 through 14 and waive reading of all resolutions and ordinances. 5. Excused Absences Department(s): City Clerk's Office Recommended Action: Excuse the absent members. 6. Minutes from the Regular Meetings of June 17, 2025 and July 1, 2025 Department(s): City Clerk's Office Recommended Action: Approve minutes. 7. Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners Department(s): Community Development Agency Recommended Action: 1. Approve Memorandums of Understanding with the Santa Ana WORK Center, Rancho Santiago Community College District, Employment Development Department, Department of Rehabilitation, SER Jobs for Progress, United American Indian Involvement, Inc., Long Beach Job Corps, Community Action Partnership of Orange County, and City of Santa Ana Housing Authority (Family Self - Sufficiency Program) setting the terms for the sharing of resources and expenses associated with the operations of a comprehensive One -Stop center, for a three-year term expiring June 30, 2028, and authorize the City Manager to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney (Agreement City Council 7 7/15/2025 No. A-2025-XXX). 2. Approve a second amendment to Sub -Lease Agreement and Memorandum of Understanding with the County of Orange, Social Services Agency to extend the term through June 30, 2028 and authorize the City Manager to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney (Agreement No. A- 2025-XXX). 8. Agreement with PlanetBids, LLC for eProcurement Bidding Platform Module Services (Specification No. 25-045) (General Fund and Non -General Fund) Department(s): Finance and Management Services Recommended Action: Authorize the City Manager to execute an agreement with PlanetBids, LLC to provide eProcurement Bidding Platform Module Services in an amount not to exceed $159,635, for a term beginning July 15, 2025 and expiring June 30, 2028, with provisions for one (1), one-year extension (Agreement No. A-2025- XXX). 9. Agreements with Graviton Consulting Services, Inc. and Oracle Corp. for Enterprise Resource Planning (ERP) System Software and Implementation Services (Specification No. 23-132) (Non -General Fund) Department(s): Information Technology Recommended Action: 1. Approve agreement with Graviton Consulting Services, Inc. for the purchase of Oracle Cloud ERP subscription licensing, for an initial three- year term beginning September 1, 2025, with seven optional one-year renewals, in an aggregate amount not to exceed $5,026,843; and authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided the total cost does not exceed the approved aggregate amount (Agreement No. A-2025-XXX). 2. Approve an agreement with Graviton Consulting Services, Inc. for Oracle ERP implementation services, in an amount not to exceed $4,798,915, for a 35-month term beginning August 1, 2025, and expiring June 30, 2028 (Agreement No. A-2025-XXX). 3. Approve agreement with Oracle America, Inc. for Public Sector Oracle Cloud Services, to govern the terms and conditions of the Oracle Cloud ERP services (Agreement No. A-2025-XXX). 10. Historic Property Preservation Agreements for the Properties Located at 1001 N. Olive Street and 1011 N. Olive Street Department(s): Planning and Building Agency Recommended Action: Authorize the City Manager or designee to execute the attached Mills Act agreement with the below -referenced property owners for the identified structure(s) (Agreement Nos. A-2025-XXX and A-2025-XXX). [Includes City Council 8 7/15/2025 determination that the proposed projects are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption(s)/Environmental Review Nos. 2025-28 and 2025-30 will be filed for the project.] Table 1: Mills Act Agreements Approved by the Historic Resources Commission (HRC) Property Owner(s) Kevin Shuler and Brian Stoddart representing Palm Springs Deepwell Modern, LLC Robert James Manson and Alma Cristina Manson Historic Property Preservation Aareement No. Address/Hou 1001 N. Olive Street 1011 N. Olive Street ote by HRC 5:0:0:2 (Commissioner Escamilla and Padilla absent) 5:0:0:2 (Commissioner Escamilla and Padilla absent) 11. Authorize the Planning Division to Prepare and Provide Notice to the County of Orange Airport Land Use Commission (ALUC) in Accordance with Public Utilities Code Section 21676(b) for The Village Santa Ana Specific Plan Located at 1561 W. Sunflower Avenue Currently Undergoing Public Review and Entitlements Processing with the City Department(s): Planning and Building Agency Recommended Action: Adopt a resolution authorizing the Planning Division to initiate the preparation and drafting of findings and determination overruling the County of Orange Airport Land Use Commission's Determination of Inconsistency associated with the proposed The Village Santa Ana Specific Plan located at 1561 W. Sunflower Avenue and to provide notice in accordance with Section 21676(b) of the Public Utilities Code to the County of Orange Airport Land Use Commission and the State of California Department of Transportation's Division of Aeronautics. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE PLANNING DIVISION TO INITIATE THE PREPARATION AND DRAFTING OF FINDINGS IN SUPPORT OF OVERRULLING THE ORANGE COUNTY AIRPORT LAND USE COMMISSION'S DETERMINATION OF INCONSISTENCY ASSOCIATED WITH THE PROPOSED THE VILLAGE SANTA ANA SPECIFIC PLAN PROJECT LOCATED AT 1561 WEST SUNFLOWER AVENUE AND TO PROVIDE NOTICE OF INTENT TO OVERRULE THE AIRPORT LAND USE COMMISSION'S DETERMINATION IN ACCORDANCE WITH SECTION 21676(B) OF THE PUBLIC UTILITIES CODE TO THE COUNTY OF ORANGE AIRPORT LAND USE COMMISSION AND THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION'S DIVISION OF AERONAUTICS AT LEAST 45 DAYS PRIOR TO THE FUTURE PUBLIC HEARING DATE FOR THE PROPOSED City Council 9 7/15/2025 PROJECT AND PROPOSED OVERRULING ACTION BY THE CITY COUNCIL [includes determination that this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15061(b)(3) of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly.] 12. Density Bonus Agreement No. 2025-03 to Facilitate the Construction of a Fifteen -Unit Multi -Family Residential Development, Including Three Units Proposed as Affordable to Very Low -Income Households Department(s): Planning and Building Agency Recommended Action: 1. Determine that, pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the recommended action (below) is exempt from further review under Section 15168 (Program EIR); and 2. Adopt a resolution approving Density Bonus Agreement No. 2025-03; RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN -UNIT MULTI -FAMILY RESIDENTIAL DEVELOPMENT, INCLUDING THREE UNITS PROPOSED AS AFFORDABLE TO VERY LOW-INCOME HOUSEHOLDS, AT THE PROPERTY LOCATED AT 2130 E. FOURTH STREET (APN: 400-091-23); and 3. Authorize the City Manager to execute a Density Bonus Agreement with Olive Crest, with a 55-year covenant term, for a rental residential development consisting of a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households, at the property located at 2130 E. Fourth Street (Agreement No. A-2025-XXX). 13. Resolution Supporting Assembly Bill 1303 — Lifeline Program: Customer Data Privacy Department(s): City Manager's Office Recommended Action: Adopt a Resolution supporting Assembly Bill 1303, which strengthens privacy protections for applicants and subscribers of the California Lifeline Program by prohibiting the unauthorized disclosure of sensitive customer data and eliminating unnecessary documentation requirements that create barriers for vulnerable and immigrant communities. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING ASSEMBLY BILL 1303 — LIFELINE PROGRAM: CUSTOMER DATA PRIVACY BY ASSEMBLYMEMBER AVELINO VALENCIA City Council 10 7/15/2025 14. Resolution Supporting Senate Bill 627 (Wiener, Arreguin, Perez), Senate Bill 805 (Perez), and H.R. 4176 (Correa) — the No Secret Police Act Department(s): City Manager's Office Recommended Action: Adopt a Resolution supporting Senate Bill 627, Senate Bill 805, and H.R. 4176, the No Secret Police Act, to promote law enforcement transparency and accountability by requiring officers to display visible identification and limiting the use of face coverings that obscure identity, except under narrowly defined safety circumstances. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING CALIFORNIA SENATE BILLS 627 (WIENER, PEREZ, ARREGUIN), AND 805 (PEREZ, WIENER) AND H.R. 4176 (CORREA), TO PROMOTE LAW ENFORCEMENT TRANSPARENCY AND ACCOUNTABILITY **END OF CONSENT CALENDAR** I BUSINESS CALENDAR 15. Ordinance Amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to Align with State Law, Enhance Transparency, and Improve Operational Efficiency and Best Practices in Law Enforcement Accountability (Continued from the City Council meeting of July 1, 2025, Item No. 29) Department(s): City Manager's Office Recommended Action: Conduct a first reading of an ordinance amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to align with state law, enhance transparency, and improve operational efficiency and best practices in law enforcement accountability. ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 2-660-2-669 OF CHAPTER 2 (ADMINISTRATION), ARTICLE IV, DIVISION 16 OF THE SANTA ANA MUNICIPAL CODE ESTABLISHING A POLICE COMMISSION **END OF BUSINESS CALENDAR** CITY MANAGER COMMENTS City Council 11 7/15/2025 COUNCIL COMMENTS AB1234 DISCLOSURE — If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended. ADJOURNMENT — Adjourn the City Council meeting and convene to the Regular Adjourned and Special Housing Authority meeting. Future Items 1. Group/Sober Living Homes Ordinance 2. Parking Meter District Recommendation POSTING STATEMENT: On July 8, 2025, a true and correct copy of this agenda was posted at the entrance to City Hall, 20 Civic Center Plaza, Santa Ana, CA 92701. Internet Access to City Council, Agency, and Authority agendas and related material is available prior to meetings at santa-ana.org/agendas-and-minutes. City Council 12 7/15/2025 REGULAR ADJOURNED AND SPECIAL HOUSING AUTHORITY CALL TO ORDER ATTENDANCE Authority Members Vice Chair Chair City Manager City Attorney Recording Secretary ROLL CALL Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Benjamin Vazquez Valerie Amezcua Alvaro Nunez Sonia R. Carvalho Jennifer L. Hall ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA PUBLIC COMMENTS — Members of the public may address Housing Authority on items on the Housing Authority agenda. I CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 through 4 and waive reading of all resolutions and ordinances. 1. Excused Absences Department(s): City Clerk's Office Recommended Action: Excuse the absent members. 2. Minutes from the Regular Meeting of March 18, 2025 (Continued from the Housing Authority meeting of July 1, 2025, Item No. 2) Department(s): City Clerk's Office Recommended Action: Approve minutes. 3. Agreement with Orrick, Herrington & Sutcliffe LLP for On -Call Bond Counsel Services for the Housing Authority Department(s): Community Development Agency Recommended Action: Authorize the Executive Director of the Housing Authority to City Council 13 7/15/2025 execute a three-year agreement with two, one-year renewal options with Orrick, Herrington & Sutcliffe LLP to provide on -call bond counsel services for a term beginning July 15, 2025 through July 14, 2028, for an amount not -to -exceed $150,000 for the entire Agreement (inclusive of renewal options). 4. Memorandum of Understanding the City of Santa Ana, the Santa Ana Workforce Development Board, and the Santa Ana Housing Authority — Workforce Innovation and Opportunity Act Partners (Contingent upon approval of City Council Item #07) Department(s): Community Development Agency Recommended Action: 1. Approve a Memorandum of Understanding with the City of Santa Ana (City), the Santa Ana Workforce Development Board (SAWDB), and the Santa Ana Housing Authority (SAHA) setting the terms for the sharing of resources and expenses associated with the operations of a comprehensive one stop center for a three-year term expiring June 30, 2028 and payment to the City of Santa Ana in an estimated amount not to exceed $57,152. 2. Authorize the Executive Director to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney. **END OF CONSENT CALENDAR** I BUSINESS CALENDAR 5. Approve an Update to the Housing Choice Voucher Administrative Plan to Comply with the Housing Opportunity Through Modernization Act (Continued from the Housing Authority meeting of July 1, 2025, Item No. 3) Department(s): Community Development Agency Recommended Action: Approve an update to the Housing Choice Voucher Administrative Plan to comply with the Housing Opportunity Through Modernization Act. **END OF BUSINESS CALENDAR** HOUSING AUTHORITY MEMBER COMMENTS ADJOURNMENT — Adjourn the Housing Authority meeting. POSTING STATEMENT: On July 8, 2025, a true and correct copy of this agenda was posted at the entrance to City Hall, 20 Civic Center Plaza, Santa Ana, CA 92701. Internet Access to City Council, Agency, and Authority agendas and related material is available prior to meetings at Tanta-ana.org/agendas-and-minutes. City Council 14 7/15/2025 DRAFT Minutes of the Regular Meeting of the City Council City of Santa Ana, California 1 June 17, 2025 CLOSED SESSION MEETING - 4:00 P.M. REGULAR OPEN MEETING - 5:30 P.M. (Immediately following the Closed Session Meeting) CITY COUNCIL CHAMBER 22 Civic Center Plaza Santa Ana, CA 92701 CLOSED SESSION CALL TO ORDER MINUTES: Mayor Pro Tem Vazquez called the Closed Session meeting to order at 4:07 P.M. ATTENDANCE Council Members Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Mayor Pro Tem Benjamin Vazquez Mayor Valerie Amezcua City Manager Alvaro Nunez City Attorney Sonia R. Carvalho City Clerk Jennifer L. Hall ROLL CALL MINUTES: City Clerk Jennifer L. Hall conducted roll call. Councilmembers Lopez, Penaloza, and Phan and Mayor Pro Tem Vazquez were present. Councilmembers Bacerra and Hernandez and Mayor Amezcua arrived during Closed Session. CITY COUNCIL 1 Jl1NE 17 2025 City Council 6-1 7/15/2025 ADDITIONS\DELETIONS TO CLOSED SESSION MINUTES: None. PUBLIC COMMENTS-- Members of the public may address the City Council on Closed Session items. MINUTES: None. RECESS — City Council will recess to Closed Session for the purpose of conducting regular City business. MINUTES: Mayor Pro Tem Vazquez recessed to consider the Closed Session items at 4: 08 P.M. CLOSED SESSION ITEMS — The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: A. Louis Cardenas v. City of Santa Ana, Orange County Superior Court, Case No. 30-2025-01454756-CU-PO-CJC B. Wendy Baraias v. City of Santa Ana, Roland Andrade, Enterprise FM Trust LSR, San Bernardino County Superior Court, CIVRS2401844 C. Anchor Stone Christian Church v. City of Santa Ana, et al., United States District Court Case No. 8:25-cv-00215-JWH-DFM 2. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: One potential case 3. LIABILITY CLAIM pursuant to section 54956.9(d)(2) or (3) of the Government Code: Claimant: Nationwide Insurance on behalf of Robert Stolo 4. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Confidential Association of Santa Ana (CASA) 5. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Santa Ana Middle Management/Administrative Management Association (SAMA) CITY COUNCIL 2 Jl1NF 17 2025 City Council 6-2 7/15/2025 6. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Santa Ana Police Management Association (PMA) CLOSED SESSION REPORT — The City Attorney will report on any action(s) from Closed Session. RECONVENE — City Council will reconvene to continue regular City business. CITY COUNCIL REGULAR OPEN SESSION CALL TO ORDER MINUTES: MayorAmezcua reconvened the City Council Meeting to order at 6:07 P.M. Mayor Pro Tern Mayor City Manager City Attorney City Clerk a•Trr.T.m Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Benjamin Vazquez Valerie Amezcua Alvaro Nunez Sonia R. Carvalho Jennifer L. Hall MINUTES: City Clerk Jennifer L. Hall conducted roll call. Councilmembers Bacerra, Hernandez, Lopez, Penaloza, and Phan, Mayor Pro Tem Vazquez, and Mayor Amezcua were present. PLEDGE OF ALLEGIANCE Human Resources Director Lori Schnaider WORDS OF INSPIRATION Bishop Gale Oliver and Pastor Danny DeLeon ADDITIONS\DELETIONS TO THE AGENDA MINUTES: City Clerk Jennifer L. Hall announced Presentation Item Nos. 1 and 2 have been postponed to a future date and Agenda Item Nos. 7, 8, and 9, appointments to boards and commissions, and Agenda Item No. 22 are continued to July 1, 2025. CITY COUNCIL 3 Jl1NF 17 2025 City Council 6-3 7/15/2025 CEREMONIAL PRESENTATIONS CEREMONIAL PRESENTATION NOS. 1 AND 2 WERE CONTINUED TO A LATER DATE 1. Certificates of Recognition presented by Mayor Amezcua recognizing Vex Robotics World Championship Participants for Outstanding Academic Accomplishments 2. Certificate of Recognition presented by Councilmember Bacerra recognizing Orange County's Fire Authority Best and Bravest Outstanding Contributions to the Community 3. Certificate of Recognition presented by Councilmember Lopez to The Nobody's for Outstanding Contributions to the Community MINUTES: Councilmember Lopez presented a certificate of recognition to The Nobody's for outstanding contributions to the community. 4. Proclamation presented by Councilmember Phan to The Harbor Institute for Immigrant and Economic Justice declaring June 2025 as Immigrant Heritage Month MINUTES: Councilmember Phan presented a proclamation to The Harbor Institute for Immigrant and Economic Justice declaring June 2025 as Immigrant Heritage Month. CLOSED SESSION REPORT —The City Attorney will report on any action(s) from Closed Session. MINUTES: City Attorney Sonia Carvalho reported for Closed Session Item No. 1A Council settled the case by a vote of 6-1 (Councilmember Hernandez dissenting) in the amount of $150,000; for Closed Session Item No. 1B Council settled the case by a vote of 6-1 (Councilmember Hernandez dissenting) in the amount of $115,000, for Closed Session Item No. 3 Council settled the case by a vote of 7-0 in the amount of $56,500' and for Closed Session Item No. 2 Council voted 5-2 (Mayor Pro Tem Vazquez and Councilmember Hernandez dissenting) to discontinue further work on the councilmember generated policy proposal that was discussed at the May 20, 2025 City Council meeting. PUBLIC COMMENTS-- Public comments will be held during the beginning of the meeting for ALL comments on agenda items. MINUTES: City Clerk Jennifer L. Hall reported out the summary of email comments received: one (1) Agenda Item No. 20, three (3) Agenda Item No. 22, and (27) non - agenda comments. CITY COUNCIL 4 Jl1NF 17 2025 City Council 6-4 7/15/2025 The following speakers addressed City Council in -person (time limit = 1 % minutes): 1. Selina Gallegos spoke regarding Agenda Item No. 10, requested transparency for destruction of records, and briefly spoke regarding the city's current climate related to Immigration and Customs Enforcement (ICE). 2. Kelly Kraus -Lee spoke in favor of Agenda Item No. 20 and spoke regarding residents'sentiments and the city's current climate related to ICE raids. 3. Owen West spoke in opposition to Agenda Item No. 24 and spoke regarding the City's current climate related to ICE raids. CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 5 through 21 and waive reading of all resolutions and ordinances. MINUTES: At 6:19 P.M., the Consent Calendar was considered. Councilmember Hernandez announced a "No" vote on Agenda Item Nos. 10 and 18. Councilmember Phan recused herself from Agenda Item No. 20 as some of the involved parties are clients of her employer, Rutan and Tucker. MOTION: Councilmember Bacerra moved to approve Consent Calendar Item Nos. 5 through 21, with the exception of Item Nos. 7, 8, and 9 which were continued to the July 1, 2025 City Council meeting, seconded by Mayor Amezcua. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 5. Excused Absences Department(s): City Clerk's Office Recommended Action: Excuse the absent members. CITY COUNCIL 5 Jl1NE 17 2025 City Council 6-5 7/15/2025 6. Minutes from the Regular Meetings of May 20, 2025 and June 3, 2025 Department(s): City Clerk's Office Recommended Action: Approve minutes. AGENDA ITEM NO. 7 WAS CONTINUED TO THE JULY 1, 2025 CITY COUNCIL MEETING 7. Appoint Marlene Pena-Marin Nominated by Councilmember Bacerra as the Ward 4 Representative to the Arts and Culture Commission for a Partial Term Expiring December 8, 2026 Department(s): City Clerk's Office Recommended Action: Appoint Marlene Pena-Marin to the Arts and Culture Commission as the Ward 4 representative and administer the Oath of Office. AGENDA ITEM NO. 8 WAS CONTINUED TO THE JULY 1, 2025 CITY COUNCIL MEETING 8. Appoint Jesse Rodriguez Nominated by Councilmember Bacerra as the Ward 4 Representative to the Youth Commission for a Partial Term Expiring December 8, 2026 (rescheduled from the June 17, 2025 City Council meeting) Department(s): City Clerk's Office Recommended Action: Appoint Jesse Rodriguez to the Youth Commission as the Ward 4 representative and administer the Oath of Office. AGENDA ITEM NO. 9 WAS CONTINUED TO THE JULY 1, 2025 CITY COUNCIL MEETING 9. Appoint Nancy Gonzalez Nominated by the Parks, Recreation, and Community Services Agency as the Santa Ana Senior Center Representative to the Parks, Recreation, and Community Services Commission for a Partial Term Expiring October 31, 2025 Department(s): City Clerk's Office Recommended Action: Appoint Nancy Gonzalez to the Parks, Recreation, and Community Services Commission to represent residents age 55 and older and administer the Oath of Office. 10.Approve Destruction of Obsolete City Records Department(s): Community Development Agency, Planning and Building Agency, City Attorney's Office, and Police Department CITY COUNCIL 6 Jl1NE 17 2025 City Council 6-6 7/15/2025 Recommended Action: Approve the destruction of obsolete records from the Community Development Agency, Planning and Building Agency, City Attorney's Office, and the Police Department in accordance with the retention schedule outlined in City Council Resolution 2013-014. MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 10 as part of the Consent Calendar, seconded by Mayor Amezcua. The motion carried, 6-1, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: COUNCILMEMBER HERNANDEZ ABSTAIN: NONE ABSENT: NONE Status: 6 — 1 — Pass 11.Agreement with Kingdom Causes, Inc. dba City Net to Provide Substance Abuse Coordination Services for Individuals Experiencing Substance Use Disorders (SUD) in Santa Ana (Non -General Fund) Department(s): Community Development Agency Recommended Action: Approve an agreement with Kingdom Causes, Inc. dba City Net to provide substance abuse coordination services in the amount of $500,000 paid utilizing the City's Opioid Settlement Fund, for a six-month term with two optional six-month renewals (Agreement No. A-2025-085). 12.Agreement with Fortress Armored Services Company for Armored Transport Services (Specification No. 25-041) (General Fund) Department(s): Finance and Management Services Recommended Action: Authorize the City Manager to execute an agreement with Fortress Armored Services Company to provide armored transport services in an amount not to exceed $104,973, for a term beginning July 1, 2025 and expiring June 30, 2028, with provisions for two (2), 1-year extensions (Agreement No. A- 2025-086). 13.Authorize Funding for Two (2) Additional Years for a Learning Management System Agreement with Meridian Knowledge Solutions, LLC (General & Non - General Funds) Department(s): Human Resources CITY COUNCIL 7 Jl1NF 17 2025 City Council 6-7 7/15/2025 Recommended Action: Authorize increased subscription fees for two (2) additional years for the agreement with Meridian Knowledge Solutions, LLC, for the Learning Management System ("LMS") subscription at an annual rate of $34,005, and the add -on service of web -based training content at an annual rate of $42,064 (Agreement No. A-2025-087). 14.Agreement with Govern mentjobs.com Inc. dba NEOGOV for Online Recruitment, Onboarding, and Evaluation Software Services (Specification No. 25-044) (General Fund) Department(s): Human Resources Recommended Action: Authorize the City Manager to execute an agreement with Govern mentjobs.com Inc. dba NEOGOV to provide online recruitment, onboarding, and performance evaluation software services in an annual amount not to exceed $85,000 for the first year. The Agreement will allow for automatic renewal of each annual contract term until terminated. Funding for annual subscription cost increases is not to exceed ten percent (10%) annually for a term beginning July 01, 2025 (Agreement No. A-2025-088). 15.Agreement with JFK Transportation Co., Inc. for School Bus Services (Specification No. 25-050) (General Fund & Non -General Fund) Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement with JFK Transportation Co., Inc. to provide school bus services in an amount not to exceed $550,000 for a term beginning June 17, 2025 and expiring June 16, 2028, with provisions for two, one-year extensions (Agreement No. A-2025-089). 16. First Amendment to Agreement with Casa De La Familia to Continue Providing Services to the Santa Ana Family Justice Center (General Fund) Department(s): Police Department Recommended Action: Authorize the City Manager to execute the first amendment to the agreement with Casa de la Familia and exercise two one-year renewal options to continue providing an Operations Specialist to the Santa Ana Family Justice Center for the period from July 1, 2025 through June 30, 2027, in the amount of $203,671 for an aggregate total amount not to exceed $535,304 (Agreement No. A-2025-090). 17. Fifth Amendment to Agreement with Aramark Correctional Services, LLC (General Fund) Department(s): Police Department CITY COUNCIL 8 Jl1NF 17 2025 City Council 6-8 7/15/2025 Recommended Action: Authorize the City Manager to execute a fifth amendment to the agreement with Aramark Correctional Services, LLC, to provide inmate meals and commissary services for an additional three-month period from July 1, 2025 through September 30, 2025, in the additional amount of $500,000 for a total aggregate amount not to exceed $8,183,326 (Agreement No. A-2025-091). 18. Resolution, Agreement, and Appropriation Adjustment Accepting the FY 2024 Emergency Management Performance Grant (Non -General Fund) Department(s): Police Department Recommended Action: 1. Adopt a resolution authorizing the City Manager to act on behalf of the City of Santa Ana for obtaining federal funds related to homeland security, emergency management, and/or disaster recovery provided by the U.S. Department of Homeland Security and sub -granted through the State of California and the County of Orange. RESOLUTION NO. 2025-027 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE(S) TO OBTAIN 2024 EMERGENCY MANAGEMENT PERFORMANCE GRANT FUNDS THROUGH THE COUNTY OF ORANGE 2. Authorize the City Manager to execute a two-year agreement with the County of Orange for the period of July 1, 2024 through June 30, 2026, for the FY 2024 Emergency Management Performance Grant in an amount not to exceed $46,537 (Agreement No. A-2025-092). 3. Approve an appropriation adjustment recognizing $46,537 in Law Enforcement Grants revenue account and appropriating same to the Emergency Management Performance Grant expenditure account. (Requires five affirmative votes) MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 18 as part of the Consent Calendar, seconded by Mayor Amezcua. The motion carried, 6-1, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: COUNCILMEMBER HERNANDEZ ABSTAIN: NONE ABSENT: NONE Status: 6 — 1 — Pass CITY COUNCIL 9 Jl1NF 17 2025 City Council 6-9 7/15/2025 19. Resolution Establishing the Appropriations Limit of the City of Santa Ana For FY 2025-26 Department(s): Finance and Management Services Recommended Action: Adopt a resolution establishing the appropriations limit of the City of Santa Ana for Fiscal Year 2025-26, as required by state law. RESOLUTION NO. 2025-028 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2025-2026 20.Approve a Second Reading of Zoning Ordinance Amendment (ZOA) No. 2024- 02 and Amendment Application (AA) No. 2024-03 Amending Certain Sections of Article XIX (The Transit Zoning Code, Specific Development No. 84) of Chapter 41 (Zoning) of the Santa Ana Municipal Code (SAMC) Addressing Industrial Land Uses, Nonconformities, and Operating Standards, and Amending the City of Santa Ana Zoning Map to Remove the Light Industrial (M1) and Heavy Industrial (M2) Suffixes from Certain Properties Within the SD-84 District Boundary First reading June 3, 2025 City Council Meeting, approved by a vote of (6-0-1) (Councilmember Phan recusal). Published in the OC Reporter on June 6, 2025. Department(s): Planning and Building Agency Recommended Action: 1. Conduct a second reading and adopt an ordinance to approve Zoning Ordinance Amendment (ZOA) No. 2024-02 amending certain sections of Article XIX (The Transit Zoning Code, Specific Development No. 84 (SD-84)) of Chapter 41 (Zoning) of the Santa Ana Municipal Code including amendments to the regulations, overlay districts and maps in the zoning district; modifying the authorized land uses and permit types; establishing revised non -conforming use regulations, including the addition of an amortization/termination of use process and adding operational standards for certain permitted and non -conforming uses. ORDINANCE NO. NS-3081 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING ZONING ORDINANCE AMENDMENT NO. 2024-02, AMENDING CERTAIN SECTIONS OF CHAPTER 41 (ZONING) OF ARTICLE XIX OF THE SANTA ANA MUNICIPAL CODE RELATED TO THE REGULATIONS, OVERLAY DISTRICTS AND MAPS IN THE TRANSIT ZONING CODE/SPECIFIC DEVELOPMENT (SD) NO. 84 ZONING DISTRICT; MODIFYING THE AUTHORIZED LAND USES AND PERMIT TYPES; ESTABLISHING REVISED NONCONFORMING USE REGULATIONS, INCLUDING THE ADDITION OF AN AMORTIZATION/TERMINATION OF USE PROCESS AND ADDING CITY COUNCIL 10 Jl1NF 17 2025 City Council 6 — 10 7/15/2025 OPERATIONAL STANDARDS FOR CERTAIN PERMITTED AND NONCONFORMING USES 2. Conduct a second reading and adopt an ordinance to approve Amendment Application (AA) No. 2024-03 amending the zoning by removing the M1 (Light Industrial) and M2 (Heavy Industrial) suffixes from certain properties within the SD-84 zoning district boundary as designated on the City of Santa Ana Zoning Map. ORDINANCE NO. NS-3082 entitled AMENDMENT APPLICATION (AA) NO. 2024-03 —AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF SANTA ANA BY REMOVING THE M1 (LIGHT INDUSTRIAL) AND M2 (HEAVY INDUSTRIAL) SUFFIXES FROM CERTAIN PROPERTIES WITHIN THE SD-84 ZONING DISTRICT BOUNDARY MINUTES: Councilmember Phan recused herself from Agenda Item No. 20 as some of the involved parties are clients of her employer, Rutan and Tucker. MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 20 as part of the Consent Calendar, seconded by Mayor Amezcua. The motion carried, 6-0-1, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: COUNCILMEMBNER PHAN (recusal) ABSENT: NONE Status: 6 — 0 —1 — Pass 21.Second Reading and Adoption of City Council Ordinance NS-3083 Appropriating Monies to the Several Offices, Agencies, and Departments of the City of Santa Ana for the Fiscal Year Budget Period Commencing July 1, 2025 First reading at the June 3, 2025 City Council meeting and approved by a vote of 7-0. Published in the OC Reporter on June 6, 2025. Department(s): Finance and Management Services Recommended Action: Approve the second reading and adopt Ordinance No. NS-3083 to appropriate monies to the several offices, agencies, and departments of the City for Fiscal Year 2025-26 (FY25-26), which begins on July 1, 2025 and ends on June 30, 2026. (Requires five affirmative votes) 90110'[ell M111011M 1Y City • •7/15/2020 UNCODIFIED ORDINANCE NO NS-3083 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO SEVERAL OFFICES, AGENCIES, AND DEPARTMENTS OF THE CITY FOR FISCAL YEAR BUDGET PERIOD COMMENCING JULY 1, 2025 **END OF CONSENT CALENDAR** BUSINESS CALENDAR AGENDA ITEM NO. 22 WAS CONTINUED TO THE JULY 1, 2025 CITY COUNCIL MEETING 22. Resolution Opposing the South Coast Air Quality Management District's Proposed Amendments to Rules 1111 and 1121 Department(s): City Manager's Office Recommended Action: Adopt a resolution opposing the South Coast Air Quality Management District's (South Coast AQMD) proposed amendments to Rules 1111 and 1121, and urging the South Coast AQMD Governing Board to reject any future proposals that lack meaningful public participation and adequate engagement with local government agencies. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA OPPOSING THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT'S PROPOSED AMENDMENTS TO RULES 1111 AND 1121 **END OF BUSINES CALENDAR** COUNCILMEMBER REQUESTED ITEMS 23. Discuss and Consider Providing Direction to Draft a Resolution in Support of the MENA Inclusion Act (AB 91) — Mayor Pro Tern Vazquez and Councilmember Hernandez MINUTES: Mayor Pro Tem Vazquez and Councilmember Hernandez spoke regarding drafting a resolution in support of the MENA Inclusion Act (AB (91). Councilmember Lopez spoke in support of the item. Councilmember Penaloza spoke in support of the item and asked that the item be brought back in a timely manner. Councilmember Phan spoke in support of the item. CITY COUNCIL 12 Jl1NF 17 2025 City Council 6 — 12 7/15/2025 Mayor Amezcua expressed support for the item. Councilmember Bacerra spoke in support of the item. 24. Discuss and Consider Providing Direction to the City Manager, City Clerk, and City Attorney to Prepare and Return to the City Council with a Resolution to Amend the 2025 City Council Meeting Calendar to Provide for a City Council Recess During Either July or August 2025 — Specifically by Canceling the Regular Meetings Scheduled for July 1 and 15, 2025, or August 5 and 19, 2025 — in Accordance with the City Council Rules and Procedures and the Ralph M. Brown Act — Councilmember Lopez MINUTES: Councilmember Lopez spoke regarding the proposed item and stated that, in light of recent events, she is supportive of the Council's direction. Councilmember Bacerra stated, in light of recent events, he is not in support of the item. Councilmember Penaloza stated he is not in support of the item. Councilmember Phan expressed support for a recess, but not at this time, and asked for such consideration next year. PUBLIC COMMENTS-- Public comments will be held for ALL comments on non -agenda items. MOTION: Councilmember Hernandez moved to allow the full three minutes for the public speakers, seconded by Councilmember Lopez. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, NOES: MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA ABSTAIN: NONE ABSENT: NONE NONE Status: 7 — 0 — Pass MINUTES: The following speakers addressed City Council in -person: 1. Selina Gallegos spoke regarding resident sentiments and the city's current climate's effect on the school district. CITY COUNCIL 13 Jl1NE 17 2025 City Council 6 — 13 7/15/2025 2. Kelly Kraus -Lee spoke regarding transparency and the city's current climate related to Immigration and Customs Enforcement (ICE) raids. 3. Bulmaro Vicente, Chispa, spoke regarding the city's current climate related to ICE raids, the Santa Ana Police Department, protests throughout the city, and Noe Rodriguez's incident. 4. Ryn, Pride at the Pier, spoke regarding the City's current climate related to ICE raids and protests throughout the city. 5. Juliana Musheyev, Orange County Peace and Freedom Party, spoke regarding protests throughout the City, the Santa Ana Police Department, and the city's current climate related to ICE raids. 6. Jannah, Party for Socialism and Liberation, spoke regarding protests throughout the City, the Santa Ana Police Department, and the city's current climate related to ICE raids. 7. Jay Taj spoke regarding the city's current climate related to ICE raids and returned a certificate of recognition. 8. Elizabeth Orozco spoke regarding the Santa Ana Police Department, protests throughout the city, and the city's current climate related to ICE raids. 9. Nathan Tran spoke regarding protests throughout the City, the Santa Ana Police Department, accountability, and the city's current climate related to ICE raids. 10. Isaac Garza spoke regarding protests throughout the City and the city's current climate related to ICE raids. 11. Gyzeht Delgado spoke regarding protests throughout the City and the city's current climate related to ICE raids. 12. Nataly Mejias spoke regarding protests throughout the city, the city's current climate related to ICE raids, transparency, and the Santa Ana Police Department. 13. Wendy Romero spoke regarding resident sentiments, the city's current climate related to ICE raids, and the Santa Ana Police Department. 14. Christopher Tasaka requested all cooperation with ICE end and addressed the city's current climate related to ICE raids. 15. Kevin Trujillo spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 16. Tanya Navarro spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 17. Itxel Espinoza spoke regarding resident sentiments, protests throughout the city, the Santa Ana Police Department, and the city's current climate related to ICE raids. CITY CQUN('IL_ 14 JUNE 17, 202.5 City Council 6-14 7/15/2025 18. Joese Hernandez spoke regarding resident sentiments, protests throughout the city, the Noe Rodriguez incident, and the city's current climate related to ICE raids. 19. Maria Estrada spoke regarding resident sentiments and the city's sanctuary status. 20. Jewel C. spoke regarding protests and the city's current climate related to ICE raids. 21. Maria Estrada spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 22. Mia Verdin spoke regarding the city's current climate related to ICE raids. 23. Anna Cecilia Fierro spoke regarding resident sentiments and the city's current climate related to ICE raids. 24. Vanessa Cerda spoke regarding resident sentiments and the city's current climate related to ICE raids. 25. Jennifer Perez spoke regarding resident sentiments, her family's experiences, and the city's current climate related to ICE raids. 26. Karla Ramirez spoke regarding resident sentiments and the city's current climate related to ICE raids. 27. Citlali Espinoza spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids, and thanked city officials for their support. 28. Sandy Araiza spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 29. Jaycee spoke regarding resident sentiments, transparency, and the city's current climate related to ICE raids. 30. Gilbert Sanchez requested the city not cooperate with ICE and he spoke regarding civil rights, First Amendment rights, and recent experiences related to ICE raids. 31. Rain Mendoza, CSO OC Immigration Committee, spoke regarding resident sentiments and the city's current climate related to ICE raids, requested all city cooperation with ICE end, and requested justice for Noe Rodriguez. 32. David Pulido spoke regarding Noe Rodriguez's incident and similar incidents in the City. 33. Ray Diaz, Francisco Torres Center for Justice, spoke regarding protests throughout the city, the city's current climate related to ICE raids, and his family's experiences related to ICE raids. 34. Fernando Deveras spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. CITY COUNCIL 15 JUNE 17, 202.5 City Council 6 — 15 7/15/2025 35. Fatima Calderon spoke regarding resident sentiments, protests throughout the city, and community efforts to support residents affected by the city's current climate related to ICE. 36. Shelsey Alvarez, Shelsey's Bridal and The Perfect Day, spoke regarding protests throughout the city, resident sentiments, the city's current climate related to ICE raids, and the effects it has had on business on Fourth Street. 37. Caroline Romero spoke regarding protests throughout the city and the city's current climate related to ICE raids, and thanked Councilmember Hernandez and Councilmember Lopez for their solidarity with the community. 38. Briana Olallo spoke regarding community efforts to support residents affected by the city's current climate related to ICE. 39. Carla Valencia spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 40. Joe Saladino spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. He thanked Councilmember Lopez, Councilmember Hernandez, and Mayor Pro Tem Vazquez for standing alongside the community. 41. Aaron Garcia thanked Councilmember Hernandez, Councilmember Lopez, and Mayor Pro Tem Vazquez for standing with the community during this time, and spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 42. Michael Weller spoke regarding the city's current climate and asked what protection is offered for the community being a sanctuary city related to ICE raids. 43. Laurangel Bustos spoke regarding resident sentiments, protests, transparency, and the city's current climate related to ICE raids. 44. Speaker expressed gratitude to Mayor Pro Tem Vazquez, Councilmember Lopez, and Councilmember Hernandez for standing alongside the community, and spoke regarding protests and the city's current climate related to ICE raids. 45. Miguel Carretero spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 46. Graciela Castaneda spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 47. Maria Jose Jimenez spoke regarding resident sentiments, protests, transparency, and the city's current climate related to ICE raids. 48. Aliyah Nunez spoke regarding resident sentiments, protests, transparency, and the city's current climate related to ICE raids. She explained her experience with the Santa Ana Police Department's involvement during protests and asked for the CITY COUNCIL 16 JUNE 17, 202.5 City Council 6 — 16 7/15/2025 release of Bee Lopez. 49. Bianca Stopani spoke regarding resident sentiments, protests, transparency, and the city's current climate related to ICE raids, and expressed gratitude to Councilmember Hernandez and Councilmember Lopez for standing alongside residents during protests. 50. Ariadna Ortega spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids, and recited a poem. 51. Maciel Diaz spoke regarding resident sentiments, protests, the city's current climate, and small businesses affected related to ICE raids. 52. Karla T. spoke regarding resident sentiments, protests, the city's current climate, and small businesses affected related to ICE raids. 53. Adrianna spoke regarding resident sentiments, protests, the city's current climate, small businesses affected related to ICE raids, and the Santa Ana Police Department's involvement during protests. 54. Clarivel Vega thanked Councilmember Lopez for her support and spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 55. Vi P. spoke regarding resident sentiments, protests, transparency, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 56. Kate Bustamante spoke regarding the city's current climate. 57. Carina Munoz spoke regarding Noe Rodriguez's incident and requested city management address and investigate the incident. She spoke regarding the city's current climate related to ICE raids and the Santa Ana Police Department's involvement during protests. 58. Leticia Castro spoke regarding resident sentiments, protests, transparency, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 59. Cat Quinn thanked Councilmember Lopez, Mayor Pro Tem Vazquez, and Councilmember Hernandez for standing with the community during current events and spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 60. Jocelyn Pacheco spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, the Santa Ana Police Department's involvement during protests, and Noe Rodriguez's incident. CITY COUNCIL 17 JUNE 17, 202.5 City Council 6 — 17 7/15/2025 61. Amalia Mejia thanked Councilmember Lopez, Councilmember Phan, Councilmember Hernandez, and Mayor Pro Tem Vazquez for being present at the protests. She spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 62. Wade Gracia thanked staff members who have been standing alongside the community in solidarity and spoke regarding the Santa Ana Police Department's involvement during protests and the city's current climate related to ICE raids. 63. Maria Berumen spoke regarding resident sentiments and the city's current climate related to ICE raids. 64. Salvador Bria spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 65. Speaker spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 66. Jasmin O. spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 67. John Straw spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and expressed gratitude to Councilmember Hernandez, Mayor Pro Tem Vazquez, and Councilmember Lopez. 68. Speaker spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 69. Clara Duran spoke regarding resident sentiments, protests, the city's current climate, and the Santa Ana Police Department's involvement during protests. 70. Priscilla Sanchez spoke regarding resident sentiments, protests, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 71. Speaker spoke regarding resident sentiments, protests, transparency, the city's current climate related to ICE raids, and the Santa Ana Police Department's involvement during protests. 72. Jasmine Palmerin spoke regarding resident sentiments, protests, transparency, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids. She expressed gratitude to Councilmember Lopez and Councilmember Hernandez. CITY QMUNCIL 18 DUNE 17, 202.5 City Council 6 — 18 7/15/2025 73. Matthew Compton spoke regarding the city's current climate related to ICE raids and Noe Rodriguez's incident, and requested city management address and investigate the incident. 74. Emma Gottfried spoke regarding Noe Rodriguez's incident and requested city management address and investigate the incident. 75. Diana Lopez spoke regarding resident sentiments and the city's current climate related to ICE raids. RECESS MINUTES: Mayor Amezcua recessed the City Council meeting at 10:21 P.M. RECONVENE MINUTES: Mayor Amezcua reconvened the City Council meeting at 10: 35 P.M. 76. Amy Parker spoke regarding resident sentiments, protests, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids. 77. Michael Willis spoke regarding the city's current climate and the Santa Ana Police Department related to ICE raids and protests, and gave gratitude to Councilmember Hernandez, Councilmember Lopez, and Mayor Pro Tem Vazquez. 78. Mia Lunne Rodriguez spoke regarding resident sentiments, protests, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids. 79. Marina S. spoke regarding resident sentiments, protests, the city's current climate, the Santa Ana Police Department's involvement related to ICE raids, and requested justice for Noe Rodriguez. 80. Nubia Hernandez read letters written by her students addressed to President Donald Trump regarding deportations. 81. Stephy Duarte spoke regarding the youth community and resident sentiments, protests, the city's current climate, and the Santa Ana Police Department's involvement related to ICE raids. 82. Teri Saydak spoke regarding resident sentiments, protests, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids. She expressed gratitude to Mayor Pro Tem Vazquez, Councilmember Hernandez, and Councilmember Lopez for showing up for the community. 83. Helena E. spoke regarding resident sentiments, protests, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids. CITY COUNCIL 19 JUNE 17, 202.5 City Council 6 — 19 7/15/2025 84. Speaker spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 85. Speaker spoke regarding resident sentiments, protests, and the city's current climate related to ICE raids. 86. Lorenzo Gonzalez spoke regarding the city's current climate related to ICE raids. 87. Miranda spoke regarding resident sentiments, protests, small businesses, the city's current climate, the Santa Ana Police Department, and the National Guard's involvement related to ICE raids City Attorney Sonia Carvalho announced that pursuant to Resolution No. 2025-004 all meetings are schedule to terminate at 11:59 P.M. on the same day it began and at 11:00 P.M. the City Council shall determine which of the remaining agenda items can be considered and acted upon prior to 11:59 P.M. and will continue all other items. MOTION: Councilmember Hernandez moved to continue the meeting to hear all public comments, seconded by Councilmember Penaloza. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 88. Erika Armenta (translation. Spanish) spoke regarding the city's current climate related to ICE raids and the Noe Rodriguez incident. 89. Abe Q. echoed previous comments regarding the Noe Rodriguez incident and requested transparency. 90. Elianna Sanchez spoke regarding protests throughout the city and the city's current climate related to ICE raids. 91. Aaron Eisenbart spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 92. Marlha Sanchez spoke regarding resident sentiments and the city's current climate related to ICE raids. 93. Speaker requested all cooperation with ICE end and spoke regarding protests throughout the city and the city's current climate related to ICE raids. CITY COUNCIL 20 JUNE 17 2025 City Council 6 — 20 7/15/2025 94. Xitlaly Sanchez requested all cooperation with ICE end, transparency, and spoke regarding protests throughout the city and the city's current climate related to ICE raids. 95. Zury Villa spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 96. Vladimir Benitez spoke regarding due process, resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 97. Stephanie spoke regarding protests throughout the city, the city's current climate related to ICE raids, and the Noe Rodriguez incident. 98. Nat Martinez spoke regarding First Amendment rights, resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. The following speakers addressed City Council via teleconference: 99. Sara Marshall spoke regarding resident sentiments, protests throughout the city, transparency, and the city's current climate related to ICE raids. 100. Irene Cabanas spoke regarding protests throughout the city, the city's current climate related to ICE raids, and her family's experiences related to ICE raids. 101. Diana, CSO Orange, spoke regarding resident sentiments, protests throughout the city, the city's current climate related to ICE raids, and requested justice for Noe Rodriguez. 102. Jason Rossovich read a letter by his wife Noelle related to protests throughout the city, resident sentiments, and the city's current climate related to ICE raids. 103. Victor Mendez spoke regarding protests throughout the city and the city's current climate related to ICE raids. 104. Ana Charco spoke regarding resident sentiments, protests throughout the city, and requested support for residents affected by the city's current climate related to ICE. 105. Kayla Asanto spoke regarding resident sentiments, protests throughout the city, and the city's current climate related to ICE raids. 106. John Ramirez spoke regarding the Mayor's community events, public safety efforts, and protests throughout the city. CITY MANAGER COMMENTS MINUTES: None. CITY COUNCIL 21 JUNE 17, 202.5 City Council 6 — 21 7/15/2025 COUNCIL COMMENTS AB1234 DISCLOSURE — If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended. MINUTES: Councilmember Phan thanked everyone who spoke. She questioned staff about whether the City had made any requests for federal immigration or border security agencies to be present in the city, whether the City had collaborated with the National Guard or specifically asked for their presence, raised concerns regarding reports of community members being detained by unidentified individuals who were presumed to be immigration agents, asked for clarification regarding a phone call the City Attorney received from the U.S. Attorney related to the City assisting in securing the federal building, and whether the City Attorney had previously received a direct call from the U.S. Attorney. City Manager Alvaro Nunez confirmed the City had not made any requests for the agencies to be present in Santa Ana. Police Chief Robert Rodriguez confirmed the City had neither requested the National Guard's presence nor collaborated with their efforts. City Attorney Sonia Carvalho confirmed the City had received such calls before, but none were related to immigration; they were for other ongoing investigations. Councilmember Phan inquired regarding the essence of the U.S. Attorney's message, stating she understood that it was a threat about sending in the National Guard if the city did not help clear the federal building and requested clarification about the use of the term "overrun." City Manager Nunez responded that the U.S. Attorney requested help and assistance for federal agents and staff and that it was the U.S. Attorney that used the term "overrun. " In response to Councilmember Phan, Police Chief Rodriguez confirmed that City police officers secured the federal building's sidewalks in an effort to prevent the National Guard from being deployed to Santa Ana; to which Councilmember Phan noted that the National Guard was deployed anyway and she asked the City Attorney if there was any law the city council could use to remove ICE from Santa Ana. City Attorney Carvalho stated the city has no authority to prevent ICE from operating within its boundaries. Councilmember Phan stated the city lacks any legal means to prohibit or remove ICE from Santa Ana, noting that if it were possible, Los Angeles would have already done so, and asked whether the city had any authority to remove Border Patrol. City Attorney Carvalho confirmed that the city does not have the authority to remove Border Patrol or the National Guard, noting that even the Governor, with significantly more power and the support of the California Attorney General, has been unsuccessful in forcing the National Guard out of the state. CITY COUNCIL 22 JUNE 17 2025 City Council 6 — 22 7/15/2025 Councilmember Phan thanked the City Attorney for clarifying, stated that these questions were not due to a lack of sympathy and that she personally desires ICE out of California, Orange County, and Santa Ana, and acknowledged the difficult reality and the lack of city authority to remove ICE, Border Patrol, or the National Guard. She emphasized the city's role is to support legislators fighting for removal and to share information and resources with the community, stressed the importance of not misinforming the public about the city's limited authority, and urged solidarity rather than internal blame. She expressed hope for continued information sharing, mutual care, and support, commended the executive team, Chief, City Attorneys, and Councilmembers for ensuring protest rights, and reminded everyone to stand together against the federal government harming the community. She reflected on the emotional night and expressed her belief in the posted motto "E Pluribus Unum." Councilmember Lopez acknowledged the anger and deep sadness felt by many in the community, thanked everyone involved in community efforts, and expressed understanding of what families are experiencing, citing personal examples of her parents' fear and the anxiety reported by constituents. She urged residents to prioritize self -care and mutual safety, and highlighted the grim reality of family separations, parental detentions, and unidentified federal agents in tactical gear detaining individuals without due process. She noted the detention of children, arrest of community leaders, brutalization of journalists, targeting of legal observers, and repeated traumatization of everyday people, including those reliving past traumas. Councilmember Lopez reiterated the demand for ICE to leave neighborhoods and emphasized the need to speak up and push back against the administration, while also noting that business owners do not want the National Guard due to negative impacts on downtown Santa Ana's foot traffic. She asked regarding the plan to ensure peaceful protests without brutalization and explained she was at the June 9th protest where federal agents shot various objects into the crowd, and that Trustee Magdaleno, who was with her, was hit twice. Councilmember Lopez mentioned she heard the Chief speak about federal agents calling for support. Police Chief Rodriguez confirmed federal agents had contacted Santa Ana Police for support, including to get vehicles in to extract federal staff from their building. In response to Councilmember Lopez, Police Chief Rodriguez noted that such assistance did not conflict with the sanctuary ordinance because the request was for assistance for another law enforcement agency, not for the arrest or detainment of anyone based on immigration status. City Attorney Carvalho stated there were two separate issues: the Sanctuary City ordinance and the California Values Act protect individuals from federal agencies in detaining or investigating immigrants. She clarified the police department provides "safety assistance" to anyone, regardless of who calls, and that the call from federal agents was for assistance for people feeling unsafe in the Federal building, not for arrests, detentions, or deportation hearings related to immigrants. City Attorney Carvalho then reminded the council that while she was happy to answer questions, she would be mindful of the Brown Act, which allows for clarifying questions but not a debate since the item was not agendized. In response to an inquiry by MayorAmezcua, City Attorney Carvalho confirmed that brief questions were permissible, but not a "back CITY CQUNQIL_ 23 JUNE 17, 202.9 City Council 6 — 23 7/15/2025 and forth debate" under the Brown Act. She clarified that questions about "what the law says" or direct questions to the Chief could be answered, but a conversational exchange among councilmembers was not allowed. Councilmember Lopez asked the Chief to inform the public which agencies had been present in the city over the past nine days, to which Police Chief Rodriguez speculated that ICE, Border Patrol, and the Department of Justice were likely present, noting these are typically operating agencies in other areas, but he could not confirm if these were the only ones or if all three were present. Police Chief Rodriguez further explained that mutual aid is coordinated by their mutual aid coordinator, and he would need to confirm which agencies came into the city. He stated Orange County Sheriffs, Anaheim, Garden Grove, Costa Mesa, Orange, and Irvine police departments had provided aid on different nights. In response to Councilmember Lopez's question about federal reimbursement, City Manager Nunez stated he had spoken with Congressman Correa and State Senator Umberg about possible assistance, with no known sources but that it would be looked into. Councilmember Lopez inquired regarding upcoming budget opportunities to support families, to which City Manager Nunez noted the city offers Section 8 assistance and has an Immigration Defense Fund. He stated that staff would look into further options. In response to Councilmember Lopez's inquiry regarding social media accounts, City Attorney Carvalho explained that if a social media account is held out as a city communication method, there are significant restrictions on blocking commentary and recommended that personal devices and social media pages are kept separate from city business. Councilmember Lopez asked regarding the pathway for a community member to report an account that is blocking and deleting comments. City Attorney Carvalho stated that blocking is an individual practice by the elected official, not governed by the city, and cases involving this issue are typically legal actions taken by individuals against the individual elected officials not through any regulatory agency. Councilmember Lopez asked for clarification regarding complaints from residents and staff related to accessing areas and parking in the civic center. Police Chief Rodriguez stated such issues would be looked into. He noted hearing that federal agents were asking for IDs in front of the Civic Center or federal courthouse. Councilmember Lopez inquired about particular information required on calendar entries under the sunshine ordinance to which City Attorney Carvalho shared the ordinance requirements. Councilmember Lopez addressing a media comment and word choices made a fellow councilmember and urged them to be mindful when providing quotes. Councilmember Penaloza thanked Councilmember Lopez for her comments and expressed shared anger about the community's situation. He clarified that the referenced comment was taken out of context and referred to the repeated CITY CQUNQIL_ 24 JUNE 17, 202.5 City Council 6 — 24 7/15/2025 misinformation that ICE had notified the city 42 times, when the Department of Homeland Security had actually done so only 17 times. He thanked everyone who came to speak, acknowledged the widespread anger, frustration, heartbreak, and disruption caused by the ICE raids, stated he issued a statement condemning the ICE raids, and expressed devastation at seeing working-class residents in his district having their lives torn apart and families affected. He described the situation as frightening, scary, and deeply personal, recounting how seeing raids at bus stops, Home Depot, and car washes reminds him of his parents' fear for 15 years after immigrating from Guerrero, Mexico, before receiving amnesty in the 1980s, and stressed he cannot remain silent while families like his are hunted and humiliated on their own streets and neighborhoods. Councilmember Penaloza explained he was unable to be at the Monday evening event because he was at work until 6:30 P.M. and expressed pride for everyone who was out protesting. He stated he attended Congressman Correa's town hall on Tuesday morning with other labor organizations. Councilmember Penaloza emphasized the city has zero control over federal enforcement operations, including ICE raids and the National Guard's presence, stated he pressed the City Manager all weekend to open streets on Fourth Street, advocating for the struggling immigrant -owned businesses, and confirmed no one on the council is working with ICE, nor are they supportive of the current state of their streets. He reiterated his denouncement of the National Guard and expressed pride for everyone who came to speak, affirming their First Amendment right to protest peacefully, and stated that the city's strength comes from its people. He expressed solidarity with everyone feeling afraid and described the situation as devastating, acknowledged the justified rage, and stated he willingly accepts any anger directed at him because many residents do not know where else to turn, sharing their same sentiments. Councilmember Hernandez expressed solidarity with the community, affirming his commitment to stand and fight alongside them, and stated his American identity stems from his great-grandfather, whose sacrifice provided his family the opportunity to bring loved ones from Mexico. He credited the resistance of the Chicano community during the Zoot Suit Riots and the Vietnam War for his presence today. Councilmember Hernandez shared his Catholic upbringing with an emphasis on principles of love to combat violence and details of an incident between the Santa Ana Police and his cousin, Brandon Lopez. He stated that the recent ICE raids in Santa Ana are terrorizing the community, with ICE, DHS, and Border Patrol targeting vulnerable members of Orange County's largest immigrant community. Councilmember Hernandez affirmed his support for peaceful protest, stated he will stand alongside the community and will not support violence or destruction of the city, and emphasized his belief in peaceful demonstration. He urged residents to continue using their First Amendment rights and to hold each other accountable for safety. Councilmember Hernandez stated the violence was inflicted by the police department, spoke regarding his experience at the protest, and stressed the importance of the city and department complying with state law. He requested the City Manager prioritize revisiting the Santa Ana Police Department's militarized equipment policy, identified the various communities at risk, and requested the City Manager's office provide transparent data on the number of non -lethal rounds fired at the public and chemical agents deployed during peaceful protests. He also asked the Chief for the threshold number of demonstrators that would trigger calling for mutual aid. CITY CQLJNQJL 25 JUNE 17, 202.5 City Council 6 — 25 7/15/2025 Police Chief Rodriguez stated he did not currently have the requested numbers but could obtain them and explained calls for mutual aid are based on the department's available resources at the time, calls for service within the city, and available resources throughout the county. Councilmember Hernandez asked a follow-up question regarding mutual aid from neighboring cities and whether there is a proportional response based on the size of the gathering and if details related to that were available. Police Chief Rodriguez explained that mutual aid is dependent on the specific mutual aid response area, as cities are assigned to specific areas, and overall county -wide aid is based on need, proportion, and what is happening in other cities. Councilmember Hernandez stated he has been out every day since the start of the protests to document police officers and recounted a recent incident at a park opening where officers were disrespectful to his colleagues. Councilmember Hernandez demanded the department respect the community, city employees, and those they are sworn to protect and serve. He advocated against criminalizing those who speak in the chamber and specifically called for the release of Taina Lopez and dropping of any charges against her. He urged the City Manager's office to prioritize finalizing immigration defense contracts, denounced the allegation that he condoned violence, expressed willingness to speak with those who disagree with him, and requested his colleagues not allege something he did not do. Mayor Pro Tem Vazquez thanked councilmembers for defining the danger as coming from the federal court and acknowledged the past few days have shaken Santa Ana and the country. He stated that ICE was never about safety and characterized ICE as a bipartisan failure and a weapon targeting communities the country depends on. He claimed that under current federal leadership, ICE is being used as a tool of authoritarian power, and stated that if representatives want their vote, they must advocate for abolishing ICE, as it is no longer about the people or justice. Mayor Pro Tem Vazquez stressed the necessity of changing how police interact with protests, rewriting policies to protect people's rights to assemble, speak, and demand change, not just protecting property. He demanded a ban on tear gas and rubber bullets and stated that protesting is a right, not a threat. He requested the city submit Freedom of Information Act requests to ICE and DHS to obtain details on arrests, stressed the need to create organizing spaces in homes, churches, or streets, and to support each other by offering rides to fearful families, fundraising for food, legal aid, and rent, and patrolling streets to alert neighbors, and encouraged continued protests. Councilmember Bacerra thanked everyone who attended, acknowledged the display of passionate expression and direct criticism towards the mayor and council was part of the governmental process, and noted that no one was removed for peacefully exercising their First Amendment right. He addressed the ICE raids, noting the initial narrative that ICE would only target serious felons or operate in jails, contrasting it with the reality of raids in neighborhoods, and stated that these ICE raids do not make the community safer, and despite the federal administration's claim to be law -and -order centric, their actions are creating an unsafe situation. Councilmember Bacerra countered what he perceived as misinformation about the Santa Ana Police Department, highlighted former Police Chief Ray Davis, who denounced immigration CITY COUNCIL 26 JUNE 17, 202.5 City Council 6 — 26 7/15/2025 sweeps and deportations, and commended Councilmember Phan for asking questions that promoted shared information, acknowledging the council cannot abolish ICE, stop raids, or tell the National Guard to leave. Councilmember Bacerra expressed understanding for the community's passion and desire for the council to take action, cited the Governor's inability to control the National Guard or remove them from Los Angeles and Santa Ana despite lawsuits filed against the federal government, and reflected on the 2020 pandemic when he witnessed unprecedented challenges and the unanimous decision of seven councilmembers to enact protections for the community. He acknowledged the current disagreements but urged unity, and emphasized that the council is not asking for or supporting ICE. He expressed hope that despite future challenges, the city can come together, show resilience, and remain a proud city. Councilmember Lopez acknowledged the discussion about residents' experiences and asked the Chief to clarify the type of chemical agents and gases used to disperse people from the downtown Civic Center area and whether tear gas was the only chemical agent used at the protests. Police Chief Rodriguez confirmed that or tear gas was the only chemical agent used. In response to Councilmember Lopez's inquiry on what other methods or objects were used, Police Chief Rodriguez stated that rubber batons and pepper balls were also used. Councilmember Lopez suggested the city follow Boston Mayor Michelle Wu's executive order and request Freedom of Information Act information from the federal government about who has been arrested, why, and where detainees are being held. She emphasized the urgency due to community members being sent to various states, some with unknown whereabouts. City Manager Nunez stated he would work with the City Attorney in this regard. Councilmember Lopez suggested to colleagues that they reconsider their vote on Automated License Plate Reader contracts, citing recent reports which allegedly show local law enforcement agencies violating state law by sharing license plate reader data with federal agencies over a hundred times last month, despite the law prohibiting such sharing with out-of-state or federal entities. She encouraged constituents to get involved with local organizations like the Orange County Rapid Response Network, and to engage with the council or their offices. She thanked Vacation Bar and DJ Gucci Mar for their support and fundraising efforts, and requested training for staff so they may respond appropriately in the event a federal agent walks in to City -owned buildings. Councilmember Penaloza emphasized the importance of turning to Congressman Correa and Senators Adam Schiff and Alex Padilla for support. MayorAmezcua thanked everyone who attended or watched, acknowledged she heard and understood everyone, and stated her opposition to what is happening in the city and said she would never support it. She acknowledged Councilmember Phan's efforts and reiterated that her own actions are limited to asking hard questions and pushing back for help, clarified her role, and stated she is only one vote. Mayor Amezcua acknowledged the daily, ever -changing challenges in Santa Ana and across the country. She reiterated her opposition to ICE and the National Guard's presence, expressed her desire for downtown businesses to thrive, residents to feel safe, and for CITY CQLJNCIL 27 JUNE 17, 202.5 City Council 6 — 27 7/15/2025 families not to be torn apart. She expressed openness to meeting and listening to constituents if they communicate respectfully, stated she is actively responding by meeting with the City Manager multiple times daily and asking questions, highlighting Santa Ana's role as a city that others watch. Mayor Amezcua reiterated her support for the community and opposition to the current events, affirming her service to all communities including immigrants, Latino, AAPI, and African -American residents. She shared a personal incident, stated that she does not support ICE and did not request the National Guard's presence, stressed the importance of immigration reform, and urged a focus on beneficial reform for millions. She acknowledged hearing the community and expressed sorrow for their experiences. Mayor Amezcua reminded the audience of Santa Ana's history of unity, hoped for continued collaboration despite disagreements, and thanked everyone for their attendance and comments. ADJOURNMENT — Adjourn the City Council meeting. MINUTES: Mayor Amezcua adjourned the City Council Meeting at 1:34 A.M. on June 18, 2025. Respectfully submitted: Jennifer L. Hall, CIVIC City Clerk CITY COUNCIL 28 JUNE 17, 202.5 City Council 6 — 28 7/15/2025 DRAFT Minutes of the Regular Meeting of the City Council City of Santa Ana, California of July 1, 2025 CLOSED SESSION MEETING - 4:00 P.M. REGULAR OPEN MEETING - 5:30 P.M. (Immediately following the Closed Session Meeting) CITY COUNCIL CHAMBER 22 Civic Center Plaza Santa Ana, CA 92701 CLOSED SESSION CALL TO ORDER MINUTES: Mayor Amezcua called the Closed Session meeting to order at 4:03 P.M. ATTENDANCE Council Members Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Mayor Pro Tern Benjamin Vazquez Mayor Valerie Amezcua City Manager Alvaro Nunez City Attorney Sonia R. Carvalho City Clerk Jennifer L. Hall R()I I CAI I MINUTES: City Clerk Jennifer L. Hall conducted roll call. Councilmembers Bacerra and Phan, Mayor Pro Tem Vazquez, and Mayor Amezcua were present. Councilmembers Hernandez, Lopez, and Penaloza arrived during Closed Session. CITY COUNCIL 1 JULY 1 2025 City Council 6 — 29 7/15/2025 ADDITIONS\DELETIONS TO CLOSED SESSION MINUTES: None. PUBLIC COMMENTS-- Members of the public may address the City Council on Closed Session items. MINUTES: None. RECESS — City Council will recess to Closed Session for the purpose of conducting regular City business. MINUTES: Mayor Amezcua recessed to consider the Closed Session items at 4:05 P.M. CLOSED SESSION ITEMS — The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Confidential Association of Santa Ana (CASA) 2. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Santa Ana Middle Management/Administrative Management Association (SAMA) 3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Santa Ana Police Management Association (PMA) 4. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Service Employees International Union Full -Time Employees Unit (SEIU) 5. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: Lori Schnaider, Executive Director of Human Resources Employee Organization: Service Employees International Union Local 721, Part - Time Non -Civil Service Employees Unit (SEIU-PTNCS) CITY COUNCIL 2 JULY 1 2025 City Council 6 — 30 7/15/2025 CLOSED SESSION REPORT — The City Attorney will report on any action(s) from Closed Session. RECONVENE — City Council will reconvene to continue regular City business. CITY COUNCIL REGULAR OPEN SESSION CALL TO ORDER MINUTES: MayorAmezcua reconvened the City Council Meeting to order at 6:08 P.M. ATTENDANCE Councilmembers Mayor Pro Tern Mayor City Manager City Attorney City Clerk ROLL CALL Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Benjamin Vazquez Valerie Amezcua Alvaro Nunez Sonia R. Carvalho Jennifer L. Hall MINUTES: City Clerk Jennifer L. Hall conducted roll call. Councilmembers Bacerra, Hernandez, Lopez, Penaloza, and Phan, Mayor Pro Tem Vazquez, and Mayor Amezcua were present. PLEDGE OF ALLEGIANCE WORDS OF INSPIRATION Pastor Tommy Cota Reverend Terry Le Page ADDITIONS\DELETIONS TO THE AGENDA MINUTES: City Clerk Jennifer L. Hall announced Presentation Item No. 1 has been postponed to the July 15, 2025 City Council meeting. CEREMONIAL PRESENTATIONS CEREMONIAL PRESENTATION WAS CONTINUED TO THE JULY 15, 2025 CITY COUNCIL MEETING CITY COUNCIL 3 JULY 1 2025 City Council 6 — 31 7/15/2025 1. Certificates of Recognition presented by Councilmember Bacerra recognizing Orange County Fire Authority's Best and Bravest Outstanding Contributions to the Community CLOSED SESSION REPORT —The City Attorney will report on any action(s) from Closed Session. MINUTES: City Attorney Sonia Carvalho stated there were no reportable actions. MINUTES: Mayor Amezcua requested Agenda Item Nos. 3, 4, 5, 6, and 7 be moved prior to public comments for Council consideration and approval. MOTION: Councilmember Bacerra moved to approve Consent Calendar Item Nos. 3, 4, 5, 6, and 7, seconded by Councilmember Penaloza. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN NOES: MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA ABSTAIN: NONE ABSENT: NONE NONE Status: 7 — 0 — Pass AGENDA ITEM NOS. 3, 4, 5, 6 AND 7 MOVED PRIOR TO PUBLIC COMMENT 3. Appoint Denise Reynoso Nominated by Councilmember Phan as the Ward 1 Representative to the Environmental and Transportation Advisory Commission for a Partial Term Expiring December 12, 2028 Department(s): City Clerk's Office Recommended Action: Appoint Denise Reynoso to the Environmental and Transportation Advisory Commission as the Ward 1 representative and administer the Oath of Office. (Pursuant to SAMC Sec. 2-326(a), requires five affirmative votes.) MINUTES: City Clerk Jennifer L. Hall administered the oath of office to Denise Reynoso. 4. Appoint Aylin Luis Nominated by Councilmember Phan as the Ward 1 Representative to the Youth Commission for a Partial Term Expiring December 12, 2028 Department(s): City Clerk's Office CITY COUNCIL 4 JULY 1 2025 City Council 6 — 32 7/15/2025 Recommended Action: Appoint Aylin Luis to the Youth Commission as the Ward 1 representative and administer the Oath of Office. MINUTES: City Clerk Jennifer L. Hall administered the oath of office to Aylin Luis. 5. Appoint Marlene Pena-Marin Nominated by Councilmember Bacerra as the Ward 4 Representative to the Arts and Culture Commission for a Partial Term Expiring December 8, 2026 Department(s): City Clerk's Office Recommended Action: Appoint Marlene Pena-Marin to the Arts and Culture Commission as the Ward 4 representative and administer the Oath of Office. MINUTES: City Clerk Jennifer L. Hall administered the oath of office to Marlene Pena-Marin. 6. Appoint Jesse Rodriguez Nominated by Councilmember Bacerra as the Ward 4 Representative to the Youth Commission for a Partial Term Expiring December 8, 2026 (rescheduled from the June 17, 2025 City Council meeting) Department(s): City Clerk's Office Recommended Action: Appoint Jesse Rodriguez to the Youth Commission as the Ward 4 representative and administer the Oath of Office. MINUTES: City Clerk Jennifer L. Hall administered the oath of office to Jesse Rodriguez. 7. Appoint Nancy Gonzalez Nominated by the Parks, Recreation, and Community Services Agency as the Santa Ana Senior Center Representative to the Parks, Recreation, and Community Services Commission for a Partial Term Expiring October 31, 2025 Department(s): City Clerk's Office Recommended Action: Appoint Nancy Gonzalez to the Parks, Recreation, and Community Services Commission to represent residents age 55 and older and administer the Oath of Office. MINUTES: City Clerk Jennifer L. Hall administered the oath of office to Nancy Gonzalez. PUBLIC COMMENTS — Public comments will be held during the beginning of the meeting for ALL comments on agenda and non -agenda items. CITY COUNCIL 5 JULY 1 2025 City Council 6 — 33 7/15/2025 MINUTES: City Clerk Jennifer L. Hall reported out the summary of email comments received: one (1) Agenda Item No. 26, three (3) Agenda Item No. 27, three (3) Agenda Item No. 28, (66) Agenda Item No. 29, three (3) Agenda Item No. 32, and (13) non - agenda comments. The following speakers addressed the City Council in -person: 1. Nancy Robles, Service Employee International Union (SEIU) Local 721 Chapter President, spoke regarding city employees' commitment to the community and the vital roles SEW members have in city operations. 2. Taina Bee Lopez requested charges against her be dropped related to an incident at the previous City Council meeting and spoke regarding excessive use of force from the Police Department, accountability, humanitarian visas, transparency, and Agenda Item No. 29. 3. Cassandra Perez, District Representative from Congressman Lou Correa, read a letter in support of Agenda Item No. 27. 4. Tommy Cota spoke regarding the City's current climate regarding Immigration and Custom Enforcement (ICE), the federal government, unity, and peace. 5. Amalia Mejia expressed concern regarding the amendments to the Police Oversight Commission, proposed amendments to the ordinance, and expressed support for Agenda Item No. 32. 6. Ana Gomez spoke regarding the benefits of short-term rentals. 7. Bulmaro Vicente spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance and spoke in support of Agenda Item No. 32. 8. Jasmine Palmerin spoke regarding the need for financial assistance for families and expressed concern regarding the proposed amendments to the Police Oversight Commission ordinance. 9. Tonatzin Reyes spoke regarding the City's current climate and in support of Agenda Item No. 27. City Attorney Sonia Carvalho explained that the City of Santa Ana is a Council- Manager form of government and clarified the Mayor does not have the authority to remove ICE. 10. Jennifer Rojas spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance. 11. Aliyah Nunez spoke regarding the City's current climate and her personal experiences related to ICE, and spoke in support of Agenda Item No. 27. 12. Daniel Suarez spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance. CITY CQLJNCIL 6 JULY 1, 202.9 City Council 6 — 34 7/15/2025 13. Sean O'Connell spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance. 14. David Pulido spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance and spoke regarding Noe Rodriguez's incident. 15. Gilbert B. spoke regarding the City's current climate regarding ICE and requested the Mayor resign. 16. Giovanni Chavez, California Young Democrats, spoke regarding the City's current climate regarding ICE, unity, and Agenda Item No. 32. 17. Khang Tran spoke regarding the American government, police use of force and authority, and Noe Rodriguez's incident. He spoke in opposition to Agenda Item No. 29 and in support of Agenda Item No. 32. 18. Daniel Diaz requested questions submitted to city staff be answered and spoke regarding transparency and the City's current climate regarding ICE. 19. Sandra spoke regarding the City's current climate regarding ICE and in support of Agenda Item No. 32. 20. Matthew Compton spoke regarding the Culichi Town incident, spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance, and requested justice for Noe Rodriguez. 21. Jocelyn Pacheco spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance. 22. Zury spoke regarding Santa Ana Police Department Internal Affairs incidents and in opposition to the proposed amendments to the Police Oversight Commission ordinance. 23. Tanya Nava spoke regarding the City's current climate, requested all charges against Taina Bee Lopez be dropped, and called for justice for Noe Rodriguez and Brandon Lopez. She spoke in opposition to Agenda Item No. 29 and in support of Agenda Item Nos. 25-28 and 32. 24. Erika Armenta (translation: Spanish) spoke regarding the Noe Rodriguez and Culichi Town incidents and requested justice, and spoke in opposition to Agenda Item No. 29. 25. Abraham Q. spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance and requested justice for Noe Rodriguez. 26. Carl Benninger spoke regarding the City's current climate regarding ICE and unity within the community and requested immigration law changes to establish a pathway for citizenship. CITY CQUNCIL 7 JULY 1, 202.9 City Council 6 — 35 7/15/2025 27. Francisco Barragan spoke regarding the City's current climate regarding ICE, unity, and peaceful protests, and spoke in support of Agenda Item No. 32. 28. Fernando Deveras spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance, spoke in support of Agenda Item Nos. 28 and 32, requested social media accounts refrain from sharing posts involving minors, and urged neighbors to unite. 29. Mia Verdin spoke in support of Agenda Item No. 32, spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance, and spoke in support of financial assistance for families impacted by federal immigration but requested the funds not be pulled from City events. 30. Emma Gottfried spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance. 31. Carlos Perea spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance and asked for clarification regarding the proposed amendments. 32. Emilio Ramirez spoke in opposition to Agenda Item No. 20 and spoke in support of Agenda Item No. 28. The following speakers addressed the City Council via teleconference: 33. Kayla Asato spoke in support of Agenda Item Nos. 27 and 28 and suggested creating a city Sanctuary Board. 34. Teodora (translation: Spanish) spoke in support of Agenda Item No. 28, spoke regarding the impacted families related ICE, and requested additional funding. 35. Claudia Morales Sanchez (translation: Spanish) spoke in support of assistance for families impacted by ICE, and requested additional funding. 36. Araceli Robles (translation: Spanish) spoke in opposition to the proposed amendments to the Police Oversight Commission ordinance and asked for clarification regarding the proposed amendments. 37. Victor Mendez spoke in support of Agenda Item No. 24 and spoke regarding alternative funding to assist families impacted by ICE. 38. Faby, Orange County Justice Fund, spoke in support of Agenda Item Nos. 27 and 32, spoke regarding the immigration legal defense fund, and expressed opposition to Agenda Item No. 29. RECESS MINUTES: Mayor Amezcua recessed the City Council meeting at 8.17 P.M. CITY COUNCIL 8 JULY 1 2025 City Council 6 — 36 7/15/2025 RECONVENE MINUTES: Mayor Amezcua reconvened the City Council meeting at 8:29 P.M. CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 2 through 24 and waive reading of all resolutions and ordinances. MINUTES: At 8:30 P.M., the Consent Calendar was considered. Councilmember Penaloza pulled Agenda Item No. 21 for separate discussion and consideration. Councilmember Bacerra pulled Agenda Item Nos. 9, 11, 15, and 20 for separate discussion and consideration. Councilmember Hernandez requested to comment on Agenda Item No. 10. Councilmember Phan recused herself from Agenda Item Nos. 10, 19, and 20 as the listed entities, City of Irvine and Working Wardrobes, are clients of her employer, Rutan and Tucker. MOTION: Councilmember Hernandez moved to approve Consent Calendar Item Nos. 2 through 24, with the exception of Item Nos. 3, 4, 5, 6, and 7 already approved and Item Nos. 9, 11, 15, 20 and 21 pulled for separate discussion and consideration, seconded by Councilmember Penaloza. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 2. Excused Absences Department(s): City Clerk's Office Recommended Action: Excuse the absent members. 3. SEE PAGE NOS. 4 AND 5 FOR ITEM NOS. 3, 4, 5, 6 AND 7 CITY COUNCIL 9 JULY 1 2025 City Council 6 — 37 7/15/2025 4. SEE PAGE NOS. 4 AND 5 FOR ITEM NOS. 3, 4, 5, 6 AND 7 5. SEE PAGE NOS. 4 AND 5 FOR ITEM NOS. 3, 4, 5, 6 AND 7 6. SEE PAGE NOS. 4 AND 5 FOR ITEM NOS. 3, 4, 5, 6 AND 7 7. SEE PAGE NOS. 4 AND 5 FOR ITEM NOS. 3, 4, 5, 6 AND 7 8. Aggregate Contracts to Diamond Environmental Services LP and United Site Services of California, Inc. for Portable Toilets and Other Site Rentals and Services (Specification No. 24-061) (General Fund & Non -General Fund) Department(s): Finance and Management Services Recommended Action: Authorize the City Manager to execute an amendment to increase the total aggregate not to exceed amount of the Contracts with the vendors listed below by $172,500 for portable toilets and other site rentals and services, for a new total aggregate amount not to exceed $572,500. (Purchase Order Contract Nos. 8736 & 8737) Vendor I Location Diamond Environmental San Marcos, CA Services LP United Site Services of Anaheim, CA California, Inc 9. Approve a Pre -Commitment of up to $920,000 in Inclusionary Housing Funds for Eligible Homebuyers to Purchase Nine (9) Existing Rental Units that will be Converted into Affordable Ownership Condominium Units Located at 425 E. Wellington Avenue Department(s): Community Development Agency Recommended Action: Approve a pre -commitment letter with Habitat for Humanity of Orange County for up to $920,000 in Inclusionary Housing Funds for eligible homebuyers to purchase nine (9) existing rental units that will be converted into affordable ownership condominium units located at 425 E. Wellington Avenue, Santa Ana, CA (APN 398-028-12) (Agreement No. A-2025-094). MINUTES: Councilmember Bacerra asked for clarification regarding the process and procedure regarding the pre -commitment funds for the project. Assistant City Manager Minh Thai clarified the project will be subject to the City's review process and that the pre -commitment funds are set aside for future eligible homebuyers. CITY COUNCIL 10 JULY 1 2025 City Council 6 — 38 7/15/2025 MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 9, seconded by Mayor Amezcua. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 10.Agreements with Orange County Therapeutic Arts Center, Working Wardrobes for a New Start, and StandUp for Kids Orange County to Provide Workforce Readiness Preparation, Work Experience, and Career Training Programs to Santa Ana Youth Department(s): Community Development Agency Recommended Action: 1. Approve an agreement in an amount not to exceed $250,000 with Orange County Therapeutic Arts Center, for a period from July 1, 2025 to June 30, 2026 (Agreement No. A-2025-095). 2. Approve an agreement in an amount not to exceed $200,000 with Working Wardrobes for a New Start, for a period from July 1, 2025 to June 30, 2026 (Agreement No. A-2025-096). 3. Approve an agreement in an amount not to exceed $200,000 with StandUp for Kids Orange County, for a period from July 1, 2025 to June 30, 2026 (Agreement No. A-2025-097). MINUTES: Councilmember Hernandez spoke regarding the effectiveness of these programs and in support of the item. MOTION: Councilmember Hernandez moved to approve the recommended action for Item No. 10, as part of the Consent Calendar, seconded by Councilmember Penaloza. The motion carried, 6-0-1, by the following roll call vote: CITY COUNCIL 11 JULY 1 2025 City Council 6 — 39 7/15/2025 AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: COUNCILMEMBER PHAN (recusal) ABSENT: NONE Status: 6 — 0 —1 — Pass 11.Agreement with Graves & King LLP; Agreement with Jones Mayer; and a First Amendment to Agreement with Bobko Law, APC Department(s): City Attorney's Office Recommended Action: Authorize the City Manager to execute an Agreement with Graves & King LLP to provide legal services for a three-year term beginning July 1, 2025 and expiring June 30, 2028, with a provision for a one-year extension, in a total amount not to exceed $500,000 (Agreement No. A-2025-098); to execute an Agreement with Jones Mayer to provide legal services for a three-year term beginning July 1, 2025 and expiring June 30, 2028, with a provision for a one-year extension, in a total amount not to exceed $500,000 (Agreement No. A-2025-099); and to execute a First Amendment to the Agreement with Bobko Law APC to provide legal services, increasing the compensation in a total amount not -to -exceed $500,000 (Agreement No. A-2025-100). MINUTES: Councilmember Bacerra asked whether the legal services in the agreement could fall within the scope of work of the City's current agreement with Best, Best and Krieger (BBK). City Attorney Sonia Carvalho explained that there are restrictions that require certain legal services be provided by specialized law firms. MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 11, seconded by Mayor Amezcua. The motion carried, 6-0-0-1, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: COUNCILMEMBER HERNANDEZ Status: 6 — 0 — 0 —1 Pass CITY COUNCIL 12 JULY 1 2025 City Council 6 — 40 7/15/2025 12.Agreement with CDW-G for Email Security and Cybersecurity Awareness Training Software Subscription Services (Specification No. 25-090) (Non - General Fund) Department(s): Information Technology Recommended Action: Authorize the City Manager to execute an agreement with CDW-G for cloud -based email security and cybersecurity awareness training services for a 39-month term. The agreement will commence on or after July 1, 2025, with the exact start date to be adjusted based on the actual implementation and purchase order issuance. The agreement end date will be extended accordingly to maintain the full 39-month term, in an annual amount not to exceed $75,306 to accommodate potential growth in user licenses, for a total not -to -exceed amount of $225,918 over the 39-month term (Agreement No. A-2025-101). 13.Agreement with Community SeniorServ, Inc. dba Meals on Wheels Orange County for the Senior Meals Program (General Fund) Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute an agreement with Community SeniorServ, Inc. dba Meals On Wheels Orange County for the Senior Meals Program in an amount of $90,300 for base services (Home Delivered Meals and Lunch Cafe Programs) and $9,700 for additional as needed services, for a total not to exceed amount of $100,000 for the period July 1, 2025 to June 30, 2026 (Agreement No. A-2025-102). 14. Facilities Use Agreement Amendment with Santa Ana Lawn Bowling Club for the Use of the Santa Ana West Lawn Bowling Green near Santiago Park Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize the City Manager to execute a Facilities Use Agreement with Santa Ana Lawn Bowling Club to reflect an annual rate of $3,600 payable to the City in two separate payments of $1,800 due by June 20 and December 20 of each year for a three-year term beginning July 1, 2025 through June 30, 2028 for use of the west lawn bowling green (Agreement No. A-2025- 103). 15.Approve Additional Contingency Funds for the 10th and Flower Street Improvements with an Estimated Project Delivery Cost of $2,220,898 (Project No. 22-1342 & 25-6707) (Non -General Fund) (Revive Santa Ana) Department(s): Public Works Agency Recommended Action: 1. Approve an appropriation adjustment recognizing $375,000 in the Residential Street Improvement, Prior Year Carry Forward revenue account (No. 05817002- CITY COUNCIL 13 JULY 1 2025 City Council 6 — 41 7/15/2025 50001) and appropriate the same amount into the Residential Street Improvement, Improvements Other Than Buildings expenditure account (No. 05817660-66220). (Requires five affirmative votes) 2. Approve an amendment to the Fiscal Year 2025-26 Capital Improvement Program to include $375,000 in construction funds for 10th and Flower Street Improvements (Project No. 25-6707). 3. Approve an amendment to the Project Cost Analysis in the amount of $375,000 for a new estimated construction delivery cost of $2,220,898. MINUTES: Councilmember Bacerra expressed concern and requested clarification regarding the use of contingency funding, noting that while the item references "unforeseen circumstances," the staff report specifically outlines how the funding is intended to be used. Public Works Director Nabil Saba explained the meaning behind the contingency funding and the reason for the change order. City Manager Alvaro Nunez echoed Director Saba comments. Councilmember Bacerra suggested referring to the item as a change order rather than contingency funding, as the associated costs appear to be planned and clearly outlined, rather than unforeseen. Councilmember Hernandez spoke in support of the project. MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 15, seconded by Councilmember Hernandez. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 16.Agreement with Xanadu Service System for Janitorial Services at Park Restrooms (Specification No. 25-043) (General Fund) Department(s): Public Works Agency CITY COUNCIL 14 JULY 1 2025 City Council 6 — 42 7/15/2025 Recommended Action: Approve agreement with Xanadu Service System for janitorial services at various park restrooms in an amount not to exceed $3,545,568, for a term beginning July 1, 2025 and expiring June 30, 2028, with provisions for two, one-year extensions (Agreement No. A-2025-104). 17.Agreement with E.J. Ward Inc. for Fueling Station Improvements (Project No. 25-6038) (General Fund) Department(s): Public Works Agency Recommended Action: Approve an agreement with E.J. Ward, Inc. to provide fueling station improvement services in an amount not to exceed $624,416, for a term beginning July 1, 2025 and expiring June 30, 2026 (Agreement No. A-2025- 105). 18.Agreement with Clinical Laboratory of San Bernardino, Inc. for Water Quality Sampling and Testing Services (Specification No. 25-071) (Non -General Fund) Department(s): Public Works Agency Recommended Action: Approve an agreement with Clinical Laboratory of San Bernardino, Inc., to conduct water quality sampling and testing services for an amount not to exceed $612,205, for a term beginning July 1, 2025 and expiring June 30, 2028, with provisions for two, one-year renewal options (Agreement No. A-2025-106). 19. First Amendment for Agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group for On -Call Material Testing and Special Inspection Services (Non -General Fund) Department(s): Public Works Agency Recommended Action: Approve first amendment to the Caltrans federally procured agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for on -call material testing and inspection services, to increase the contract amount by $750,000 for a total amount not to exceed $1,700,000, for the remaining term (Agreement Nos. A-2025-107, A-2025-108, and A-2025-109). MOTION: Councilmember Hernandez moved to approve the recommended action for Item No. 19, as part of the Consent Calendar, seconded by Councilmember Penaloza. The motion carried, 6-0-1, by the following roll call vote: CITY COUNCIL 15 JULY 1 2025 City Council 6 — 43 7/15/2025 AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: COUNCILMEMBER PHAN (recusal) ABSENT: NONE Status: 6 — 0 —1 — Pass MINUTES: Councilmember Phan left the dais at 8:50 P.M. 20. Memorandum of Understanding of the Master Plan of Arterial Highways Amendment with the Orange County Transportation Authority and the City of Irvine and the Irvine Business Complex Agreement Amendment Department(s): Public Works Agency Recommended Action: 1. Approve a memorandum of understanding for the Master Plan of Arterial Highways Amendment with the Orange County Transportation Authority and the City of Irvine (Agreement No. A-2025-110). 2. Approve an Amendment to the Irvine Business Complex Agreement (Agreement No. A-2025-111). MINUTES: Councilmember Bacerra thanked Public Works for their hard work and efforts and spoke in support of the item. MOTION: Councilmember Bacerra moved to approve the recommended action for Item No. 20, seconded by Councilmember Hernandez. The motion carried, 6-0-1, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: COUNCILMEMBER PHAN (recusal) ABSENT: NONE Status: 6 — 0 —1 — Pass MINUTES: Councilmember Phan returned to the dais at 8:53 P.M. CITY COUNCIL 16 JULY 1 2025 City Council 6 — 44 7/15/2025 21. Construction Contract with R.J. Noble Company for the Bristol Street Rehabilitation from Santa Clara Avenue to Memory Lane Project (No. 22-6990 & 25-6427) ( Non -General Fund) Department(s): Public Works Agency Recommended Action: 1. Approve the transfer of $513,227 from the Well 32 Improvement Project (No. 13-6433) construction funds to the Bristol Street Rehabilitation from Santa Clara Avenue to Memory Lane Project (No. 25-6427). 2. Approve an amendment to the Fiscal Year 2025-2026 Capital Improvement Program to include an additional $513,227 in construction funds for the Bristol Street Rehabilitation from Santa Clara Avenue to Memory Lane Project (No. 22- 6990 & 25-6427). 3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,153,688, which includes $922,950 for the construction contract, $138,443 for contract administration, inspection, and testing, and a $92,295 project contingency for unanticipated or unforeseen work. 4. Award a construction contract to R.J. Noble Company, the lowest responsible bidder, in accordance with the base bid and bid alternates in the amount of $922,950, for construction of the Bristol Street Rehabilitation from Santa Clara Avenue to Memory Lane Project (No. 22-6990 & 25-6427), for a term beginning July 1, 2025, and authorize the City Manager to execute the contract. 5. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2025-32 was filed for Project No. 22-6990. MINUTES: Councilmember Penaloza spoke in support of the item overall but requested adopting a resolution to cease and halt the widening of Bristol Street due to the project's prolonged timeline since it went into effect in 1991. Councilmember Bacerra expressed concern regarding widening Bristol Street and project widening road projects within the City and spoke in support of the item. Mayor Amezcua spoke in support of the item and requested a plan for the future of the on -going construction for Bristol Street. City Manager Alvaro Nunez suggested pausing future projects to prioritize the Bristol Street Project, and to return in 60 days with an update on its status. MOTION: Councilmember Penaloza moved to approve the recommended action for Item No. 21 and direct staff to bring back the master plan for Bristol Street widening, seconded by Councilmember Lopez. CITY COUNCIL 17 JULY 1 2025 City Council 6 — 45 7/15/2025 The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 22. Construction Contract to Vido Samarzich, Inc. for the McFadden Avenue Transit Signal Priority Pilot Project (No. 25-6031) (Non -General Fund) Department(s): Public Works Agency Recommended Action: 1. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,972,000, which includes $1,577,600 for the construction contract, $236,640 for contract administration, inspection, and testing, and a $157,760 project contingency for unanticipated or unforeseen work. 2. Award a construction contract to Vido Samarzich, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $1,577,600, subject to change orders, for construction of the McFadden Avenue Transit Priority Pilot Project (No. 25-6031), for a term beginning July 1, 2025 and authorize the City Manager to execute the contract. 3. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2025-42 was filed for Project No. 25-6031. 23.Construction Contract to Onyx Paving Company, Inc. for the Local Street Preventative Maintenance FY 24-25 Project (No. 25-6907) (Non -General Fund) Department(s): Public Works Agency Recommended Action: 1. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,735,000, which includes $2,988,000 for the construction contract, $448,200 for contract administration, inspection, and testing, and a $298,800 project contingency for unanticipated or unforeseen work. 2. Award a construction contract to Onyx Paving Company, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $2,988,000, subject to change orders, for construction of the Local Street Preventative Maintenance FY 24-25 Project (No. 25-6907), for a term beginning July 1, 2025, Councilus NONE =111WA I City • 4•7/15/2020 and authorize the City Manager to execute the contract. 3. Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER-2025-13 was filed for Project No. 25-6907. 24. Resolution Appointing T. Jack Morse of Oppenheimer Investigations Group LLP as Police Oversight Director and Consultant Agreement for Police Oversight Director Services Department(s): City Manager's Office Recommended Action: Adopt a resolution appointing T. Jack Morse of Oppenheimer Investigations Group LLP as the City of Santa Ana's Police Oversight Director and approving the Professional Services Agreement to provide Police Oversight Director services in accordance with Santa Ana Municipal Code Section 2-666. RESOLUTION NO. 2025-029 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPOINTING A POLICE OVERSIGHT DIRECTOR TO ASSIST THE POLICE OVERSIGHT COMMISSION AND APPROVING A PROFESSIONAL SERVICES AGREEMENT FOR THE ENGAGEMENT OF T. JACK MORSE THROUGH C�]»�►171�1►�1�:�I►1�Ix•��[e1_��[�7►[•Ye]:Z�1�1���� 2. Approve consultant agreement with Oppenheimer Investigations Group LLP, to provide Police Oversight Director services, for an amount not to exceed $250,000, for a term of two years beginning July 1, 2025 (Agreement No. A- 2025-112). **END OF CONSENT CALENDAR** BUSINESS CALENDAR MINUTES: At 9.04 P.M., the Business Calendar was considered. 25. Resolution Supporting Assembly Bill 91 - Middle Eastern and North African (MENA) Inclusion Act Department(s): City Manager's Office Recommended Action: Adopt a resolution supporting Assembly Bill 91, the Middle Eastern and North African (MENA) Inclusion Act, which requires state and local agencies to collect and report disaggregated demographic data for MENA populations. CITY COUNCIL 19 JULY 1 2025 City Council 6 — 47 7/15/2025 RESOLUTION NO. 2025-030 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING THE MIDDLE EASTERN AND NORTH AFRICAN INCLUSION ACT (ASSEMBLY BILL 91) MOTION: Mayor Pro Tern Vazquez moved to approve the recommended action for Item No. 25, seconded by Councilmember Penaloza. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 26. Freedom of Information Act (FOIA) Request to U.S. Immigration and Customs Enforcement (ICE) Department(s): City Manager's Office Recommended Action: Approve submission of a Freedom of Information Act Request to U.S. Immigration and Customs Enforcement seeking records pertaining to immigration enforcement activity within the City of Santa Ana for the period of January 20, 2025 through July 1, 2025. MINUTES: Councilmember Bacerra spoke in support of the item and requested clarification regarding the uses of the potential data released. City Manager Alvaro Nunez spoke regarding potential data sharing. Councilmember Phan spoke in support of only releasing arrest record information consistent with the Public Records Act, collaborating with non -profits assisting with family unification, and spoke in opposition to releasing information related to immigration status. Mayor Pro Tem Vazquez spoke in support of obtaining information in order to provide familial support. Councilmember Hernandez spoke in support of transparency, identifying those who are detained, and publishing ICE activity in the City. Mayor Amezcua requested to strike "and/or criminal conviction(s) or pending criminal charge(s) related to the target(s) of the enforcement action, and any records that indicate whether those violations were known to ICE at the time of arrest". CITY COUNCIL 20 JULY 1 2025 City Council 6 — 48 7/15/2025 Councilmember Lopez spoke in opposition to any amendments. City Manager Nunez spoke regarding finding a balance between sharing information and affecting families of those who are detained. Councilmember Bacerra reiterated that the item is solely for the submission of an FOIA request. Councilmember Penaloza spoke in support of the item. Councilmember Phan spoke regarding the information that will actually be disclosable under the Freedom of Information Act. Councilmember Lopez spoke in support of working with the nonprofit Immigrant Defenders Law Center. MOTION: Councilmember Penaloza moved to approve the recommended action for Item No. 26, seconded by Mayor Pro Tern Vazquez. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 27. Resolution Making a Call to Action Regarding ICE Immigration Enforcement Department(s): City Manager's Office Recommended Action: Adopt a resolution calling on all federal elected representatives to advocate for the removal of ICE, military, and federal enforcement personnel from Santa Ana, support residents impacted by immigration raids, and reaffirm the City's commitment to SB 54, the California Values Act, and its Sanctuary City policies. RESOLUTION NO. 2025-031 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING A CALL TO ACTION TO ALL OF ITS FEDERAL ELECTED REPRESENTATIVES IN CONGRESS TO ADVOCATE ON BEHALF OF IMMIGRANTS WHO RESIDE AND WORK IN THE CITY OF SANTA ANA, TO REMOVE ICE, MILITARY AND OTHER FEDERAL ENFORCEMENT PERSONNEL FROM THE CITY OF SANTA ANA, CALL FOR SUPPORT TO THOSE IMPACTED BY IMMIGRATION RAIDS AND CITY ACTIONS AND COMMITMENTS CITY COUNCIL 21 JULY 1 2025 City Council 6 — 49 7/15/2025 MINUTES: Councilmember Hernandez spoke in support of the item and thanked staff for being proactive. Mayor Amezcua spoke in support of the item and requested the Council send out letters to federal representatives. Councilmember Lopez thanked staff for their hard work and spoke in support of the item. Councilmember Bacerra spoke regarding protests in the City and the unnecessary and aggressive tactics used by the National Guard, the apprehension of residents with no criminal history and the limitation the City has when the federal government is involved. He requested the letter be disseminated to all federal officials that have any jurisdiction within Orange County. Mayor Pro Tem Vazquez spoke in support of Councilmember Bacerra's request and spoke in support of the item. City Manager Alvaro Nunez reiterated that the resolution is not symbolic; it is a statement of the City's stance on the current immigration enforcement in the City. MOTION: Councilmember Penaloza moved to approve the recommended action for Item No. 27, seconded by Councilmember Hernandez. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass 28. Consider a Temporary Program of Financial Assistance for Families Impacted by Federal Immigration Enforcement Actions Department(s): City Manager's Office Recommended Action: Direct the City Manager to establish an Emergency Assistance Program for Families Impacted by Immigration Enforcement funded by up to $1 million of existing FY25-26 budget allocated for City Events. MINUTES: Mayor Amezcua announced Sister City Sahuayo has donated $50, 000 to provide financial assistance, provided a summary of the item, and expressed concern for the immediate need for assistance in the community. City • • 17/15/2020 Councilmember Bacerra spoke regarding the City's current climate and its impact to the community and spoke in support of the item. Councilmember Hernandez spoke in opposition to reallocating cultural event funding for mutual aid, spoke in support of cancelling the 4t" of July event, and directed staff to identify $1 million in the City budget from Police vacancies and reallocate the Fourth of July events budget of $115,000 towards mutual aid. Mayor Pro Tem Vazquez stated the investment in events is a beneficial impact to the community, spoke in support of Councilmember Hernandez's motion, and suggested adding the Fiestas Patrias budget of $498, 000 towards mutual aid. MOTION: Councilmember Hernandez moved to reallocate the current Fiesta Patrias funding for the financial assistance program, and direct the City Manager to identify additional funding for the financial assistance program sources within the Police Department including vacancies, seconded by Mayor Pro Tern Vazquez. Councilmember Lopez spoke in support of reallocation of funding, but spoke of the importance of cultural events. She inquired whether the 4.9 million in the General Fund non -departmental budget is unallocated or could be reprogrammed for emergency assistance or other discretionary funds that can be allocated. Mayor Amezcua commented on the current need for financial assistance and stated that she will be cancelling her trip to Sahuayo and recommended others cancel their travel plans in order to allocate the funding to mutual aid. Councilmember Phan spoke in opposition to cancelling the 4t" of July event and other culturally significant events in the City, spoke of their importance, and believed cancelling them would only prove that the fear instilled in the community is working. She inquired about the logistics of implementing a mutual aid program and believed connecting families with established agencies for aid would be more productive. Councilmember Hernandez spoke in support of Councilmember Phan's comments and spoke regarding police funding. Mayor Pro Tern Vazquez spoke of the importance of funding mutual aid whether from events or vacant positions. SUBSTITUTE MOTION: Mayor Amezcua moved to table Item No. 28, seconded by Councilmember Bacerra Motion subsequently withdrawn. Mayor Amezcua spoke regarding picking and choosing which events to cancel and moved to remove the item from consideration. CITY COUNCIL 23 JULY 1 2025 City Council 6 — 51 7/15/2025 Councilmember Bacerra spoke in support of Mayor Amezcua's comments and commented on public safety. Councilmember Phan recommended a 10% budget cut to City events, water bill payment assistance, and working with the Immigrant Defenders non-profit as baseline for assistance. Councilmember Lopez inquired about the reallocation of funds, spoke in favor of reallocating the Council's travel budget to fund mutual aid and noted the lack of community attendance at Fiestas Patrias planning meetings. City Attorney Sonia Carvalho clarified that, if funds stayed within and were administered by the Parks Department, the allocation would not be subject the Charter regulations on appropriations; however if funds were transferred between departments then they would be subject to Charter regulations and would require a super majority vote. City Manager Alvaro Nunez spoke regarding discretionary expenditure within the Parks Department are using the City's good standing with the Mexican consulate to potentially obtain information. Councilmember Penaloza spoke regarding special events funding, the Council discretionary budget, travel budget, and Council aide budget. He spoke of the security risk posed by holding a large community gathering and inquired about the City's rainy day fund. SUBSTITUTE MOTION: Councilmember Penaloza moved to approve the recommended action for Item No. 28 as presented, seconded by Mayor Amezcua The substitute motion failed, 3-4, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER PENALOZA, MAYOR AMEZCUA NOES: COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ ABSTAIN: NONE ABSENT: NONE Status: 3 — 4 — Fail MOTION: Councilmember Hernandez moved to reallocate the current Fiesta Patrias funding for the financial assistance program, and direct the City Manager to identify additional funding for the financial assistance program sources within the Police Department including vacancies, seconded by Mayor Pro Tern Vazquez. The motion failed, 3-4, by the following roll call vote: CITY COUNCIL 24 JULY 1 2025 City Council 6 — 52 7/15/2025 AYES: COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, MAYOR PRO TEM VAZQUEZ NOES: COUNCILMEMBER BACERRA, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR AMEZCUA ABSTAIN: NONE ABSENT: NONE Status: 3 — 4 — Fail MOTION: Councilmember Phan moved allocate 10% from each of the identified City events to start a fund to help the community with staff to return in 90 days or sooner with information and a potential broader discussion, seconded by Councilmember Penaloza. The motion carried, 7-0, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass AGENDA ITEM NO. 29 WAS CONTINUED TO THE JULY 15, 2025 CITY COUNCIL MEETING 29. Ordinance Amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to Align with State Law, Enhance Transparency, and Improve Operational Efficiency and Best Practices in Law Enforcement Accountability Department(s): City Manager's Office Recommended Action: Conduct a first reading of an ordinance amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to align with state law, enhance transparency, and improve operational efficiency and best practices in law enforcement accountability. ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 2-660-2-669 OF CHAPTER 2 (ADMINISTRATION), ARTICLE IV, DIVISION 16 OF THE SANTA ANA MUNICIPAL CODE ESTABLISHING A POLICE COMMISSION MOTION: Mayor Amezcua moved to continue Item No. 29 to the July 15, 2025 City Council Meeting, seconded by Councilmember Bacerra. CITY COUNCIL 25 JULY 1 2025 City Council 6 — 53 7/15/2025 The motion carried, 5-2, by the following roll call vote: AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER LOPEZ, COUNCILMEMBER PHAN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: COUNCILMEMBER HERNANDEZ, COUNCILMEMBER PENALOZA ABSTAIN: NONE ABSENT: NONE Status: 5 — 2 —Pass **END OF BUSINES CALENDAR** PUBLIC HEARING PUBLIC COMMENTS-- Members of the public may address the City Council on each of the Public Hearing items. MINUTES: At 10:54 P.M., the Public Hearing was considered. 30. Public Hearing - Resolution Declaring Results of Majority Protest Proceedings to Renew the Santa Ana Tourism Marketing District (SATMD) Legal notice published in the OC Reporter on May 16, 2025. Department(s): Community Development Agency Recommended Action: 1. Conduct a public hearing to consider all protests regarding the intention to levy an assessment for the renewal of the Santa Ana Tourism Marketing District. 2. Review any written protests filed prior to the close of the public hearing and determine whether they constitute a majority protest. 3. If the Council determines that no valid majority protest was lodged, adopt a resolution confirming the renewal of the Santa Ana Tourism Marketing District. RESOLUTION NO. 2025-032 entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND RENEWING THE SANTA ANA TOURISM MARKETING DISTRICT (SATMD) MINUTES: Mayor Amezcua opened the Public Hearing at 10.55 P.M. City Clerk Jennifer L. Hall reported out the summary of email comments received. nine (9) Public Hearing Item No. 30. CITY COUNCIL 26 JULY 1 2025 City Council 6 — 54 7/15/2025 The following speakers addressed the City Council in person: 1. Gabriel Trujillo spoke in support of the item. RECESS MINUTES: Mayor Amezcua recessed the City Council meeting at 10:58 P.M. RECONVENE MINUTES: Mayor Amezcua reconvened the City Council meeting at 10:59 P.M. 2. Frank Atayde spoke in support of the item. 3. Aaron Saliba spoke in support of the item. Councilmember Hernandez spoke in support of the item. MOTION: Councilmember Hernandez moved to approve the recommended action for Public Hearing Item No. 30, seconded by Councilmember Bacerra. Councilmember Penaloza thanked the team for their hard work and efforts, expressed concern regarding structural deficit, and spoke regarding the transient occupancy tax (TOT). SUBSTITUTE MOTION: Councilmember Penaloza moved to approve a 10-year plan and to limit SATMD to a 3% maximum increase. Motion died due to lack of a second MINUTES: Councilmember Lopez requested clarification regarding the assessment. Wendy Haase -Roberts, Travel Santa Ana President and CEO, explained that the proposal to increase hotel taxes would allow for a 0.5% increase every two years to be implemented only if needed. She also noted to increase TOT would require voter approval through a ballot measure. Mayor Amezcua closed the Public Hearing at 11.18 P.M. MOTION: Councilmember Hernandez moved to approve the recommended action for Public Hearing Item No. 30, seconded by Councilmember Bacerra. The motion carried, 7-0, by the following roll call vote: CITY COUNCIL 27 JULY 1 2025 City Council 6 — 55 7/15/2025 AYES: COUNCILMEMBER BACERRA, COUNCILMEMBER HERNANDEZ, COUNCILMEMBER LOPEZ, COUNCILMEMBER PENALOZA, COUNCILMEMBER PAHN, MAYOR PRO TEM VAZQUEZ, MAYOR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: NONE Status: 7 — 0 — Pass COUNCILMEMBER REQUESTED ITEMS 31. Discuss and Consider Directing the City Manager to Direct Staff to Bring Back a Resolution for Council Consideration that Would Support Assembly Bill 1303 (Valencia), Which Strengthens Privacy Protections for Applicants and Subscribers of the California Lifeline Telephone Service Program — Councilmember Penaloza MINUTES: Councilmember Penaloza spoke regarding a resolution that would support Assembly Bill 1303 which strengthens privacy protections for applicants and subscribers of the California Lifeline Telephone Service Program. Councilmember Bacerra expressed support for the item. Councilmember Penaloza expressed support for the item. Councilmember Phan expressed support for the item. Mayor Pro Tem Vazquez expressed support for the item. Mayor Amezcua expressed support for the item. 32. Discuss and Consider Directing the City Manager, City Clerk, and City Attorney to Direct Staff to Prepare an Ordinance Requiring All Law Enforcement Officers Operating in Santa Ana to Wear Clearly Visible Identification (Name or Badge Number) and Prohibit Face Coverings that Obscure Identity During Public Interactions and Resolutions Supporting SB 627 and SB 805 — Councilmember Lopez MINUTES: Councilmember Lopez spoke regarding Law Enforcement Officers posing as police officers, city workers, and arresting individuals without disclosing their name or badge number and her support of SB 627 and SB 805 to prohibit bounty hunters from conducting raids. Councilmember Hernandez spoke in support of the item and requested that the City and the Santa Ana Police Department take proactive measures —within legal boundaries —to document, verify, and safeguard information concerning individuals wearing face coverings that obscure their identity. He thanked Councilmember Lopez for bringing this item forward. Councilmember Bacerra thanked Councilmember Lopez for bringing forth the item and asked the City Attorney whether the Chief of Police and the police department enforce the federal law that a federal agent has to identify themselves as an immigration officer who is authorized to execute an arrest, state the individual is being arrested, and the reasoning for the arrest. He spoke in support of SB 627 and SB 805 resolution; however opposed the item brought forward. City Attorney Sonia Carvalho stated that the police department cannot enforce this particular federal law due to circumstances that could lead to obstructing a federal investigation or arrest. Mayor Amezcua spoke in support of SB 627 and SB 805 resolutions and asked the Chief of Police whether the department is able to question individuals wearing face coverings to determine if they are federal agents or impersonators and what agencies the department would be assisting. She encouraged the community to reach out to the police department or call 911 if they felt they were being kidnapped and asked how many calls the City has received of possible kidnappings. Police Chief Robert Rodriguez stated it would depend on the circumstances as the department would not to interfere in the middle of an arrest and the challenge being how to approach these types of situations. He stated the police department would assist ICE and Border Patrol for officer safety and that the department had received six (6)calls total regarding possible kidnappings dating from January 9, 2025 until today. Councilmember Lopez requested allowing staff the authority to research whether the ordinance can be executed within the City without obstructing federal law. Councilmember Penaloza thanked Councilmember Lopez for bringing fourth the item and spoke in support of SB 627 and SB 805 resolutions and Congressman Lou Correa's bill regarding federal agents. Mayor Pro Tem Vazquez thanked Councilmember Lopez for bringing forth the item, emphasized keeping employees and the community safe, and spoke in support of the item. Councilmember Phan thanked Councilmember Lopez for bringing forth the item and expressed support for SB 627, SB 805, and Congressman Correa's bill. She stated her opposition to police officers pulling over individuals solely for wearing a mask while in a vehicle, citing First Amendment protections. She asked Chief Rodriguez whether calls reporting possible kidnappings are treated as active kidnapping situations and whether officers' body -worn cameras are activated during such incidents. She also clarified that undercover officers are not required to display visible identification. Additionally, she recommended that the Police Oversight Director and Commission collaborate with the Police Department in addressing and navigating these types of concerns. CITY CQUNCIL 29 JULY 1, 2025 City Council 6 — 57 7/15/2025 Chief Rodriguez confirmed calls are treated as active kidnappings and body cameras are on. Mayor Amezcua expressed concern regarding the focus on the City during this time and for the community. CITY MANAGER COMMENTS MINUTES: None. COUNCIL COMMENTS AB1234 DISCLOSURE — If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended. MINUTES: None. ADJOURNMENT — Adjourn the City Council meeting. MINUTES: Mayor Amezcua adjourned the City Council Meeting at 12:00 A.M. on July 2, 2025. Respectfully submitted: Jennifer L. Hall, CIVIC City Clerk CITY COUNCIL 30 JULY 1, 2025 City Council 6 — 58 7/15/2025 Community Development Agency www.santa-ana.org/cd Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners AGENDA TITLE Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners RECOMMENDED ACTION Approve Memorandums of Understanding with the Santa Ana WORK Center, Rancho Santiago Community College District, Employment Development Department, Department of Rehabilitation, SER Jobs for Progress, United American Indian Involvement, Inc., Long Beach Job Corps, Community Action Partnership of Orange County, and City of Santa Ana Housing Authority (Family Self -Sufficiency Program) setting the terms for the sharing of resources and expenses associated with the operations of a comprehensive One -Stop center, for a three-year term expiring June 30, 2028, and authorize the City Manager to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney (Agreement No. A-2025-XXX). 2. Approve a second amendment to Sub -Lease Agreement and Memorandum of Understanding with the County of Orange, Social Services Agency to extend the term through June 30, 2028 and authorize the City Manager to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney (Agreement No. A-2025-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Workforce Innovation and Opportunity Act (WIOA) of 2014 is the primary federal legislation governing the public workforce development system. The Act mandates that Local Workforce Development Boards (LWDBs) establish Memorandums of Understanding (MOU) with all required One -Stop partners to define the cooperative relationships and shared responsibilities in providing seamless services to job seekers City Council 7-1 7/15/2025 Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners July 15, 2025 Page 2 and employers. Since the implementation of WIOA, the City has maintained active partnerships with a range of workforce development agencies and service providers, both co -located and non co -located, through MOUs. These partnerships have enabled a coordinated, client - centered approach to delivering employment and training services across the local workforce area. Existing MOUs have fostered collaboration, streamlined referrals, and aligned resources to better serve job seekers and employers. To continue supporting these partnerships, the City will renew and update MOUs in accordance with current WIOA guidelines and partner agency roles. For co -located partners, this includes reviewing and revising Infrastructure Funding Agreements (IFAs) to ensure equitable cost -sharing for the operational expenses of the comprehensive America's Job Center of California (AJCC) (Exhibit 1 a, Exhibit 2, and Exhibit 3). For non co -located partners, the City will reaffirm shared commitments to service coordination, referral protocols, and performance accountability, while maintaining the non -fiscal nature of the agreement (Exhibit 1 b). These actions aim to strengthen service integration, reinforce mutual responsibilities, and ensure compliance with WIOA regulations while promoting efficient service delivery throughout the workforce system. The City Council approved the master lease agreement for the office space at 801 W. Civic Center Drive on June 6, 2023. The Community Development Agency's Economic Development Division administers and coordinates the workforce and economic development programs and activities for the City through partnership with the Santa Ana Workforce Development Board (SAWDB). The MOU governs the operation of the Santa Ana WORK Center, which is the City's designated Comprehensive One -Stop System under WIOA. The MOU outlines the services to be delivered through the One -Stop System which include, but are not limited to, partner responsibilities, referral process, access for people with disabilities, shared technology, confidentiality, grievance procedures, procedures for amendment, and other administrative and operational provisions that are consistent with the WIOA. In addition, the MOU addresses strategies for sustaining the unified system through resource sharing and joint infrastructure cost allocation. The Infrastructure Funding Agreement is based on services currently provided in the Santa Ana WORK Center located at 801 W. Civic Center, Suite 200, Santa Ana, CA. Below is a list of programs and provider organizations that the SAWDB is required to have an MOU with: Program Organization Co -Located or Not WIOA Title I — Adult, Dislocated City of Santa Ana Co -Located Partner Worker and Youth WORK Center City Council 7-2 7/15/2025 Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners July 15, 2025 Page 3 WIOA Title II — Adult Education and Santa Ana College/Rancho Non Co -Located Literacy Santiago Community College Partner District WIOA Wagner-Peyser, Veterans, California Employment Co -Located Partner Trade Adjustment Assistance Act Development Department WIOA Title IV Vocational California Department of Co -Located Partner Rehabilitation Rehabilitation Carl Perkins Career Technical Santa Ana College/Rancho Non Co -Located Education Santiago Community College Partner District Title V Older Americans Act SER — Jobs for Progress Co -Located Partner Job Corps Long Beach Job Corps Non Co -Located Partner Native American Programs — United American Indian Non Co -Located Section 166 Involvement, Inc. Partner Community Services Block Grant Community Action Non Co -Located Partnership of OC Partner City of Santa Ana Housing and Urban Development Housing Authority (Family Self- Co -Located Partner Sufficiency Program) Unemployment Compensation (UI) California Employment Co -Located Partner Development Department Temporary Assistance for Needy Orange County Co -Located Partner Families/CaIWORKS Social Services Agency FISCAL IMPACT Funds for the WORK Center's share of the operation costs for FY 2025-26 are budgeted and available. The table below reflects the estimated amounts to be received from the State of California Employment Development Department (EDD), County of Orange Social Services Agency (SSA), SER Jobs for Progress, Inc., State of California Department of Rehabilitation, and Santa Ana Housing Authority's Family Self -Sufficiency Program, for the duration of the MOU. The partner organizations will be invoiced monthly for their share of the AJCC operations and the funds will be deposited upon receipt into the following accounts: Account No. Account Description PY 2025-26 Total 12318002-57960 WIOA Revenues: Rental of Property $349,705 $349,705 12318751-various One Stop Program: Various $85,186 $85,186 TOTAL $434,891 $434,891 City Council 7-3 7/15/2025 Memorandums of Understanding with Workforce Innovation and Opportunity Act Partners July 15, 2025 Page 4 EXHIBIT(S) 1a. Memorandum of Understanding — Co -Located Partners 1 b. Memorandum of Understanding Boilerplate — Non -Co -located Partners 2. Sub -Lease and Memorandum of Understanding — County of Orange Social Services Agency 3. Memorandum of Understanding — City of Santa Ana, Workforce Development Board and Santa Ana Housing Authority Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager City Council 7-4 7/15/2025 EXHIBIT 1A Memorandum of Understanding For �1 Santa Ana Workforce Development Board and the Employment Development D rtment Wagner-Peyser and Employment Development Dep tment Unemployment Insurance Santa Ana WORK Center Santa Ana Housing Authority Department of Rehabilitation SER Jobs for Progress City Council 7-5 7/15/2025 EXHIBIT 1A MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU") with each America's Job Center of California ("AJCC") Partner, consistent with WIOA Sec. 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 78.500, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. Amb Additionally ring and allocation of infrastructure costs among AJCC Partners is governed by WIOA s 1(h), its implementing regulations, and the Federal Cost Principles contained in the Uniform A mini Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform at 2 CFR part 200. 2) AJCC Partner The parties to this MOU are e City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Emplo nt D velopment Department Wagner-Peyser and Employment Development Department Unemp oyment Insurance ("BDD"), a collocated one -stop AJCC Partner located at the Santa Ana WORK Center W. Civic Center Drive, Suite 200, Santa Ana, CA 92701. 3) PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and EDD, the collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the fr work for providing services to employers, employees, job seekers and others needing workfo services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. 4) DURATION The term of this MOU shall commence July 1, 2025 and terminate June 30, 2028, unless earlier terminated pursuant to the provisions of Paragraph 32 of this MOU; however, the Parties shall be obligated to perform such duties as would normally extend beyond this term, including, but not limited to, obligations with respect to indemnification, reporting and confidentiality. This MOU will remain in effect until the termination date, unless one of the conditions in Paragraph 32 occurs. City Council 7-6 7/15/2025 EXHIBIT 1A 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, 3-1, 4, and 5 constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana' sts on integrating current and future resources through its SAWDB Partners. Integratio Nh, n partnering or assembling multiple funding sources. It means making cert tts of the workforce support system work together to create inviting and seamless sereer a client enters the system. Santa Ana's vision is sensitive to the needs of its unique phis* The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in wh ch Santa Ana's workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and fu orkforce through classroom pre -training and training activities, plus on-the-job traini g nd workforce skill enhancement activities; d) Offering career pathway programs for both a eyed and employed adults and youth; e) Increasing access to jobs for disconnectecl and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizationsnd establiaiwd institutional resources; and, ®®400 g) Assuring funding from all public, private, and other sources suppo f its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714) 565-2600 Open to the Public: Monday — Friday 8:00 am-5:00 pm The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by 3 City Council 7-7 7/15/2025 EXHIBIT 1A reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational, employment and training services based on individual needs. Those needs are met by the combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and ref als provided at the SAWC by AJCC Partners may include, but are not limited to, the followi 1. eer Services:a%ft igib etermination; b. Out ke, and orientation to information and services; c. Initi ment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on j b skills needed to obtain the vacant jobs; and, iii. Information relating to u2 emand occupations, including earnings and opportunities for advanc ent; e. Provision of performance and in cost information on the Eligible Training Provider List ("ETPL") eligible rograms by program and type of provider f. Provision of information in acc ptable ats and languages that identify actual performance against performanc&,accou ity measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility for programs hancial aid assistance for training and education programs not funded throug I;e<1sq4 . 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill ice needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and; c. Development of Individual Employment Plan (IEP) to idenpals, objectives, and services; d. Group counseling; e. Individual counseling; f. Career planning; g. Short-term pre -vocational services, including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; 4 City Council 7 — 8 7/15/2025 EXHIBIT 1A i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Trams Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Shill upgrading and retraining; g. E repreneurial training programs; h. tional jobs; readiness training provided in combination with any of the aforementioned ainin ices; j. Adu on and literacy activities, including: activities of English language acqu rid, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships an work ex nces that are linked to careers; and, m. English language ac _ do d integrated education and training program. 4. Employer Services: a. Recruitment and other business es on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREME The SAWDB will procure the AJCC Operator through ompetitiveocess in accordance with the Uniform Guidance Cost Principles contained in the ' niform Anistrative Requirements, Cost Principles, and Audit Requirements for Federal Awards a 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB approv d exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning and Development. The parties to this MOU will work closely together to ensure that the AJCC is a high -performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 12l(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: City Council 7-9 7/15/2025 EXHIBIT 1A i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to ollaborate and reasonably assist each other in the development of necessary service delive ocols for the services outlined in this MOU. Parties agreth�ions contained herein are made subject to all applicable federal and state laws, imp em ""Vlations, and guidelines imposed on either or all the parties relating to privacy rights of s, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimin and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published Decemb* 2, 201 ; ii. Title VI and VII of the Civil Rights Act of 1964 blic Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended V. The Jobs for Veterans Act (Public Law 107-288) pertainino priority of service in programs funded by the U.S. Department of Labor; vi. Training and Employment Guidance Letter (TEGL) 37-14, Updat n p ying with Nondiscrimination Requirements: Discrimination Based on Gen Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Disc ination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; ix. The Age Discrimination Act of 1975, as amended; City Council 7 — 10 7/15/2025 EXHIBIT 1A X. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv xv. The( State ity requirements governing the use of confidential information held by the (20 CFR part 603); and, ch, and all requirements imposed by the regulations issued pursuant The Parties agree tM ach other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) COLLOCATED AJtQk#AORTNER RESPONSIBILITIES Partner commits to collocation of staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality i provement. Partner will further promote system integration to the maximum extent feasible th a. Effective communication, information tardion with the AJCC operator; b. Joint planning, policy development, and c. Commitment to the joint mission, vision, goals, Chtegies, and_2erformance measures; d. The design and use of common intake, assessor 1, aad case management processes; e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non -fit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 7 City Council 7 —11 7/15/2025 EXHIBIT 1A 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Devel erials summarizing their program requirements and making them available for Pa ustomers; 011* c. Da dAO ommon intake, eligibility determination, assessment, and registration forms, as ap !■ d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate wato ' ro he referral process, including the use of customer satisfaction surveys; !L f. Commit to robust and ongoinglbn,101t,., n required for an effective referral process; g. Commit to actively follow up on the rejrts of rals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; i. Ensure that general information regarding AJCC ero*gra se es, activities, and resources shall be made available to all customers as approp ate; j. Ensure that referrals will be made via email or other electronic deans; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. 10) SUPERVISION/DAY TO DAY OPERATIONS a. Day -to -Day Supervision n. City Council 7 — 12 7/15/2025 EXHIBIT 1A The day-to-day supervision of staff assigned to the AJCCs will be the responsibility of the site supervisor(s). Partner will continue to set the priorities of its staff assigned to the AJCC. Changes in work assignments or concerns regarding the responsibilities of parties are to be handled between the site supervisor and Partner management b. Santa Ana WORK Center Hours of Operation The SAWC is open for business: Monday through Friday from 8:00 am until 5:00 pm. c. Partner§StOffice Hours The officeartner staff at the AJCC will be established by the Partner. All Partner staffwill comrcorresponding holiday schedule and will provide a copy of their holiday scheduleto�� SAWC at the beginning of each fiscal year. d. Building AcNdr * All Partner staff assigned to the SAWC will be issued an access card to SAWC suite 200 and a parking lot pass that allows hem to enter and exit the parking lot. It is all individual staff s responsibility to keep them secure. Should they damage or lose them they can be replace by the SAWDB at the expense of the individual agency staff. e. Benefits Each party shall be solely liable and responsibefo ng to, or on behalf of, its employee(s), all legally -required employee benefits. In addy shall be solely responsive and hold all other parties harmless from all matters relating to payment of each party's employee(s), including compliance with social security withholding, workers' compensation, and all other regulations governing such matters. 11) AJCC OPERATING BUDGET `1` The purpose of this section is to establish a financial plan, includin to nd conditions, to fund the services and operating costs of the local AJCC. The parties to this Mgree that joint funding is a necessary foundation for an integrated service delivery system. The goal of the 'operating budget is to develop a funding mechanism that: a. Establishes and maintains the Local workforce delivery system at a level that meets the needs of the job seekers and businesses in the Local area; b. Reduces duplication and maximizes program impact through the sharing of services, resources, and technologies among Partners (thereby improving each program's effectiveness); c. Reduces overhead costs for any one Partner by streamlining and sharing financial, procurement, and facility costs; City Council 7 — 13 7/15/2025 EXHIBIT 1A d. Ensures that costs are appropriately shared by AJCC Partners by determining contributions based on the proportionate use of the AJCC centers and relative benefits received, and requiring that all funds are spent solely for allowable purposes in a manner consistent with the applicable authorizing statutes and all other applicable legal requirements, including the Uniform Guidance; and, e. All parties will meet and confer regarding replacement, acquisition, cleaning and maintenance of furnishings. The parties consider this AJCC operating budget the master budget that is necessary to maintain the SAWDB's gh-standard AJCC. It includes the following cost categories, as required by WIOA and its,^Ltnenting regulations: low I a. Intr ure is (also separately outlined below in the Infrastructure Funding Agree nt) , b. Career sery ' c. Shared sery 'A All costs contemplated must be included in the MOU, allocated according to the AJCC Partner's proportionate use and relativ benefits received, reconciled every six (6) months against actual costs incurred, and adjusted accordingl . The AJCC operating budget is expected to be transparent and negotiated among Partners on an equitable ksis to ensure costs are shared appropriately. All Partners must negotiate in good faith and see^tablish outcomes that are reasonable and fair. All Partners must adhere and reference the ru regulations included in the executed Office Lease, attached hereto as Attachment 5 and incorporatedherein by reference. 12) INFRASTRUCTURE FUNDING AGREEMEN The Infrastructure Funding Agreement ("IFA") contains thtinfrastructure costs budget that is an integral component of the overall AJCC operating budge . The IFA 154mandatory component of the local MOU, described in WIOA sec. 121(c) and 20 CFR 67 0 and 678.755. The IFA contains the AJCC Comprehensive Infrastructure Budget, and Other stem Cost Budget, included herein as Attachment 3 and incorporated herein by reference, that is an integral component of the overall AJCC operating budget. The other component of the IFA is the Applicable Career Services, attached herein as Attachment 3-1 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. AJCC infrastructure costs are defined as non -personnel costs that are necessary for the general operation of the AJCC, including, but not limited to: a. Rental of the facilities; b. Utilities, maintenance and services; c. Equipment, including assessment -related products and assistive technology for individuals with disabilities; and, d. Technology to facilitate access to the AJCC, including technology used for the center's planning and outreach activities. 10 City Council 7 — 14 7/15/2025 EXHIBIT 1A Any changes in the AJCC Partners or an appeal by an AJCC Partner's infrastructure cost contributions will require an amendment of the MOU. 13) COST ALLOCATION METHODOLOGY The purpose of this infrastructure cost sharing methodology is to summarize, in writing, the methods and procedures that the SAVWDB will use to share costs with the AJCC Partner. The AJCC Partner agrees that it will be charged on a monthly basis according to the following cost sharing methodology, and that monthly payment will be submitted within the first ten (10) calendar days of each mo th. 14) INF URE COST ALLOCATION METHODOLOGY a. Rent s shall be based only on the base rent and common area maintenance (CAM charges). nt is derived from the total assigned square footage, calculating the percentage of usa CC Partner and applying that percentage to the common area square footage. Assigned sq re footage plus the percentage of common area square footage equals total square footage for each AJCC Partner. Total square footage for each AJCC Partner multiplied by the base rent per square foot equals total base rent for each AJCC Partner as indicated in the AJCC Comprehensive Infrastructure Budget and Other System Cost Budget and the Comprehensive Cost Allocation and Partner Contributions. The,Lase rent has an annual increase of no more than 3% over the ten-year life of the Office Leasjr ument (Attachment 5 attached herewith and incorporated herein by reference). b. Utilities, Maintenance and services: is s includes telephone services, which includes voice -mail on AJCC Partners' phone . Cost aff phones are charged based on the 14, AJCC Partner's assigned space. Common area phone will be charged according to space allocation. Security guard services are also included in this section and are allocated based on the percentage of space usage. Security guard services will increase by alU&oximately 4.5% annually. * c_ Equipment: Public computer are shared and available to all 2nts.ese are allocated on the AJCC partner's assigned space percentage. dd_ Te�and Internet Access C'nst..c: Cost of printers and copiommon use that are connected to the internet, and other technology that may become necessary for shared use are allocated based on the AJCC partners percentage of space usage. 15) INFRASTRUCTURE CONTRIBUTIONS The AJCC Partner may provide cash, non -cash (in- kind), and third -party in -kind contributions to cover its share of infrastructure costs. In -kind contributions cannot be used to fund non - infrastructure costs (such as personnel), and must be valued consistent with Uniform Guidance Section 200.306 to ensure such contributions are fairly evaluated and qualify for the AJCC Partner's proportionate share. If third -party in -kind contributions are made to support the AJCC as a whole (such as facility space), that contribution will not count toward the AJCC Partner's proportionate share of the 11 City Council 7 — 15 7/15/2025 EXHIBIT 1A infrastructure. Rather, the value of the contribution will be applied to the overall infrastructure budget prior to determining proportionate amounts and thereby reduce the contribution required for all AJCC Partners. a. Cash Cash funds provided to the SAWDB, or its designee, by AJCC Partners, either directly or by an interagency transfer, or by a third party. b. Non -Cash Expenditures incurred by AJCC Partners on behalf of the AJCC; and Non -cash contributions or goods or service contributed by a Partner program and used by the AJCC. c. Thir kind Contribut ace equipment, technology, non -personnel services, or other like items to support the t sts associated with AJCC operations, by a non-AJCC Partner to: Support the AJCC or, Support the proportionate share of AJCC infrastructure costs of a specific Partner 8.720; 20 CFR 678.760; 34 CFR 361.720; 34 CFR 361.760; 34 CFR 463.720; and 34 CF 7 ]. 16) OTHER AJCC DELIVERY SYSTAN COSTS In compliance with WIOA Joint Rule Section 678.760, the AJCC Partners will use a portion of funds made available under their authorizi federal statute (or fairly evaluated in -kind contributions) to share the additional costs r to the operation of the One -Stop delivery system. These costs may be shared through cash, non-c r , or third -party in -kind contributions. As required by WSD18-12, the amount of fund that th IC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. N -A& a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clien as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Seices Budget is set forth in Attachment 3-1 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. AJCC Partners understand that while only collocated Partners share infrastructure costs, at this time, all AJCC Partners must share in other System costs through non -cash (in -kind) contributions as set forth herein. 12 City Council 7 — 16 7/15/2025 EXHIBIT 1A 17) DATA SHARING Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PII) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PII, collected, used, and disclosed by Partners will be subject to the following: a. gusto pros b. The therein, as laws; c operly secured in accordance with the SAWDB's policies and safeguarding of PII; disclosure of customer education records, and the PII contained FERPA, shall comply with FERPA and applicable State privacy ,qWW A All confidential data contained in Unemployment Insurance wage records protected in accordance with the�quirements set forth in 20 CFR part 603; must be d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set, rth in 34 CFR 361.38; e. Customer data may be shared wi othe grams, for those programs' purposes, within the AJCC network only after the info med w consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent Federal and State privacy laws and regulations; and, g. All data exchange activity will be conducted in machine r ble format, such as HTML or PDF, for example, and in compliance with Section 508 of t e Rehab itation Act of 1973, as amended (29 U.S.C. § 794 (d)). All AJCC and Partner staff will be trained in the protection, use, and disclosure requirements governing PII and any other confidential data for all applicable programs, including FERPA-protected education records, confidential information in UI records, and personal information in VR records. 13 City Council 7 — 17 7/15/2025 EXHIBIT 1A 18) CONFIDENTIALITY There are strict confidentiality requirements under State and Federal laws, as well as local laws and regulations regarding confidential information, including PII from educational records, such as but not limited to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. Each party will ensure that the collection and use of any information, systems, or records that contain PII and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable law. Each party wi re that access to software systems and files under its control that contain PII or other pe onfidential information will be limited to authorized staff members who are assigned itie 'n support of the services and activities described herein and will comply with applica Xation y expressly agrees to take measures to ensure that no PH or other personal or confid is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is peinitted by applicable law, the appropriate data sharing agreements will be created and required c. identi lity and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information, any such data sharing must comply with all of the requiremen n 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-pro customer education records and the PII contained therein, any such data sharing agreement -rust comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information con d in VR records, any such data sharing agreement must comply with all of the requirements se, orth V4 CFR 361.38. 19) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in press/media presentations will be determined by each party's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage. 20) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, 14 City Council 7 — 18 7/15/2025 EXHIBIT 1A regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 21) NON-DISCRIMINATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of. (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or entail disability of a qualified individual with a disability. 22) GRIEV ND COMPLAINTS PROCEDURE The City is r red am a procedure for grievance and complaints per the WIOA. The AJCC Partner O*Nestablish and maintain a procedure for grievance and complaints as outlined in WIOA. ess for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner furthe agrees to unicate openly and directly to resolve any problems or disputes related to the provision o rvi in a cooperative manner and at the lowest level of intervention possible. All Partii a to i orm each other immediately when a customer violates an established policy that ld re em to be banned from the center or involves police authorities. 23) AMERICAN'S WITH DISABILITIES ACT A ' MENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC P ers are in compliance with the ADA. 24) HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each'signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified'in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 15 City Council 7 — 19 7/15/2025 EXHIBIT 1A 25) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force. 26) DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agen y maintain a drug -free workplace. The recipient must notify the awarding office if an employee recipient is convicted of violating a criminal drug statute. Failure to comply with thesOa nts may be cause for suspension or debarment under 2 CFR part 180, as adopted brtment of Education at 2 CFR 3485, and the U.S. Department of Labor regulatio�. 27) CERTIFICA ING LOBBYING All parties shall comply yrd Anti -Lobbying Amendment (31 U.S.C. Sectionl352), 29 C.F.R. Part 93, and 34 CFR 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not by fe eraltities using federal funds and will disclose lobbying activities as required by law and r�plations. 28) DEBARMENT AND SUSPENSION ; All parties shall comply with the debarment a susp and 2 CFR part 180 and as adopted by the U.S. epart the U.S. Department of Education at 2 CFR 3485. 29) PRIORITY OF SERVICE n requirements (E.0.12549 and12689) of Labor at 29 CFR part 2998 and by All parties certify that they will adhere to all statutes, regulations, olicies, and plans regarding priority of service, including, but not limited to, priority of service ' or veterans and their eligible spouses, and priority of service for the WIOA title I Adult program�as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA ,sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners. 30) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the "Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 16 City Council 7 — 20 7/15/2025 EXHIBIT 1A 31) SALARY COMPENSATION AND BONUS LIMITATIONS Each parry certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 15-22, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2023; Final PY 2023 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments; and Workforce Information Grants to States Allotments for PY 2023, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensatio and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess Federal Office of Personnel Management Executive Level II. 32) T O This MOU will re ct until the end date specified in section 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any party unable to perform pursuant to MOU due o lack of funding shall notify the other parties as soon as the party has knowledge that funds maybe unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by su nt federal law; c. Local area designation is changed under WIOA; and, d. A parry breaches any provision of this MOU a breach is not cured within thirty (30) days after receiving written notice from the SA air (or designee) specifying such breach in reasonable detail. In such event, the non-breiching party(s) shall have the right to terminate this MOU by giving written notice thereof to the party in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene w in thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representativ2 of the participating parties, and approved by the Chief Local Elected Official or his/her desige. The MOU, once signed, becomes part of the local WIOA Plan. Any party may withdraw from this,MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 33) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: 17 City Council 7 — 21 7/15/2025 EXHIBIT 1A City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 PARTNER: Employment Development Department 801 West Civic Center Drive, Suite 200 Santa Ana, CA 92701 34) INSURANC The AJCC Pa gree that their current in force insurance or self-insurance coverage programs shall apply r oper ions performed under the Workforce Innovation Opportunity Act and at the SAWC, ludi., mercial general liability, business personal property, workers' compensation and ishonesty/crime coverages. The City of Santa Ana shall be named as additional ins ndorsement to the commercial general liability and employee dishonesty/crime ins e policies and the coverage shall be primary and non-contributory with regard to the City. '. 101 35) AUTHORITY AND SIGNATURES ,, The individuals signing this MOU and its attach ts, which are incorporated herein by reference, have the authority to commit the party they re ° to the terms of this MOU, and do so commit by signing. ATTACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: AJCC Comprehensive Infrastructure Budget, an er System Cost Budget Attachment 3-1: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Con utions Attachment 5: Office Lease City Council 7 — 22 7/15/2025 EXHIBIT 1A IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Jennifer L. Hall City Clerk APPROVE O FORM: SONIA R. C VA City Attorney By: Andrea Garcia -Miller Assistant City Attorney FOR SANTA ANA WORKFORCE DEVE worKrorce ueveiopmeni tsoara t-nair CITY OF SANTA ANA Alvaro Nunez City Manager RECOMMENDED FOR APPROVAL: / Now i Michael L. Garcia Executive Director Community Development Agency ENT BOARD FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER Employment Development Department Wagner-Peyser & nemPloyment Insurance AJCC Partner Deputy Division Chief Date 675 Placentia Avenue, Suite #330, Brea. CA 92821 Employment Development Administrator Date 7000 Village Dr., Ste 91 I O_ Buena Park, CA 90621 19 City Council 7 — 23 7/15/2025 EXH I BdTttAhAnent 1 AJCC Partners Location and Map Partner Program Partner Authorization/Category Physically Organization Co -Located Title I Adult, Dislocated City of Santa Ana Workers and Youth WIOA Title I Adult, Dislocated Workers, Youth Yes Programs programs Rancho Santiago WIOA title II Adult Education and Family Adult Education/ Community College Literacy Act (AEFLA) program Career and technical education (CTE) Literacy and Carl Perkins District Career Technical programs at the postsecondary level, No Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser E oyment WIOA title III Wagner-Peyser Employment ment Services, authorized under the Wagner-Peyser Yes ment (EDD) Act (29 U.S.C. 49 et seq.), also providing the state's public labor exchange. Employment Veterans Development Jobs for Veterans State Grants (JVSG), Yes Department (EDD) authorized under chapter 41 of title 38, U.S.C. Employment Trade Adjustment Assistance (TAA), Trade Act Development au orized under chapter 2 of title II of the Yes Department (EDD) T ct of 1974 (19 U.S.C. 2271et seq.) Unemployment Employment Insurance (UI) Development Unemploy nt Insurance (UI) programs under No Department (EDD) state un ment compensation laws. State Department of WIOA title IV Sta e Vocational Rehabilitation Vocational Rehabilitation program authorized under title I of the Yes Rehabilitation Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) Temporary Assistance Social Service Temporary Assistance fo Needy Families for Needy Families Agency -Family Self- (TANF), authorized uncle part A of title IV of Yes (TANF) Sufficiency the Social Security Act (42 U.S.C. 601 et seq.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP), authorized and r title V of Yes SER-Jobs for the Older Americans Act of 1965 (42 U.S.C. Progress, Inc. 3056 et seq.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American United American Indian Indian and Native American Programs (Section Programs Involvement, Inc. 166) No Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Development Authority Yes Adult Demonstration Orange County Reentry Employment Opportunities (EO) Sheriff's Department programs authorized under sec. 212 of the No Second Chance Act of 2007 (42 U.S.C. 17532) and WIOA sec. 169 City Council 7 — 24 7/15/2025 EXH I BATtta 8h4hent 1 AJCC Partners Location and Map ff V'. [� .A'Lf iA AW. �f '' 14 - 55 G40I GNNE BL Joe � zM Tii451( A , SAWAC1MA A Amqu SAMA CIARA Ar'_ 1 r zz 17TH ST t � � MM1ASttt1YGTClN wr. . • _ STH Si / • SAMfA APIA IL 15f S i ' I J r ►- 9 ❑ rA MNC" N � V W IFY Lwou we �� ss SEGH15Tt1DM AU MAIL IIACOnax IL i+w r � a � � � m suM uxm we N strata Am WolilCCenlar O Cantonnial Adult Eduudan 294a W. Edinger Ave. 5bta Departrnant & © Rehabilitation lorg F; ach lab Corps 1970 Santa FQ km. Ammo's Job Cantor of Csliiornia mg The City Drive, Suits 110 L"-.g "ch CA 9rA t C W1 W.GticCartmr Dr. Santa Ana. CA927N Orargq CA 42868 Strata Ar►& CA92101 A9an ArnQrion Pad-nam 3 Santa Ana Col6ga 1 S30 W. 1 Tth St Social Services Agavty 1928 S. Grand Arne. 9 Senior Canto Ban N. 6nowrrttnt Oavaloprrwrtt Dwart—nt Santa Ana. U 927oo Sarta Arai. CA 927M 5areta Anna.a. U A 9I701 Stara Dopwbnont of Rehabilitation O.0 5odW Sarvicas Agency GoadwRI Industries Colkwp 3 Wbrkforca Pr rabcin Cantor spa aulbopValwy High Sdwol 1 ism S Greartrilla %mington Education Cantu 1 132s E aft St. SEWSankw Aid Program � :/ Santa And U 92 Tn 1 1572 N. ilAiin S2. Santa Ma. U 927Da Laatnalik Ormup, CA 92867 City Council Attachmgnt 15 7/15/2025 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 SANTA ANA AJCC Partner Services Service Partner Name Entity/Program Career Training Employer Delivery Method Title I Adult, DW, Youth City of Santa 1, 2, 3, 4, 6, 7, 8, 10, 11, 12, 13, 14, 15, 1 2 5 7 9 1 2 3 4 5 6 7 8 FT T B P O , 16,17 Rancho Santiag Adult Education/ Literacy Community College 2, 3, 12, 14-15, 17 1,8 B, P, O District Employment Development Wagner-Peyser Department (EDD) 1 2 4 5 6 8 9 10 17 " ' 2 3 416 7 8 1" ' FT PT T A B P V " ' Veterans (Jobs for Veterans Employment Development 1,2,3,4,5,6,8,9 10,11, State Grant) Department (EDD) 12,13,14,15 1 2 3 4 ,6,7 FT,T,A,B,P,V Trade Act (Trade Adjustment Employment Development Current progr m is expired Assistance) Department (EDD) Unemployment Compensation Employment Development 1,9 8 T,A,B Department (EDD) State Department of 1, 2, 3, 4, 5, 6, 7, 8, 11, 12, 13, 14, 15, DOR Eligible: 1, 1, 2, 4 DOR PT, FT Vocational Rehabilitation Rehabilitation 16,17 2, 3, 4, 5, 6, 7, Eligible: 3, 5, 8, 9, 8 Social Service Agency - TAN Family Self -Sufficiency Carl Perkins Career Technical Rancho Santiago Education Community College District Senior Aid Program Regions II & III SER-Jobs for 1, 2, 3, 4, 8, 10, 11, 12, 13, 15, 16 1, 2, 5, 7 PT, T, B Title V Older Americans Act Progress, Inc. Job Corps Long Beach Job Corps Native American Programs United American Indian (Section 166) Involvement, Inc. City Council 7 - 26 7/15/2025 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 Housing & Urban Development Housing Authority 11,2, 3, 4, 8, 10,13, 15,16,17 FT, B, P, O CAREER SERVICES: Basic Career Serv*ces (BCS) include self-help service services requiring minimal staff assistance and Individualized Career Services (ICS) requiring taff involvement generally provided to individuals unable to find employment through basic career services, and deemed d of more concentrated services to obtain employment; or who are employed but deemed to be in need of more conc ices to obtain or retain employment that allows for self-sufficiency. Basic Career Services 1. Eligibility Determinate, -his is the process of obtaining and documenting information about an individual's circumstances and comparing that imation with the criteria set by an agency or program to decide if the individual qualifies for participation. 2. Outreach, Intake and Orientation. Outr ach Nivities involve the collection, publication, and dissemination of information on program services availa le and directed toward jobless, economically disadvantaged, and other individuals. Intake is the process of collecting basic ation, e.g., name, address, phone number, SSN, and all other required information to determine eligibility or me. for an individual's program. Orientation, whether offered in a group setting, one-on-one, or electronically, is'the - sof providing broad information to customers in order to acquaint them with the services, programs, staff, and other r rces at the Santa Ana Work Center, or its partner agencies. 3. Initial Assessment: For individuals new to the workforce cyst 1 assessment involves the gathering of basic information about skill levels, aptitudes, abilities, barriers, and su rtive service needs in order to recommend next steps and determine potential referrals to partners or community resources. 4. Job Search, Placement Assistance, and Career Counseling: Job Searc s an. individual seek, locate, apply for, and obtain a job. It may include but is not limited to: job finding skills, o e tion`to the labor market, resume preparation assistance; referrals to job openings, placement services, job se rch work hops, vocational exploration, and re-employment services such as orientation, skills determination, and pre -layoff assistance. Placement Assistance is a service that helps people to identify and secure paid employment. Career Counseling is a facilitated exploration of ocWational and industrial information. W 5. Employment Statistics -Labor Market Information: Collect and report data about employment levels, unemployment rates, wages and earnings, employment projections, jobs, training resources and careers; (LMI) 6. Eligible Provider performance and program Cost Information: Collect and provide information on: A. Eligible training service providers (described in WIOA Section 122) City Council 7 — 27 7/15/2025 2 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 B. Eligible youth activity providers (described in WIOA Section 123) C. Eligible adult education providers (described in WIOA Title II). A, D. ostsecondary vocational educational activities and vocational educational activities available to school dropouts Carl Perkins Act (20 USC 2301). E. Eligible v rehabilitation program activities (described in Title I of the Rehabilitation Act of 1973). 7. Local Performance outcomes. and provide information on the local area's recent performance measure 8. Supportive Services' Infor n: Collect and provide information on services such as transportation, child care, dependent care, housing, and needs -related paym Kinflo ssaryto enable an individual to participate in employment and training activities. 9. Unemployment Compensation: Provatio ,. filing claims for state benefit payments that protect individuals from economic insecuri k for work. Claims may be filed on-line or via telephone available in the Santa Ana Work Center. 10. Eligibility Assistance: Provide guidance to indivi ty for other programs and on financial aid assistance for training and education programs that are available in the loca ea. _.V 11. Follow -Up Services: Services provided to participants who the first day of the employment. These services assist those employment. in unsubsidized employment, for not less than 12 months after to t ain employment or qualify for promotions with that 12. Comprehensive and Specialized Assessments: A closer look at the skills levels and sere needs that may include: A. Diagnostic Testing and use of other assessment tools; and B. In-depth interviewing and evaluation to identify employment barrNandpropriate employment goals. 13. Individual Employment Plan Development: Working with individuals to identify their employment goals, the appropriate achievement objectives, and the appropriate combination of services that will help the individual achieve those goals. City Council 7 — 28 7/15/2025 3 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 14. Group Counseling 15. Individual Counseling and Career Planning 16. Case Managemovor participants who receive training services under WIOA Section 134(d)(4). 17. Short -Ter tional Services: Can include development of learning skills, communication skills, interviewing skills, punctu ersonal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or trainin Training Services: Services offered through a prov der to help individuals upgrade their skills, earn degrees and certifications, or otherwise enhance their employability through learning and education. Types of training services include: 41 1. Occupational Skills Training: An organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical func ionsvired by certain occupational fields at entry, intermediate or advanced levels. 2. On -the -Job Training (OJT): Training by an empl at is provided to a paid participant while engaged in productive work that is limited in duration, provide or skills essential to the full and adequate performance of the job, and reimburses the employer for the co th training the OJT trainee often calculated based on a percentage of the trainee's wages. ­V 3. Workplace and cooperative education: Programs that cooperative education programs 4. Training programs operated by the private sector training with related instruction which may include Skills upgrading and retraining: Courses that prepare persons for entrance into a neccupation through instruction in new and different skills demanded by technological changes. These courses train incumbent workers in specific skills needed by that business or industry and that lead to potential career growth and increas d wa`N. This includes courses that develop professional competencies that are particularly relevant to a vocational occupational goal. It must be demonstrated that the training will result in the workers' acquisition of transferable skills or an industry -recognized certification or credential. T 6. Entrepreneurial training 7. Job -readiness training City Council 7 — 29 7/15/2025 4 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 8. Adult Education and Literacy programs: Services or instruction below the postsecondary level for individuals who are not enrolled or required to be enrolled in secondary school under state law and lack basic educational skills to enable the individuals to function effectively in society and on a job, Services include, but are not limited to, one-on-one instruction, coursework, or workshops that provide direction for the development and ability to read, write, andIft in English, compute, and solve problems, at levels of proficiency necessary to function in society or on the job, 9. Customized ng: Training that is designed to meet the special requirements of an employer or group of employers and that is conducted mmitment by the employer to employ an individual upon successful completion of the training and for whic �� oyer pays for a portion of the cost of training. Employer Services: Santa Ana Work Center servos employers include: 1. Employer needs assessmenl®�valuationAof employer needs, particularly future hiring and talent needs. 2. Job posting: Receiving and fillin enin s; searching resumes; providing access to a diverse labor pool. 3. Applicant pre-screening: Assessing can to the employer's requirements and hiring needs; referring candidates based on their knowle , ski to relative to the employer requirements. 4. Recruitment assistance: Raising awareness of emp oyers penings and attracting individuals to apply for employment at a hiring organization. Specific activities may e sting of employer announcements, provision of job applications, and hosting job fairs and mass recruitment': 5. Training assistance: Providing training resources to enable employers to upWade employee skills, introduce workers to new technology, or to help employees transition into new po S. 6. Labor Market Information: Access to information on labor market trend , statistic , and other data related to the economy, wages, industries, etc. 7. Employer information and referral: Provision of information on topics of interest to empli*rs such as services available in the community, local training providers, federal laws and requirements tax information, apprenticeship 8. programs, human resource practices, alien labor certification, incentive programs such as WOTC or the federal bonding program, etc. 9. Rapid Response and Layoff Aversion: Provision of services to prevent downsizing or closure, or to assist during layoff events, Strategies may include incumbent worker training to avert lay-offs, financing options, employee ownership options, placement assistance, worker assessments, establishment of transition centers, labor- management committees, peer counseling, etc. City Council 7 — 30 7/15/2025 EXHIBIT 1A SANTA ANA AJCC Partner Services Attachment 2 Servic Delivery Codes: How will your agency provide the services indicated`.' Code Method Description FT On -Site Staff Full Time T On -Site Staff Part Time T Access Via Telephone A Access Via Automated System B Orochurefflandout P Posting at One -Stop Center Other NA NOW pp lift le City Council 7 — 31 7/15/2025 EXHIBIT 1A Santa Ana Workforce Development Board AJCC Comprehensive Infrastructure and Other Costs Budget 2025-2026 Cost Category/ Line Item Base Rent Cost Details ncl. Janit al, Maint and Utilities CAM Charges Operational Cost 2% Management Fee 1.7 Parking Parking Overages Telephone Services Total Rent Dial Tone and Voice Mail Shared Phones by usage percentage Security Guard 1040 hrs x $30.18 1040 x $31 69 Equipment Public Computers Total Utilities/Maintenance Resource Room Computers (21) Computer Lab Computers (21) **Tech & Access Costs Access System/Card Total Equipment Key Card System Data & Phone Cabling Cabling Information Technology Cost Wireless Network Bridge MaintenancE ***Copiers (Annual) Resource Room used by clients Copy room Copier for staff only Total Technology and Access Lease & Infrastructure Total Attachment 3 EDD 9448.78 48.90% Monthly Cost Annual Cost Monthly Property Rent 23,556.90 Total Monthly Rent and Equipment Cost 23,556.90 Total Annual Rent and Equipment Cost 282,682.8 471.14 471.14 5,653.E 414.60 414.60 4,975.2 733.56 733.56 8,802.7 523.6 6,284.0 $25,176.20 $25,176.20 523.67 $302,114.40 6,284.0 24.7 297.4 - 24.78 297.3 2,673.14 2,673.1 32,077.6 5 $6,581.47 $2,673.14 $3,221.59 $38,659.08 1,, 64.7 3,976.E 1,164.72 13,976.E 1,164.71 13, 76.E 1,164.721 13,976.E $2,329.44 7,953.33 $2,329.44 $27,953.28 53.17 638.04 53.17 638.0 34.19 410.28 34.19 410.2 $87.36 $1,048.32 $87.36 $1,048.32 $2,965.25 $35,583.12 $27,849.34 $30,814.59 $369,775.0 ** Technology and Access Costs are all based on percentage ***Copiers are leased equipment and are charged by percentage. Additional charge for usage will be calculated and charged City Council 7 — 32 7/15/2025 EXHIBIT 1A Attachment 3-1 Applicable Career Services Sharing Other One -Stop Delivery System Costs The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infras a cost sharing, other system costs, including "Applicable Career Services" are not I the non -personnel costs and should include all costs related to the administrat nd del ery of those services. Applicable Career Services DOR Career Services: $589,069.89 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment statistics -Labor Market formation (5) • Eligible Provider performance and in Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation(9) i • Eligibility Assistance(10) • Follow -Up Services(11) • Comprehensive and Specialized Assessments(12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $2,356,279.58 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) City Council 7 — 33 7/15/2025 EXHIBIT 1A Attachment 3-1 Applicable Career Services Employer Services $0 • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Car rvice Cost P, $2,945,349.48 City Council 7 — 34 7/15/2025 EXHIBIT 1 A Attachment Comprehensive Cost Allocation and Partner Contributions Partner Program Squa Footage Pai ed on ng / nt Ratio of Total Square Footage Monthly Property Rent* CAM Charges Operational Cost and Management Fees Monthly Charges Monthly Rent + and Charges Amount: In- Kind Partner Contributions Yearly Career Services** EDD 9448 .90% $ 23,556.90 $ 885.74 $ 6,371.95 $ 30,814.59 $ 2,542,122.41 Santa Ana WORK Center (City of Santa Ana) 5955.50 30.8 % $ 14,847.73 $ 1,375.51 $ - $ 5,147.23 $ 21,370.47 $ $ 1,947,477.00 Department of Rehabilitation 163.78 0.85% $ 408.32 $ 13.84 $ 118.42 $ 540.58 $ $ 2,945,349.48 Social Services Agency -Family Self -Sufficiency 868.97 4 0% $ 2166.45 $ 199.29 $ 2,365.74 $ 1,235,907.20 Santa Ana Housing Authority 491.33 2.54% $ 1,224.95 $ 41.53 $ 172.39 $ 1,438.87 $ 202,860.00 SER Jobs for Progress 236.56 1.70% $ 816. 27.68 $ 236.87 $ 1,081.19 $ 12,397.50 Rent Stabilization Division 1737.52 8.99% $ 4331.8 146.86 $ 475.14 $ 4,953.84 $ Santa Ana Public Library 327.56 1.70% $ 816.6 $ 68 $ 132.74 $ 977.06 $ Community Action Partnership of OC Rancho Santiago Community College District Job Corps United American Indian Involvement, Inc. Total Rentable Space 19230.00 100.00% $ 48,169.47 $ 1,633.10 $ 885.74 $ 12,854.03 $ 63,542.34 $ $ 8,873,716.09 Revised 6/10/25 6:23:46 AM City Council 7 — 35 7/15/2025 INSURANCE NOT REQUIRED WORK MAY PROCEED CITY CLERK DATE: FIRST AMENDMENT TO OFFICE LEASE BETWEEN l- -LDA(,A�N) SANTA ANA CA I SGF, LLC AND THE CITY OF SANTA ANA (UebMr A-) E)(AiP17464-02A THIS FIRST AMENDMENT TO OFFICE LEASE (this "First Amendment'') is entered into as of -S,, a (.p, 2023 {the ``Effective Date") by and between SANTA ANA CA I SGF, LLC, a Delaware limited liability company ("Landlord'), and THE CITY OF SANTA ANA, a charter city and municipal corporation ("Tenant"). f WITNESSETH: WHEREAS. Landlord, as successor -in -interest to CF SANTANA, LLC, a Delaware limited liability company, and Tenant entered into that certain Office Lease No. A-2017-264 dated October 7, 2017. Tenant F,stoppel Certificate No. A-2017-264-01 dated February 8, 2018, and Exhibit B Notice of Lease "berm Dates No. A-2017-264-02 dated February 16. 2018 (hereinafter collectively referred to as the "Lease"), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord that certain premises identified as Suite 200 containing approximately 19321 rentable square "feet of office space (the "Premises") in the building located at 801 Civic Center Drive, Santa Ana, CA 92701 (the `'Building"); WHEREAS, Landlord and Tenant desire to amend the Lease to set a new Term of the Lease, subject to the terms and conditions set fogh herein. NOW, THEREFORE, in consideration of the aforesaid premises and the other agreements and covenants hereafter set fof'th and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties do hereby agree as follows: 1. Incorporation of Recitals. The above recitals are hereby incorporated into this First Amendment as if fully set forth herein. As used herein the term "Lease' shall mean the Lease as amended by this First Amendment. 2. Definitions. All capitalized terms used in this First Amen meat shall have the meanings assigned to them in the Lease unless otherwise specified he�rein. 3. Term. The Initial Term as defined by Section 3, 13'�Sic L e Prov' ions, of the Lease is hereby for a period of One Hundred Twenty (120) full calendar onths, i ncing on July 1, 2023 and expiring on June 30, 2033 (the "Term"). Tenant shall have the right to extend the Termfor two (2) silty (60) month periin accordance with Section 3.2.2, Standard Lease Provisions. of the Lease. 4. Base Rent. Commencing on July 1, 2023, Tenant shall pay Base Rent in the following amounts: Dates Annual Base Rent tvIonthly Installment of Base Rent Annual Rental Rate per RSF 7/l/2023 — 6/30/2024 $544,852.20 $45,404.35 $2.35 5910216.11 City Council 7 — 36 7/15/2025 EXHIBIT 1A 7/l/2024 — 6/30/2025 $561,197.77 $46,766.48 $2.42 7/I/2025 — 6/30/2026 $578 033.70 $48,169.47 _ $2.49 7/l/2026 — 6/30/2027 $595 374.71 $49 614.56 $2.57 7/1/2027 — 6/30/2028 $613,235,95 $51,103.00 $2.64 7/1/2028 — 6/30/2029 $6311633.03 $52,636.09 $2.72 7/1/2029 -- 6/30/2030 $650 582.02 $54,215.17 $2.81 7/1/2030 — 6/30/2031 $670 099.48 $55,841.62 $2.89 7/1/2031 — 6/30/2032 $690,202.47 $57,51.6.87 $2.98 7/l/2032 — 6/30/2033 $710 908.54 $59,242.38 $3.07 ,Base e Year. The "Base Year" is hereby amended to reflect calendar year 2023. 6 section 1.4.1, Waiver of Liability and Indemnification, of the Standard Lease Provisions, is he y amended as follows: Except to the extent caused by the gross negligence of Landlord or its agents, contractors or employees, Tenant hereby waives all claims and causes of action against Landlord and all of the other Landlord Parties for any damage to persons or property (.including; without limitation, loss of profits and intangible, property) in any way relating to Tenant's use and occupancy of the Premises from any cause whatsoever, including, without limitation fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks from any part the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or sub -surface or from any other place or caused by dampness, vandalism, malicious mischief. Tenant shall indemnify, defend, protect and .hold harmless Landlord and each of the Landlord Parties from and against any and al Claims that arise out of, are occasioned by or are in any way attributable to: (a) the use or occupancy of the Premises or any portion of the Project by Tenant, (b) the acts or omissions of "Tenant or any Tenant Party, (c) any default of this Lease by Tenant, or (d) any litigation or other proceedings between Tenant and any third party; provided. that Tenant shall not be required to so indemnify, defend or hold Landlord or any of the other Landlord Parties harmless to the extent that any such Claims arise out of the gross negligence or willful misconduct of Landlord, its agents or employees. 7. Tenant JDVroyemetits. Landlord consents to (but does not require) Tenant's completion of certain improvements to the Premises (collectively, the "Tenant Improvements"), subject to the terms and conditions of Exhibit A. attached hereto and made a part hereof. 8. As -Is Condition. Tenant accepts the Premises in its "AS -IS, WHERE -IS" condition as of the Effective Date, and Landlord makes no representation or warranty concerning the condition of the Leased Premises and has no obligation to construct, remodel, improve, repair, decorate or paint the Premises or any improvement on or a part of the Premises, except as may be otherwise set forth in the Lease. Tenant represents that (a) it has been in possession of the Premises pursuant to the Lease, (b) it has inspected the Premises prior to execution of this First Amendment, (c) it is not relying on any statement, representation or warranty of Landlord, its employees or agents, and (d) is fully satisfied with the condition of the Premises. 2 59102t6.1 City Council 7 — 37 7/15/2025 EXHIBIT 1A 9. Parking. Section 2.3.2(c)(ii) is hereby deleted in its entirety and replaced with the following: "Notwithstanding the foregoing, each calendar month during the Term, Landlord shall provide to Tenant, without charge: (A) a number of Short Term Project Parking Validations (defined below) equal to the product of thirty (30) and the number of days in such calendar month (during the Term) and (B) a number of Long Term Project Parking Validations (defined below) equal to the product of one hundred eighty (180) and the number of days in such calendar month (during the Term), in each case to be used only by Tenant's Business Customers for parking in the Parking Facilities without charge, provided that (x) Landlord shall not, at any time during the "Perm, be required under this Section 2.3.2(c)(ii) to provide a number of Project Parking Validations in any calendar month in excess of a number equal to the product of hvo hundred ten (2 tO) and the number of days in such calendar month (during the Tenn) and (y) any Project Parking Validations provided by Landlord with respect to any particular calendar month that are not used during such calendar.mo.nth shall, at the election ofLandlord, either: (1) become null and void (and be returned to Landlord) or (2) be credited against Landlord's obligations to provide Project Parlcing Validations under this Section 2.3.2(c)(ii) for subsequent calendar months. No Project Parking Validations provided by Landlord to Tenant under this Section 2.3.2(c)(E) shall be used to accommodate parking, without charge, by any particular Tenant's Business Customer(s), for a period in excess of three (3) hours on any day without Landlord's prior approval (and Tenant shall not provide any particular Tenant's Business Customer more than one Project Parking Validation on any particular day). "Short Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to twenty (20) minutes without charge. "Long Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to one (1) hour without charge." 10. No Default. Each of Landlord and Tenant hereby affirm to each other that as of the Effective Date no breach, default, event of default, or other act, error, or omission which, with the giving of notice or passage of time or both would constitute a breach, default, or event of default by such party has occurred and is continuing under the Lease beyond any applicable notice or cure period. 11. Affirmation of Lease Terms,. Except as modified by this First Amendment, Landlord and Tenant hereby ratify the Lease and agree that the Lease shall .remain unchanged and shall continue in full. force and effect. In the event there is any conflict between the terms of the Lease and the terms set forth in this FirstAmendment, the terms specifically set out ill this First Amendment shall control. From and after the Etfective Date, any and all references to "the Lease" or "this Lease" in the Lease shall mean the Lease as modified by this First Amendment. 12. Mutual Authorization Representation. Each of Landlord and Tenant hereby represent and warrant to each other that: (a) this First Amendment (and each term and provision hereof) has been duly and appropriately authorized and executed by such party through proper written corporate or limited liability company action and approval; and (b) no additional consent, agreement, or approval is required with respect hereto. 591b2M11 City Council 7 — 38 7/15/2025 EXHIBIT 1A I3. Brokerage. Landlord and Tenant each represent that they had no dealings with any real estate broker, .finder, or other person with respect to this First Amendment in any manner, other than Lee & Associates Newport Beach, Inc. representing Tenant ("Tenant's Broker") and Newmark representing Landlord ("Landlord's Broker" and collectively with Tenant's Broker, the `Brokers"). Landlord shall pay Brokers a leasing commission in connection with this first Amendment pursuant to separate agreement. Tenant shall indemnify and hold Landlord harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or :fees claimed by any other real estate broker or agent in comiection with this First Amendment or its negotiation by reason of the act of Tenant. Landlord shall indemnify Tenant and hold Tenant harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of Landlord. 14. Miscellaneous. The submission of an unsigned copy of this First Amendment to Tenant shall not constitute an offer. This First Amendment (a) shall be binding upon an inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and assigns, (b) may be executed in two or.more counterparts, all of which together shall constitute but one and the same agreement, (c) shall be governed by and construed in accordance with the laws of the State of California and 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 this Agreement, (d) shall constitute the entire agreement between the parties relating to the subject matter hereof, all prior negotiations, agreements, and understandings (not including the Lease, as amended), whether oral or written, being hereby superseded and terminated, and (e) shall become effective and binding only upon execution and delivery by both Landlord and Tenant. The execution of facsimiles, including the use of electronic signatures, of this First Amendment shall be binding on the parties hereto. 17. E-SIGN and Counterparts. Landlord and Tenant agree: (a) that a party's electronic signature with respect to this Lease has been executed or adopted by the signatory with the intent to sign, and be bound by, this Lease; (b) delivery oNhis Lease via electronic transmission or other electronic means shall be valid delivery for all purposes; (c) this Lease and any additional information incidental hereto may be maintained as electronic records; (d) photocopies, facsimile transmissions, electronic images and other copies of this Lease and/or its signature pages, shall be valid, binding, effective and enforceable the same as originals for all purposes, and may be so admitted in any.judicial proceeding, regulatory proceeding or arbitration, and in making proof of this Lease it shall be unnecessary to produce the original hereof or any or all original signature pages; and (e) each party agrees to take any and all reasonable actions, .if any; as may be necessary or as may be reasonably requested by any other party to this Lease to further evidence such party's intent to be bound by the provisions ofthis Lease and to ensure compliance with the provisions of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001, et seq., the Uniform Electronic Transactions Act as incorporated into applicable law, and any other applicable law pertaining to electronic signatures. rRemainder• ofEake 11ntentiopgIl Blank- Signature Page Followsl 4 5910216.1 t City Council 7 — 39 7/15/2025 EXHIBIT 1A IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment to be effective as of the date first set forth above. ATTEST: CITY OF SANTA ANA (TENANT): Jen 'ka Kristine Ridge City Clerk`'' City Manager 1W APPROVED A OFO SONIA R. CARVALHO City Attorney By: ,Oose Montoya, As rstant City AttoAe RECOMMENDED FOR APPROVAL: - 7 && Mike Garcia Executive Director Community Development Agency LANDLORD: SANTA ANA CA I SGF, LLC, a Delaware limited liability company ma q;wv f Mike Garcia - Executive Director Community Development Agency [SIGNATURE PAGE TO FIRST AMENDMENT TO OFFICE LEASE] 5910216.11 City Council 7 — 40 7/15/2025 EXHIBIT 1A EXHIBIT A WORK LETTER THIS WORK LETTER (this "Work Letter") is attached to and incorporated into the First Amendment. Supplementing the provisions of the Lease (as amended by the First Amendment), but without limiting those provisions, Landlord and Tenant agree as follows with respect to the Tenant Improvements to be installed in the Premises. I. Purpose. This Work Letter establishes responsibilities for the design and construction of the Tenant Improvements as well as the allocation of the costs of the Tenant Improvements. The terms, conditions, and requirements of the Lease, except where clearly inconsistent or inappli ble to this Work Letter, are incorporated into this Work Letter. 2. Definitions.,.. he following defined terms used in this Work Letter shall have the meanings set forth below. Unless provided to the contrary herein, any other capitalized teen that is not defined in this Work Letter shall have the meaning given to that term in the Lease. (a) "Approved Working Drawings" is defined in Section 3(c) hereof. (b) "Building Systems" means the structural portions of the Building, the common area restrooms, elevators, the Building's HVAC, mechanical, electrical, plumbing, and fire and life saty systems and equipment (including, but not limited to, the fire alann and fire sprinklers).` (c) "Contractor" means the general contractor engaged by Landlord for performance of the Landlord Work pursuant to Section 4 hereof. (d) "Cost Proposal" is defined in Section 5(a) hereof. (e) "Days" means, unless otherwise indicated, calendar days, (t) "Landlord Coordination Fee" means a fee equal to five percent (5%) of the hard and soft costs of the Landlord Work charged by Landlord for its services in managing the design and construction of the Tenant Improvements, and such tee will be included in the cost of the Landlord Work and deducted from the Tenant Allowance. (g) "Landlord's Representative" means Dana Duarte as the only person authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other communication from or on behalf of Landlord .in connection with this Work. Letter unless such Communication is in writing from Landlord's Representative. Landlord may change the Landlord's Representative at any time upon not less than five (5) days' advance written notice to Tenant. (h) "Landlord Work" means all work necessary and appropriate to complete the Tenant Improvements in accordance with this Work Letter and the Lease. 6 5910216.11 City Council 7 — 41 7/15/2025 EXHIBIT 1A (i) "Over -Allowance Amount" is defined in Section 10(d) hereof. 0) "Permits" is defined in Section 6(a) hereof. (k) "Punch List Worlc" means those minor corrections of construction or decoration details, and minor mechanical adjustments, that are required to cause any applicable portion of the Tenant Improvements as constructed to conform to the Approved Plans in all material respects and that do not materially interfere with Tenant's use or occupancy of the Building and the Premises. (1) "Space Plan" is defined in Section 3(a) hereof. (m) "Space Plan Allowance" shall be Zero and 15/100 Dollars ($0.15) per rentable square :foot of the Premises (i.e., up to $2,898,15), based on 19,321 rentable square feet of the Premises, and shall be included in the Tenant Allowance and deducted therefrom. (n) "Substantial Completion" of the Tenant Improvements shall be deemed to have occurred on the date that: (i) all Landlord Work has been performed in accordance with the terms of this Work Letter, other than any Punch List Work; and (ii) if required, Landlord has obtained and delivered to Tenant a permanent or temporary certificate of occupancy ("COO") with respect to the Premises, except to the extent the same cannot be obtained by reason of the incompletion of installations or other work that is the responsibility of Tenant (such as, but not I imited to, the installation and making operational of Tenant's systems and telecommunications equipment), in which case Landlord shall obtain the same within a reasonable time after the same can be obtained. (o) "Tenant Allowance" shall be Twenty -Eight and 00/100 Dollars ($28.00) per rentable square foot of the Premises (i.e., up to $540,988.00), based on 19,321 rentable square feet of the Premises. (p) "Tenant Contractor" or "Tenant Contractors" means any employees, agents, contractors, consultants, subcontractors, mechanics, suppliers and invitees of Tenant, whether or not directly employed by Tenant, each of whom shall be reasonably approves[ by Landlord before they may work in the Building. (q) "Tenant Delay" means a delay caused by any of the following: (i) Tenant's failure to timely approve the Working Drawings or any other matter requiring Tenant's approval; (ii) a breach by Tenant of the terms of this Work Letter or the Lease; (iii) Tenant's request for changes in any of the Working Drawings, but only if such a request actually causes a delay to Substantial Completion of the Premises; 7 59162W11 City Council 7 — 42 7/15/2025 EXHIBIT 1A (iv) Tenant's requirement for: (A) materials, components, finishes, or improvements which are different from, or not included in, Landlord's standard tenant improvement items for the Building (which have been provided to Tenant and of which Tenant acknowledges receipt); or (B) materials that are not available in a commercially reasonable time given the estimated date of Substantial Completion of the Premises, but only to the extent that such a requirement actually causes a delay to Substantial Completion of the Premises; or (v) any other acts or omissions of Tenant, or of any of the Tenant Contractors, their agents, or employees that continue more than one (1) day aver written notice thereof by Landlord. (r) "Tenant FF&E Allowance: means a portion of the Tenant Allowance in the amount of up to Ten and 00/100 Dollars ($10.00) per rentable square foot of the .Premises (i.e., up to $ i 93,210A0), which Tenant may use for Tenant's furniture, fixtures and equipment to be purchased and installed in the Premises and any costs of data cabling and IT infrastructure in connection with Tenant's furniture, fixtures and equipment. (s) "Tenanf's Representative" means the Executive Director, Community Development, or the .Economic Development Manager or their designee (either such individual acting alone) as the only person[s] authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry, or other communication from or on behalf of Tenant in connection with this Work Letter unless such communication is in writing from Tenant's Representative. Tenant may change the Tenant's Representative[s] at any time upon not less than five (5) days' advance written notice to Landlord. (t) "Working Drawings" is defined in Section 3(b)hereof. 3. Plan Approval. (a) Prior to commencement of the Landlord Work, Landlord and Tenant shall approve detailed space plans (collectively, the "Space Plan") for the construction of the Tenant lmprovements, which space plans shall be prepared by Landlord's architect and subject to Tenant's reasonable approval within ten (10) days after receipt thereo (b) Promptly following Tenant's approval of the Space Plan, Landlord shall cause its architcct and engineers to prepare and deliver to Tenant detailed specifications and engineered working drawings for the Tenant Improvements shown on the Space Plan, with such modifications to the Space Plan as shall be necessary to comply with the requirements of the Building Systems of the Building (the "Working Drawings"). (c) Tenant shall approve or disapprove the Working .Drawings in writing with in fourteen (14) business days after receipt. Tenant may only disapprove the Working Drawings to the extent such Working Drawings are inconsistent with the Space Plan and only if Tenant delivers to Landlord, within such fourteen (14) business day period, specific changes proposed by Tenant which are consistent with the Space Plan. If any such revisions are timely and properly proposed by Tenant, Landlord shall cause its architect and 5910216.11 City Council 7 — 43 7/15/2025 EXHIBIT 1A engineers to revise the Working Drawings to incorporate such revisions and submit the same for Tenant's approval in accordance with the foregoing provisions, and the parties shall follow the foregoing procedures for approving the Working Drawings until the same are finally approved by Landlord and Tenant. Upon Landlord's and Tenant's written approval of the Working Drawings, including any agreed changes pursuant to Sections 5 and 6, the same shall be known as the "Approved Working Drawings". 4. Construction Contracts. Landlord shall enter into a construction contract for the performance of the Landlord Work with the Contractor. Landlord shall use commercially reasonable efforts to obtain at least three (3) bids From each trade (other than mechanical, electrical, plumbing, and fire/life safety, for each of which Landlord shall require all work to be performed by Landlord's approved subcontractor for such trade) and shall select the lowest qualified bidder unless otherwise approved by Tenant in writing. Landlord shall require its Contractor to exercise reasonable efforts to avoid disruption of Tenant's business and to protect the health & safety of Tenant, its employees and its guests. This shall include, at a minimum, using all feasible methods to minimize danger, noise, vibration, fumes, dust and other pollution, and to the extent practicable, perform work outside of normal business hours. 5. Cost Estimate. (a) Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of the Tenant Improvements (the "Cost Proposal"). The Cost Proposal shall be provided to Tenant on an open book basis (i.e., Landlord shall make available to Tenant the economic terms of the construction agreement with the Contractor (including, without limitation, the cost of labor and materials, contractor fees and permit fees), as well as all bids received by Landlord for the Landlord Work, and reasonable documentation supporting Landlord's estunate of plan preparation costs and all other costs of the Landlord Work). (b) Within ten (10) days of the receipt of the same, Tenant shall either: (i) approve the Cost Proposal; or (ii) have a one-time right to propose modifications to the Working .Drawings so that the Cost Proposal does not exceed the amount of the Tenant Allowance. With the exception of the City's one-time right to modify as provided in this section, any proposed changes to the Working Drawings (other- than changes that make the Working Drawings conform to the Space Plan) shall be subject to Landlord's approval, which approval shall not be unreasonably withheld, conditioned, or delayed. If Landlord approves the proposed revisions: (A) Landlord shall have the Working Drawings revised in accordance with. the approved revisions; and (B) Landlord shall submit a revised Cost Proposal to Tenant. Tenant shall notify Landlord in writing within ten (10) days whether it desires to proceed with such revisions. If Tenant fails to approve such revisions and revised Cost Proposal within such ten (10) day period; such failure shall be deemed to be a Tenant Delay. Any delays arising from further changes to the Working Drawings requested by Tenant shall be deemed to be Tenant Delays. (c) Tenant's final written approval of the Cost Proposal and the Approved Working Drawings shall be authorization by Tenant for Landlord to purchase all materials 9 5910216.1 t City Council 7 — 44 7/15/2025 EXHIBIT 1A set forth in the Cost Proposal and to promptly commence the construction of the Tenant Improvements in accordance with the Approved Working Drawings. 6. Performance of the Landlord Work. (a) Landlord shall cause the Contractor to obtain all applicable building permits for construction of the Landlord Work (collectively, the ".Permits"), and to perform the Landlord Work in a good and workmanlike manner and in compliance with the Permits and all applicable Laws in effect at the time of construction. All costs associated with obtaining Permits will be deducted from the Tenant Allowance. (b) If any local governmental agency requires revisions to the Approved Worsting Drawings, Tenant shall be deemed to have approved any adjustments to the Approved Working Drawings and the Cost Proposal resulting therefrom. If any Authority issuing Permits for the construction of the Tenant Improvements shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with .Landlord's obligations hereunder; (ii) increase the cost of constructing the Tenant Improvements; or (i.ii) will materially delay the construction of the Tenant Improvements, .Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 7. Chanee Requests. No changes to the Approved Working Drawings or the agreed Cost Proposal may be made without the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion. if Tenant requests a change that would directly or indirectly delay the Substantial Completion of the Tenant Improvements, 'Landlord shall not be obligated to make such change unless Tenant agrees in writing that such delay (in the amount reasonably determined by Landlord) is a Tenant Delay. If Tenant requests a change to the Approved Working Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make such change unless Tenant agrees in writing to pay any such increase in costs in accordance with Section t0. 8. Substantial Completion. When Landlord's architect certifies that the Landlord Work is Substantially Complete, Landlord shall notify Tenant thereof in writing. Tenant's Representative and Landlord's Representative shall at a mutually convenient date and time [but in no event later than ten (10) days after such notice] conduct a joint walls -through of the Premises in order to review the Tenant Improvements. Based upon said walls -through, Landlord's Representative and Tenant's Representative shall prepare a list of Punch List Work and, subject to Force Majeure, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord shall complete the Punch List Work items within thirty (30) days after such joint walk-through. in the event of any dispute as to whether Landlord has Substantially Completed the Tenant Improvements, the City will be alTorded an opportunity to provide input before the Landlord's architect renders a final decision on the dispute. The decision of .Landlord's architect shall be final and binding on the parties. Tenant agrees that, at the request of Landlord from titne to time after the initial .inspection, Tenant shall initial such punch list or execute revised lists of Punch List Work to reflect completion or partial completion of prior Punch List Work. 10 5910216.11 City Council 7 — 45 7/15/2025 EXHIBIT 1A 9. Access by Tenant. Subject to the terms hereof and provided that Tenant and its agents do not interfere with the Contractor's work in the Building and the Premises, Landlord shall allow Tenant and any of the Tenant Contractors access to the applicable portions of the Premises at least ten (10) days prior to the Substantial Completion orthe Landlord Work for the purpose of installing equipment and/or fixtures (including Tenant's data and telephone equipment) and Tenant's furniture in the Premises. Prior to Tenant's entry into the Premises, Tenant shall submit a schedule to Landlord and the Contractor, for their approval, which schedule shall detail the Tenant Contractors accessing the Premises and the timing and purpose of such entry. in connection with any such entry, Tenant acknowledges and agrees that all Tenant Contractors shall fully cooperate, work in harmony with and not, in any manner, materially interfere with Landlord or Landlord's contractors (including the Contractor), agents, or representatives in performing work in the Building and the Premises, or in performing any inspections, or interfere with the general operation of the Building. If at any time any of the Tenant Contractors shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain corrective actions as directed by Landlord, then Landlord may revolve Tenant's entry rights (as to an individual Tenant Contractor, or as to all Tenant Contractors, as Landlord shall deem appropriate). Tenant acknowledges and agrees that any such entry into and occupancy of the Premises or any portion thereof by Tenant or any Tenant Contractor shall be deemed to be subject to all the terms, covenants, conditions, and provisions of the Lease, excluding only the covenant to pay Rent (until the occurrence of the Lease Commencement Date). 10. Cost Allocation. (a) Provided this Lease is in full force and effect, and Tenant is not in default thereunder beyond any applicable notice and cure period, Landlord shall pay (i) the costs of Space Plan in an amount up to, but not exceeding, the Space flan Allowance, and (ii) the costs of the Tenant Work in an amount up to, but not exceeding, the Tenant Allowance. Landlord shall deduct the Landlord Coordination Fee o 'the Tenant Improvements from the Tenant Allowance. (b) In no event shall Landlord be obligated to pay for the costs of any of Tenant's furniture, computer systems, telephone systems, equipmenf, or other personal property (whether or not such items may be depicted on the Approved Working Drawings) that exceed the Tenant FF&E Allowance. Eligible costs that exceed the Tenant FF&.E Allowance shall be borne by Tenant. (c) In the event that all costs associated with the Space Plan and design, permitting, and construction of the Tenant Improvements, including the Landlord Coordination Fee, exceeds the Space Plan Allowance and/or the Tenant .Allowance, as applicable, the amount of such excess (the "Over -Allowance Amount") shal l be paid by Tenant to Landlord within thirty (30) days following delivery of an invoice by Landlord. Tenant shall .not be responsible for the Over -Allowance Amount if caused by Landlord. or Landlord Contractor's own negligence, willful misconduct, or delay. 5910216.11 City Council 7 — 46 7/15/2025 EXHIBIT 1A (d) Tenant shall not be entitled to receive (in cash or as a credit against any rental or otherwise) any portion of the Tenant Allowance not used to pay for the costs of the design, permitting, and construction ofthe Tenant improvements. IL Miscellaneous. (a) All Tenant Improvements to be performed by Landlord (and any installations in the Premises as set forth in the Approved Working Drawings, or otherwise) shall use Building -standard specifications, materials, finishes, and supplies, unless otherwise specified in the Approved Working Drawings. Landlord, in its sole discretion, may substitute items, materials, or finishes with other items, materials, or finishes of comparable kind and quality. Landlord, at its sole option, may also change mechanical plans and specifications where necessary for the installation or modification of the Building Systems to accommodate the Tenant Improvements, provided that any such changes shall not materially and adversely affect Tenant's use and occupancy of the Demised Premises for the Permitted Use. a'" V (b) Tenant acItnowledges that the timely completion of the Tenant Improvements is of the utmost importance to Landlord and Tenant. Accordingly, Tenant hereby agrees to fully and diligently cooperate with all reasonable requests by Landlord in connection with or .related to the design and construction of the Tenant Improvements and the completion of the permitting process and, in connection therewith, Tenant shall respond to Landlord's requests for information and/or approvals, except as specifcally set forth herein to the contrary, within two (2) days following request by Landlord. Landlord and Tenant, and such other parties as may be useful or appropriate, shall sleet on a scheduled basis to be determined by Landlord's Representative and Tenant's Representative, to discuss progress in connection with the same. (c) If at any time on or before the Substantial Completion of the Landlord Work, Tenant is in default under this Work Letter or under the Lease, which default remains uncured after the expiration of applicable notice and cure periods, then: (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to instruct the Contractor to cease the construction of the Landlord Work (in which case, Tenant shall be responsible for the Tenant Delay caused by such work stoppage); and (ii) all other obligations of Landlord tinder the terms of this Work Letter shall be suspended until such time as such default is fully and finally cured. (d) Landlord hereby assigns to Tenant all warranties by Contractor relating to the Tenant Improvements, which assignment shall be on a non-exclusive basis such that the warranties may be enforced by Landlord and/or Tenant; such warranties shall be for a twelve (12) month period. (e) Any portion of the Tenant Allowance not used within thirty-six (36) months of the Effective Date of this First Amendment shall be forfeited with no further obligation by Landlord with respect thereto. In no event shall Tenant be entitled to apply any unused portion of the Tenant .Allowance towards future payments of Base Rent and/or, except as expressly set forth herein, purchase of Tenant's furniture, fixtures and equipment. 12 5910216.11 City Council 7 — 47 7/15/2025 EXHIBIT 1B Memorandum of Understanding For Santa Ana Workforce Development Board and the Community Action Partnership of Orange County Long Beach Job orps Rancho Santiago Community College District/ Santa Ana College United American Indian Involvement City Council 7 — 48 7/15/2025 EXHIBIT 1B MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY Thj&orkforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local e Development Area develop and enter into a Memorandum of Understanding ( ,,rith each America's Job Center of California ("AJCC") Partner, consistent with WIOA c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and ined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final at 20 00, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. 2) AJ The parties to this MO are City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and t e Community Action Partnership of Orange County, a non -collocated one - stop AJCC Partner. 3) PURPOSE The purpose of the MOU is siste ith the ovisions of WIOA sec. 121(c)(1), to establish a cooperative working relations betty en WDB and Community Action Partnership of Orange County, the non-colloc AJ and to define their respective roles and responsibilities concerning the operatio the it relates to shared services and customers. It serves to establish the framework fo providdg services to employers, employees, job seekers and others needing workforce services. It al serves hch a framework to support the established service delivery through the shari of costs. It is expressly understood that this MOU does not constitute a binding final co t, t rather an intent to commit specific resources in the future as the parties' allocations an ud re known and the America's Job Center of California system evolves. 4) DURATION The term of this MOU shall commence July 1, 2025 and terminate June 28. This MOU will remain in effect until the termination date, unless one of the conditions in s ion 28 occurs. 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1 2 3 and 4 constitute the entire agreement baleen the a ties g p and no oral understanding not incorporated herein shall be binding on any of the parties he eto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the arties, by the issuance of a written amendment, signed and dated by the parties, which may require pprovY by the governing body of each Party. Assignment of responsibilities under this MOU by a y of the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. City Council 7 — 49 7/15/2025 EXHIBIT 1B 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the nee�kof its unique demographics. The SAWDB's overall strategies include: ying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to new jobs in which Santa Ana's workforce can participate; 0 E mall business development support as a creator of new jobs and method for cal tax base; c) to Ana's current and future workforce through classroom pre -training and ties,us on-the-job training and workforce skill enhancement activities; d) Offering &are& pathw,t programs for both unemployed and employed adults and youth: e) Increasing cces jobs for disconnected and underserved populations, especially youth; f) Organizing, i &grating and su porting social and other services through the SAWDB's network of par hips, vo untee organizations, and established institutional resources; and, g) Assuring funding fro 1 pub priv d other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICE A. LOCATION The AJCC is currently located in Santa Ana a f American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714) 565-2600 Open to the Public: Monday — Friday 8:00 am-5:00 pm The AJCC is currently located at the Santa Ana WORK CenteY("SU) as cr bed in the Location of AJCC and all Partners, attached herein as Atta corporated herein by reference. Santa Ana ranks as the fourth densest city in the enti tion. SAWC through its central location in downtown Santa Ana, shall provide and/or oordinate IOA services to individuals, providing them with the necessary skills to participate in uil ing a world -class workforce in Santa Ana. The SAWC offers the community a ariety o informational, employment and training services based on individual needs. Tho e needs are met by the combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not 1414440i to, 4@ f ii@w; 4g; City Council 7 — 50 7/15/2025 3 EXHIBIT 1B 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; on of performance and program cost information on the Eligible Training er List ("ETPL") eligible programs by program and type of provider ision o°information in acceptable formats and languages that identify actual N.erform nce against performance accountability measures g. Provi ion of nformation related to support services h. P( vision (information and assistance in filing Unemployment Insurance claims; and, ,A6, i. Assista ce in establi hing eligibility for programs of financial aid assistance for training and>educ i n programs not funded through WIOA. 2. Individualized Caree Services: a. Comprehensive and speci sment of skill levels and service needs including: Diagnostic'te ; , assessment tools; b. In-depth interview and aluatio etermine barriers and goals; c. Development of Individual Emp oyment P ( P) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; £ Career planning; g. Short-term pre -vocational services, communication skills; and, other soft or training; h. Workforce preparation activities, including: skills necessary for successful transition into employment; j• Financial literacy services; and, Out -of -area job search assistance and relocation assistance. 3. Training Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; d. Programs that combine workplace training with e. f. g• h. include cooperative education programs; Training programs operated by the private sector; Skill upgrading and retraining; Entrepreneurial training programs; Transitional jobs; of learning skills; & for employment i. Job readiness training provided in combination with any of the aforementioned City CountrfflnmgServices; 7 — 51 7/15/2025 4 EXHIBIT 1B j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, in. English language acquisition and integrated education and training program. plover Services: a. Recruitment and other business services on behalf of employers. .SY TRUCTURE 1. STOP OPERATOR PROCUREMENT TfNqEMWDB w 11 prod e the AJCC Operator through a competitive process in accordance with the Un form uidance Cost Principles contained in the Uniform Administrative Requirem nts, C t Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), inc uding the Office of Management and Budget's (OMB) approved exce%tions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing reg lations and local rocurement laws and regulations. All documentation for the competitive A CC op rator pro rement will be available for public inspection. The State requires that he AJCC oper re -competed at least every three years and no later than every four year 2. ROLES AND RESPONSIBILITIES TIES a. Provision of Applicable Career Servic4nd P in Planning and Development. The parties to this MOU will work clos e� together to ens re that the AJCC is a high - performing work place with staff that ensure quality of ervice. The AJCC Partner has indicated they shall provide an array of applicable carer services to clients as set forth in the Santa Ana AJCC Partner Services. The AJCC artner agrees to the responsibilities required of all Partners under WIOA Section 121(b). I addition, th CC Partners will participate in joint planning, plan development, and modification ties to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; a iii. Responsiveness to local and economic conditions, including emplo needs. Parties agree to the co -enrollment of mutual customers in case management to bet er leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with th terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. ral City Council 7 — 52 7/15/2025 5 EXHIBIT 1B and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. shall comply with: wT. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 38; Final Rule, published December 2, 2016); ' nd VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. on 504 of th ehabilitation Act of 1973, as amended; iv. The.America with Disabilities Act of 1990, as amended; v. The Jobs Veterans A t (Public Law 107-288) pertaining to priority of service in programs d by t U.S. Department of Labor; vi. Training and Emp oyment Guidanc etter (TEGL) 37-14, Update on Complying with Nondiscrimination R quirement nation Based on Gender Identity, Gender Expression and Sex Stereoty ing *bited Forms of Sex Discrimination in the Workforce Development System a er guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment r 1991; M: viii. The Age Discrimination Act of 1967, as amended; ix. The Age Discrimination Act of 1975, as x. Title IX of the Education Amendments of 1972, as xi. The Family Educational Rights and Privacy Act (FERPA) CFR part 99); xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of pe: held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. City Council 7 — 53 7/15/2025 R EXHIBIT 1B The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) AJCC PARTNER RESPONSIBILITIES Par commits staff, as appropriate, and to providing other professional learning opportunities t ote continuous quality improvement. Partner will further promote system integration to in extent feasible through: Eff munication, information sharing, and collaboration with the AJCC operator; b. , policy development, and system design processes; c. Co ent to he t mission, vision, goals, strategies, and performance measures; d. The desg and e of common intake, assessment, referral, and case management processes, e. The use of co an ed - to management systems and data sharing methods, as appropriate; f. Leveraging of services; g. Participation in increase custom agency and non-profit organization signed to boost outcomes and h. Participation in regularly scheduled Partner meeting o exc ange information in support of the above and encourage program and staff integration. Partner shall provide applicable career services to clients as et forth in the Santa Ana AJCC Partner Services. 9) REFERRALS The primary principle of the referral system is to provide integrated aid seamless elive y of services to workers, job seekers, and employers. In order to facilitate such'a system, Partners will ensure and agree to: ' a. Familiarize themselves with the basic eligibility and participation requirement w with the available services and benefits offered, for each of the Partners ogra represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; City Council 7-54 7/15/2025 7 EXHIBIT 1B d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate ways to improve the referral process, including the use of customer ^:t tion surveys; to robust and ongoing communication required for an effective referral process; Commit to actively follow up on the results of referrals and assuring that Partner resources are veraged at an optimal level; h. Make and referral processes are customer -centered with the intent to provide cus r service; i. Ensure th ene in regarding AJCC programs, services, activities, and resource all ade available to all customers as appropriate; j. Ensure that re'l%rals will be made via email or other electronic means; k. Ensure that referrals w 11 include a direA link or access to other AJCC Partner staff that can provide meaningful nformation or ice, through the use of co -location, or real-time technology (two-way co nicatio eraction with AJCC Partners that results in services needed by the customer) and, 1. Ensure that the referral process will i clude sp staff name, the activity required, desired outcome and a method for co, mum to the referring agency that the service need was addressed. -, OF, `%No "& 10) AJCC OPERATING BUDGET The purpose of this section is to establish funds and serve\hatcontribut the local AJCC. The parties consider this AJCC operating budget necessaai AWDB's high - standard AJCC. It includes the following cost categoriWI and its implementing regulations: a. SAWC Infrastructure costs; 1W b. Career services; and c. Shared services. IV 11) INFRASTRUCTURE FUNDING The AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included as part of Attachment 4 (Comprehensive Cost Allocation and Partner Contributions), is an integral component of the overall AJCC operating budget. The other component of the is the Applicable Career Services, attached herein as Attachment 3 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incomorated herein by reference. City Council 7 — 55 7/15/2025 EXHIBIT 1B 12) AJCC DELIVERY SYSTEM COSTS It is expressly understood that this MOU does not constitute a binding financial commitment, but rather an intent to commit specific resources in the future as the parties' allocations and budgets are own and the America's Job Center of California system evolves. For those partners that will r cost sharing agreement, cost will be based on proportionate use and agreed upon y as applicable. AJCC partners with shared costs will be reviewed yearly and may be `s needed by any partner as long as it is identified as a revision, and it is signed and dated applicable arties. As requ 8-12, the amount of funds that the AJCC Partner has budgeted to expend on applic ices and other shared services, which cumulatively with the other AJCC Partner amounts shall form the Comprehensive Cost Allocation and Partner Contributio a. Career Sices Applicable to the AJCC Partner The AJCC Part er shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachme t,3 att c ed heret#aand incorporated herein by reference. This budget consists of the AJC rtner' costs fgLi e service delivery of each applicable career service they indicated 1 e Santa An Partner Services. b. Required Cons The other syster This budget mi applicable caree more than one Contributions. AJCC Partners understand that while only collocated Partner time, all non -collocated AJCC Partners must share in other kind) contributions as set forth herein. 13) DATA SHARING Career Services" )plicable career services. ,ervice delivery of each ,er services applicable to Allocation and Partner share infrastructure costs, at this ystem costs thro�i non -cash (in- 0 City/SAWDB is required to maintain policies and procedures for safegigUiZane orl*rce Services Directive 16-23 from the Employment Development Department alifo Workforce Development Board, mandates the use of one integrated data systengl fal Title I Workforce Innovation and Opportunity Act (WIOA) recipients and sub -recipient are required to be direct entry into Ca1JOBS." Parties further agree that the collection, use, and disclosure of customers' personally iden ' ble information (PII) is subject to various requirements set forth in Federal and State privacy ws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PII, collected, used, and disclosed by Partners will be subject to the following: City Council 7-56 7/15/2025 9 EXHIBIT 1B a. Customer PII will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PII; BI f. The collection, use, and disclosure of customer education records, and the PII contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; confidential data contained in Unemployment Insurance wage records must be acted in accordance with the requirements set forth in 20 CFR part 603; 1 information contained in Vocational Rehabilitation records must be protected with the requirements set forth in 34 CFR 361.38; to ma be shared with other programs, for those programs' purposes, within %m990on'etwork only after the informed written consent of the individual has been obtained,® re m . red; Customer da ill be kept co ential, consistent with Federal and State privacy laws and regulations; a g. All data exchange ac4i ity wil be or PDF, for example, an in compl as amended (29 U.S.C. § 79�(d)). 14) CONFIDENTIALITY in machine readable format, such as HTML ;ection 508 of the Rehabilitation Act of 1973, There are strict confidentiality requirementsI ^tionl eral laws. All parties expressly agree to abide by all applicable Federal,aws and regulations regarding confidential information, including PII from edus, su h as but not limited to 20 CFR Part 603,45 CFR Section 205.50, 20 USC 1232g and 34 CFR pa 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. Each party will ensure that the collection and use of any inf rmation, sy , or records that contain PII and other personal or confidential information will be limite oses the programs and activities described in this MOU and will comply with /ntrol ble h Each party will ensure that access to software systems and files under its t or other personal or confidential information will be limited to authorized staff assigned responsibilities in support of the services and activities described here' nd with applicable law. Each party expressly agrees to take measures to ensure that no personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs I amongst the parties for the parties' performance of their obligations under this MOi extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information, any such data sharing must comply with all of the requirements in 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 20 CFR 603.10, payments of costs, and permissible t support disclosures. City Council 7-57 7/15/2025 10 EXHIBIT 1B With respect to the use and disclosure of FERPA-protected customer education records and the PII contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such dat aring agreement must comply with all of the requirements set forth in 34 CFR 361.38. RELEASES AND COMMUNICATIONS rties shall be consulted and notified prior to communicating with the press, television, radio oth f. media regarding its duties or performance under this MOU. Participation of each pa 4 dia presentations will be determined by each parry's public relations policies. The par utili^the AJCC logo developed by the State of California and the SAWDB on building. ntified or AJ*C usage when applicable. 16) ACCESSIBI ITY Accessibility to the ser ices provide by t AJCCs and all Partner agencies is essential to meeting the requirements and goa s ,of the local AJIVtwork. Job seekers and businesses must be able to access all information relevan to the�ia visit o physical locations as well as in virtual spaces, regardless of gender, age, race, eligionmat1 in, disability, veteran's status, or on the basis of any other classification protect d unde ral law. 17) NON-DISCRIMINATION AND EQU All parties to this MOU certify that they prohib' nd n to prohibit, discrimination, and they certify that no person, otherwise quali ied, is d loyment, services, or other benefits on the basis of. (i) political or religious opinion or ` filiation, marital status, sexual orientation, gender, gender identification and/or expression, r ce, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona f e occupational ification; or (iii) the physical or mental disability of a qualified individual with disabil' 18) GRIEVANCES AND COMPLAINTS PROCEDURE City is required to maintain a procedure for grievance and complaints pe*e Wl0jjFheVCC Partner agrees to establish and maintain a procedure for grievance and complai s outlined n WIOA. The process for handling grievances and complaints is applicable customers and Partners. These procedures will allow the customer or entity filing the complaint to exhau t every administrative level in receiving a fair and complete hearing and resolution of their grie ance. T e Partner further agrees to communicate openly and directly to resolve any problems or dispute's' related to the provision of services in a cooperative manner and at the lowest level of intery ntion possible. All Partners agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. City Council 7 — 58 7/15/2025 11 EXHIBIT 1B 19) AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the AVA.IAP%k, D HARMLESS/INDEMNIFICATION/LIABILITY ordance with provisions of Section 895.4 of the California Government Code, each signatory ololyagr mnify, defend and hold harmless all other signatories identified in this MOU from an and all claims, demands, damages and costs arising out of or resulting from any ne omissions which arise from the performance of the obligations by such indemni ursut to this MOU. In addition, except for Departments of the State of California - canes provide for indemnification of court costs and attorney's fees under the indemnification poli y of,th, State of California, all signatories to this MOU agree to indemnify, defend and hold.. armlach other from and against all court costs and attorney's fees arising out of or resulting fro any negligent acts or omissions which arise from the performance of the obligations by such in ,kiifying p rty p rsuant to this MOU. It is understood and agreed that all indemnity provided here if u vive the ermination of this MOU. 21) SEVERABILITY 114.1` N If any part of this MOU is found to ben u 1 and is otherwise stricken, the rest of this MOU shall remain in force. 22) DRUG AND ALCOHOL -FREE WO L All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all or anizations receiving grants from any Federal agency maintain a drug -free workplace. The recip ent must notify the awarding office if an employee of the recipient is convicted of violating a cr minal drug statute. Failure to comply with these requirements may be cause for suspension or debarment unde FR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U partmg�t of Labor regulations at 29 CFR part 94. 23) CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.0 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform 200.450. The parties shall not lobby federal entities using federal funds and wil activities as required by law and regulations. 24) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 and12689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. City Council 7 — 59 7/15/2025 12 EXHIBIT 1B 25) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its imp enting regulations and guidance. Partners will target recruitment of special populations that r focus for services under WIOA, such as individuals with disabilities, low-income basic skills deficient youth, and English language learners, as applicable. CAN PROVISION ves funds made available under title I or II of WIOA or under the Wagner- Peyse . Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 or e Uni ed States Code (commonly known as the "Buy American Act.") and as referenced i,., I4/pATION 2 and 20 CFR 683.200(f). 27) SALARY AND BONUS LIMITATIONS Each party certifies't at, when op rating grants funded by the U.S. Department of Labor, it complies with TEGL 05- 6, Imp ementing he Salary and Bonus Limitations in Public Law 109- 234, TEGL 15-22, Public Law 114-1 3 (Divisi K title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting he use of fent funds for compensation and bonuses of an individual, whether charged to eit er direct t, at a rate in excess of the Federal Office of Personnel Management Executive Level I. 28) TERMINATION This MOU will remain in effect until the end at ecifi ctio�4 above, unless: a. Federal oversight agencies charged with the administ ation of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the fi st fiscal period. Any party unable to perform pursuant to MOU due to lack of funding shall notify the of arties as soon as the party has knowledge that funds may be unavailable for the ation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured wi hin thirty (3 ) days after receiving written notice from the SAWDB Chair (or designepecifying uch breach in reasonable detail. In such event, the non -breaching party(s) shall have t e ight to terminate this MOU by giving written notice thereof to the party in breach, on whi h termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar ays after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any party may withdraw from this MOU by giving writjgjtp0jintent to withdraw at least thirty (J0�G&ndar days in advance 011&2tStive 13 EXHIBIT 1B withdrawal date. If agreed to by all parties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 29) requests, claims, correspondence, reports, statements authorized or required by this and/or other communications shall be addressed as follows: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 San a Ana, CA 92701 Action Partnership of Orange County 30) INSURANCE The AJCC Partners agree that r currTit i shall apply to their operations orm including commercial general liabi ity employee dishonesty/crime coverage . Tl insured, by endorsement, to the commerc insurance policies and the coverage shall be 31) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, have the authority to commit the party they represent to by signing. -ance or self-insurance coverage programs Workforce Innovation Opportunity Act, Zal property, workers' compensation and ;aA Ana shall be named as additional and employee dishonesty/crime ributory with regard to the City. acorporated herein by reference, of this MOU-and do so commit ATTACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions City Council 7-61 7/15/2025 14 EXHIBIT 1B Il'i V S WHER-E�, the parties hereto hove exec-tite� this Age=ett the date and ye&r firA above written. A ,,I E Jermifer L. Pall City Clerk APMOV-FD AS TO FORM: S<X,(IA R. CARVA4.A'zO City At#Qr-ey C(- Aa rep Garcia �VIi�I� Assistant City Attorney C i 7 V OF SVil T A AN Akvaro Nunez RCC<3 "BCD FOR MVROVA : Midi el L4 Garcia Exem-five Diredor Community Development Agency FOR SAN T A ANA WOR+;FMCW DE VEL04WIENT BOARD Workforce Development Bourg Chair FOR AMER;CA'S JOB CEO' T;ER OF CALIFUR IA Pry: NER Co=mnity Action PartRers4iip of OraRge Courts MCC Par-tnor Gregory C. S"t, Presi6ent & CEO 11876 Monarch St., Gar&et, Grove, CA 9.2W� Part ex Address Date City Council 7-62 7/15/2025 15 EXHd$alcThm1Bt AJCC Partners Location and Map Partner Program Partner Authorization/Category Physically Organization Co -Located Title I Adult, Dislocated City of Santa Ana Workers and Youth WIOA Title I Adult, Dislocated Workers, Youth Yes Programs programs Rancho Santiago WIOA title II Adult Education and Family Adult Education/ Community College Literacy Act (AEFLA) program Career and technical education (CTE) Literacy and Carl Perkins District Career Technical programs at the postsecondary level, No Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser Employment WIOA title III Wagner-Peyser Employment Development Services, authorized under the Wagner-Peyser Yes Department (EDD) Act 29 U.S.C. 49 et se also providing the ( q•)- p g state's public labor exchange. Employment Veterans Development Jobs for Veterans State Grants (JVSG), Yes Department (EDD) authorized under chapter 41 of title 38, U.S.C. Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department (EDD) Trade Act of 1974 (19 U.S.C. 2271et seq.) Unemployment Employment Insurance (UI) Development Unemployment Insurance (UI) programs under No Department (EDD) state unemployment compensation laws. State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation program authorized under title I of the Yes Rehabilitation Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) Temporary Assistance Social Service Temporary Assistance for Needy Families for Needy Families Agency -Family Self- (TANF), authorized under part A of title IV of Yes (TANF) Sufficiency the Social Security Act (42 U.S.C. 601 et seq.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP), authorized under title V of Yes SER-Jobs for the Older Americans Act of 1965 (42 U.S.C. Progress, Inc. 3056 et seq.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American United American Indian Indian and Native American Programs (Section Programs Involvement, Inc. 166) No Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Development Authority Yes Adult Demonstration Orange County Reentry Employment Opportunities (EO) Sheriff's Department programs authorized under sec. 212 of the No Second Chance Act of 2007 (42 U.S.C. 17532) and WIOA sec. 169 City Council 7 — 63 7/15/2025 EXHA&IcThm1(Bt 1 AJCC Partners Location and Map ff V'. [� .A'Lf iA N. �f '' 14 - 55 CU40 Hal G NNE BL Joe r.... .__�� r O M Tti451( A , SAWA CIMA � sANf A C1ARA Ifr'_ 1 r 7- 17TH 5T mqur • . MM1ASHMiIGiON Aff 3 • x STH Si • SAJMIA no 8L lsr st ' I J r ►� � t; 9 ❑ G � ECON"U R AV N V 5T. AN1]IEVr P1 z � � --LWA�N1N AV y �� ss 4: SEGH15 FUM ALTCIN AIL a�� IAAGNI O IL � a � � � m SUNFLOWUt a N 5tmta Ana WolilCCenlar O Cantonnial Adult Eduudan 294a W. Edinger Ave. State Deparanaft & © Rehabilitation larg B: ach Jab Corps 1970 Santa Fe km. Ammo's Job Cantor of Csliiornia The City Drive, Suits 110 long "ch CA 97e t C �1 W.GiicCartmr Dr. 927N Santa Ana. CAO r rargq CA 92868 r►a, CASanta A92101 A9an Anwion Pad-nam 3 Santa Ana Col6ga 1 S30 W. 1 Tth St Social Services Agavty 1928 S. Grand Arne. 9 Senior Canto Ban N. Bads 6nowrrrnt Oavaloprrwrx Dwart—nt Santa Ana. U 927oo Sarta Arai. CA 927M 5areta Ana. U 9I701 A Stara Dopwbnont of Rdvblitabon O.0 5odW Sarvicwes Agency Goadrrrll Industries Cdfege 3 Workforce Pr rabvr Canter spa CTEJibopvallay High Sdwol 1 ism S Greartrilla %mngton Education Cantu 1 132s E aft St. SEWSankw Aid Program � :/ Santa And U 92 Tn 1 1572 N. ilAiin S2. Santa Ma. U 927Da Laarnalik Oruge, CA 92867 City Council Attach mgnt b4 7/15/2025 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 SANTA ANA AJCC Partner Services Service Partner Name Entity/Program Career Training Employer Delivery Method Title I Adult, DW, Youth City of Santa Ana Adult Education/ Literacy Rancho Santiago Community College District Wagner-Peyser Employment Development Department (EDD) Veterans (Jobs for Veterans Employment Development State Grant) Department (EDD) Trade Act (Trade Adjustment Employment Development Assistance) Department (EDD) Unemployment Compensation Employment Development Department (EDD) Vocational Rehabilitation State Department of Rehabilitation TANF Social Service Agency - Family Self -Sufficiency Carl Perkins Career Technical Rancho Santiago Education Community College District Senior Aid Program Regions II & III SER-Jobs for Title V Older Americans Act Progress, Inc. Job Corps Long Beach Job Corps Native American Programs United American Indian (Section 166) Involvement, Inc. Housing & Urban Housing Authority Development City Council 7 — 65 7/15/2025 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 CAREER SERVICES: Basic Career Services (BCS) include self-help service services requiring minimal staff assistance and Individualized Career Services (ICS) requiring more staff involvement generally provided to individuals unable to find employment through basic career services, and deemed to be in need of more concentrated services to obtain employment; or who are employed but deemed to be in need of more concentrated services to obtain or retain employment that allows for self-sufficiency. Basic Career Services 1. Eligibility Determination: This is the process of obtaining and documenting information about an individual's circumstances and comparing that information with the criteria set by an agency or program to decide if the individual qualifies for participation. 2. Outreach, Intake and Orientation: Outreach activities involve the collection, publication, and dissemination of information on program services available and directed toward jobless, economically disadvantaged, and other individuals. Intake is the process of collecting basic information, e.g., name, address, phone number, SSN, and all other required information to determine eligibility or ineligibility for an individual's program. Orientation, whether offered in a group setting, one-on-one, or electronically, is the process of providing broad information to customers in order to acquaint them with the services, programs, staff, and other resources at the Santa Ana Work Center, or its partner agencies. 3. Initial Assessment: For individuals new to the workforce system, initial assessment involves the gathering of basic information about skill levels, aptitudes, abilities, barriers, and supportive service needs in order to recommend next steps and determine potential referrals to partners or community resources. 4. Job Search, Placement Assistance, and Career Counseling: Job Search helps an individual seek, locate, apply for, and obtain a job. It may include but is not limited to: job finding skills, orientation to the labor market, resume preparation assistance; referrals to job openings, placement services, job search workshops, vocational exploration, and re-employment services such as orientation, skills determination, and pre -layoff assistance. Placement Assistance is a service that helps people to identify and secure paid employment. Career Counseling is a facilitated exploration of occupational and industrial information. 5. Employment Statistics -Labor Market Information: Collect and report data about employment levels, unemployment rates, wages and earnings, employment projections, jobs, training resources and careers; (LMI) 6. Eligible Provider performance and program Cost Information: Collect and provide information on: A. Eligible training service providers (described in WIOA Section 122) B. Eligible youth activity providers (described in WIOA Section 123) C. Eligible adult education providers (described in WIOA Title II). City Council 7 — 66 7/15/2025 2 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 D. Eligible postsecondary vocational educational activities and vocational educational activities available to school dropouts under the Carl Perkins Act (20 USC 2301). E. Eligible vocational rehabilitation program activities (described in Title I of the Rehabilitation Act of 1973). 7. Local Performance Information: Collect and provide information on the local area's recent performance measure outcomes. 8. Supportive Services' Information: Collect and provide information on services such as transportation, child care, dependent care, housing, and needs -related payments that are necessary to enable an individual to participate in employment and training activities. 9. Unemployment Compensation: Co provide information on filing claims for state benefit payments that protect individuals from economic insecurity while they look for work. Claims may be filed on-line or via telephone available in the Santa Ana Work Center. 10. Eligibility Assistance: Provide guidance to individuals on eligibility for other programs and on financial aid assistance for training and education programs that are available in the local area. 11. Follow -Up Services: Services provided to participants who are placed in unsubsidized employment, for not less than 12 months after the first day of the employment. These services assist those individuals to maintain employment or qualify for promotions with that employment. Individualized Career Services 12. Comprehensive and Specialized Assessments: A closer look at the skills levels and service needs that may include: A. Diagnostic Testing and use of other assessment tools; and B. In-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. 13. Individual Employment Plan Development: Working with individuals to identify their employment goals, the appropriate achievement objectives, and the appropriate combination of services that will help the individual achieve those goals. 14. Group Counseling 15. Individual Counseling and Career Planning City Council 7 — 67 7/15/2025 3 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 16. Case Management: For participants who receive training services under WIOA Section 134(d)(4). 17. Short -Term Prevocational Services: Can include development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training. Training Services: Services offered through a training provider to help individuals upgrade their skills, earn degrees and certifications, or otherwise enhance their employability through learning and education. Types of training services include: 1. Occupational Skills Training: An organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields at entry, intermediate or advanced levels. 2. On -the -Job Training (OJT): Training by an employer that is provided to a paid participant while engaged in productive work that is limited in duration, provides knowledge or skills essential to the full and adequate performance of the job, and reimburses the employer for the costs associated with training the OJT trainee often calculated based on a percentage of the trainee's wages. 3. Workplace and cooperative education: Programs that combine workplace training with related instruction which may include cooperative education programs 4. Training programs operated by the private sector 5. Skills upgrading and retraining: Courses that prepare persons for entrance into a new occupation through instruction in new and different skills demanded by technological changes. These courses train incumbent workers in specific skills needed by that business or industry and that lead to potential career growth and increased wages. This includes courses that develop professional competencies that are particularly relevant to a vocational/occupational goal. It must be demonstrated that the training will result in the workers' acquisition of transferable skills or an industry -recognized certification or credential. 6. Entrepreneurial training 7. Job -readiness training 8. Adult Education and Literacy programs: Services or instruction below the postsecondary level for individuals who are not enrolled or required to be enrolled in secondary school under state law and lack basic educational skills to enable the individuals to function effectively in society and on a job, Services include, but are not limited to, one-on-one instruction, coursework, or workshops that provide direction for the development and ability to City Council 7 — 68 7/15/2025 4 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 read, write, and speak in English, compute, and solve problems, at levels of proficiency necessary to function in society or on the job, 9. Customized training: Training that is designed to meet the special requirements of an employer or group of employers and that is conducted with a commitment by the employer to employ an individual upon successful completion of the training and for which the employer pays for a portion of the cost of training. Employer Services: Santa Ana Work Center services offered to employers include: 1. Employer needs assessment: Evaluation of employer needs, particularly future hiring and talent needs. 2. Job posting: Receiving and filling of job openings; searching resumes; providing access to a diverse labor pool. 3. Applicant pre-screening: Assessing candidates according to the employer's requirements and hiring needs; referring candidates based on their knowledge, skills, and abilities relative to the employer requirements. 4. Recruitment assistance: Raising awareness of employers and job openings and attracting individuals to apply for employment at a hiring organization. Specific activities may include posting of employer announcements, provision of job applications, and hosting job fairs and mass recruitment. 5. Training assistance: Providing training resources to enable employers to upgrade employee skills, introduce workers to new technology, or to help employees transition into new positions. 6. Labor Market Information: Access to information on labor market trends, statistics, and other data related to the economy, wages, industries, etc. 7. Employer information and referral: Provision of information on topics of interest to employers such as services available in the community, local training providers, federal laws and requirements, tax information, apprenticeship 8. programs, human resource practices, alien labor certification, incentive programs such as WOTC or the federal bonding program, etc. 9. Rapid Response and Layoff Aversion: Provision of services to prevent downsizing or closure, or to assist during layoff events, Strategies may include incumbent worker training to avert lay-offs, financing options, employee ownership options, placement assistance, worker assessments, establishment of transition centers, labor- management committees, peer counseling, etc. City Council 7 — 69 7/15/2025 EXHIBIT 1B SANTA ANA AJCC Partner Services Attachment 2 Service Delivery Codes: How will your agency provide the services indicated? Code Method Description FT On -Site Staff Full Time PT On -Site Staff Part Time T Access Via Telephone A Access Via Automated System B Brochure/Handout P Posting at One -Stop Center O Other NA Not Applicable City Council 7 — 70 7/15/2025 EXHIBIT 1B Attachment 3 APPLICABLE CAREER SERVICES Sharing Other One -Stop Delivery System Costs The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services CAPOC Career Services: XX,000.00 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment Statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation (9) • Eligibility Assistance (10) • Follow -Up Services (11) • Comprehensive and Specialized Assessments (12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) City Council 7 — 71 7/15/2025 EXHIBIT 1 B Training $XX,000.00 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) Attachment 3 APPLICABLE CAREER SERVICES Employer Services $XX,000.00 • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost $XX,000.00 City Council 7 — 72 7/15/2025 EXHIBIT 1/Qtachment Comprehensive Cost Allocation and Partner Contributions Partner Program Square Footage Paid for Based on Office Sharing / Payment Ratio of Total Square Footage Monthly Property Rent* CAM Charges Operational Cost and Management Fees Monthly Charges Monthly Rent + and Charges Amount: In- Kind Partner Contributions Yearly Career Services** EDD 9345.17 48.37% $ 23,298.59 $ 876.03 $ 5,296.20 $ 29,470.82 $ 1,493,317.04 Santa Ana WORK Center (City of Santa Ana) 6057.45 31.35% $ 15,101.92 $ 1,375.34 $ - $ 4,324.31 $ 20,801.57 $ $ 1,235,907.20 Department of Rehabilitation 161.93 0.84% $ 403.71 $ 13.69 $ 98.62 $ 516.02 $ $ 2,945,349.48 Social Services Agency -Family Self -Sufficiency 868.97 4.50% $ 2,166.44 $ 199.29 $ 2,365.73 $ 800,000.00 Santa Ana Housing Authority 324.00 1.68% $ 807.77 $ 27.39 $ 114.04 $ 949.21 $ 82,290.00 SER Jobs for Progress 324.00 1.68% $ 807.77 $ 27.39 $ 197.25 $ 1,032.41 $ 2,945,349.48 Rent Stabilization Division 1915.48 9.91% $ 4,775.51 $ 161.91 $ 523.76 $ 5,461.18 $ 225,000.00 Santa Ana Public Library 324.00 1.68% $ 807.77 $ 27.39 $ 88.79 $ 923.95 $ 1,511,191.70 Total Rentable Space 19321.00 100.00% 633.11 $ 876.03 $ 10,842.. 61,520.89 $ $ 6,556,863.72 Revised 3/20/25 7:20:15 AM City Council 7 — 73 7/15/2025 Docusign Envelope ID, 72A91 B3B-BEA1 -46FE-ACDD-1 46571 B87804 EXHIBIT 2 Memorandum of Understanding For Santa Ana Workforce Development Board and the County of ®range Social Services Agency City Council 7 — 74 7/15/2025 Docusign Envelope ID: 72A91 B3B-6EA1-46FE-ACDD-146571 B87804 EXHIBIT 2 MEMORANDUM OF UNDERSTANDING 1. LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ("MOU") with each America's Job Center of California ("AJCC") Partner, consistent with WIOA Sec. 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 Code of Federal Regulations (CFR) 678.500, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. Additionally, the sharing and allocation of infrastructure costs among AJCC Partners is governed by WIOA sec. 121(h), its implementing regulations, and the Federal Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) at 2 CFR part 200. 2. PARTIES The parties to this MOU are the City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the County of Orange Social Services Agency ("SSA"), a collocated one -stop AJCC Partner located at the Santa Ana WORK Center, 801 W. Civic Center Drive, Suite 200, Santa Ana, CA 92701. 3. PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and SSA, the collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. 4. DURATION The term of this MOU shall commence on July 1, 2025, and end on June 30, 2028, unless earlier terminated pursuant to the provisions of Paragraph 31 of this MOU; however, the Parties shall be obligated to perform such duties as would nonnally extend beyond this term, including, but not limited to, obligations with respect to indemnification, reporting and confidentiality. This MOU will be reviewed not less than once every three years to ensure appropriate funding and delivery of services and to identify any substantial changes that require modification of this MOU. This MOU will remain in effect until the termination date, unless one of the conditions in Paragraph 31 occurs. MA-063-25011196 2 City Council 7 — 75 7/15/2025 Docusign Envelope IA: 72A91B36-REA1-46FE-ACDD-1466716E7804 EXHIBIT 2 5. MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, 3-1, 4, 5 and 6 constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6. SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics. The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; fl Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g) Assuring fiinding from all public, private, and other sources in support of its programs. 7. ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714) 565-2600 Open to the Public: Monday — Friday 8:00 am-5:00 pm MA-063-25011196 3 City Council 7 — 76 7/15/2025 Docusign Envelope ID: 72A816313-13EA1-46FE-ACDD-146571B87804 EXHIBIT 2 The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana, The SAWC offers the community a variety of informational, employment and training services based on individual needs. Those needs are met by the combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. S. SERVICES PROVIDED AT THE SANTA ANA 'CORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. 11asic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List eligible programs by program and type of provider; f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures; g. Provision of information related to support services; h. Provision of information and assistance in filing Unemployment Insurance claims; and i. .Assistance in establishing eligibility for programs of financial aid assistance for training and education programs not funded through WIOA. 2. ndividualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; f. Career planning; g. Short-term pre -vocational services, including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; MA-063-25011196 0 City Council 7 — 77 7/15/2025 Docusign Envelope ID: 72A91B38-BEA1-46FE-ACDD-146571M87504 EXHIBIT 2 h. Workforce preparation activities, including basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Training Servi_ s: a. Occupational skills training; b. On -the -Job training; c. Inctunbent worker training; d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning and Development. The parties to this MOU will work closely together to ensure that the AJCC is a high -performing workplace with staff that ensure quality of service. The AJCC Partner has indicated they shall MA-063-25011196 City Council 7 — 78 7/15/2025 Docusign Envelope If: 72A91B3B-BEA1-46FE-ACOO-146571B67804 EXHIBIT 2 provide an array of applicable career services to clients as set forth in Attachment 2. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; V. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S. Deparknent of Labor; vi. Training and Employment Guidance Letter (TELL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; MA-063-25011196 0 City Council 7 — 79 7/15/2025 Docusign Envelope ID: 72A916313-BEA146FE-ACDD-146571 887814 EXHIBIT 2 ix. The Age Discrimination Act of 1975, as amended; X. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (1iERPA) (20 U.S.C. § 1232g; 34 CFR part 99); xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires police intervention. 8. SSA RESPONSIBILITIES AS COLLOCATED AJCC PARTNER SSA commits to collocation of staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality improvement. SSA will further promote system integration to the maximum extent feasible and as authorized by applicable state and federal law through: a. Effective communication, information sharing as authorized by law, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the joint mission, vision, goals, strategies, and performance measures; d. The design and use of common intake, assessment, referral, and case management processes; e. As authorized by law, the use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and MA-063-25011196 7 City Council 7 — 80 7/15/2025 Docusign Envelope ID: 72A91 M-BEM-46FE-AGM-146571 B87804 EXHIBIT 2 h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. SSA shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 9. REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to customers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Provide referrals when appropriate to customers who are eligible for supplemental and complementary services and benefits under Partner programs; d. Regularly evaluate referral process; e. Commit to share the results of referrals when requested; f. Ensure that general information regarding AJCC programs, services, activities, and resources shall be made available to all customers as appropriate; g. Ensure that referrals will be made via email, or other electronic means; h. Ensure that referrals will include access to other AJCC Partner staff, when appropriate, that can provide meaningful information or service to customers; and i. Ensure that the referral will include referring agency staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. 10. SUPERVISION/DAY-TO-DAY OPERATIONS a. Day -to -Day Supervision The day-to-day supervision of staff assigned to the AJCCs will be the responsibility of the site supervisor(s). SSA will continue to set the priorities of its staff assigned to the AJCC. Any change in work assignments or any concerns involving the responsibilities of the parties which occur at the worksite will be handled by the site supervisor(s) and SSA management. MA-063-25011196 :1 City Council 7 — 81 7/15/2025 Docusign Envelope 10: 72A91 13313-BEA1 -46FE-ACOD-1 46571 B87604 EXHIBIT 2 b. Santa Ana WORK Center Hours of Operation The SAWC is open for business: Monday through Friday from 8:00 am until 5:00 pm. c. SSA Staff Office Hours The office hours for SSA staff at the AJCC will be established by SSA. All SSA staff will comply with the County of Orange holiday schedule and will provide a copy of their holiday schedule to the SAWDB and SAWC at the beginning of each fiscal year. d. Building Accessibility All Partner staff assigned to the SAWC will be issued an access card to SAWC suite 200 and a parking lot pass that allows them to enter and exit the parking lot. It is all individual staff s responsibility to keep them secure. Should they damage or lose them they can be replaced by the SAWDB at the expense of the individual agency staff. e. Benejits Each party shall be solely liable and responsible for providing to, or on behalf of, its employee(s), all legally required employee benefits. In addition, each party shall be solely responsive and hold all other parties harmless from all matters relating to payment of each party's employee(s), including compliance with social security withholding, workers' compensation, and all other regulations governing such matters. 11. AJCC OPERATING BUDGET The purpose of Paragraph 11 is to establish a financial plan, including terms and conditions, to fund the services and operating costs of the local AJCC. The parties to this MOU agree that joint funding is a necessary foundation for an integrated service delivery system. The goal of the operating budget is to develop a funding mechanism that: a. Establishes and maintains the Local workforce delivery system at a level that meets the needs of the job seekers and businesses in the Local area; b. Reduces duplication and maximizes program impact through the sharing of services, resources, and technologies among Partners (thereby improving each program's effectiveness); c. Reduces overhead costs for any one Partner by streamlining and sharing financial, procurement, and facility costs; d. Ensures that costs are appropriately shared by AJCC Partners by determining contributions based on the proportionate use of the AJCC centers and relative benefits received, and requiring that all funds are spent solely for allowable purposes in a manner consistent with the applicable authorizing statutes and all other applicable legal requirements, including the Uniform Guidance; and, MA-063-25011196 0 City Council 7 — 82 7/15/2025 Docusign Envelope ID: 72A91 1336-6EM-46FEAWD-146571 B87804 EXHIBIT 2 e. All parties will meet and confer regarding replacement, acquisition, cleaning and maintenance of furnishings. The parties consider this AJCC operating budget the master budget that is necessary to maintain the SAWDB's high -standard AJCC. It includes the following cost categories, as required by WIOA and its implementing regulations: a. Infrastructure costs (also separately outlined below in the Infrastructure Funding Agreement); b. Career services; and c Shared services. All costs must be included in the MOU, allocated according to the AJCC Partner's proportionate use and relative benefits received, reconciled every six (6) months against actual costs incurred, and adjusted accordingly. The AJCC operating budget is expected to be transparent and negotiated among Partners on an equitable basis to ensure costs are shared appropriately. All Partners must negotiate in good faith and seek to establish outcomes that are reasonable and fair. All Partners must adhere and reference the rules and regulations included in the executed Office Lease, attached hereto as Attachment 5 and incorporated herein by reference. SSA may be allocated additional space, with mutual consent of both parties, at which time the Office Lease may be amended. 12. INFRASTRUCTURE FUNDING AGREEMENT The Infrastructure Funding Agreement ("IFA") contains the infrastructure costs budget that is an integral component of the overall AJCC operating budget. The IFA is a mandatory component of the local MOU, described in WIOA sec. 121(c) and 20 CFR 678.500 and 678.755. The IFA contains the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included herein as Attachment 3 and incorporated herein by reference, that is an integral component of the overall AJCC operating budget. The other component of the IFA is the Applicable Career Services, attached herein as Attachment 3-1 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. AJCC infrastructure costs are defined as non -personnel costs that are necessary for the general operation of the AJCC, including, but not limited to: a. Rental of the facilities; b. Utilities and maintenance; c. Equipment, including assessment -related products and assistive technology for individuals with disabilities; and, MA-063-25011196 1N7 City Council 7 — 83 7/15/2025 Docusign Envelope ID: 72A91 13313-SEA146FE-ACDD-146571 B87804 EXHIBIT 2 d. Technology to facilitate access to the AJCC, including technology used for the center's planning and outreach activities. Changes in the AJCC Partners or an appeal by an AJCC Partner's infrastructure cost contributions will require an amendment of the MOU. 13. COST ALLOCATION METHODOLOGY The purpose of this infrastructure cost sharing methodology is to summarize, in writing, the methods and procedures that the SAWDB will use to share costs with the AJCC Partner. The AJCC Partner agrees that it will be charged on a monthly basis according to the following cost sharing methodology, and that monthly payment will be submitted within the first ten (10) calendar days of each month. 14. INFRASTRUCTURE COST ALLOCATION METHODOLOGY a. Rent Costs: Rent costs shall be based only on the base rent. The base rent is derived from the total assigned square footage, calculating the percentage of usage by each AJCC Partner and applying that percentage to the common area square footage. Assigned square footage plus the percentage of common area square footage equals total square footage for each AJCC Partner. Total square footage for each AJCC Partner multiplied by the base rent per square foot equals total base rent for each AJCC Partner as indicated in the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget and the Comprehensive. Cost Allocation and Partner Contributions. The base rent has an annual increase of 3% over the ten (10)-year life of the Office Lease document (Attachment 5 attached herewith and incorporated herein by reference). b. Utilities and Maintenance: This Paragraph includes only telephone services, which includes voicemail on AJCC Partners' phones. Costs for staff phones are charged based on the AJCC Partner's assigned space. Common area phones will be charged according to space allocation. c. Telephones% Telephone costs are based on the actual cost for telephones in assigned spaces. Common area telephones are allocated based on percentage of space allocation. d. Technology and Internet Access Costs: Maintenance of Network Wireless Bridge will be a monthly charge based on costs from the vendors. The cost per AJCC Partner is derived from the calculation of total percentage of space used by each AJCC Partner. Recurring monthly charges for Internet, Wi-Fi and other technology charges are allocated based on the percentage of total space allocated. 15. INFRASTRUCTURE CONTRIBUTIONS The AJCC Partner may provide cash, non -cash (in- kind), and third -party in -kind contributions to cover its share of infrastructure costs. In -kind contributions cannot be used to fiend non - infrastructure costs (such as personnel), and must be valued consistent with Uniform Guidance Section 200.306 to ensure such contributions are fairly evaluated and qualify for the AJCC MA-063-25011196 11 City Council 7 — 84 7/15/2025 Docusign Envelope ID: 72A91 B3B-ISEA1-46FE-ACDD-146671 B87804 EXHIBIT 2 Partner's proportionate share. If third -party in -kind contributions are made to support the AJCC as a whole (such as facility space), that contribution will not count toward the AJCC Partner's proportionate share of the infrastructure. Rather, the value of the contribution will be applied to the overall infrastructure budget prior to determining proportionate amounts and thereby reduce the contribution required for all AJCC Partners. a. Cash: Cash funds provided to the SAWDB, or its designee, by AJCC Partners, either directly or by an interagency transfer, or by a third party. b. Non -Cash: Expenditures incurred by AJCC Partners on behalf of the AJCC; and Non -cash contributions or goods or services contributed by a Partner program and used by the AJCC. c. Third -party In -kind: Contributions of space, equipment, technology, non -personnel services, or other like items to support the infrastructure costs associated with AJCC operations, by a non-AJCC Partner to: support the AJCC in general or support the proportionate share of AJCC infrastructure costs of a specific Partner [20 CFR 678.720; 20 CFR 678.760; 34 CFR 361.720; 34 CFR 361.760; 34 CFR 463.720; and 34 CFR 463.760]. 16. OTHER AJCC DELIVERY SYSTEM COSTS In compliance with WIOA Joint Rule Section 678.760, the AJCC Partners will use a portion of fiends made available under their authorizing federal statute (or fairly evaluated in -kind contributions) to share the additional costs relating to the operation of the One -Stop delivery system. These costs may be shared through cash, non -cash, or third -party in -kind contributions. As required by Workforce Services Directive (WSD) 16-09, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner: The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3-1 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service indicated in the Santa Ana AJCC Partner Services. b. IkeguilejLConsolidated Budget for the Delivery of "Applicable Career Services": The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. AJCC Pariners understand that while only collocated Partners share infrastructure costs, at this time, all AJCC Partners must share in other System costs through non -cash (in -kind) contributions MA-063 -25 011196 12 City Council 7 — 85 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1-46FE-ACDD-146671 B87804 EXHIBIT 2 as set forth herein. 17. DATA SHARING Parties shall abide by the requirements in Attachments 6. 18. PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in press/media presentations will be determined by eachparty's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage. 19. ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 20. NON-DISCRIMINATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of. (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 21. GRIEVANCES AND COMPLAINTS PROCEDURE The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree to inform each other iminediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. 22. AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the propprams and MA-063-25011196 13 City Council 7 — 86 7/15/2025 Docusfgn Envelope ID: 72A91 B3B-BEA1-46FE-ACDD•148571687804 EXHIBIT 2 services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 23. HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 24. SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force. 25. DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agency maintain a drug -free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 26. CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Sectionl352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 27. DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 and12689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. MA-063-25011196 14 City Council 7 — 87 7/15/2025 Docusign Envelope ID: 72A91B35-BEA1-46F ACDD-14657IB87804 EXHIBIT 2 28. PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners. 29. BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the "Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 30. SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2017; Final PY 2017 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments; and Workforce Information Grants to States Allotments for PY 2017, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level II. 31. TERMINATION This MOU will remain in effect until the end date specified in Paragraph 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any party unable to perform pursuant to MOU due to lack of funding shall notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured within thirty (30) days after receiving written notice from the SAWDB Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right MA-063-25011196 15 City Council 7 — 88 7/15/2025 Docusign Envelope ID: 72A91B3B-BEA1-46FE-ACDD-14657lM87804 EXHIBIT 2 to terminate this MOU by giving written notice thereof to the party in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any party may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 32. NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 COUNTY: County of Orange Social Services Agency Contracts Services 500 N. State College Blvd, Suite #100 Orange, CA 92868 33. INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to their operations performed under the Workforce Innovation Opportunity Act and at the SAWC, including commercial general liability, property damage liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall be named as additional insured for such insurance and the coverage shall be primary and non-contributory with regard to the City. 34. AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. MA-063-25011196 16 City Council 7 — 89 7/15/2025 Docusign Envelope ID: 72A91 B36-6EA146FE-ACID-146571 B87804 EXHIBIT 2 AIJACHMENTS Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget Attachment 3-1: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Parkier Contributions Attachment 5: Office Lease Attachment 6: State Privacy and Security Provisions MA-063-25011196 17 City Council 7 — 90 7/15/2025 Docusign Envelope IU: 72A9113313-BEA1-46FE-ACLU-146571B87804 EXHIBIT 2 WHEREFORE, the parties hereto have executed this Agreement in the County of Orange, California. FOR THE CITY OF SANTA ANA Attest: City Clerk Dated: Recommended for Approval: Executive Director Community Development Agency Dated: City of Santa Ana: City Manager Dated: Approved as to Form: Lq Dated: Assistant City Attorney FOR SANTA ANA WORKFORCE DEVELOPMENT BOARD Chair MA-063-25011196 18 City Council 7 — 91 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1 -46FE-ACDD- 146571 B87804 EXHIBIT 2 WHEREFORE, the parties hereto have executed this Agreement in the County of Orange, California. COUNTY OF ORANGE A Political Subdivision of the State of California By:/11 044�-a- CHAIRMA OF THE BOARD OF SUPERVISORS COUNTY OF ORANGE, CALIFORNIA Dated:Z— SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIR OF THE BOARD PER G.C. SEC. 25103, RESO 79-1535 ATTEST: ROBIN STIELER Clerk of the Board County of Orange, California APPROVED AS TO FORM COUNTY COUNSEL COUNTY OF ORANGE, CALIFORNIA Dated: by: S. Fmsf 3/21/2025 1 4:02:55 PM PDT EPUTY MA-06;-2501 i 126 1 19 City Council 7 — 92 7/15/2025 Docusign Envelope ID: 72A9113313-BEA1-46FE-ACDD-146571B87804 EXHPBhThgent 1 AJCC Partners Location and Map Partner Program Partner Authorization/Category Physically Organization Co -Located Title I Adult, Dislocated City of Santa Ana Workers and Youth WIOA Title I Adult, Dislocated Workers, Youth Yes Programs programs Rancho Santiago WIOA title II Adult Education and Family Adult Education/ Community College Literacy Act (AEFLA) program Career and technical education (CTE) Literacy and Carl Perkins District Career Technical programs at the postsecondary level, No Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser Employment WIOA title III Wagner-Peyser Employment Development Services, authorized under the Wagner-Peyser Yes Department (EDD) Act 29 U.S.C. 49 et se also providing the ( q•), p g state's public labor exchange. Employment Veterans Development Jobs for Veterans State Grants (JVSG), Yes authorized under chapter 41 of title 38, U.S.C. Department (EDD) Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department (EDD) Trade Act of 1974 (19 U.S.C. 2271et seq.) Unemployment Employment Insurance (UI) Development Unemployment Insurance (UI) programs under No Department (EDD) state unemployment compensation laws. I State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation program authorized under title I of the Yes Rehabilitation Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) Temporary Assistance Social Service Temporary Assistance for Needy Families for Needy Families Agency -Family Self- (TANF), authorized under part A of title IV of Yes (TANF) Sufficiency the Social Security Act (42 U.S.C. 601 et seq.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP) authorized under title V of Yes SER-Jobs for the Older Americans Act of 1965 (42 U.S.C. Progress, Inc. 3056 et seq.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American United American Indian Indian and Native American Programs (Section Programs Involvement Inc. 166) No Housing & Urban + Santa Ana Housing Housing & Urban Development (HUD) Development Authority I Yes Adult Demonstration Orange County Reentry Employment Opportunities (EO) Sheriff's Department programs authorized under sec. 212 of the No Second Chance Act of 2007 (42 U.S.C. 17532) and WIOA sec. 169 City Council 7 — 93 7/15/2025 Docuslgn Envelope ID: 72A91 B3B-BEA1 -46FE-ACDD-1 46571 B87804 EXH 191aT 2nent 1 AJCC Partners Location and Map �- EA 1M AV. 4 --- P17/11 _ FAURIalEta EKi 1 UVO, .AV. � SMACIA "' AtliIF _ i I Sr1P�fJiCEJtRIl At � Y d y I 17M SE a # 4 �� f{f Alit4MGTCN IY� 5 OW COCER DR - - } STH SL f r swrA mA BL — 4rN ST. LA tin "" rc L_ 7 5 M'"Ait v r t 5U MGM W •c 9 Si.AS1V�,f,tYr a1 b YY MFR AV MSEr + J J/ ALTC44 AV. r ri�ITHtRt BL.AW v~ a" SL1'aFLGiXER AY. '' (^' Xy �t l 0 i Il N i 405 t I Santa Ana ',+r ZK Untor Amarics dab Canter�silafifcrnia Cantennial Adult Education 2?iCk7 W. Edinger Arm. Stato Department of Rehabilitation Long Brach Job Corps 1 Santa Fa Avg. s 001 W.C"wic CgnUwVr. Santa Ana, CA 92704 a City Diva,, Suitt 114 Long Beach, CA 906T n Santa Ana, U.92701 rarvg o, CA 425FS Orar► ii n Asian American l artnats: Santa Ana Collrgo W. Soail Services Agxm--y � 5anior Cantor 1530- 17th St me S. Grand Aw. t15t1 N. fgin:h St. Employrn mt Dovuloprra E44mrtsnont 5ania Ana, CA 4270G Santa Ana, CA 42J0d Santa Ana, CA 92701 State Dopartmant of W—obIt-ation O.C. Soci.l Sgnicos Agoncy GDo&AilI Industries Ccllogo &Workfor:a preparation Cantor CTFlR VaHay Nigh Sled Remington Education Conte 1325 E 41h St. SMSanior Aid Pmgrmn 1572 N. Main St: isoi S Groa'rvillo Santa Anar CA92704 `mob Ana, CA 42701 L�am4tifn Orarxgqe� CA 92IN7 City Council AttachmR+t 94 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1 -46FE-ACDD-1 46571 B87804 EXHIBIT 2 SANTA ANA AJCC Partner Services Attachment 2 SANTA ANA AJCC Partner Services Service Partner Name Entity/Program Delivery Career Training Employer Method Title I Adult, DW, Youth City of Santa Ana 1, 2, 3, 4, 6, 7, 8, 10, 11, 12, 13, 14, 15, 1, 2, 5, 7, 9 1,2,3,4,5,6,7,8 FT, T, B, P, O 16,17 Adult Education/ Literacy Rancho Santiago 2, 3, 12, 14-15, 17 1,8 B, P, O Community College District Wagner-Peyser Employment Development Department (EDD) 1'2'' 3 4''' 5 6 8 9 10 17, ' ' 1,2,3,4 6 7 8 ' ' ' FT,PT,T,A,B,P ' Veterans (Jobs for Veterans Employment Development 1,2,3,4,5,6,8,9,10,11, State Grant) Department (EDD) 12,13,14,15,16,17 1,2,3,4,6,7, FT,T,A,B,P Trade Act (Trade Adjustment Employment Development 1,2,3,4,5,6,8,9,10,11,12,13,14,15,16,17 1,4,5,8,9 1,2,3,4,6,7,8 PT,T,A,B Assistance) Department (EDD) Unemployment Compensation Employment Development 1,9 8 PT,T,A,B Department (EDD) State Department of 1, 3 4 5 13,14, 15, 2, 6 7, 8, 11, 12, DOR Eligible: 1, 1, 2, 4 DOR Vocational Rehabilitation Rehabilitation , 16,17 2, 3, 4, 5, 6, 7, Eligible: 3, 5, PT, FT 8, 9, 8 TANF Social Service Agency- 1,2,3,4,7,8,10,11,12,13, 1,3, 4,7,8 FT,T,A,B,P Family Self -Sufficiency Carl Perkins Career Technical Rancho Santiago 2, 3, 12, 14-15, 17 1,8 j B, P, O Education Community College District I Senior Aid Program Regions II & III SER-Jobs for 1,2,3,4,5,8,11,12,13,16 1,2,3,7 1,2,3,4,6, 7 PT, T, B Title V Older Americans Act Progress, Inc. Job Corps Long Beach Job Corps 2 1, 3, 7 T, B, P, O Native American Programs United American Indian 1, 2, 3, 4 O, P, B,T (Section 166) involvement, Inc. Housing & Urban Housing Authority 2, 3, 4, 8, 10, 15 B, P, O Development City Council 7 - 95 7/15/2025 Docusign Envelope ID: 72A9163B-BEA1-46FE-ACDD-146571687804 SANTA ANA AJCC Partner Services Attachment 2 1 CAREER SERVICES: Basic Career Services (BCS) include self-help service services requiring minimal staff assistance and Individualized Career Services (ICS) requiring more staff involvement generally provided to individuals unable to find employment through basic career services, and deemed to be in need of more concentrated services to obtain employment; or who are employed but deemed to be in need of more concentrated services to obtain or retain employment that allows for self-sufficiency. ]Basic Career Services 1. Eligibility Determination. This is the process of obtaining and documenting information about an individual's circumstances and comparing that information with the criteria set by an agency or program to decide if the individual qualifies for participation. 2. Outreach, Intake and Orientation: Outreach activities involve the collection, publication, and dissemination of information on program services available and directed toward jobless, economically disadvantaged, and other individuals. Intake is the process of collecting basic information, e.g., name, address, phone number, SSN, and all other required information to determine eligibility or ineligibility for an individual's program. Orientation, whether offered in a group setting, one-on-one, or electronically, is the process of providing broad information to customers in order to acquaint them with the services, programs, staff, and other resources at the Santa Ana Work Center, or its partner agencies. 3. Initial ?assessment: For individuals new to the workforce system, initial assessment involves the gathering of basic information about skill levels, aptitudes, abilities, barriers, and supportive service needs in order to recommend next steps and determine potential referrals to partners or community resources. 4. Job Search, Placement Assistance, and Career Counseling: Job Search helps an individual seek, locate, apply for, and obtain a job. It may include but is not limited to: job finding skills, orientation to the labor market, resume preparation assistancoF referrals to job openings, placement services, job search workshops, vocational exploration, and re-employment services such as orientation, skills determination, and pre -layoff assistance. Placement Assistance is a service that helps people to identify and secure paid employment. Career Counseling is a facilitated exploration of occupational and industrial information. 5. Employment Statistics -Labor Market Information: Collect and report data about employment levels, unemployment rates, wages and earnings, employment projections, jobs, training resources and careers; (LMI) 6. Eligible Provider performance and program Cost Information: Collect and provide information on: A. Eligible training service providers (described in WIOA Section 122) B. Eligible youth activity providers (described in WIOA Section 123) 2 City Council 7 — 96 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1-46FE ACDD-146571 B87804 EXHIBIT 2 SANTA ANA AJCC Partner Services Attachment 2 C. Eligible adult education providers (described in WIOA Title 1I). D. Eligible postsecondary vocational educational activities and vocational educational activities available to school dropouts under the Carl Perkins Act (20 USC 2301). E. Eligible vocational rehabilitation program activities (described in Title I of the Rehabilitation Act of 1973). 7. Local Performance Information: Collect and provide information on the local area's recent performance measure outcomes. S. Supportive Services' Information: Collect and provide information on services such as transportation, child care, dependent care, housing, and needs -related payments that are necessary to enable an individual to participate in employment and training activities. 9. Unemployment Compensation: Oe?le4-and provide information on filing claims for state benefit payments that protect individuals from economic insecurity while they look for work. Claims may be filed on-line or via telephone available in the Santa Ana Work Center. 10. Eligibility Assistance: Provide guidance to individuals on eligibility for other programs and on financial aid assistance for training and education programs that are available in the local area. 11. Follow -Up Services: Services provided to participants who are placed in unsubsidized employment, for not less than 12 months after the first day of the employment. These services assist those individuals to maintain employment or qualify for promotions with that employment. Individualized Career Services 12. Comprehensive and Specialized Assessments: A closer look at the skills levels and service needs that may include: A. Diagnostic Testing and use of other assessment tools; and B. In-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. 13. Individual Employment Plan Development: Working with individuals to identify their employment goals, the appropriate achievement objectives, and the appropriate combination of services that will help the individual achieve those goals. 14. Group Counseling City Council 7 — 97 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA4-46FE-ACDD-146571 B87804 SANTA ANA AJCC Partner Services Attachment 2 1 15. Individual Counseling and Career Planning 16. Case Management: For participants who receive training services under WTOA Section 134(d)(4). 17. Short -Term Prevocational Services: Can include development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training. Training Services: Services offered through a training provider to help individuals upgrade their skills, earn degrees and certifications, or otherwise enhance their employability through learning and education. Types of training services include: 1. OccupationaI Skills Training: An organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields at entry, intermediate or advanced levels. 2. On -the -Job Training (OJT): Training by an employer that is provided to a paid participant while engaged in productive work that is limited in duration, provides knowledge or skills essential to the full and adequate performance of the job, and reimburses the employer for the costs associated with training the OJT trainee often calculated based on a percentage of the trainee's wages. 3. Workplace and cooperative education: Programs that combine workplace training with related instruction which may include cooperative education programs 4. Training programs operated by the private sector Skills upgrading and retraining: Courses that prepare persons for entrance into a new occupation through instruction in new and different skills demanded by technological changes. These courses train incumbent workers in specific skills needed by that business or industry and that lead to potential career growth and increased wages. This includes courses that develop professional competencies that are particularly relevant to a vocational/occupational goal. It must be demonstrated that the training will result in the workers' acquisition of transferable skills or an industry -recognized certification or credential. 6. Entrepreneurial training 7. Job -readiness training B City Council 7 — 98 7/15/2025 Docusign Envelope ID: 72A9163B-BEA1-46FE ACDD-146571 B37804 EXHIBIT 2 SANTA ANA AJCC Partner Services Atkchment 2 8. Adult Education and Literacy programs: Services or instruction below the postsecondary level for individuals who are not enrolled or required to be enrolled in secondary school under state law and lack basic educational skills to enable the individuals to function effectively in society and on a job, Services include, but are not limited to, one-on-one instruction, coursework, or workshops that provide direction for the development and ability to read, write, and speak in English, compute, and solve problems, at levels of proficiency necessary to function in society or on the job, 9. Customized training: Training that is designed to meet the special requirements of an employer or group of employers and that is conducted with a commitment by the employer to employ an individual upon successful completion of the training and for which the employer pays for a portion of the cost of training. Employer Services: Santa Ana Work Center services offered to employers include: 1. Employer needs assessment: Evaluation of employer needs, particularly future hiring and talent needs. 2. Job posting: Deceiving and filling of job openings; searching resumes; providing access to a diverse labor pool. 3. Applicant pre-screening: Assessing candidates according to the employer's requirements and hiring needs; referring candidates based on their knowledge, skills, and abilities relative to the employer requirements. 4. Recruitment assistance: Raising awareness of employers and job openings and attracting individuals to apply for employment at a hiring organization. Specific activities may include posting of employer announcements, provision of job applications, and hosting job fairs and mass recruitment. 5. 'Training assistance: Providing training resources to enable employers to upgrade employee skills, introduce workers to new technology, or to help employees transition into new positions. 6. Labor Market Information: Access to information on labor market trends, statistics, and other data related to the economy, wages, industries, etc. 7. Employer information and referral: Provision of information on topics of interest to employers such as services available in the community, local training providers, federal laws and requirements, tax information, apprenticeship 8. programs, human resource practices, alien labor certification, incentive programs such as WOTC or the federal bonding program, etc. 9. Rapid Response and Layoff Aversion: Provision of services to prevent downsizing or closure, or to assist during layoff events, Strategies may include incumbent worker training to avert lay-offs, financing options, employee ownership options, placement assistance, worker assessments, establishment of transition centers, labor- management committees, peer counseling, etc. 5 City Council 7 — 99 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEAT-45FE-ACDD-146571 B87804 SANTA ANA AJCC Partner Services Attachment 2 1 Service Delivery Codes: How will your agency provide the services indicated? Code Method Description FT On -Site Staff Full Time PT On -Site Staff Part Time T Access Via Telephone A Access Via Automated System B Brochure/Handout Posting at One -Stop Center ® Other NA Not Applicable City Council 7 — 100 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1-46FE-AC;DD-14657lB87804 EXHIBIT 2 Attachment 3 Santa Ana Workforce Development Board AJCC Comprehensive Infrastructure and Other Costs Budget 2025-2026 SSA 868.97 Sq Ft 4.50% Percentage Cost Category/ Line Item Rent Base Rent Cost Details lincl. Janitorial, Maint and Utilities Monthly Cost 12,166.441 Monthly Property Rent Total Monthly Rent and Equipment Cost 2,166.44 CAM Charges - - Operational Cost 2% of Rent Management Fee 1.76% of Rent Parking Parking Overages Telephone Services Total Rent IDial Tone and Voice Mail - $2,166.44 $2,166.44 Shared Phones by usage percentage - Security Guard 1040 hrs x $30.18 1040 x $31.69 199.29 199.29 Equipment Public Computers Total Utilities/Maintenance $199.29 1 $199.29 Resource Room Computers (21) Computer Lab Computers (21) - **Tech & Access Costs Access System/Card Total Equipment Key Card System $0.00 Data & Phone Cabling Cabling ' I Information Technology Cost Wireless Network Bridge Maintenanc "`Copiers (Annual) Resource Room used by clients Copy room Copier for staff only Total Technology and Access $0.00 $0.00 Lease7infrastructure Total $199.29 $2,166.44 $2,365.73 ** Technology and Access Costs are all based on percentage ***Copiers are leased equipment and are charged by percentage. Additional charge for usage will be calculated and charged City Council 7 — 101 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1-46FE-AC:DD-146571 B87804 EXHIBIT 2 Attachment 3-1 111914/11 .140i1_1:� :�•��:��11i1 •� Sharing Other One -Stop Delivery System Costs i The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services SAWC Career Services: $541,376.00 • Eligibility Determination (1) • Outreach. Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment Statistics -Labor Market hifonnation (5) • Eligible Provider perfonrrance and program Cost Information (6) • Local Perfonrrarrce Information (7) • Supportive Services' Information (8) • Unemployment Compensation (9) • Eligibility Assistance (10) • Follow -Up Services (11) • Comprehensive and Specialized Assessments (12) • Individual Employment Plan Development (13) • Group Counseling (14) • hrdividual Counseling and Career Planning (15) • Case Management (16) • Short -Tenn Prevocational Services (17) Training $484,982.00 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial traurirrg (6) • Job -readiness training (7) • Adult Education and Literacy programms (8) • Customized training (9) City Council 7 — 102 7/15/2025 Docusign Envelope 10: 72A91B3B-BEA1-46FE-ACDD-146571B87804 EXHIBIT 2 Attachment 3-1 APPLICABLE CAREER SERVICES Employer Services • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost $209,549.20 $1,235,907.20 City Council 7 — 103 7/15/2025 Docusign Envelope IU: 72A91 B3B-BEA1-46FE-ACUU-146571 B87BU4 EXHIBIT 2Attachmeni Comprehensive Cost Allocation and Partner Contributions Square Footage Partner % of Total Operational Cost Paid for Based on Square Monthly Property CAM Charges and Management Monthly Charges Monthly Rent + Amount : In- Contributions Partner Program Office Sharing / Footage fees Rent' and Charges Kind Yearly Career Payment Ratio Services" EDD 9345.17 48.37% $ 23,298.59 $ 876.03 $ 5,296.20 $ 29,470.82 $ 1,493,317.04 Santa Ana WORK Center (City of Santa Ana) 5895.52 30.51% $ 14,698.20 $ 1,361.66 $ $ 4,224.43 $ 20,284.29 $ $ 1,235,907.20 Department of Rehabilitation 161.93 0.84% $ 403.71 $ 13.69 $ 98.62 $ 516.02 $ $ 2,945,349.48 Social Services Agency -Family Self -Sufficiency 868.97 4.50% $ 2,166.44 $ 199.29 $ 2,365.73 $ 800,000.00 Santa Ana Housing Authority 485.93 2.52% $ 1,211.48 $ 41.07 $ 171.03 $ 1,423.59 $ 82,290.00 SER Jobs for Progress 324.00 1.68% $ 807.77 $ 27.39 $ 197.25 $ 1,032.41 $ 2,945,349.48 Rent Stabilization Division 1915.48 9.91% $ 4,775.51 $ 161.91 $ 523.76 $ 5,461.18 $ 225,000.00 Santa Ana Public Library 324.00 1.68% $ 807.77 $ 27.39 $ 131.68 $ 966.84 $ 1,511,191.70 Total Rentable Space 19321.00 100.00% $ 48,169.47 $ 1,633.11 $ 876.03 $ 10,842.26 $ 61,520.88 $ $ 6,556,863.72 Revised 2/27/25 11:54:46 AM City Council 7 — 104 7/15/2025 Docuslgn Envelope ID: 72A91 B3B-BEA1-46FE-ACDD-146571 B87804 INbUhAll C IlIQI 1(Pl,(Q11NL 1J WORK MAY PROCE7D $i1�1 7�4-02A C11 Y CLERK DATE: FIRST AMENDMENT TO OFFICE LEASE BETWEEN ,C,VA(Zft) SANTA ANA CA 1 SGF, LLC AND THE CITY OF SANTA ANA Deh���.ti1S � THIS FIRST AINIIENDMENT TO OFFICE LEASE (this "First Anlendnlent") is entered . 2023 (the 'Effective Date") by and between SANTA ANA CA I SCF, into as of. -Svc, , (o LLC. a Delaware limited liability company ("_Landlord"). and THE CITY OF SANTA ANA. a charter city and I11LII11CIpal corporation (" fenallt"). r_-3 `" WITNESSETH: L r• WHEREAS. Landlord, as successor -in -interest to C'F SAN[•ANA. L I-C. a Dela\vare limited liability company, and 1'enant entered into that certain 01'fice Lease No. A-2017-264 dated October 7. 2017. Tenant Estoppel Certificate No. ,-A-2017-26 f-01 dated February 8, 2018, and Exhibit B Notice of Lease Term Dates No. A-2017-264-02 dated February 16. 2018 (hereinafter collectively relerred to as the "Lease"), plll'SUallt to \Vlll l Landlord leased to Tenant and Tenant leased from Landlord that certain premises identified as SUite 200 containing approximately 19,321 rentable square Feet of office space (the 'Premises") in the building located at 801 Civic Center Drive. Santa Ana, CA 92701 (the WHEREAS. Landlord and Tenant desire to amend the Lease to set a ne\a Term of the Lease. subject to the terms and conditions set Forth herein. NOW, THEREFORE. in consideration of the af6resald premises and the other agreements and covenants hereafter set forth and For other good and valuable consideration. the receipt ol'\vhich is hereby acknowledged. the parties do hereby agree as Follows: I. IIlC01'(101'at1011 of Recitals. The above recitals are hereby incorporated into this First Alllendmellt as If llllly set l'ordi herein. AS LISC'CI herein the term "Lease" shall Illean the Lease as amended by this First ;amendment. I. Definitions. All capitalized terms used in this First Amendment shall have the meaninoos assigned to tllelll in the Lease U111CSS othel-wise specified herein. I. Term. "the Initial term as defined by Section 3, Basic Lease Provisions, o.' the Lease is hereby for a period of One Hundred Twenty (120) Full calendar montlls. colllnlellclll`-) on JUIy 1. 2023 and expirinL7 on June 30. 203; (the'Term"). Tenant shall have the 1•I`Iht to eXtelld the Fern, for two (2) sixty (60) month periods, in acCORlance \\ ith Section 3.2.2, Standard Lease Provisions. ol' the Lease. .J. Base Rent. C'omnlencing Oil JUIV I. 2023, Tenant shall palBase Rent in the f011o\\ II1t.T_ a1110UTAS: Dates A1111llal Base Relit klollthly Installment ol' Base Rent `UIlLial Rental Rate Jet' RSf 7/1/2023—6/30/202-4 $i44,852?0 $45,404.35 $2.35 i410216.11 City Council 7 — 105 7/15/2025 Docusign Envelope ID: 72A911336-BEA1-46FE-AGDD-146571 B87804 EXHIBIT 2 7/l/2024 •-- 6/30/2025 $561,197.77 $46,766.48 $2.42 7/l /2025 -- 6/30/2026 $578,033.70 $48,169.47 $2.49 7/l/2026 — 6/30/2027 _ $595374.71 $49,611.56 ,2.57 7/1/2#27 — 6/30/2028 $613,235.95 $51 103.00 $2.64 7/1/2028 -- 6/30/2029 $631,633_.03- _ $52,636.09 _ $2.72 7/l/2029 -- 6/30/2030 T _ $6501582.02 $54,215.17 $2.81 7/1/2030 �- 0/30/2031. $670,099.48 $55,84.1.62 $2.89 7/t/2031_-4/30/2032 $690,202.47 $57,516.87 $2.98 7/1 /2032 _.. 6/30/20" _ $7.10 908.54 $59,242.38 $3.07 5. Base Year. The ".lase Year" is licreby amended to reflect calendar year 2023. 6. Subsection 14.1, Waiver of Liability and Indemnification, of the Standard Lease Provisions, is hereby amended as fbilows: Except to the extent caused by the gross negligence of Landlord or its agents, contractors or employees, Tenant hereby waives all claims attd causes of action against Landlord and all of the other Landlord Parties for any damage to persons or property (including, without limitation, loss of profits and intangible, property) in any way relating to Tenant's use ani occupancy of the Premises from any cause whatsoever, including, without limitation fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, writer, rain or snow or leaks from any part the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or subsurface or fiorn any other place or caused by dampness, vandalism, malicious mischief:' Tenant shall indemnify, defend, protect and hold harmless Landlord. and each of the Landlord Parties from and against any and all Claims that arise out af, are occasioned by or are in arty way attributable to: (a) the use or occupancy of the Premises or any portion of the Project by Tenant, (b) the acts or omissions of'Tenant or any Tenant Tarty, (c) any default of this Lease by 'Fetiant, or (d) any litigation or other proceedings between. Tenant and any third party; provided tlitrt Tenant shall not be required to so indemnify, defend or hold Landlord or any of the other Landlord Parties harmless to the extent that any Such Claims arise out of the gross negligence or willfiA misconduct of Landlord, its agents or employees. 7. Tenant Irtivroverneats. Landlord consents to (but does not require) Tenant's completion of certain improvements to the Premises (collectively, the "Tenant Improvements"), subject to the terms and conditions of. xhibitA attached hereto and made a part hereof. 8. As. -Is Condition. Tenant accepts the Premises in its "AS-1S, WHERE -IS" condition as of the Effective Date, and Landlord) makes no representation or warranty concerning the condition of the Leased Premises and has no obligation to construct, remodel, improve, repair, decorate or paint the (remises or any improvettient on or a part of the Premises, except as may he otherwise set forth in. the Lease. Tenant represents that (a) it has been in possession of the Premises pursuant to the Lease, (b) it has inspected the Premises prior to execution of this First Amenintent, (c) it is not relying on any statement, representation or warranty of Landlord, its employees or agents, and (d) is fully satisfied with the condition of the Premises. 9 59102. r 6.11 City Council 7 — 106 7/15/2025 Docusign Envelope ID: 72A91 13313-MEA1-46FE-AGDD-146571687844 EXHIBIT 2 9. parking Section 2.3.2(c)(ii) is hereby deleted in its entirety and replaced with the following: "Notwithstanding the foregoing, each calendar month during the Term, Landlord shall provide to Tenant, without charge, (A) a number of Short Terrn Project Parking Validations (defined below) equal to the product of thirty (30) and the number of days in such calendar month (during the Tern) and (.13) a number of Long Term Project Parking Validations (defined below) eNuat to the product of one hundred eighty (180) and the number of days in such calendar month (during the "Perm), in each case to be used only by Tenant's Business Customers for parking in the Parking l;aeilities without charge; provided that (x) Landlord shall not, at any time during; the Term, be regOred under this Section 2.3.2(c)(ii) to provide a number of Project Parking Validations in any calendar month in excess of a nurnber equal to the product of two hundred ten (21.0) and the number of days in such. caIendarmouth (during the Term) and (y) any Project Parking Validations provided by Landlord with respect to any particular calendar month that are not used during such calendar month. shall, at the election of Landlord, either: ( l) become null and void (and be returned to Landlord) or (2) be credited against Landlord's obligations to provide Project Parking Validations tinder this Section 7.3.2(c)(ii) for subsequent calendar months, No Project Parking Validations provided by Landlord to Tenant under this Section 2.3.2(c)(B) sbal I be used to accommodate parking, without charge, by any particular Tenant's Business Customer(s), lbr a period in excess of three (3) hours on any day without Landlord's prior approval (and Tenant shall not provide any particular Tenant's Business. Customer more than one Project Parking Validation on any particular day). "Short Term Project Parking, Validations" means Prejoct Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to twenty (20) minutes without charge. "Long Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to one (1) hour without charge." 10. No Dd,.autt. lEaclt of Landlord and Tenant hereby affirm to each other that as of the 1 -bT,tive Date no breach, default, event ofdefaalt, or other act, error, or omission which, with the giving of notice or passage of time or both would constitute a breach, default, or event of default by such party has occurred and is continuing under the Lease beyond any applicable notice or cure period. it, Affirmation of Lease Terms. Except as modified by this First Amendment, Landlord and Tenant hereby ratify the Lease and agree that the Lease shal I remain unchanged and shall continue in full force and effect. In the event there is any conflict between the terms of the Lease anal the terns set fbah in this First Amendment, the terms- specifically set out in this First Amendment shall control, From and after the Effective Hate, any and all references to "the Lease" or "this Lease" in the Lease shall mean the Lease as modi 0ed by this First Amendment. 12. Mutual Authorization Representation. Each of Landlord and 'reliant hereby represent and warrant to each other that: (a) this First Amendment (and each term aA provision hereof) has been duly and appropriately authorized and executed by such party through proper written corporate or limited liability company action and approval; and (b) no additional consent, agreement, or approval is required with respect hereto. 5910216.11 City Council 7 — 107 7/15/2025 Docusign Envelope ID: 72A91835-BEA1-46FE-ACDD-146571 887804 EXHIBIT 2 13. Drokeratye. Landlord and Tenant each represent that they had no dealings with any real estate broker, finder, or other person with respect to this First Amendment in any manner, other than Lee & .Associates Newport Beach, Inc. representing; 'Tenant ("Tenant's Broker") and Newman{ representing Landlord ("Landlord's Broker" and collectively with 'Tenant's Broker, the "Brokers"). Landlord shall pay Brokers a leasing commission in connection with this First Amendment pursuant to separate agreement. Tenant shall 1nderrrn4 and hold Landlord harmless from any cost, expense or liability (including; costs of suit and reasonable attorney's :fees) for any compensation, commission or fees claimed by any other real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of 'Tenant. Landlord shall indemnify Tenant and hold Tenal.it harmless from any cost, expense or liability (including costs of suit kind reasonable attorney's fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of .Land lord. 14. Miscellaneous. The submission of an unsigned copy of this First Amendment to Tenant shall not constitute an offer. This First Amendment (a) shall be binding upon an inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and assigns, (b) may be executed in two or more counterparts, all of which together shall constitute but one and the same agreement, (c) shall be governed by anal construed in accordance with the laws of the State of California and 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 this Agreement, (d) shall constitute the entire agreement between the parties relating to the subject matter hereof; all prior negotiations, agreements, and understandings (not including the Lease, as amended), whether oral or written, being heresy superseded and terminated, and (e) shall become ef-ective a4 binding only upon execution and gelivery by both Landlord and Tenant. The execution of facsimiles, including the use of electronic signatures, of this First Atrlendnlent shall be binding on the parties hereto. 17. E-S_EGN and.Counterparts. Landlord and Tenant. agree: (a) that a party's electronic signature with respect to this Lease has been execrited or adopted by the signatory with the intent to sign, and be bound by, this Lease; (b) delivery of this Lease via electronic transmission or other electronic means shall be valid delivery for rill purposes; (c) this Lease and any additional information incidental hereto may be maintained as electronic records; (d) photocopies, facsimile transmissions, electronic images and other copies of this Lease and/or its signature pages, shall be valid, binding, elfective and enfbrceable the same as originals for all purposes, anal may be so admitted in any judicial proceeding, regulatory proceeding or arbitration, anal in making proof of this Lease it shall be unnecessary to produce the original hereof or any or ail original signature pages; and (e) each party agrees to take any and all reasonable actions, ifany, as may be Necessary or as na<ay be reasonably .requested by any other party to this Lease to further evidence such party's intent to be bound by the provisions ofthis Lease and to ensure compliance with the provisions or the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001, et: seq., the Urii.form Electronic Transactions Act as incorporated into applicable law, and any other applicable law pertaining to electronic signatures. f Remainder of Page Intentionally Blank,- Signature Page Follom l 4 591021[.11 City Council 7 — 108 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1 -46FE-ACDD-1 46571 B87804 EXHIBIT 2 IN WITNESS WTIEREOF. Landlord and Tcnant have executed this First \mendment to be effective as of the date first set Iorth above. ATTEST: City Clerk APPROVED AS TO FORM: SONIA R. C,ARVAI,[ 10 City Attorne\ Ry: lose Montoya, As t!stant City Attorney RECOMMENDED FOR APPROVAL,: Mile Garcia Executive Director Community Development Acency CITY OF SANTA ANA (TENANT): Kristine Ridge Cite ✓Manager LANDLORD: SAN fA ANA CA I SGF. LLC. a Delaware limited liability company .l Nam 04 Mike Garcia - I:XeCL1hVe Director Conlnlunity Hcvelopment A—ency [SIGNATURE PAGE TO FIRST AMENDAI NT TO OFFICE LEASE) 59102I6.1 1 City Council 7 — 109 7/15/2025 Docusign Envelope ID: 72A9lB36-BEA1-46FE-ACDD-146571887804 EXHIBIT 2 EXHIBIT A WORD LETTER THIS WORK LETTER (this "Work. Letter" 1 is attached to and incorporates[ into the First Arneninient. Supplementing the provisions of the Lease (as amended by the first Amondment), but without limiting those provisions, Landlord and Tenant agree as follows with respect to the Terrant Improvements to be installed in the Premises. 1. Purpose. This Work Letter establishes responsibilities for the design and construction of the Tenant l nprovements as well as the allocation of the costs of the Tenant Improvements. The terms, conditions, and requirements of the Lease, except where clearly inconsistent or inapplicable to this Work Letter, are incorporated into this Work Letter. 2. 1Dclinitioris. The following defined terms used in this Work Letter shall have the meanings set forth below. Unless provided to the contrary herein, any other capitalized terrn'that is not defined in this Work Letter shall have the meaning liven to that terns in the Lease. (a) "Approved 'Working Drawings" is defined in Section 3(c) hereof. (b) "Building SyAcrrrs" means the structural portions of the Buililing, the common area restrooms, elevators, the Building's 1 T VAC, mechanical, electrical, plumbing, and fire and life safety systems and equipment (including, but not limited to, the fire alarm and fire: sprinklers). (c) "Contractor" means the general contractor engaged by Landlord for performance of the Landlord Work pursuant to Section 4 hereof: (d) "Cost Proposal" is defined .in Section 5 a hereof. (e) "Days" means, unless otherwise, indicated, calendar days. (f) "Landlord Coordination .Fee" means a fee equal to five percent (5019) of the hard and soft costs of the Landlord Work charged by Landlord for its services in managing the design and construction of the Tenant Improvements, and such fee will be included in the cost of the Landlord Work and. deducted from the Truant A llowa-ace. (g) ``Landlord's Reps-&-i utative" means .Dana Duarte as the only person authorized to act for Landlord pursuant to this Work Letter, Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other communication from or on behalf of.Landlord in connection with this Work, Letter unless such communication is in writing from 'Landlord's Representative. Landlord inay change the .Landlord's P.epresentative at any time upon not less than live (5) days' advance written notice to Tenant. (h) "Landlord WorV njeans all work necessary and appropriate to complete the Tenant Improvements in accordance with this Work Letter and the Lease. 5910216.11 City Council 7 —110 7/15/2025 Docusign Envelope ID: 72A91B3M-BEA1-46FE-ACDD-146571B878114 EXHIBIT 2 (1) "Over-Allowance.Amount" is defined in Section 10(d) hereof. (j) "Permits" is defined in Section 6(a) hereof: (k) "Punch List Worle' means those minor corrections of construction or decoration details, and minor mechanical adjustments, that are required to cause any applicable portion of the Tenant Improvements as constructed to conform to the Approved Plans in all material respects and that (to not materially interfere with Tenant's use or occupancy of the Building and the Premises. (1) "Space Plan" is defined in Section 3(a) hereof. (m) "Space Plan Allowance" shall be Zero and 1.51100 Dollars ($0.15) per rentable square foot of the Premises (i.e., up to $2,898,15), based on 19,321 rentable square fiet of the Premises, and shall be incJuded in the "Tenant Allowance and deducted there-trorn. (n) "Substantial Completion" of the Tenant Improvements shall be deemed to have occurred on the date that: (i) all Landlord Work lens been performed in accordance with the terms of this Work Letter, other than any Punch List Work; and (ii) if required, Landlord has obtained and delivered to Tenant a permanent or temporary certificate of occupancy ("COO") with respect to the Premises, except to the extent the same cannot be obtained by reason of the incompletion of installations or other work that is the responsibility of Tenant. (such as, but not limited to, the installation and making, operational of Tenant's systems and telecommunications equipment), in which case Landlord shall obtain the same within a reasonable time after the same can be obtained. (o) "Tenant Allowance" shall be TwentyMCight and 00/100 Dollars ($28.00) per rentable square foot of the Premises (i.e., up to $540,988,00), based on 19,321 rentable square feet of the .Premises. (p) "Tenant Contractor" or "Tenant Contractors" means any employees, agents, contractors, consultants, subcontractors, mechanics, suppliers and invitees of Tenant, whether or not directly employed by 'Tenant, each of whom shall be reasonably approved by Landlord before they may work. in the Building. (q) "Tenant belay„ means a delay caused by any of the following: (i) Tenant's failure to timely approve the Working Drawings or any other matter requiring Tenant's approval; (ii) a breach by Tenant of the terms of this Work Letter or the Lease; (iii) Tenant's request for changes in any of the Working Drawings, but only if such a request actually causes a delay to Substantial Completion of the Premises; 5910216.11 City Council 7 —111 7/15/2025 Docusign Envelope ID: 72A91 1336-BEA1-46FE-ACDD-146571B87804 EXHIBIT 2 (iv) "Tenant's requirement for: (A) materials, components, finishes, or improvements which are 4ifferent frown, or not included in, Landlord's standard tenant improvcmcnt items for the Building (which have been provided to "Tenant and of which Tenant acknowledges receipt); or (13) materials that are not available in a commercially reasonable time given the estimated date of Substantial Completion of the Premises, but only to the extent that such a requirement actually causes a delay to Substantial Completion of the Premises; or (v) any other acts or omissions of Tenant, or of any of the "l'enant Contractors, their agents, or employees that continue more than one (1) day after written notice thereof by Land lord. (r) "Tenant lrF&F Allowance: means a portion of the "Tenant Allowance in the amount of tip to Ten and 00/100 Dollars ($10.00) per rentable square foot of the Premises (i.e., tip to $1.93,210.00), which Tenant may use for 'Tenant's furniture, fixtures and equipment to be purchased and installed in the Promises and any costs of data cabling and IT infrastructure in connection with Tenant's furniture, fixtures and equipment. (s) "'Tenant's Representative" means the Executive Director, Community Development, or the Economic Development Manager or their designee (either such individual acting alone) as the only person[s] authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry, or other communication from or oil behalf of Tenant in connection with this Work Letter unless such communication is in writing -from Tenalat's Representative, Tenant may change the Tenant's Representative[s] at any Brno upon not less than five (5) days' advance written notice to Landlord. (t) "Working Drawings" is defined in Section_RO hereof. 3. Plan Ayywoval. (a) Prior to commencement of'the Landlord Work, Landlord and Tenant shall approve detailed space plans (collectively, the "Space Plan") .for the construction of the Tenant lrriprovernnents, which space plans shall be prepared by Landlord's architect and subject to Tenant's reasonable approval within ton (10) days after receipt thereof. (b) Promptly following Tenant's approval of the Space Plan, Landlord shall cause its architect and engineers to prepare and deliver. to Tenant detailed specifications and engineered working drawings for the'renant Improvements shown on the Space.Plan, with such modifications to the Space Plan as shall be necessary to comply with the requirements ofthe.Bu'ilding Systems ofthe Building (the "Working Drawings"). (c) Tenant shall approve or disapprove the Working Drawings in writing within fourteen (14) business days after receipt. Tenant may only disapprove the Working Drawings to the extent such Working Drawings are inconsistent with the Space Plan and only ifTenant delivers to Landlord, within such fourteen (14) business day period, specific charges proposed by Tenant which are consistent with the Space flan. If'any such revisions are tilliely and properly proposed by 'Tenant, Landlord shall cause its architect anti 59102 16. 11 City Council 7 —112 7/15/2025 Docusign Envelope ID: 72A91B3B-BEA1-46FE ACDD-146571B87804 EXHIBIT 2 engineers to revise the Working Drawings to incorporate such revisions and submit the same for Tenant's approval in accordance with the foregoing provisions, and the parties shall follow the foregoing procedures for approving the Working Drawings until the same are finally approved by Landlord anal Tenant. Upon Landlord's and "Tenant's written approval of the Working Drawings, including any agreed changes pursuant to Sections 5 and 6, the same shall be known as the "Approved Working Drawings". 4, Construction Contracts. Landlord shall enter into a construction contract: for the performance of the Landlord Work with the Contractor, .Landlord shall use commercially reasonableefforts to obtain at least three (3) bids from each trade (otherthan mechanical, electrical, plumbing, and fire/life safety, for cacti oj' which Landlord shall require all work to be performed by Landlord's approved subcontractor for such trade) and shall select the lowest qualified bidder unless otherwise approved by Tenant in writing. Landl*rd shall require its Contractor to exercise reasonable eftbrts to avoid disruption of Tenant's business and to protect the health do safety of Tenant, its employees and its guests. This shall include, at a minimum, using all feasible methods to minimize danger, noise, vibration, :Fumes, dust and other pollution, and to the extent practicable, perform work outside of normal business horns. .5. Cost Estimate. (a) Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal slid I include, as nearly as possible, the cost of the Teriant Improvements (the "Cost Proposal"), The Cost Proposal shall be provided to Tenant on an open book basis (i,e., Landlord shall make available to Tenant the economic; terms of the construction agreement with the Contractor (including, without limitation, the cost of labor and materials, contractor fees and permit -Fees), as well as all bids received by Landlord fibr the Landlord Work, and reasonable documentation supporting; Landlord's estimate of plan preparation costs and all otter costs of the Laudlorcrt Work), (b) Within ten (10) days of the receipt of the same, Tenant shall either: (i) approve the Cost Proposal; or (ii) have a one -tine right to propose modifications to the Working .Drawings so that the Cost Proposal does not exceed the amount of the Tenant Allowance. With the exception of the City's one^trrrie right to modify as provided in this section, any proposed changes to the Working; Drawings (other than changes that make the; Working Drawings conform to the Space Plan) shall be subject to Landlord's approval, which approval shall not be unreasonably withheld, conditioned, or delayed. If Landlord approves the proposed revisions: (A) Landlord shall have the Working Drawings revised in accordance with the approved revisions; and (B) Landlord shall submit a revised Cost Proposal to Tenant. Tenant shall notify Landlord in writing within ten (10) clays whether it desires to proceed with such revisions. If Tenant fails to approve such revisions and revised Cost Proposal within such ten (10) (lay period; such Failure shall be (teemed to be a Tenant Delay. Any delays arising from further changes to the Working Drawings requested by Tenant shall be deemed to be Tenant Delays. (c) Tenant's final written approval of: the Cost Proposal and the Approved Working Drawings shall be authorization by Tenant for landlord to purchase allmaterials 9 5910216.11 City Council 7 —113 7/15/2025 Docusign Envelope ID: 72A91133B-BEA1-46FE-ACDD-146571 B87804 EXHIBIT 2 set forth in the Cost Proposal and to promptly commence the construction of the Tenant Improvements in accordance with the Approved Working Drawings, 6. Performance of the Landlord Work. (a) Landlord shall cause the Contractor to obtain all applicable building permits for construction of the Landlord Work (collectively, the °`.Permits"), and to perform the Landlord Work in a good and workmanlike manner and in compliance with the Permits and all applicable Laws in effect at the time of construction. All costs associated with obtaining Permits will be deducted from the Tenant Allowance. (b) if any local governmental agency requires revisions to the Approved Working Drawings, Tenant shall be deemed to have approved any adjustments to the Approved Working Drawings and the Cost Proposal resulting therefrom. Tf'any Authority issuing Permits for the construction of the Tenant Improvements shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with .Landlord's obligations hereunder; (ii) increase the cost of constructing the Tenant Improvements; or (iii) will materially delay the construction of the Tenant Improvements, Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 7. Change Rectuest5. No changes to the Approved Working Drawings or the agreed Cost Proposal may be made without the prior written consent of Landlord, which consent nray be withheld in Landlord's sole discretion. Tl'Tenant requests a cha.rlge that would directly or indirectly delay the Substantial Completion of the Tenant improvements, Landlord shall riot be obligated to make such change unless Tenant agrees in writing that such delay (in the amotint reasonably determined by Landlord) is aTenant Delay. lfTenant requests a change to the Approved Working Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make sucli change unless Tenant agrees in writing to pay any such increase in costs in accordance with Section l0. & Substantial Completion. When Landlord's architect certifies that the Landlord Work Is Substantially Complete., Landlord shall notify 'Tenant thereof in writing, 'Tenant's Representative and Landlord's Representative shall at n mutually convenient date and time [but in no event later than ten (10) clays after such notice] conduct a joint walk-through of the Premises in order to revir v the 'Tenant Improvements. Based upon said walk-through, Landlord's Representative and Tenant's Representative shall prepare a list of Punch List Work and, sulaiect to Force Mljeurc, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord shall complete the Punch List Work items within thirty (30) days after such joint walla -through, in the event of any dispute as to whether Landlord has Substantially Completed the Tenant lrnprovernents, the City will be afforded an opportunity to provide input before the Landlord's architect renders a final decision on the dispute. The decision of .Landlord's architect shall be final and binding on the parties. Tenant agrees th'rtt, at the request of Landlord from time t• time after the initial inspection, Tenant shall initial such punch list or execute revised lists of Punch List Work to reflect completion or partial completion of prior Punch List Work. �17 5910216.11 City Council 7 —114 7/15/2025 Docusign Envelope ID: 72A91M-BEA1-45FE-ACDD-146571B87804 EXHIBIT 2 9. Access by Tenant. Subject to the terms hereof and provided that Tenant and its agents do riot interfere with the Contractor's work in the Building and the Premises, Landlord shall allow Tenant and any of the Tenant Contractors access to the applicable portions of the Premises at least ten (10) days prior to the Substantial Completion of the Landlord Work for the purpose of installing equipment and/or fixtures (including 'Tenant's data and telephone equipment) and T'enant's furniture in the Premises. Prior to Tenant's entry into the Premises, Tenant shall submit a schedule to Landlord and the Contractor, for their approval, which schedule shall detail the Tenant Contractors accessing the Premises and the tinning and purpose o.fsuch entry. In connection with any such entry, Tenant acknowledges and agrees that all Tenant Contractors shall fully cooperate, work in harmony with and not, in any manner, materially interfere with Landlord or Landlord's contractors (including the Contractor), agents, or representatives in performing work in the Building and the Premises, or in performing any inspections, or interfere with the general operation of the Building. if at any time any of the Tenant Contractors shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain Corrective actions as directed by Landlord, then Landlord may revoke Tenant's entry rights (as to an individual Tenant Contractor, or as to all Tenant Contractors, as Landlord shall deem appropriate). Tenant acknowledges and agrees that any such entry into and occupancy of the Premises or any portion thereof by Tenant or any Tenant Contractor shall be deemed to be subject to all the terms, covenants, conditions, and provisions of the Lease, excluding only the covenant to pay Rent (until the occurrence of the Lease Commencement Date). 10. Co4k Allocation, (a) Provided this Lease is in full force and effect, and Tenant is not in default thereunder beyond any applicable notice and cure period, Landlord shall pay (i) the costs of Space Plan in an amount up to, but not exceeding;, the Space flan Allowance, and (li) the costs of the Tenant Work in an amount up to, but not execedii1g, the Tenant Allowance, Landlord shall deduct the .Landlord Coordination Fee of the Tenant Improvements from the Tenant Allowance. (b) in no event shall Landlord be obligated to pay fot the costs of any of Tenant's furniture, computer systems, telephone Systems, equipment, or other personal property (whether or not such items tray be depicted on the Approved Working Drawings) thaC exceed the Tenant 1~F&E Allowance. Eligible costs that exceed the Tenant FF&E Allowance shall be borne by Tenmit. (c) In the event that all costs associated with the Space Plan and design, permitting, and construction of the Tenant Improvements, including the Landlord Coordination Fee, exceeds the Space Plan Allowance and/or the Tenant Allowance, as applicable, the amount of such excess (the "Over -Allowance Arraount") shall be paid by Tenant t:o Landlord within thirty (30) days following delivery of an. invoice by Landlord. Tenant shall not be responsible for the Over -Allowance Amount if caused by L.andlo.rd. or Landlord Contractor's own negligence, willful misconduct, or delay. 5910216.11 City Council 7 —115 7/15/2025 Docusign Envelope ID: 72A91B3B-BEA1-46FE•ACUU-14657lB87804 EXHIBIT 2 (d) Tenant shall not be entitled to receive (in cash or as a credit against any rental or otherwise) any portion of the Tenant Allowance not used to pay fur the costs of the design, permitting, and construction of the Tenant Improvements. 11. Miscellancous. (a) All Tenant Improvements to be performed by Landlord (and any installations in the Premises as set forth in the Approved Working Drawings, or otherwise) shall use Building -standard specifications, materials, finishes, and supplies, unless •therwise specified in the Approved Working Drawings. Landlord, in its sole discretion, may substitute items, materials, or finishes with other items, materials, or finishes of comparable kind and quality. Landlord, at its sole option, may also change mechanical plans and specifications where necessary.for the installation or modification of the Building Systems to accommodate the Tenant Improvements, provided that any such changes shrill .not materially and adversely affect Tenant's use and occupancy of the Denllsed Premises for the Permitted Use. (b) Tenant acknowledges that the timely completion of the Tenant Improvements is of the utmost importance to Landlord and Tenant. Accordingly, Tenant hereby agrees to fully and diligently cooperate with all reasonable requests by .Landlord in connection with or .related to the design anal construction of the Tenant Improvements and the completion of the permitting process and, in connection therewith, Tenant shall respond to Landlord's requests for information anal/or approvals, except as specifically set forth herein to the contrary, within two (2) days following request by Landlord. Landlord and Tenant, and such other parties as may be useful or appropriate, shall meet on a scheduled basis to be determined by Landlord's Represeritati.ve and Tenant's Representative, to discuss progress in connection with the same. (c) If at any time on or before the Substantial Completion of the Landlord Work, Tenant is in default under this Work Letter or under the Lease, which default remains uncured after the expiration of applicable notice and cur€: periods, then: (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to instruct the Contractor to cease the construction of the Landlord Work (in which arse, Tenant shall be responsible for the "1"errant Delay caused by such work stoppage); and (ii) all other obligations of.Landlord tinder the terms of this Work Letter shall be suspended until such time as such default is fully and finally cured. (d) Landlord hereby assigns to Tenant all warranties by Contractor relating to the Tenant Improvements, which assignment shall be on a non-exclusive basis such that the warranties may be enforced by Landlord and/or Tenant; such warranties shall be for a twelve. (12) month period. (e) Any portion of the Tenant Allowance not used within thirty-six (36) months of the Effective Date of this First Amendment shall be forfeited with no further obligation by Landlord with respect thereto, in no event shall Tenant be entitled to apply any unused portion of the "re1l.ant .Allowance towards future payments of Base Rent and/or, except as expressly set forth herein, purchase of Tenant's fin•niture, fixtures and equipment. 12 5910216.11 City Council 7 —116 7/15/2025 Docusign Envelope ID: 72A9163B-BEA1-46FE-ACDD-146571B87804 EXHIBIT 2 ATTACHMENT 6 STATE PRIVACY AND SECURITY PROVISIONS 1. DEFINITIONS For the purpose of this Agreement, the following terms mean: a. "Assist in the Administration of the Program" means performing administrative functions on behalf of programs, such as determining eligibility for, or enrollment in, and collecting PH for such purposes, to the extent such activities are authorized by law. b. "Breach" refers to actual loss, loss of control, compromise, unauthorized disclosure, unauthorized acquisition, unauthorized access, or any similar term referring to situations where persons other than authorized users and for otherthan authorized purposes have access or potential access to PI I, whether electronic, paper, verbal, or recorded. "Contractor Staff" means those employees of the contractor/subcontractor, vendors and agents performing any functions for the county that require access to and/or use of PII and that are authorized by the county to access and use PII. d. "PII" is personally identifiable information that is obtained through the MEDS or IEVS on behalf of the programs and can be used alone, or in conjunction with any other reasonably available information, to identify a specific individual. The PH includes, but is not limited to, an individual's name, social security number, driver's license number, identification number, biometric records, date of birth, place of birth, or mother's maiden name. The PH may be electronic, paper, verbal, or recorded. e. "Security Incident" means the attempted or successful unauthorized access, use, disclosure, modification, or destruction of PII, or interference with system operations in an information system which processes PH that is under the control of the county or county's Statewide Automated Welfare System (SAWS) Consortium, or CaIWIN (California Welfare Information Network), or under the control of a contractor, subcontractor or vendor of the county, on behalf of the county. f. "Secure Areas" means any area where: i. Contractor Staff assist in the administration of their program; ii. Contractor Staff use or disclose PII; or iii. PH is stored in paper or electronic format. 1 City Council 7 —117 7/15/2025 Docusign Envelope ID: 72A916313-BEA11-46FE-ACDD-146671 B87804 EXHIBIT 2 2. PRIVACY AND CONFIDENTIALITY a. The County staff, contractors, subcontractors and vendors, covered by this Agreement may use or disclose PH only as permitted in this Agreement and only to assist in the administration of programs in accordance with 45 CFR § 205.50 et. seq and Welfare and Institutions Code section 10850, and Section 14100.2 of the Welfare and Institutions Code, Section 431.300 et. Seq. of Title 42 Code of Federal Regulations, or as authorized or required by law. Disclosures, which are authorized or required by law, such as a court order, or are made with the explicit written authorization of the individual, who is the subject of the PII, are allowable. Any other use or disclosure of PH requires the express approval in writing by County of Orange. No Contractor Staff shall duplicate, disseminate or disclose PH except as allowed in this Agreement. b. Pursuant to this Agreement, Contractor Staff may only use PH to perform administrative functions related to administering their respective programs. c. Access to PII shall be restricted to Contractor Staff who need to perform their official duties to assist in the administration of their respective programs. d. Contractor Staff who access, disclose or use PH in a manner or for a purpose not authorized by this Agreement may be subject to civil and criminal sanctions contained in applicable federal and state statutes. 3. PERSONNEL CONTROLS The County agrees to advise Contractor Staff, who have access to PII, of the confidentiality of the information, the safeguards required to protect the information, and the civil and criminal sanctions for non-compliance contained in applicable federal and state laws. For that purpose, the Contractor shall implement the following personnel controls: a. Employee Training. Train and use reasonable measures to ensure compliance with the requirements of this Agreement by Contractor Staff, including, but not limited to: i. Provide initial privacy and security awareness training to each new Contractor Staff within thirty (30) days of employment and; ii. Thereafter, provide annual refresher training or reminders of the privacy and OA City Council 7 —118 7/15/2025 Docusign Envelope U 72A91 1538-6EA146FE-ACDD-146571 B87804 EXHIBIT 2 security safeguards in this Agreement to all Contractor Staff. Three (3) or more security reminders per year are recommended; iii. Maintain records indicating each Contractor Staffs name and the date on which the privacy and security awareness training was completed; iv. Retain training records for a period of three (3) years after completion of the training. b. Employee Discipline. i. Provide documented sanction policies and procedures for Contractor Staff who fail to comply with privacy policies and procedures or any provisions of these requirements. ii. Sanction policies and procedures shall include termination of employment when appropriate. c. Confidentiality Statement. Ensure that all Contractor Staff, accessing, using or disclosing Pit, sign a confidentiality statement (provided by the County). The statement shall be signed by Contractor staff prior to accessing Pit and annually thereafter. Signatures may be physical or electronic. The signed statement shall be retained for a period of three (3) years. The statement shall include at a minimum: i. General Use; ii. Security and Privacy Safeguards; iii. Unacceptable Use; and iv. Enforcement Policies. d. Background Screening. i. Conduct a background screening of a Contractor Staff before they may access Pit. ii. The background screening should be commensurate with the risk and magnitude of harm the employee could cause. More thorough screening shall be done for those employees who are authorized to bypass significant technical and operational security controls. iii. The Contractor shall retain each Contractor Staff's background screening documentation for a period of three (3) years following conclusion of employment relationship. 4. MANAGEMENT OVERSIGHT AND MONITORING To ensure compliance with the privacy and security safeguards in this Agreement the County shall perform the following: 3 City Council 7 —119 7/15/2025 Docusign Envelope ID: 72A91 B3B-BEA1-46FE-ACDD-146571 BB7804 EXHIBIT 2 a. Conduct periodic privacy and security reviews of work activity by Contractor Staff, including random sampling of work product. Examples include, but are not limited to, access to case files or other activities related to the handling of PII. b. The periodic privacy and security reviews must be performed or overseen by management level personnel who are knowledgeable and experienced in the areas of privacy and information security in the administration of their program, and the use or disclosure of PII. 5. INFORMATION SECURITY AND PRIVACY STAFFING The Contractor agrees to: a. Designate information security and privacy officials who are accountable for compliance with these and all other applicable requirements stated in this Agreement. b. Provide County with applicable contact information for these designated individuals. Any changes to this information should be reported to County within ten (10) days. c. Assign staff to be responsible for administration and monitoring of all security related controls stated in this Agreement. 6. PHYSICAL SECURITY The Contractor shall ensure PII is used and stored in an area that is physically safe from access by unauthorized persons at all times. The Contractor agrees to safeguard PII from loss, theft, or inadvertent disclosure and, therefore, agrees to: a. Secure all areas of the Contractor's facilities where Contractor Staff assist in the administration of their program and use, disclose, or store PII. b. These areas shall be restricted to only allow access to authorized individuals by using one or more of the following: L Properly coded key cards ii. Authorized door keys iii. Official identification 4 City Council 7 — 120 7/15/2025 Docusign Enveiope ID: 72A911f3D-i5EA1-46FE-ACDD-146571BB7804 EXHIBIT 2 c. Issue identification badges to Contractor Staff. d. Require Contractor Staff to wear these badges where PII is used, disclosed, or stored. e. Ensure each physical location, where PII is used, disclosed, or stored, has procedures and controls that ensure an individual who is terminated from access to the facility is promptly escorted from the facility by an authorized employee and access is revoked. f. Ensure there are security guards or a monitored alarm system at all times at the Contractor facilities and leased facilities where five hundred (500) or more individually identifiable records of PII is used, disclosed or stored. Video surveillance are recommended. g. Ensure data centers with servers, data storage devices, and/or critical network infrastructure involved in the use, storage, and/or processing of PII have perimeter security and physical access controls that limit access to only authorized Contractor Staff. Visitors to the data center area must be escorted at all times by authorized Contractor Staff. h. Store paper records with PII in locked spaces, such as locked file cabinets, locked file rooms, locked desks, or locked offices in facilities which have multi -use functions in one building in work areas that are not securely segregated from each other. It is recommended that all PII be locked up when unattended at any time, not just within multi -use facilities. The Contractor shall have policies that include, based on applicable risk factors, a description of the circumstances under which the Contractor Staff can transport PII, as well as the physical security requirements during transport. A Contractor that chooses to permit its staff to leave records unattended in vehicles must include provisions in its policies to ensure the PII is stored in a non -visible area such as a trunk, that the vehicle is locked, and under no circumstances permit PII be left unattended in a vehicle overnight or for other extended periods of time. j. The Contractor shall have policies that indicate Contractor Staff are not to leave records with PH unattended at anytime in airplanes, buses, trains, etc., including baggage areas. This should be included in training due to the nature of the risk. k. Use all reasonable measures to prevent non -authorized personnel and visitors from having access to, control of, or viewing PII. 5 City Council 7 — 121 7/15/2025 Docusign Envelope 110: 72A91B3B-BEA1-46FE-ACDD-146571BB7814 EXHIBIT 2 7. TECHNICAL SECURITY CONTROLS a. Workstation/Laptop Encryption. All workstations and laptops, which use, store and/or process PII, must be encrypted using a FIPS 140-2 certified algorithm 128 bit or higher, such as Advanced Encryption Standard (AES). The encryption solution must be full disk. It is encouraged, when available and when feasible, that the encryption be 256 bit. b. Server Security. Servers containing unencrypted PH must have sufficient administrative, physical, and technical controls in place to protect that data, based upon a risk assessment/system security review. It is recommended to follow the guidelines documented in the latest revision of the National Institute of Standards and Technology (MIST) Special Publication (SP) 800-53, Security and Privacy Controls for Federal Information Systems and Organizations. c. Minimum Necessary. Only the minimum necessary amount of PI1 required to perform required business functions may be accessed, copied, downloaded, or exported. d. Mobile Device and Removable Media. All electronic files, which contain PII data, must be encrypted when stored on any mobile device or removable media (i.e. USB drives, CD/DVD, smartphones, tablets, backup tapes etc.). Encryption must be a FIPS 140-2 certified algorithm 128 bit or higher, such as AES. It is encouraged, when available and when feasible, that the encryption be 256 bit. e. Antivirus Software. All workstations, laptops and other systems, which process and/or store Pli, must install and actively use an antivirus software solution. Antivirus software should have automatic updates for definitions scheduled at least daily. f. Patch Management. i. All workstations, laptops and other systems, which process and/or store Pll, must have critical security patches applied, with system reboot if necessary. ii. There must be a documented patch management process that determines installation timeframe based on risk assessment and vendor recommendations. iii. At a maximum, all applicable patches deemed as critical must be installed within thirty (30) days of vendor release. It is recommended that critical patches which are high risk be installed within seven (7) days. iv. Applications and systems that cannot be patched within this time frame, due to significant operational reasons, must have compensatory controls implemented to minimize risk. 6 City Council 7 — 122 7/15/2025 Docusign Envelope IM: 72A91636-BEA1 46FE-AWD-146571 B87804 EXHIBIT 2 g. User iDs and Password Controls. i. All users must be issued a unique username for accessing Pil. ii. Username must be promptly disabled, deleted, or the password changed upon the transfer or termination of an employee within twenty-four (24) hours. Note: Twenty-four (24) hours is defined as one (1) working day. iii. Passwords are not to be shared. iv. Passwords must be at least eight (8) characters. V. Passwords must be a non -dictionary word. vi. Passwords must not be stored in readable format on the computer or server. vii. Passwords must be changed every ninety (90) days or less. viii. Passwords must be changed if revealed or compromised. ix. Passwords must be composed of characters from at least three (3) of the following four (4) groups from the standard keyboard: A. Upper case letters (A-Z) B. Lower case letters (a-z) C. Arabic numerals (0-9) D. Special characters (!,@,#, etc.) h. Data Destruction. When no longer needed, all PII must be cleared, purged, or destroyed consistent with MIST SP 800-88, Guidelines for Media Sanitization, such that the PH cannot be retrieved. i. System Timeout. The systems providing access to PII must provide an automatic timeout, requiring re -authentication of the user session after no more than twenty (20) minutes of inactivity. j. Warning Banners. The systems providing access to PH must display a warning banner stating, at a minimum: L Data is confidential; ii. Systems are logged; iii. System use is for business purposes only, by authorized users; and iv. Users shall log off the system immediately if they do not agree with these requirements. k. System Logging. i. The systems which provide access to PII must maintain an automated audit trail that can identify the user or system process which initiates a request for PH or alters PII. ii. The audit trail shall: A. Be date and time stamped; 7 City Council 7 — 123 7/15/2025 Docusign Envelope ID; 72A9lE33M-BEA1-46FE-ACDD-146571B87804 EXHIBIT 2 B. Log both successful and failed accesses; C. Be read -access only; and D. Be restricted to authorized users. iii. If PI I is stored in a database, database logging functionality shall be enabled. iv. Audit trail data shall be archived for at least three (3) years from the occurrence. I. Access Controls. The system providing access to PIE shall use role -based access controls for all user authentications, enforcing the principle of least privilege. m. Transmission Encryption. i. All data transmissions of PH outside of a secure internal network must be encrypted using a Federal Information Processing Standard (PIPS) 140-2 certified algorithm that is 128 bit or higher, such as Advanced Encryption Standard (AES) or Transport Layer Security (TLS). It is encouraged, when available and when feasible, that 256 bit encryption be used. ii. Encryption can be end to end at the network level, or the data files containing PII can be encrypted. iii. This requirement pertains to any type of PH in motion such as website access, file transfer, and email. n. Intrusion Prevention. All systems involved in accessing, storing, transporting, and protecting PII, which are accessible through the Internet, must be protected by an intrusion detection and prevention solution. 8. AUDIT CONTROLS a. System Security Review. i. The Contractor must ensure audit control mechanisms are in place. ii. All systems processing and/or storing PH must have at least an annual system risk assessment/security review that ensures administrative, physical, and technical controls are functioning effectively and provide an adequate level of protection. iii. Reviews should include vulnerability scanning tools. b. Log Reviews. All systems processing and/or storing PH must have a processor automated procedure in place to review system logs for unauthorized access. c. Change Control. All systems processing and/or storing PII must have a documented City Council 7 — 124 7/15/2025 Docusign Envelope ID: 72A91 13313-BEA146FE-ACDD-146671 B87804 EXHIBIT 2 change control process that ensures separation of duties and protects the confidentiality, integrity and availability of data. d. Anomalies. When the County or DHCS suspects MEDS usage anomalies, the County will work with Contractor to investigate the anomalies and report conclusions of such investigations and remediation to California Department of Social Services (CDSS). 9. BUSINESS CONTINUITY / DISASTER RECOVERY CONTROLS a. Emergency Mode Operation Plan. The Contractor must establish a documented plan to enable continuation of critical business processes and protection of the security of PH kept in an electronic format in the event of an emergency. Emergency means any circumstance or situation that causes normal computer operations to become unavailable for use in performing the work required under this Agreement for more than twenty-four (24) hours. b. Data Centers. Data centers with servers, data storage devices, and critical network infrastructure involved in the use, storage and/or processing of PII, must include environmental protection such as cooling, power, and fire prevention, detection, and suppression. c. Data Backup and Recovery Plan. i. The Contractor shall have established documented procedures to backup PH to maintain retrievable exact copies of PII. ii. The documented backup procedures shall contain a schedule which includes incremental and full backups. iii. The procedures shall include storing backups offsite. iv. The procedures shall ensure an inventory of backup media. V. The Contractor shall have established documented procedures to recover PH data. vi. The documented recovery procedures shall include an estimate of the amount of time needed to restore the PI I data. vii. It is recommended that the Contractor periodically test the data recovery process. 10. PAPER DOCUMENT CONTROLS E City Council 7 — 125 7/15/2025 Docusign Envelope 1D: 72A!J1 B3B-BEAT-46FE-ACDD-146571 B87804 EXHIBIT 2 a. Supervision of Data. The PII in paper form shall not be left unattended at anytime, unless it is locked in a file cabinet, file room, desk or office. Unattended means that information may be observed by an individual not authorized to access the information. b. Data in Vehicles. The Contractor shall have policies that include, based on applicable risk factors, a description of the circumstances under which the Contractor Staff can transport PII, as well as the physical security requirements during transport. A Contractor that chooses to permit its staff to leave records unattended in vehicles must include provisions in its policies to ensure the PH is stored in a non -visible area such as a trunk, that the vehicle is locked, and under no circumstances permit PII be left unattended in a vehicle overnight or for other extended periods of time. c. Public Modes of Transportation. The PH in paper form shall not be left unattended at any time in airplanes, buses, trains, etc., including baggage areas. This should be included in training due to the nature of the risk. d. Escorting Visitors. Visitors to areas where PII is contained shall be escorted, and PII shall be kept out of sight while visitors are in the area. e. Confidential Destruction. PII must be disposed of through confidential means, such as cross -cut shredding or pulverizing. f. Removal of Data. The PH must not be removed from the premises of Contractor except for identified routine business purposes or with express written permission of HHS. g. Faxing. i. Faxes containing PII shall not be left unattended and fax machines shall be in secure areas. ii. Faxes shall contain a confidentiality statement notifying persons receiving faxes in error to destroy them and notify the sender. iii. Fax numbers shall be verified with the intended recipient before sending the fax h. Mailing. i. Mailings containing PII shall be sealed and secured from damage or inappropriate viewing of PII to the extent possible. ii. Mailings that include five hundred (500) or more individually identifiable records containing PII in a single package shall be sent using a tracked mailing method 10 City Council 7 — 126 7/15/2025 Docusign Envelope IM; 72A91B36-BEA1-46FE-ACDD-146571BB7804 EXHIBIT 2 that includes verification of delivery and receipt, unless the Contractor obtains prior written permission from HHS to use another method. 11. NOTIFICATION AND INVESTIGATION OF BREACHES AND SECURITY INCIDENTS During the term of this Agreement, the County agrees to implement reasonable systems for the discovery and prompt reporting of any Breach or Security Incident, and to take the following steps: a. Initial Notice to HHS: i. The Contractor will provide initial notice to the County. The Contractor agrees to perform the following incident reporting to County. ii. Immediately upon discovery of a suspected security incident that involves data provided to Contractor by County, the Contractor will notify the County by email or telephone. iii. Within one working day of discovery, the Contractor will notify the County by email or telephone of unsecured PII, if that PII was, or is, reasonably believed to have been accessed or acquired by an unauthorized person, any suspected security incident, intrusion, or unauthorized access, use, or disclosure of Pll in violation of this Agreement, or potential loss of confidential data affecting this Agreement. Notice shall be made by contacting the County as provided in this agreement, including all information known at the time. iv. A breach shall be treated as discovered by the Contractor as of the first day on which the breach is known, or by exercising reasonable diligence would have been known, to any person (other than the person committing the breach), who is an employee, officer or other agent of the Contractor. V. Upon discovery of a breach, security incident, intrusion, or unauthorized access, use, or disclosure of PII, the Contractor shall take: A. Prompt corrective action to mitigate any risks or damages involved with the breach and to protect the operating environment; and B. Any action pertaining to such unauthorized disclosure required by applicable Federal and State laws and regulations. b. Investigation and Investigative Report. The Contractor shall immediately investigate breaches and security incidents involving PII. The Contractor will cooperate with the County during this investigation. Within seventy-two (72) hours of discovery, the Contractor shall provide new or updated information if available to County. The updated report shall include any other applicable information related to the breach or security 11 City Council 7 — 127 7/15/2025 Docustgn Envelope ID: 72A91 B3B-BEA1-46FE-ACOD-146571 B87804 EXHIBIT 2 incident known at that time. The Contractor shall provide status update to County on a regular basis as agreed upon. The Contractor shall provide to County all specific and pertinent information about the Breach, including copies of any reports conducted by the Contractor or on behalf of the Contractor. The Contractor shall waive any assertion of privilege in relation to such reports. Such information and/or reports shall be provided to County without unreasonable delay and in no event later than fifteen (15) calendar days the Contractor have such information and/or report. c. Complete Report. The complete report of the investigation shall include an assessment of all known factors relevant to the determination of whether a breach occurred under applicable provisions of the Health Insurance Portability and Accountability Act (HIPAA), the Health Information Technology for Economic and Clinical Health (HITECH) Act, the Information Protection Act, or other applicable law. The report shall include a Corrective Action Plan (CAP) which includes, at a minimum, detailed information regarding the mitigation measures taken to halt and/or contain the improper use or disclosure. If County requests additional information related to the incident, the Contractor shall make reasonable efforts to provide County with such information. County will review report and determine whether a breach occurred and whether individual notification is required. County will maintain the final decision making over a breach determination. d. Notifications of Individuals. When applicable state or federal law requires notification to individuals of a breach or unauthorized disclosure of their P11, the County will make the decision to either notify clients or have the Contractor give notice. If the Contractor shall give the notice, it would be subject to the following provisions: i. If the cause of the breach is attributable to the Contractor or its subcontractors, agents or vendors, the Contractor shall pay any costs of such notifications, as well as any and all costs associated with the breach. If there are any questions as to whether the County or the Contractor is responsible for the breach, the County and the Contractor shall jointly determine responsibility for purposes of allocating the costs; ii. All notifications (regardless of breach status) regarding the beneficiaries' PII shall comply with the requirements set forth in Section 1798.29 of the California Civil Code and Section 17932 of Title 42 of the United States Code, inclusive of its implementing regulations, including but not limited to the requirement that the notifications be made without reasonable delay and in no event, later than sixty (60) calendar days from discovery; 12 City Council 7 — 128 7/15/2025 Docusign Envelope ID: 72A91 M-BEA1-46FE-AC00-146571 687804 EXHIBIT 2 iii. The County has contractual requirement with the California Department of Social Services and California Department of Health Care Services to approve the time, manner and content of any such notifications and their review and approval shall be obtained before notifications are made. Therefore, the Contractor must provide the notifications to County to obtain review and approval prior to notifications are made. If notifications are distributed without State review and approval, secondary follow-up notifications may be required; and iv. The County may elect to assume responsibility for such notification from the Contractor. e. Responsibility for Reporting of Breaches when Required by State or Federal Law. If the cause of a breach is attributable to the Contractor or its agents, subcontractors or vendors, the Contractor is responsible for all required reporting of the breach. If the cause of the breach is attributable to the County, the County is responsible for all required reporting of the breach. When applicable law requires the breach be reported to a federal or state agency or that notice be given to media outlets, DHCS (Department of Health Care Services) and CDSS (California Department of Social Services) (if the breach involves MEDS or SSA data), then the Contractor shall coordinate with the County to ensure such reporting is in compliance with applicable law and to prevent duplicate reporting, and to jointly determine responsibility for purposes of allocating the costs of such reports, if any. f. County Contact Information. The Contractor shall utilize the below contact information to direct all notifications of breach and security incidents to the County. The County reserves the right to make changes to the contact information by giving written notice to the Contractor. Said changes shall not require an amendment to this Agreement or any other agreement into which it is incorporated. Social Services Agency County Privacy Officer Contact 13 City Council 7 — 129 7/15/2025 Docusign Envelope ID. 72A9163B-BEA1-46FE-ACDD-146571687804 EXHIBIT 2 County of Orange Social Services Agency Contracts Services 500 N. State College Blvd, Suite 100 Orange, CA 92868 714-541-7785 Karen.Vu@ssa.ocgov.com Linda Le, CHC, CHPC, CHP County of Orange OCIT - Enterprise Privacy & Cybersecurity 1055 N. Main St, 6th Floor Santa Ana, CA 92701 Email: privacy officer(cDocgov.com securityadmin2ocit.ocQov.com linda.le = ocit.ocgov.com 12. COMPLIANCE WITH SSA (SOCIAL SECURITY ADMINISTRATION) AGREEMENT The County has agreed to comply with applicable privacy and security requirements in the Computer Matching and Privacy Protection Act Agreement (CMPPA) between the SSA and the California Health and Human Services Agency (CHHS), in the Information Exchange Agreement (IEA) between SSA and CDSS, and in the Electronic Information Exchange Security Requirements and Procedures for State and Local Agencies Exchanging Electronic Information with SSA (TSSR). If Contractor have access to the PII data provided by SSA, then Contractor must agree to comply with the applicable privacy and security requirements, which is available upon request. If there is any conflict between a privacy and security standard in the CMPPA, IEA or TSSR, and a standard in this Agreement, the most stringent standard shall apply. The most stringent standard means the standard which provides the greatest protection to PII. 13. COMPLIANCE WITH DEPARTMENT OF HOMELAND SECURITY AGREEMENT The County has agreed to comply with substantive privacy and security requirements in the Computer Matching Agreement (CMA) between the Department/Agency of Homeland Security, United States Citizenship and Immigration Services (DHS-USCIS) and CDSS. If Contractor have access to the PII data provided by DHS-USCIS, then Contractor must agree 14 City Council 7 — 130 7/15/2025 Oocusign Envelope ID: 72A91B36-BEA1-46FE-ACDO-146571687804 EXHIBIT 2 to comply with the applicable privacy and security requirements, which is available upon request. If there is any conflict between a privacy and security standard in the CMA and a standard in this Agreement, the most stringent standard shall apply. The most stringent standard means the standard which provides the greatest protection to PII. 14. CONTRACTOR AGENTS. SUBCONTRACTORS, ,AND VENDORS The Contractor agrees to enter into written agreements with all agents, subcontractors, and vendors that have access to the Contractor's PII. These agreements will impose, at a minimum, the same restrictions and conditions that apply to the Contractor with respect to PII upon such agents, subcontractors, and vendors. These shall include, at a minimum, (1) restrictions on disclosure of PII, (2) conditions regarding the use of appropriate administrative, physical, and technical safeguards to protect P11, and, where relevant, (3) the requirement that any breach, security incident, intrusion, or unauthorized access, use, or disclosure of PII be reported to the Contractor. If the agents, subcontractors, and vendors of the Contractor access data provided to the County by SSA or DHS-USCIS, the Contractor shall also incorporate the Agreement's Exhibits into each subcontract or subaward with agents, subcontractors, and vendors. 15. ASSESSMENTS AND REVIEWS In order to enforce this Agreement and ensure compliance with its provisions, the Contractor agrees to assist the County (on behalf of CDSS and DHCS) in performing compliance assessments. These assessments may involve compliance review questionnaires, and/or review of the facilities, systems, books, and records of the Contractor, with reasonable notice from the County. Such reviews shall be scheduled at times that take into account the operational and staffing demands. The Contractor agrees to promptly remedy all violations of any provision of this Agreement and certify the same to the County in writing, orto enter into a written CAP (Corrective Action Plan) with the County containing deadlines for achieving compliance with specific provisions of this Agreement. 16. ASSISTANCE IN LITIGATION OR ADMINISTRATIVE PROCEEDINGS In the event of litigation or administrative proceedings involving the County based upon claimed violations by the Contractor of the privacy or security of PII, or federal or state laws or agreements concerning privacy or security of PII, the Contractor shall make all reasonable 15 City Council 7 — 131 7/15/2025 Docusign Envelope ID: 72A91 B3B-MEA1-46FE-ACDD-146571 B87804 EXHIBIT 2 effort to make itself and Contract Workers assisting in the administration of their program and using or disclosing PH available to the County at no cost to the County to testify as witnesses. The County shall also make all reasonable efforts to make itself and any subcontractors, agents, and employees available to the Contractor at no cost to the Contractor to testify as witnesses, in the event of litigation or administrative proceedings involving the Contractor based upon claimed violations by the County of the privacy or security of PII, or state or federal laws or agreements concerning privacy or security of PII. 16 City Council 7 — 132 7/15/2025 EXHIBIT 2 • CEO/SBL/SSA-017-60-1 SSA/City of Santa Ana • •` "` , f ; - 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 r SECOND AMENDMENT TO SUBLEASE THIS SECOND AMENDMENT TO SUBLEASE AGREEMENT ("Second Amendment") is made and entered into on July 1, 2025, ("Effective Date"), by and between CITY OF SANTA ANA a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California, (hereinafter referred to as "Sublessor") and the COUNTY OF ORANGE, a political subdivision of the State of California (hereinafter referred to as "County"), without regard to number and gender. Sublessor and County may sometimes hereinafter be referred to individually as "Party" or jointly as "Parties." RECITALS I. Pursuant to a sublease dated May 7, 2019, ("Sublease"), County subleases from Sublessor approximately 1,260 rentable square feet of office space in the building located at 801 W. Civic Center, Suite 200, in the City of Santa Ana, State of California ("Premises") in order to provide Ca1WORKS services ("Services"). II. On July 1, 2023, the Parties agreed to extend the term of the Sublease for an additional two years, with a termination date of June 30, 2025 ("First Amendment') III. The County and Sublessor intend to enter into a new Memorandum of Understanding ("MOU") agreement which will commence on July 1, 2025, and terminate on June 30, 2028, for County to continue to provide Services at the Premises. IV. The Parties have agreed to also amend the Sublease consistent with the terms below, to extend the term through June 30, 2028, to be coterminous with the new MOU, to reduce rentable square footage and to adjust rent. NOW, THEREFORE, in consideration of the Recitals, above, which are incorporated herein by this reference, the Parties do herby agree to amend the Sublease as of the Effective Date first written above as follows: A. Clause 2 PREMISES (1.2 S) is hereby deleted from the Sublease in its entirety and the following clause is substituted: "Sublessor subleases to County that certain property described in Revised Exhibit A and shown on Revised Exhibit B, which exhibits are attached hereto and by reference made a part hereof, of approximately eight hundred sixty nine (869) rentable square feet ("RSF") in the building located at 801 W. Civic Center Drive, Suite 200, Santa Ana, California (collectively, the "Premises"), together with non-exclusive, in common use of elevators, stairways, washrooms, hallways, driveways for vehicle ingress and egress, pedestrian walkways, other facilities and common areas appurtenant to the Premises." B. Clause 6 TERM (1.6 S) is hereby deleted from the Sublease in its entirety and the following clause is substituted: "6. TERM (1.6 S) ES: 3/12/25 SSA/City of etty`CO U n c I Page 1 o719 133 CEO/SBL/SSA-017-60-1 Wt5t2eg5ent to Sublease EXHIBIT 2 The term of this Sublease commenced on May 7, 2019 ("Commencement Date") and shall terminate on June 30, 2028, unless otherwise terminated consistent with Clause 8 (OPTION TO TERMINATE SUBLEASE) of this Sublease." C. Clause 10 RENT ADJUSTMENT (2.0 S) is hereby deleted from the Sublease in its entirety and the following clause is substituted: "10. RENT ADJUSTMENT (2.0 S) The monthly Rent payable by County for the Premises ("Rent") shall be automatically adjusted as follows: Period Monthly Rent Per Square Foot 7/l/25-6/30/26 $2,365.73 $2.72 7/l/26-6/30/27 $2,436.70 $2.80 7/l/27-6/30/28 $2,509.80 $2.89 The monthly Rent, above, is the amount to be paid by County. The "Per Square Foot" rate, above, is an estimate for statistical purposes only and for no other purpose." D. Clause 62 NOTICES (7.0 S) is hereby deleted from the Sublease in its entirety and the following clause is substituted: "62. NOTICES (7.0 S) All written notices pursuant to this Sublease shall be addressed as set forth below or as either Parry may hereafter designate by written notice and shall be deemed delivered upon personal delivery, delivery by facsimile machine, or seventy-two (72) hours after deposit in the United States Mail. Notwithstanding the above, notices may also be provided by personal delivery, by regular mail, or by electronic mail and any such notice so given shall be deemed to have been given upon receipt. TO: Sublessor TO: Counly City of Santa Ana County of Orange 801 W. Civic Center Drive, Suite 200 Social Services Agency Santa Ana, CA 92701 500 N. State College Boulevard, 6th Floor Attention: Deborah Sanchez Orange, CA 92868 Attention: Director, Administrative Services With a copy to: With a copy to: City Attorney's Office City of Santa Ana County Executive Office 20 Civic Center Plaza, M-29 400 W. Civic Center Drive, 5th Floor Santa Ana, CA 92701 Santa Ana, CA 92701 Attention: Chief Real Estate Officer" ES: 3/12/25 SSA/City of etty` Co U n c I Page 2 o719 134 CEO/SBL/SSA-017-60-1 Vt5t2eg5ent to Sublease EXHIBIT 2 E. Clause 63 ATTACHMENTS (7.0 S) is hereby deleted from the Sublease in its entirety and the following clause is substituted: "63. ATTACHMENTS (7.0 S) This Sublease includes the following, which are attached hereto and made a part hereof: I. EXHIBITS Revised Exhibit A - Description of the Premises Revised Exhibit B — Depiction of the Premises Revised Exhibit C - First Amendment to Office Lease (Master Lease)" Clause 64 [COUNTERPARTS (N)] is hereby added to the Sublease in its entirety: "64. COUNTERPARTS (N) This Second Amendment may be executed in one or more electronic or original counterparts, each of which will be deemed an original signature but all of which together will constitute one and the same instrument." F. Wherever a conflict in the terms or conditions of this Second Amendment, First Amendment, and/or the Sublease exists, the terms and conditions of this Second Amendment shall prevail. In all other respects, the terms and conditions of the Sublease and/or First Amendment not specifically changed by this Second Amendment shall remain in full force and effect. // // // // // ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofeaiy"CoUnCI Page 3 oV' 135 Vt5t2eg5entto Sublease EXHIBIT 2 WITNESS WHEREOF, the Parties have executed this Second Amendment the day and year first above written. APPROVED AS TO FORM: SUBLESSOR OFFICE OF COUNTY COUNSEL CITY OF SANTA ANA ORANGE COUNTY, CALIFORNIA ATTEST: By: Deputy County Counsel Date: RECOMMENDED FOR APPROVAL: SOCIAL SERVICES AGENCY By: Dorthe Lee, Director of Administration COUNTY EXECUTIVE OFFICE Bv: Steven K. Miller CEO Senior Real Estate Manager COUNTY COUNTY OF ORANGE By: Thomas A. Miller, Chief Real Estate Officer County Executive Office Per Board Approved ASR dated June 27, 2023; Minute Order dated June 27, 2023, Item No, 70. Date: ES: 3/12/25 SSA/City of Santa Ana By: Jennifer L. Hall City Clerk BY: Alvaro Nunez City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By. Andrea Garcia -Miller Assistant City Attorney RECOMMENDED FOR APPROVAL: By. ,/A/1 /te�"� Michael L. Garcia Executive Director Community Development Agency Page 4 of 19 CEO/SBL/SSA-017-60-1 Second Amendment to Sublease City Council 7 — 136 7/15/2025 EXHIBIT 2 REVISED EXHIBIT A PROJECT NO: CEO/SBL/SSA-017-060-1 DATE: 3/7/25 PROJECT: American Job Center WRITTEN BY: ES Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 All the Premises referred to and shown as crosshatched on a plot plan marked Revised Exhibit B, attached hereto and made a part hereof, being approximately Two Hundred Sixty -One (261) RSF of exclusive office space and approximately Six Hundred Eight (608) RSF of non-exclusive office space in a four (4) story building located at 801 West Civic Center Drive, Suite 200, in the City of Santa Ana, County of Orange, State of California, together with appurtenant right to use common areas located thereon, and in common with others the non-exclusive right to use any unreserved parking spaces in the parking structure located at the southwest corner of the property shown on Revised Exhibit B. NOT TO BE RECORDED ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofeatty"Counc Page 5 o7" 137 VTV2eg5ent to Sublease EXHIBIT 2 REVISED EXHIBIT B UPI i m st io 801 West CivicEt TO [J Center Drive �F W Civic Center Dr Old Courthouse Museurn Esports Are Sublease Area: Room 222 and Room 230 u�eL Euert.wun lul wrt enwr r[ei'lel l.e w_ L3NE STOP %AN14 AMA .�.I. C GG wow if=7R _ L:.To C C C B01 Chic Cara {The Yl�l "••• 17PS'lk t.C` as T... WP. E 2 •xu wm iw �... l� -:•F i-l�iiti - `{..Sf.p :'C::.':L.:::E: AR 11�T9 -.. 8f:�4wiRS'tq 'i'S6.T y _ _ N.'01-'1'dI -- r- ..S�J�r =i 'ti �3'R�9s.: `.`•",L•'.N �,�:n^tie.FM' . . V UIJ •ee x�t�§st'aaa¢•aaaa.B�SM,as:.'ow�e° l ES: 3/12/25 SSA/City of etty` Co u n C l l Page 6 oV 9 138 CEO/SBL/SSA-017-60-1 V t 5t2eg5entto Sublease EXHIBIT 2 INSURANCE NOT REQUIRED WORK MAY PROCE`_D CITY CLERK DATE: �0- :CDA(2)(NO (DebafhS ) REVISED EXHIBIT C A-2017-264-02A FIRST AMENDMENT TO OFFICE LEASE BETWEEN SANTA ANA CA I SGF, LLC AND THE CITY OF SANTA ANA THIS FIRST AMENDMENT TO OFFICE LEASE (this "First Amendment') is entered into as of 7vn!, tv I, 2023 (the "Effective Date") by and between SANTA ANA CA I SGF, LLC, a Delaware limited liability company ("Landlord"), and THE CITY OF SANTA ANA, a charter city and municipal corporation ("Tenant'). WITNESSETH: WHEREAS, Landlord, as successor -in -interest to CF SANTANA, LLC, a Delaware limited liability company, and Tenant entered into that certain Office Lease No. A-2017-264 dated October 7, 2017, Tenant Estoppel Certificate No. A-2017-264-01 dated February 8, 2018, and Exhibit B Notice of Lease Term Dates No. A-2017-264-02 dated February 16. 2018 (hereinafter collectively referred to as the "Lease"), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord that certain premises identified as Suite 200 containing approximately 19,321 rentable square feet of office space (the "Premises") in the building located at 801 Civic Center Drive, Santa Ana, CA 92701 (the -Building"); WHEREAS, Landlord and Tenant desire to amend the Lease to set a new Term of the Lease, subject to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the aforesaid premises and the other agreements and covenants hereafter set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties do hereby agree as follows: I . Incorporation of Recitals. The above recitals are hereby incorporated into this First Amendment as if fully set forth herein. As used herein the term "Lease" shall mean the Lease as amended by this First Amendment. 2. Definitions. All capitalized terms used in this First Amendment shall have the meanings assigned to them in the Lease unless otherwise specified herein. 3. Term. The Initial Term as defined by Section 3, Basic Lease Provisions, of the Lease is hereby for a period of One Hundred Twenty (120) full calendar months, commencing on July 1, 2023 and expiring on June 30, 2033 (the "Term"). Tenant shall have the right to extend the Term for two (2) sixty (60) month periods, in accordance with Section 3.2.2, Standard Lease Provisions, of the Lease. 4. Base Rent. Commencing on July 1, 2023, Tenant shall pay Base Rent in the following amounts: Dates Annual Base Rent Monthly Installment of Base Rent Annual Rental Rate per RSF 7/l /2023 — 6/30/2024 $544,852.20 $45,404.35 $2.35 59102t6.tt ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofetty"CoUnCI Page 7 oV 9 139 Vt5t2eg5ent to Sublease EXHIBIT 2 7/l/2024 — 6/30/2025 $561,197.77 $46,766.48 $2.42 7/l/2025 — 6/30/2026 $578,033,70 $48,169.47 $2.49 7/ l/2026 — 6/30/2027 $595 374.71 $49,614.56 $2.57 7/l/2027 — 6/30/2028 $613,235.95 $51,103,00 $2.64 7/1/2028 — 6/30/2029 $631,633.03 $52,636.09 $2.72 7/l/2029 -- 6/30/2030 $650,582.02 $54,215.17 $2.81 7/l/2030 — 6/30/2031 $670 099.48 $55,841,62 $2.89 7/1/2031 — 6/30/2032 $690,202.47 $57,516.87 $2.98 7/l/2032 — 6/30/2033 $710,908.54 $59,242.38 Base Year. The "Base Year" is hereby amended to reflect calendar year 2023. 6. Subsection 14.1, Waiver of Liability and Indemnification, of the Standard Lease Provisions, is hereby amended as follows: Except to the extent caused by the gross negligence of Landlord or its agents, contractors or employees, Tenant hereby waives all claims and causes of action against Landlord and all of the other Landlord Parties for any damage to persons or property (including; without limitation, loss of profits and intangible, property) in any way relating to Tenant' s use and occupancy of the Premises from any cause whatsoever, including, without limitation fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks ftom any part the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or sub -surface or from any other place or caused by dampness, vandalism, malicious mischicf. Tenant shall .indemnify, defend, protect and hold harmless Landlord and each of the Landlord Parties from and against any and all Claims that arise out of are occasioned by or are in any way attributable to: (a) the use or occupancy of the Premises or any portion of the Project by Tenant, (b) the acts or omissions of"tenant or any Tenant Party, (c) any default of this .Lease by Tenant, or (d) any litigation or other proceedings between Tenant and any third party; provided that Tenant shall not be required to so indemnify, defend or hold Landlord or any of the other Landlord Parties harmless to the extent that any such Claims arise out of the gross negligence or willful misconduct of Landlord, its agents or employees. 7. Tenant Improvements. Landlord consents to (but does not require) Tenant's completion of certain improvements to the Premises (collectively, the "Tenant Improvements"), subject to the terms and conditions of Exhibit A attached hereto and made a part hereof. 8. As -Is Condition. Tenant accepts the Premises in its "AS -IS, W1-1ERF,-IS" condition as of the Effective Date, and Landlord makes no representation or warranty concerning the condition of the Leased Premises and has no obligation to construct, remodel, improve, repair, decorate or paint the Premises or any improvement on or a part of the Premises, except as may be otherwise set forth in the Lease. Tenant represents that (a) it has been in possession of the Premises pursuant to the Lease, (b) it has inspected the Premises prior to execution of this First Amendment, (c) it is not relying on any statement, representation or warranty of Landlord, its employees or agents, and (d) is fully satisfied with the condition of the Premises. 5910216.11 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of etty"Cou n CI j Page 8 o7" 140 Vt5t2eg5ent to Sublease EXHIBIT 2 Parking. Section 2.3.2(c)(ii) is hereby deleted in its entirety and replaced with the following: "Notwithstanding the foregoing, each calendar month during the Term, Landlord shall provide to Tenant, without charge: (A) a number of Short Term Project Parking Validations (defined below) equal to the product of thirty (30) and the number of days in such calendar month (during the Term) and (B) a number of Long Term Project Parking Validations (defined below) equal to the product of one hundred eighty (180) and the number of days in such calendar month (during the Term), in each case to be used only by Tenant's Business Customers for parking in the Parking Facilities without charge; provided that (x) Landlord shall not, at any time during the Term, be required under this Section 2.3.2(c)(ii) to provide a number of Project Parking Validations in any calendar .month in excess of a number equal to the product of two hundred ten (210) and the number of days in such calendar mouth (during the Term) and (y) any Project Parking Validations provided by Landlord with respect to any particular calendar month that are not used during such calendar month. shall, at the election of Landlord, either: (1) become null and void (and be returned to Landlord) or (2) be credited against Landlord's obligations to provide Project Parking Validations under this Section 2.3.2(c)(ii) for subsequent calendar months. No Project Parking Validations provided by Landlord to Tenant under this Section 2.3.2(c)(E) shall be used to accommodate parking, without charge, by any particular Tenant's Business Customer(s), for a period in excess of three (3) hours on any day without Landlord's prior approval (and Tenant shall not provide any particular Tenant's Business Customer more than one Project Parking Validation on any particular day). "Short Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to twenty (20) minutes without charge. "Long Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to one (t) hour without charge." to. No Default. Each of Landlord and Tenant hereby affirm to each other that as of the Etfective Date no breach, default, event of default, or other act, error, or omission which, with the giving of notice or passage of time or both would constitute a breach, default, or event of default by such party has occurred and is continuing under the Lease beyond any applicable notice or cure period. 1.1. Affirmation of Lease Terms. Except as modified by this First Amendment, Landlord and Tenant hereby ratify the Lease and agree that the Lease shall remain unchanged and shall continue in full force and effect. In the event there is any conflict between the terms of the Lease and the terms set forth in this first Amendment, the terms specifically set out in this First Amendment shall control. From and after the Effective Date, any and all references to "the Lease" or "this Lease" in the Lease shall mean the Lease as modified by this First Amendment, 12. Mutual Authorization Representation. Each of Landlord and Tenant hereby represent and warrant to each other that: (a) this First Amendment (and each term and provision hereof) has been duly and appropriately authorized and executed by such party through proper written corporate or limited liability company action and approval; and (b) no additional consent, agreement, or approval is required with respect hereto. 5910216A 1 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of etty"Cou n CI j Page 9 ofj19 141 Wt5t2eg5ent to Sublease EXHIBIT 2 13. Brokerage. Landlord and Tenant each represent that they had no dealings with any real estate broker, finder, or other person with respect to this First Amendment in any manner, other than Lee & Associates Newport Beach, Inc. representing Tenant ("Tenant's Broker") and Newmark representing Landlord ("Landlord's Broker" and collectively with Tenant's Broker, the `Brokers"). Landlord shall pay Brokers a leasing commission in connection with this First Amendment pursuant to separate agreement. Tenant shall indemnify and hold Landlord harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or fees claimed by any other real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of Tenant. Landlord shall indemnity Tenant and hold Tenant harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of Landlord. 14. Miscellaneous. The submission of an unsigned copy of this First Amendment to Tenant shall not constitute an offer. This First Amendment (a) shall be binding upon an inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and assigns, (b) may be executed in two or more counterparts, all of which together shall constitute but one and the same agreement, (c) shall be governed by and construed in accordance with the laws of the State of California and 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 this Agreement, (d) shall constitute the entire agreement between the parties relating to the subject matter hereof, all prior negotiations, agreements, and understandings (not including the Lease, as amended), whether oral or written, being hereby superseded and terminated, and (e) shall become effective and binding only upon execution and delivery by both Landlord and Tenant. The execution of facsimiles, including the use of electronic signatures, of this First Amendment shall be binding on the parties hereto. 17. E-SIGN and Counterparts. Landlord and Tenant agree: (a) that a party's electronic signature with respect to this Lease has been executed or adopted by the signatory with the intent to sign, and be bound by, this Lease; (b) delivery ofthis Lease via electronic transmission or other electronic means shall be valid delivery for all purposes; (c) this Lease and any additional information incidental hereto may be maintained as electronic records; (d) photocopies, facsimile transmissions, electronic images and other copies of this Lease and/or its signature pages, shall be valid, binding, effective and enforceable the same as originals for all purposes, and may be so admitted in any judicial proceeding, regulatory proceeding or arbitration, and in making proof of this Lease it shall be unnecessary to produce the original hereof or any or all original signature pages; and (e) each party agrees to take any and al I reasonable actions, if any, as may be necessary or as may be reasonably .requested by any other party to this Lease to further evidence such party's intent to be bound by the provisions of this Lease and to ensue compliance with the provisions of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001, et seq., the Uniform Electronic Transactions Act as incorporated into applicable law, and any other applicable law pertaining to electronic signatures. 5910216,11 Lemainder of Page Intentionally Blank- &-nature Page Follows] ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of eatty"Co u In C I j Page 10 0I 19 142 WT V2eg5ent to Sublease EXHIBIT 2 IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment to be effective as of the date first set forth above. ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: 116se Montoya, As iStant City Attorney RECOMMENDED FOR APPROVAL: Mike Garcia Executive Director Community Development Agency CITY OF SANTA ANA (TENANT): —�— N Kristine Ridge City Manager LANDLORD: SANTA ANA CA I SGF, LLC, a Delaware limited liability company t f: Bv: Nam : Title: 7 JI Mike Garcia - Executive Director Community Development Agency 5910210.11 [SIGNATURE PAGE TO FMTAMENDMENT TO OFFICE LEASE] ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofeatty"CounCII Page I 0I19 143 Wt5t2eg5enttoSublease EXHIBIT 2 EXHIBIT A WORK LETTER THIS WORK LETTER (this "Work Letter") is attached to and incorporated into the First Amendment. Supplementing the provisions of the Lease (as amended by the First Amendment), but without limiting those provisions, Landlord and Tenant agree as follows with respect to the Tenant Improvements to be installed in the Premises. 1. Purpose. This Work Letter establishes responsibilities for the design and construction of the Tenant Improvements as well as the allocation of the costs of the Tenant Improvements. The terms, conditions, and requirements of the Lease, except where clearly inconsistent or inapplicable to this Work Letter, are incorporated into this Work Letter, 2. Definitions. The following defined terms used in this Work Letter shall have the meanings set forth below. Unless provided to the contrary herein, any other capitalized term that is not defined in this Work Letter shall have the meaning given to that term in the Lease. (a) "Approved Working Drawings" is defined in Section 3(c) hereof. (b) `Building Systems" means the structural portions of the Building, the common area restroorns, elevators, the Building's I VAC, mechanical, electrical, plumbing, and fire and life safety systems and equipment (including, but not limited to, the fire alarm and fire sprinklers). (c) "Contractor" means the general contractor engaged by Landlord for performance of the .Landlord Work pursuant to Section 4 hereof. (d) "Cost Proposal" is defined in Section 5(a) hereof. (e) "Days" means, unless otherwise indicated, calendar days. (t) "Landlord Coordination Fee" means a fee equal to five percent (5%) of the hard and soft. costs of the Landlord Work charged by Landlord for its services in managing the design and construction of the Tenant Improvements, and such fee will be included in the cost of the Landlord Work and deducted from the Tenant Allowance. (g) "Landlord's Representative" means Dana Duarte as the only person authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon any request, approval., inquiry or other communication from or on behalf of Landlord in connection with this Work Letter unless such communication is in writing from Landlord's Representative. Landlord may change the Landlord's Representative at any time upon not less than five (5) days' advance written notice to Tenant. (h) "Landlord Work" means all work necessary and appropriate to complete the "tenant Improvements in accordance with this Work Letter and the Lease. 5910216.11 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of eitty"Cou n CI I Page 12 OIL' 144 Vt5t2eg5ent to Sublease EXHIBIT 2 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofeitty"CouncII Page 13 a119 145 WTV2eg5enttoSublease EXHIBIT 2 (i) "Over -Allowance Amount" is defined in Section 10(d) hereof. 0) "Permits" is defined in Section 6 a hereof. (k) "Punch List Work" means those minor corrections of construction or decoration details, and minor mechanical adjustments, that are required to cause any applicable portion of the Tenant Improvements as constructed to conform to the Approved Plans in all material respects and that do not materially interfere with Tenant's use or occupancy of the Building and the Premises. (1) "Space Plan" is defined in Section 3(a) hereof. (m) "Space Plan Allowance" shall be Zero and 15/100 Dollars ($0.15) per rentable square foot of the Premises (i.e., up to $2,898.15), based on 19,321 rentable square feet of the Premises, and shall be included in the Tenant Allowance and deducted therefrom. (n) "Substantial Completion" of the Tenant Improvements shall be deemed to have occurred on the date that: (i) all Landlord Work has been performed in accordance with the terms of this Work Letter, other than any Punch List Work; and (ii) if required, Landlord has obtained and delivered to Tenant a permanent or temporary certificate of occupancy ("COO") with respect to the Premises, except to the extent the same cannot be obtained by reason of the incompletion of installations or other work that is the responsibility of Tenant (such as, but not limited to, the installation and making operational of Tenant's systems and telecommunications equipment), in which case Landlord shall obtain the same within a reasonable time after the same can be obtained. (o) "Tenant Allowance" shall be Twenty -Eight and 001100 Dollars ($28.00) per rentable square foot of the Premises (i.e., up to $540,988.00), based on 19,321 rentable square feet of the Prernises. (p) "Tenant Contractor" or "Tenant Contractors" means any employees, agents, contractors, consultants, subcontractors, mechanics, suppliers and invitees of Tenant, whether or not directly employed by Tenant, each of whom shall be reasonably approved by Landlord before they may work in the Building. 5910216.11 (q) "Tenant Delay" means a delay caused by any of the following: (i) Tenant's failure to timely approve the Working Drawings or any other matter requiring Tenant's approval; (ii) a breach by Tenant of the terms of this Work Letter or the Lease; (Hi) Tenant's request for changes in any of the Working Drawings, but only if such a request actually causes a delay to Substantial Completion of the Premises; ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofeitty"CounclI Page 14 0I 19 146 Vt5t2eg5ent to Sublease EXHIBIT 2 (iv) Tenant's requirement for: (A) materials, components, finishes, or improvements which are different from, or not included in, Landlord's standard tenant improvement items for the Building (which have been provided to Tenant and of which Tenant acknowledges receipt); or (B) materials that are not available in a commercially reasonable time given the estimated date of Substantial Completion of the Premises, but only to the extent that such a requirement actually causes a delay to Substantial Completion of the Premises; or (v) any other acts or omissions of Tenant, or of any of the Tenant Contractors, their agents, or employees that continue more than one (1) day after written notice thereof by Landlord. (r) "Tenant FF&F Allowance: means a portion of the Tenant Allowance in the amount of up to Ten and 00/100 Dollars ($10.00) per rentable square foot of the Premises (i.e., up to $193,210.00), which Tenant may use for Tenant's furniture, fixtures and equipment to be purchased and installed in the Premises and any costs of data cabling and IT infrastructure in connection with Tenant's furniture, fixtures and equipment. (s) "Tenant's Representative" means the Executive Director, Community Development, or the Economic Development Manager or their designee (either such individual acting alone) as the only person[s] authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry, or other communication from or on behalf of Tenant in connection with this Work Letter unless such communication is in writing from Tenant's Representative. Tenant may change the Tenant's Representative[s] at any time upon not less than five (5) days' advance written notice to Landlord. (t) "Working Drawings" is defined in Section 3(bb) hereof. Plan Approval. (a) Prior to commencement of the Landlord Work, Landlord and Tenant shall approve detailed space plans (collectively, the "Space Plan") for the construction of the Tenant Improvements, which space plans shall be prepared by Landlord's architect and sulliect to Tenant's reasonable approval within ten (10) days after receipt thereof. (b) Promptly following Tenant's approval of the Space Plan, Landlord shall cause its architect and engineers to prepare and deliver to Tenant detailed specifications and engineered working drawings for the "Tenant Improvements shown on the Space Plan, with such modifications to the Space Plan as shall be necessary to comply with the requirements of the Building Systems ofthe Building (the "Working Drawings"). (c) Tenant shall approve or disapprove the Working Drawings in writing within fourteen (14) business days after receipt. Tenant may only disapprove the Working Drawings to the extent such Working Drawings are inconsistent with the Space Plan and only if Tenant delivers to Landlord, within such fourteen (1.4) business day period, specific changes proposed by Tenant which arc consistent with the Space Plan. If any such revisions are timely and properly proposed by Tenant, Landlord shall cause its architect and 5910216.11 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of etty"Cou n CI i Page 15 OIL' 147 Vt5t2eg5ent to Sublease EXHIBIT 2 engineers to revise the Working Drawings to incorporate such revisions and submit the same for Tenant's approval in accordance with the foregoing provisions, and the parties shall follow the foregoing procedures for approving the Working Drawings until the same are finally approved by Landlord and Tenant. Upon Landlord's and Tenant's written approval of the Working Drawings, including any agreed changes pursuant to Sections 5 and 6, the same shall be known as the "Approved Working Drawings", 4. Construction Contracts. Landlord shall enter into a construction contract for the performance of the Landlord Work with the Contractor, Landlord shall use commercially reasonable efforts to obtain at least three (3) bids from each trade (other than mechanical, electrical, plumbing, and fire/life safety, for each of which Landlord shall require all work to be performed by Landlord's approved subcontractor for such trade) and shall select the lowest qualified bidder unless otherwise approved by Tenant in writing. Landlord shall require its Contractor to exercise reasonable efforts to avoid disruption of Tenant's business and to protect the health & safety of Tenant, its employees and its guests. This shall include, at a minimum, using all feasible methods to minimize danger, noise, vibration, fumes, dust and other pollution, and to the extent practicable, perform work outside of normal business hours. Cost Estimate. (a) Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of the Tenant Improvements (the "Cost Proposal"). The Cost Proposal shall be provided to Tenant on an open book basis (i.e., Landlord shall make available to Tenant the economic terms of the construction agreement with the Contractor (including, without limitation, the cost of labor and materials, contractor fees and permit fees), as well as all bids received by Landlord for the Landlord Work, and reasonable documentation supporting Landlord's estimate of plan preparation costs and all other costs of the Landlord Work). (b) Within ten (10) days of the receipt of the same, Tenant shall either: (i) approve the Cost Proposal; or (ii) have a one-time right to propose modifications to the Working .Drawings so that the Cost Proposal does not exceed the amount of the Tenant Allowance. With the exception of the City's one-time right to modify as provided in this section, any proposed changes to the Working Drawings (other than changes that make the Working Drawings conform to the Space Plan) shall be subject to Landlord's approval, which approval shall not be unreasonably withheld, conditioned, or delayed. If Landlord approves the proposed revisions: (A) Landlord shall have the Working Drawings revised in accordance with the approved revisions; and (B) Landlord shall submit a revised Cost Proposal to Tenant. Tenant shall notify Landlord in writing within ten (10) days whether it desires to proceed with such revisions. If Tenant fails to approve such revisions and revised Cost Proposal within such ten (10) day period; such failure shall be deemed to be a Tenant Delay. Any delays arising from further changes to the Working Drawings requested by Tenant shall be deemed to be Tenant Delays. (c) Tenant's final written approval of the Cost Proposal and the Approved Working Drawings shall be authorization by Tenant for Landlord to purchase all materials 5910216.11 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of etty'CO u n C I I Page 16 of 19 148 Vt5t2eg5ent to Sublease EXHIBIT 2 set forth in the Cost Proposal and to promptly commence the construction of the Tenant Improvements in accordance with the Approved Working Drawings. 6. Performance of the Landlord Work. (a) Landlord shall cause the Contractor to obtain all applicable building permits for construction of the Landlord Work (collectively, the "Permits"), and to perform the Landlord Work in a good and workmanlike manner and in compliance with the Permits and all applicable Laws in effect at the time of construction. All costs associated with obtaining Permits will be deducted from the Tenant Allowance. (b) If any local governmental agency requires revisions to the Approved Working Drawings, Tenant shall be deemed to have approved any ad'{ustments to the Approved Working Drawings and the Cost Proposal resulting therefrom. if any Authority issuing Permits for the construction of the Tenant Improvements shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with Landlord's obligations hereunder; (ii) increase the cost of constructing the Tenant Improvements; or (.i.ii) will materially delay the construction of the Tenant Improvements, Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 7. Change Requests. No changes to the Approved Working Drawings or the agreed Cost Proposal may be made without the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion. IfTenant requests a change that would directly or indirectly delay the Substantial Completion of the Tenant .Improvements, Landlord shall not be obligated to make such change unless Tenant agrees in writing that such delay (in the amount reasonably determined by Landlord) is a Tenant Delay. If Tenant requests a change to the Approved Working Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make such change unless Tenant agrees in writing to pay any such increase in costs in accordance with Section t0. S. Substantial Completion. When Landlord's architect certifies that the Landlord Work is Substantially Complete, Landlord shall notify Tenant thereof in writing. Tenant's Representative and Landlord's Representative shall at a mutually convenient date and time [but in no event later than ten (10) days after such notice] conduct a joint walk-through of the Premises in order to review the Tenant Improvements. Based upon said walls -through, Landlord's Representative and Tenant's Representative shall prepare a list of Punch List Work and, subject to Force Maleure, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord shall complete the Punch List Work items within thirty (30) days after such joint walls -through. In the event of any dispute as to whether Landlord has Substantially Completed the Tenant Improvements, the City will be afforded an opportunity to provide input before the Landlord's architect renders a final decision on the dispute. The decision of Landlord's architect shall be final and binding on the parties. Tenant agrees that, at the request of Landlord from time to time after the initial inspection, Tenant shall initial such punch list or execute revised lists of Punch List Work to reflect completion or partial completion of prior Punch List Work. 5910216.11 10 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City ofea~ty"CounCII Page 17 OIL' 149 Vt5t2eg5ent to Sublease EXHIBIT 2 9. Access by Tenant. Subject to the terms hereof and provided that Tenant and its agents do not interfere with the Contractor's work in the Building and the Premises, Landlord shall allow Tenant and any of the Tenant Contractors access to the applicable portions of the Premises at least ten (10) days prior to the Substantial Completion of the Landlord Work for the purpose of installing equipment and/or fixtures (including Tenant's data and telephone equipment) and Tenant's furniture in the Premises. Prior to Tenant's entry into the Premises, Tenant shall submit a schedule to Landlord and the Contractor, for their approval, which schedule shall detail the Tenant Contractors accessing the Premises and the timing and purpose of such entry. Tn connection with any such entry, Tenant acknowledges and agrees that al I Tenant Contractors shall fully cooperate, work in harmony with and not, in any manner, materially interfere with Landlord or Landlord's contractors (including the Contractor), agents, or representatives in performing work in the Building and the Premises, or in performing any inspections, or interfere with the general operation of the Building. If at any time any of the Tenant Contractors shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain corrective actions as directed by Landlord, then Landlord may revoke Tenant's entry rights (as to an individual Tenant Contractor, or as to al l Tenant Contractors, as Landlord shall deem appropriate). Tenant acknowledges and agrees that any such entry into and occupancy of the Premises or any portion thereof by Tenant or any Tenant Contractor shall be deemed to be subject to al I the terms, covenants, conditions, and provisions of the Lease, excluding only the covenant to pay Rent (until the occurrence of the Lease Commencement Date). 10. Cost Allocation. (a) Provided this Lease is in full force and effect, and Tenant is not in default thereunder beyond any applicable notice and cure period, Landlord shall pay (i) the costs of Space Plan in an amount up to, but not exceeding, the Space Tian Allowance, and (ii) the costs of the Tenant Work in an amount up to, but not exceeding, the Tenant Allowance. Landlord shall deduct the Landlord Coordination Fee of the Tenant Improvements from the Tenant Allowance. (b) In no event shall Landlord be obligated to pay for the costs of any of Tenant's furniture, computer systems, telephone systems, equipment, or other personal property (whether or not such iterns may be depicted on the Approved Working Drawings) that exceed the Tenant FF&E Allowance. Eligible costs that exceed the Tenant FF&E Allowance shall be borne by Tenant. (c) Tr► the event that all costs associated with the Space Plan and design, permitting, and construction of the Tenant Improvements, including the Landlord Coordination Fee, exceeds the Space Plan Allowance and/or the Tenant Allowance, as applicable, the amount of such excess (the "Over -Allowance Amount") shall be paid by Tenant to Landlord within thirty (30) days following delivery of an invoice by Landlord. Tenant shall not be responsible for the Over -Allowance Amount if caused by Landlord or Landlord Contractor's own negligence, willful misconduct, or delay. 5910216.11 ES: 3/12/25 CEO/SBUSSA-017-60-1 SSA/City ofeatty"CouInCII Page 18 OIL" 150 Vt5t2eg5ent to Sublease EXHIBIT 2 (d) Tenant shall not be entitled to receive (in cash or as a credit against any rental or otherwise) any portion of the Tenant Allowance not used to pay for the costs of the design, permitting, and construction of the Tenant Improvements. 11. Miscellaneous. (a) All Tenant Improvements to be performed by Landlord (and any installations in the Premises as set forth in the Approved Working Drawings, or otherwise) shall use Building -standard specifications, materials, finishes, and supplies, unless otherwise specified in the Approved Working Drawings. Landlord, in its sole discretion, may substitute items, materials, or finishes with other items, materials, or finishes of comparable kind and quality. Landlord, at its sole option, may also change mechanical plans and specifications where necessary .for the installation or modification of the Building Systems to accommodate the Tenant Improvements, provided that any such changes shall not materially and adversely affect Tenant's use and occupancy of the Demised Premises for the Permitted Use. (b) Tenant acknowledges that the timely completion of the Tenant Improvements is of the utmost importance to Landlord and Tenant. Accordingly, Tenant hereby agrees to fully and diligently cooperate with all reasonable requests by Landlord in connection with or related to the design and construction of the Tenant hnprovements and the completion of the permitting process and, in connection therewith, Tenant shall respond to Landlord's requests for information and/or approvals, except as specifically set forth herein to the contrary, within two (2) days following request by Landlord. Landlord and Tenant, and such other parties as may be useful or appropriate, shall meet on a scheduled basis to be determined by Landlord's Representative and Tenant's Representative, to discuss progress in connection with the same. (c) If at any time on or before the Substantial Completion of the Landlord Work, Tenant is in default under this Work Letter or under the Lease, which default remains uncured after the expiration of applicable notice and cure periods, then: (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to instruct the Contractor to cease the construction of the Landlord Work (in which case, Tenant shall be responsible for the Tenant Delay caused by such work stoppage); and (ii) all other obligations of Landlord under the terms of this Work Letter shall be suspended until such time as such default is fully and finally cured. (d) Landlord hereby assigns to Tenant all warranties by Contractor relating to the Tenant Improvements, which assignment shall be on a non-exclusive basis such that the warranties may be enforced by Landlord and/or Tenant; such warranties shall be for a twelve (12) month period. (e) Any portion of the Tenant Allowance not used within thirty-six (36) months of the Effective Date of this First Amendment shall be tnrfeited with no further obligation by .Landlord with respect thereto. In no event shall Tenant be entitled to apply any unused portion of the Tenant Allowance towards future payments of Base Rent and/or, except as expressly set forth herein, purchase of Tenant's furniture, fixtures and equipment. 5910216.11 12 ES: 3/12/25 CEO/SBL/SSA-017-60-1 SSA/City of eitty"Cou n CI I Page 19 OIL) 151 Vt5t2eg5ent to Sublease Exhibit 3 Memorandum of Understanding For Santa Ana Workforce Development Board and the Santa Ana Housing Authority City Council 7 — 152 7/15/2025 Exhibit 3 MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU") with each America's Job Center of California ("AJCC") Partner, consistent with WIOA Sec. 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 678.500, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. Additionally, the sharing and allocation of infrastructure costs among AJCC Partners is governed by WIOA sec. 121(h), its implementing regulations, and the Federal Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) at 2 CFR part 200. 2) AJCC Partner The parties to this MOU are the City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Santa Ana Housing Authority, a collocated one -stop AJCC Partner located at the Santa Ana WORK Center, 801 W. Civic Center Drive, Suite 200, Santa Ana, CA 92701. 3) PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and Santa Ana Housing Authority, the collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. 4) DURATION The term of this MOU shall commence July 1, 2025 and terminate June 30, 2028, unless earlier terminated pursuant to the provisions of Paragraph 32 of this MOU; however, the Parties shall be obligated to perform such duties as would normally extend beyond this term, including, but not limited to, obligations with respect to indemnification, reporting and confidentiality. This MOU will remain in effect until the termination date, unless one of the conditions in Paragraph 32 occurs. City Council 7 — 153 7/15/2025 Exhibit 3 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, 3-1, 4, and 5 constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics. The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g) Assuring funding from all public, private, and other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714) 565-2600 Open to the Public: Monday — Friday 8:00 am-5:00 pm City Council 7 — 154 7/15/2025 Exhibit 3 The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational, employment and training services based on individual needs. Those needs are met by the combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List ("ETPL") eligible programs by program and type of provider f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility for programs of financial aid assistance for training and education programs not funded through WIOA. 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan (IEP) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; f. Career planning; g. Short-term pre -vocational services, including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; 4 City Council 7 — 155 7/15/2025 Exhibit 3 h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Trams Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning and Development: The parties to this MOU will work closely together to ensure that the AJCC is a high -performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner City Council 7 — 156 7/15/2025 Exhibit 3 Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; V. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S. Department of Labor; vi. Training and Employment Guidance Letter (TEGL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; City Council 7 — 157 7/15/2025 Exhibit 3 ix. The Age Discrimination Act of 1975, as amended; X. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) COLLOCATED AJCC PARTNER RESPONSIBILITIES Partner commits to collocation of staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality improvement. Partner will further promote system integration to the maximum extent feasible through: a. Effective communication, information sharing, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the joint mission, vision, goals, strategies, and performance measures; d. The design and use of common intake, assessment, referral, and case management processes; e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. 7 City Council 7 — 158 7/15/2025 Exhibit 3 Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate ways to improve the referral process, including the use of customer satisfaction surveys; f. Commit to robust and ongoing communication required for an effective referral process; g. Commit to actively follow up on the results of referrals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; i. Ensure that general information regarding AJCC programs, services, activities, and resources shall be made available to all customers as appropriate; j. Ensure that referrals will be made via email or other electronic means; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. M City Council 7 — 159 7/15/2025 Exhibit 3 10) SUPERVISION/DAY TO DAY OPERATIONS a. Day -to -Day Supervision The day-to-day supervision of staff assigned to the AJCCs will be the responsibility of the site supervisor(s). Partner will continue to set the priorities of its staff assigned to the AJCC. Changes in work assignments or concerns regarding the responsibilities of the parties are to be handled between the site supervisor and Partner management. b. Santa Ana WORK Center Hours of Operation The SAWC is open for business: Monday through Friday from 8:00 am until 5:00 pm. c. Partner Staff Office Hours The office hours for Partner staff at the AJCC will be established by the Partner. All Partner staff will comply with their corresponding holiday schedule and will provide a copy of their holiday schedule to the SAWDB and SAWC at the beginning of each fiscal year. d. Building Accessibility All Partner staff assigned to the SAWC will be issued an access card to SAWC suite 200 and a parking lot pass that allows them to enter and exit the parking lot. It is all individual staff s responsibility to keep them secure. Should they damage or lose them they can be replace by the SAWDB at the expense of the individual agency staff. e. Benefits Each party shall be solely liable and responsible for providing to, or on behalf of, its employee(s), all legally -required employee benefits. In addition, each party shall be solely responsive and hold all other parties harmless from all matters relating to payment of each party's employee(s), including compliance with social security withholding, workers' compensation, and all other regulations governing such matters. 11) AJCC OPERATING BUDGET The purpose of this section is to establish a financial plan, including terms and conditions, to fund the services and operating costs of the local AJCC. The parties to this MOU agree that joint funding is a necessary foundation for an integrated service delivery system. The goal of the operating budget is to develop a funding mechanism that: a. Establishes and maintains the Local workforce delivery system at a level that meets the needs of the job seekers and businesses in the Local area; b. Reduces duplication and maximizes program impact through the sharing of services, resources, and technologies among Partners (thereby improving each program's effectiveness); E City Council 7 — 160 7/15/2025 Exhibit 3 c. Reduces overhead costs for any one Partner by streamlining and sharing financial, procurement, and facility costs; d. Ensures that costs are appropriately shared by AJCC Partners by determining contributions based on the proportionate use of the AJCC centers and relative benefits received, and requiring that all funds are spent solely for allowable purposes in a manner consistent with the applicable authorizing statutes and all other applicable legal requirements, including the Uniform Guidance; and, e. All parties will meet and confer regarding replacement, acquisition, cleaning and maintenance of furnishings. The parties consider this AJCC operating budget the master budget that is necessary to maintain the SAWDB's high -standard AJCC. It includes the following cost categories, as required by WIOA and its implementing regulations: a. Infrastructure costs (also separately outlined below in the Infrastructure Funding Agreement); b. Career services; and Shared services. All costs must be included in the MOU, allocated according to the AJCC Partner's proportionate use and relative benefits received, reconciled every six (6) months against actual costs incurred, and adjusted accordingly. The AJCC operating budget is expected to be transparent and negotiated among Partners on an equitable basis to ensure costs are shared appropriately. All Partners must negotiate in good faith and seek to establish outcomes that are reasonable and fair. All Partners must adhere and reference the rules and regulations included in the executed Office Lease, attached hereto as Attachment 5 and incorporated herein by reference. 12) INFRASTRUCTURE FUNDING AGREEMENT The Infrastructure Funding Agreement ("IFA") contains the infrastructure costs budget that is an integral component of the overall AJCC operating budget. The IFA is a mandatory component of the local MOU, described in WIOA sec. 121(c) and 20 CFR 678.500 and 678.755. The IFA contains the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included herein as Attachment 3 and incorporated herein by reference, that is an integral component of the overall AJCC operating budget. The other component of the IFA is the Applicable Career Services, attached herein as Attachment 3-1 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. AJCC infrastructure costs are defined as non -personnel costs that are necessary for the general operation of the AJCC, including, but not limited to: a. Rental of the facilities; b. Utilities, maintenance and services; 10 City Council 7 — 161 7/15/2025 Exhibit 3 c. Equipment, including assessment -related products and assistive technology for individuals with disabilities; and, d. Technology to facilitate access to the AJCC, including technology used for the center's planning and outreach activities. Any changes to AJCC Partners or an appeal by an AJCC Partner's infrastructure cost contributions will require an amendment of the MOU. 13) COST ALLOCATION METHODOLOGY The purpose of this infrastructure cost sharing methodology is to summarize, in writing, the methods and procedures that the SAWDB will use to share costs with the AJCC Partner. The AJCC Partner agrees that it will be charged on a monthly basis according to the following cost sharing methodology, and that monthly payment will be submitted within the first ten (10) calendar days of each month. 14) INFRASTRUCTURE COST ALLOCATION METHODOLOGY a_ Rent C ostc: Rent costs shall be based on the base rent and common area maintenance (CAM) charges. The base rent is derived from the total assigned square footage, calculating the percentage of usage by AJCC Partner and applying that percentage to the common area square footage. Assigned square footage plus the percentage of common area square footage equals total square footage for each AJCC Partner. Total square footage for each AJCC Partner multiplied by the base rent per square foot equals total base rent for each AJCC Partner as indicated in the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget and the Comprehensive Cost Allocation and Partner Contributions. The base rent has an annual increase of no more than 3% over the ten-year life of the Office Lease document (Attachment 5 attached herewith and incorporated herein by reference). b. Utilities, Maintenance and Services: This section includes telephone services, which includes voice -mail on AJCC Partners' phones. Costs for staff phones are charged based on the AJCC Partner's assigned space. Common area phones will be charged according to space allocation. Security guard services are also included in this section and are allocated based on the percentage of space usage. Security guard services will increase by approximately 5% annually. c_ Equipment: Public computer are shared and available to all clients. These are allocated on the AJCC partner's assigned space percentage. dd_ Te�� and Internet Access C'nst..c: Cost of printers and copiers for common use that are connected to the internet, and other technology that may become necessary for shared use are allocated based on the AJCC partners percentage of space usage. 15) INFRASTRUCTURE CONTRIBUTIONS The AJCC Partner may provide cash, non -cash (in- kind), and third -party in -kind contributions to cover its share of infrastructure costs. In -kind contributions cannot be used to fund non - infrastructure costs (such as personnel), and must be valued consistent with Uniform Guidance Section 200.306 to ensure such contributions are fairly evaluated and qualify for the AJCC 11 City Council 7 — 162 7/15/2025 Exhibit 3 Partner's proportionate share. If third -party in -kind contributions are made to support the AJCC as a whole (such as facility space), that contribution will not count toward the AJCC Partner's proportionate share of the infrastructure. Rather, the value of the contribution will be applied to the overall infrastructure budget prior to determining proportionate amounts and thereby reduce the contribution required for all AJCC Partners. a. Cash Cash funds provided to the SAWDB, or its designee, by AJCC Partners, either directly or by an interagency transfer, or by a third party. b. Non -Cash Expenditures incurred by AJCC Partners on behalf of the AJCC; and Non -cash contributions or goods or services contributed by a Partner program and used by the AJCC. c. Third party In -kind Contributions of space, equipment, technology, non -personnel services, or other like items to support the infrastructure costs associated with AJCC operations, by a non-AJCC Partner to: Support the AJCC in general; or, Support the proportionate share of AJCC infrastructure costs of a specific Partner [20 CFR 678.720; 20 CFR 678.760; 34 CFR 361.720; 34 CFR 361.760; 34 CFR 463.720; and 34 CFR 463.760]. 16) OTHER AJCC DELIVERY SYSTEM COSTS In compliance with WIOA Joint Rule Section 678.760, the AJCC Partners will use a portion of funds made available under their authorizing federal statute (or fairly evaluated in -kind contributions) to share the additional costs relating to the operation of the One -Stop delivery system. These costs may be shared through cash, non -cash, or third -party in -kind contributions. As required by WSD18-12, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3-1 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. 12 City Council 7 — 163 7/15/2025 Exhibit 3 AJCC Partners understand that while only collocated Partners share infrastructure costs, at this time, all AJCC Partners must share in other System costs through non -cash (in -kind) contributions as set forth herein. 17) DATA SHARING City/SAWDB is required to maintain policies and procedures for safeguarding PII. The provision also requires training for the vendor/partner. Parties agree that the use of high -quality, integrated data is essential to inform decisions made by policymakers, employers, and job seekers. Additionally, it is vital to develop and maintain an integrated case management system, as appropriate, that informs customer service throughout customers' interaction with the integrated system and allows information collected from customers at intake to be captured once. Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PII) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PII, collected, used, and disclosed by Partners will be subject to the following: a. Customer PII will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PII; b. The collection, use, and disclosure of customer education records, and the PII contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; c. All confidential data contained in Unemployment Insurance wage records must be protected in accordance with the requirements set forth in 20 CFR part 603; d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set forth in 34 CFR 361.38; e. Customer data may be shared with other programs, for those programs' purposes, within the AJCC network only after the informed written consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent with Federal and State privacy laws and regulations; and, g. All data exchange activity will be conducted in machine readable format, such as HTML or PDF, for example, and in compliance with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)). All AJCC and Partner staff will be trained in the protection, use, and disclosure requirements governing PII and any other confidential data for all applicable programs, including FERPA- 13 City Council 7 — 164 7/15/2025 Exhibit 3 protected education records, confidential information in UI records, and personal information in VR records. 18) CONFIDENTIALITY There are strict confidentiality requirements under State and Federal laws. All parties expressly agree to abide by all applicable Federal, State, and local laws and regulations regarding confidential information, including PII from educational records, such as but not limited to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. Each parry will ensure that the collection and use of any information, systems, or records that contain PII and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable law. Each party will ensure that access to software systems and files under its control that contain PII or other personal or confidential information will be limited to authorized staff members who are assigned responsibilities in support of the services and activities described herein and will comply with applicable law. Each party expressly agrees to take measures to ensure that no PII or other personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information, any such data sharing must comply with all of the requirements in 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 20 CFR 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-protected customer education records and the PII contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such data sharing agreement must comply with all of the requirements set forth in 34 CFR 361.38. 19) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in press/media presentations will be determined by each parry's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage. 14 City Council 7 — 165 7/15/2025 Exhibit 3 20) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 21) NON-DISCRIMINATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of: (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 22) GRIEVANCES AND COMPLAINTS PROCEDURE City is required to maintain a procedure for grievance and complaints per the WIOA. The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. 23)AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 24) HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising 15 City Council 7 — 166 7/15/2025 Exhibit 3 out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 25) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force. 26) DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agency maintain a drug -free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 27) CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Sectionl352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 28) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 and12689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. 29) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners. 30) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the "Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 16 City Council 7 — 167 7/15/2025 Exhibit 3 31) SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2017; Final PY 2017 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments; and Workforce Information Grants to States Allotments for PY 2017, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level II. 32) TERMINATION This MOU will remain in effect until the end date specified in section 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any parry unable to perform pursuant to MOU due to lack of funding shall notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured within thirty (30) days after receiving written notice from the SAWDB Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right to terminate this MOU by giving written notice thereof to the parry in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any parry may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 33) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: 17 City Council 7 — 168 7/15/2025 Exhibit 3 City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 Partner: Santa Ana Housing Authority Attn: Housing Manager 20 Civic Center Plaza M-25 Santa Ana, CA 92701 34) INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to their operations performed under the Workforce Innovation Opportunity Act and at the SAWC, including commercial general liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall be named as additional insured for such insurance by endorsement, to the commercial general liability and employee dishonesty/crime insurance policies and the coverage shall be primary and non- contributory with regard to the City. 35) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget Attachment 3-1: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions Attachment 5: Office Lease City Council 7 — 169 7/15/2025 Exhibit 3 1N WITNESS W1 [ER.EOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Andrea Garcia -Miller Assistant City Attorney CITY OF SANTA ANA Alvaro Nunez City Manager RECOMMENDED FOR APPROVAL: Michael L. Garcia Executive Director Community Development Agency FOR SANTA ANA WORKFORCE DEVELOPMENT BOARD orkForce Vopmzbk Board Chair FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER Santa Ana Housing Authority AJCC Partner -� 71, �o�S Michael L. Garcia Date Executive Director Community Development Agency 20 Civic Center Plaza M-25, Santa Ana, CA 92701 Address 19 City Council 7 — 170 7/15/2025 Exhibit 3 Attachment 1 AJCC Partners Location and Map Partner Program Partner Authorization/Category Physically Organization Co -Located Title I Adult, Dislocated City of Santa Ana Workers and Youth WIOA Title I Adult, Dislocated Workers, Youth Yes Programs programs Rancho Santiago WIOA title II Adult Education and Family Adult Education/ Community College Literacy Act (AEFLA) program Career and technical education (CTE) Literacy and Carl Perkins District Career Technical programs at the postsecondary level, No Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser Employment WIOA title III Wagner-Peyser Employment Development Services, authorized under the Wagner-Peyser Yes Department (EDD) Act 29 U.S.C. 49 et se also providing the ( q•)- p g state's public labor exchange. Employment Veterans Development Jobs for Veterans State Grants (JVSG), Yes Department (EDD) authorized under chapter 41 of title 38, U.S.C. Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department (EDD) Trade Act of 1974 (19 U.S.C. 2271et seq.) Unemployment Employment Insurance (UI) Development Unemployment Insurance (UI) programs under No Department (EDD) state unemployment compensation laws. State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation program authorized under title I of the Yes Rehabilitation Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) Temporary Assistance Social Service Temporary Assistance for Needy Families for Needy Families Agency -Family Self- (TANF), authorized under part A of title IV of Yes (TANF) Sufficiency the Social Security Act (42 U.S.C. 601 et seq.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP), authorized under title V of Yes SER-Jobs for the Older Americans Act of 1965 (42 U.S.C. Progress, Inc. 3056 et seq.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American United American Indian Indian and Native American Programs (Section Programs Involvement, Inc. 166) No Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Development Authority Yes Adult Demonstration Orange County Reentry Employment Opportunities (EO) Sheriff's Department programs authorized under sec. 212 of the No Second Chance Act of 2007 (42 U.S.C. 17532) and WIOA sec. 169 City Council 7 — 171 7/15/2025 Exhibit 3 Attachment 1 AJCC Partners Location and Map ff V'. [� .A'LiiA Af. �f '' 14 - 55 CU40M GNNE BL Joe � M Tii451( A , SAWA CLAM � � � SAIVfA O ARA Ifr'_ 1 r 17TH ST t aqu• . HM WAScn N iw. 3 • x STH Si � qst • SlllifA no IL ' Ir J ►� � � t; 9 ❑ G � N V P1 z � � �� s5 arm Al. SEGH15TFOM ALTON A[ a�� 11A[IpTiaJN IM.. i+w 'r � m IL suNclowat N Strata Atv WDwCenlar O Cantonnial Adult Education 2946 W. Edinger Ave. State Daparmwnt & © Rehabilitation lorg B: ach lab Corps 1970 Santa FQ km. Arttalrio's Job Cantor of Csliiornia Td9 The City Drive, Suits 110 long "ch CA 9rA t C W1 W.GticConmr Dr. Santa Ana. CA927N Orargq CA 42868 Strata Ar►& CA92101 A9an Anwion Pwtnam 3 Sarga Ana CdbgQ 1530 W. 1 Tth St sowl Services Agency 1928 S. Grand Arne. g 5anior Canto Ban N. Bads Ftnpio7rrttnt Obveloprrwrtt Dwart—nt Santa Ana. U 927oo Sarta Arai. CA 927M Sancta Ana. U A 9I701 51ata Dopartntant of Rehabilitation O.0 5odW Sa wes Agency Goadrrrll Industries Colkwp 3 Wbrkforca Pr rabvr Cantor spa CTUIboPVallay High Sdwol 1 ism S Greertrilla Remington Education Cantu 1 13Zs E. silt St. SEWSankw Aid Prograrn � :/ Santa And U 92 Tn 1 1572 N. ilAiin S2. Santa Ma. U 927D4 Laatnalik Oranip, CA 92867 City Council Attach mfr1t 172 7/15/2025 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 SANTA ANA AJCC Partner Services Service Partner Name Entity/Program Career Training Employer Delivery Method Title I Adult, DW, Youth City of Santa Ana 1, 2, 3, 4, 6, 7, 8, 10, 11, 12, 13, 14, 15, 1 2 5 7 9 1 2 3 4 5 6 7 8 FT T B P O , 16,17 Rancho Santiago Adult Education/ Literacy Community College 2, 3, 12, 14-15, 17 1,8 B, P, O District Employment Development Wagner-Peyser Department (EDD) 1" " " ' 2 3 4 5 6 8 9 10 17 2 3 416 7 8 1" ' FT PT T A B P V " ' Veterans (Jobs for Veterans Employment Development 1,2,3,4,5,6,8,9,10,11, State Grant) Department (EDD) 12,13,14,15,16,17 1 2 3 4 ,6,7 FT,T,A,B,P,V Trade Act (Trade Adjustment Employment Development Current program is expired Assistance) Department (EDD) Unemployment Compensation Employment Development 1,9 8 T,A,B Department (EDD) State Department of 1, 2, 3, 4, 5, 6, 7, 8, 11, 12, 13, 14, 15, DOR Eligible: 1, 1, 2, 4 DOR PT, FT Vocational Rehabilitation Rehabilitation 16,17 2, 3, 4, 5, 6, 7, Eligible: 3, 5, 8, 9, 8 Social Service Agency - TAN Family Self -Sufficiency Carl Perkins Career Technical Rancho Santiago Education Community College District Senior Aid Program Regions II & III SER-Jobs for 1, 2, 3, 4, 8, 10, 11, 12, 13, 15, 16 1, 2, 5, 7 PT, T, B Title V Older Americans Act Progress, Inc. Job Corps Long Beach Job Corps Native American Programs United American Indian (Section 166) Involvement, Inc. City Council 7 - 173 7/15/2025 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 Housing & Urban Development Housing Authority 11,2, 3, 4, 8, 10,13, 15,16,17 FT, B, P, O CAREER SERVICES: Basic Career Services (BCS) include self-help service services requiring minimal staff assistance and Individualized Career Services (ICS) requiring more staff involvement generally provided to individuals unable to find employment through basic career services, and deemed to be in need of more concentrated services to obtain employment; or who are employed but deemed to be in need of more concentrated services to obtain or retain employment that allows for self-sufficiency. 1. Eligibility Determination: This is the process of obtaining and documenting information about an individual's circumstances and comparing that information with the criteria set by an agency or program to decide if the individual qualifies for participation. 2. Outreach, Intake and Orientation: Outreach activities involve the collection, publication, and dissemination of information on program services available and directed toward jobless, economically disadvantaged, and other individuals. Intake is the process of collecting basic information, e.g., name, address, phone number, SSN, and all other required information to determine eligibility or ineligibility for an individual's program. Orientation, whether offered in a group setting, one-on-one, or electronically, is the process of providing broad information to customers in order to acquaint them with the services, programs, staff, and other resources at the Santa Ana Work Center, or its partner agencies. 3. Initial Assessment: For individuals new to the workforce system, initial assessment involves the gathering of basic information about skill levels, aptitudes, abilities, barriers, and supportive service needs in order to recommend next steps and determine potential referrals to partners or community resources. 4. Job Search, Placement Assistance, and Career Counseling: Job Search helps an individual seek, locate, apply for, and obtain a job. It may include but is not limited to: job finding skills, orientation to the labor market, resume preparation assistance; referrals to job openings, placement services, job search workshops, vocational exploration, and re-employment services such as orientation, skills determination, and pre -layoff assistance. Placement Assistance is a service that helps people to identify and secure paid employment. Career Counseling is a facilitated exploration of occupational and industrial information. 5. Employment Statistics -Labor Market Information: Collect and report data about employment levels, unemployment rates, wages and earnings, employment projections, jobs, training resources and careers; (LMI) 6. Eligible Provider performance and program Cost Information: Collect and provide information on: A. Eligible training service providers (described in WIOA Section 122) City Council 7 — 174 7/15/2025 2 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 B. Eligible youth activity providers (described in WIOA Section 123) C. Eligible adult education providers (described in WIOA Title II). D. Eligible postsecondary vocational educational activities and vocational educational activities available to school dropouts under the Carl Perkins Act (20 USC 2301). E. Eligible vocational rehabilitation program activities (described in Title I of the Rehabilitation Act of 1973). 7. Local Performance Information: Collect and provide information on the local area's recent performance measure outcomes. 8. Supportive Services' Information: Collect and provide information on services such as transportation, child care, dependent care, housing, and needs -related payments that are necessary to enable an individual to participate in employment and training activities. 9. Unemployment Compensation: Provide information on filing claims for state benefit payments that protect individuals from economic insecurity while they look for work. Claims may be filed on-line or via telephone available in the Santa Ana Work Center. 10. Eligibility Assistance: Provide guidance to individuals on eligibility for other programs and on financial aid assistance for training and education programs that are available in the local area. 11. Follow -Up Services: Services provided to participants who are placed in unsubsidized employment, for not less than 12 months after the first day of the employment. These services assist those individuals to maintain employment or qualify for promotions with that employment. 12. Comprehensive and Specialized Assessments: A closer look at the skills levels and service needs that may include: A. Diagnostic Testing and use of other assessment tools; and B. In-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. 13. Individual Employment Plan Development: Working with individuals to identify their employment goals, the appropriate achievement objectives, and the appropriate combination of services that will help the individual achieve those goals. City Council 7 — 175 7/15/2025 3 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 14. Group Counseling 15. Individual Counseling and Career Planning 16. Case Management: For participants who receive training services under WIOA Section 134(d)(4). 17. Short -Term Prevocational Services: Can include development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training. Training Services: Services offered through a training provider to help individuals upgrade their skills, earn degrees and certifications, or otherwise enhance their employability through learning and education. Types of training services include: 1. Occupational Skills Training: An organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields at entry, intermediate or advanced levels. 2. On -the -Job Training (OJT): Training by an employer that is provided to a paid participant while engaged in productive work that is limited in duration, provides knowledge or skills essential to the full and adequate performance of the job, and reimburses the employer for the costs associated with training the OJT trainee often calculated based on a percentage of the trainee's wages. 3. Workplace and cooperative education: Programs that combine workplace training with related instruction which may include cooperative education programs 4. Training programs operated by the private sector Skills upgrading and retraining: Courses that prepare persons for entrance into a new occupation through instruction in new and different skills demanded by technological changes. These courses train incumbent workers in specific skills needed by that business or industry and that lead to potential career growth and increased wages. This includes courses that develop professional competencies that are particularly relevant to a vocational/occupational goal. It must be demonstrated that the training will result in the workers' acquisition of transferable skills or an industry -recognized certification or credential. 6. Entrepreneurial training 7. Job -readiness training City Council 7 — 176 7/15/2025 4 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 8. Adult Education and Literacy programs: Services or instruction below the postsecondary level for individuals who are not enrolled or required to be enrolled in secondary school under state law and lack basic educational skills to enable the individuals to function effectively in society and on a job, Services include, but are not limited to, one-on-one instruction, coursework, or workshops that provide direction for the development and ability to read, write, and speak in English, compute, and solve problems, at levels of proficiency necessary to function in society or on the job, 9. Customized training: Training that is designed to meet the special requirements of an employer or group of employers and that is conducted with a commitment by the employer to employ an individual upon successful completion of the training and for which the employer pays for a portion of the cost of training. Employer Services: Santa Ana Work Center services offered to employers include: 1. Employer needs assessment: Evaluation of employer needs, particularly future hiring and talent needs. 2. Job posting: Receiving and filling of job openings; searching resumes; providing access to a diverse labor pool. 3. Applicant pre-screening: Assessing candidates according to the employer's requirements and hiring needs; referring candidates based on their knowledge, skills, and abilities relative to the employer requirements. 4. Recruitment assistance: Raising awareness of employers and job openings and attracting individuals to apply for employment at a hiring organization. Specific activities may include posting of employer announcements, provision of job applications, and hosting job fairs and mass recruitment. 5. Training assistance: Providing training resources to enable employers to upgrade employee skills, introduce workers to new technology, or to help employees transition into new positions. 6. Labor Market Information: Access to information on labor market trends, statistics, and other data related to the economy, wages, industries, etc. 7. Employer information and referral: Provision of information on topics of interest to employers such as services available in the community, local training providers, federal laws and requirements, tax information, apprenticeship 8. programs, human resource practices, alien labor certification, incentive programs such as WOTC or the federal bonding program, etc. 9. Rapid Response and Layoff Aversion: Provision of services to prevent downsizing or closure, or to assist during layoff events, Strategies may include incumbent worker training to avert lay-offs, financing options, employee ownership options, placement assistance, worker assessments, establishment of transition centers, labor- management committees, peer counseling, etc. City Council 7 — 177 7/15/2025 Exhibit 3 SANTA ANA AJCC Partner Services Attachment 2 Service Delivery Codes: How will your agency provide the services indicated? Code Method Description FT On -Site Staff Full Time PT On -Site Staff Part Time T Access Via Telephone A Access Via Automated System B Brochure/Handout P Posting at One -Stop Center O Other NA Not Applicable City Council 7 — 178 7/15/2025 Exhibit 3 Attachment 3 Santa Ana AJCC Comprehensive Infrastructure and Other Costs Budget 2025-2026 Cost Category/ Line Item Base Rent Cost Details Incl. Janitorial, Maint and Utilities CAM Charges Operational Cost 2% of Rent Management Fee 1.76% of Rent Parking Parking Overages Telephone Services Total Rent Dial Tone and Voice Mail Shared Phones by usage percentage Security Guard 1040 hrs x $30.18 1040 x $31.69 Equipment Public Computers Total Utilities/Maintenance Resource Room Computers (21) Computer Lab Computers (21) **Tech & Access Costs Access System/Card Total Equipment Key Card System Data & Phone Cabling Cabling Information Technology Cost Wireless Network Bridge Maintenance ***Copiers (Annual) Resource Room used by clients Copy room Copier for staff only Total Technology and Access Lease & Infrastructure Total SAHA 491.33 Sq Ft 2.54% Percentage Monthly st W Monthly Property Rent 1,224.95 Total Monthly Rent and Equipment Cost 1,224.95 41.53 41.53 38.15 38.15 $38.15 $1,266.48 $1,304.63 129.70 129.70 $129.70 $129.70 $0.00 $0.00 2.76 2.76 1.78 1.78 $4.54 $4.54 $172.39 $1,266.48 $1,438.87 ** Technology and Access Costs are all based on percentage Revised 5/28/2025 9:18 AM ***Copiers are leased equipment and are charged by percentage. Additional charge for usage will be calculated and charged City Council 7 — 179 7/15/2025 Exhibit 3 Attachment 3-1 Applicable Career Services Sharing Other One -Stop Delivery System Costs The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services DOR Career Services: $589,069.89 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation(9) • Eligibility Assistance(10) • Follow -Up Services(11) • Comprehensive and Specialized Assessments(12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $2,356,279.58 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) City Council 7 — 180 7/15/2025 Exhibit 3 Attachment 3-1 Applicable Career Services Employer Services $0 • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost $2,945,349.48 City Council 7 — 181 7/15/2025 Exhibit 3 Attachment Comprehensive Cost Allocation and Partner Contributions Partner Program Square Footage Paid for Based on Office Sharing / Payment Ratio of Total Square Footage Monthly Property Rent* CAM Charges Operational Cost and Management Fees Monthly Charges Monthly Rent + and Charges Amount: In- Kind Partner Contributions Yearly Career Services** EDD 9448.78 48.90% $ 23,556.90 $ 885.74 $ 6,371.95 $ 30,814.59 $ 2,542,122.41 Santa Ana WORK Center (City of Santa Ana) 5955.50 30.82% $ 14,847.73 $ 1,375.51 $ $ 5,147.23 $ 21,370.47 $ $ 1,947,477.00 Department of Rehabilitation 163.78 0.85% $ 408.32 $ 13.84 $ 118.42 $ 540.58 $ $ 2,945,349.48 Social Services Agency -Family Self -Sufficiency 868.97 4.50% $ 2,166.45 $ 199.29 $ 2,365.74 $ 1,235,907.20 Santa Ana Housing Authority 491.33 2.54% $ 1,224.95 $ 41.53 $ 172.39 $ 1,438.87 $ 202,860.00 SER Jobs for Progress 236.56 1.70% $ 816.64 $ 27.68 $ 236.87 $ 1,081.19 $ 12,397.50 Rent Stabilization Division 1737.52 8.99% $ 4,331.84 $ 146.86 $ 475.14 $ 4,953.84 $ Santa Ana Public Library 327.56 1.70% $ 816.64 $ 27.68 $ 132.74 $ 977.06 $ Community Action Partnership of OC Rancho Santiago Community College District Job Corps United American Indian Involvement, Inc. Total Rentable Space 19230.00 100.00% $ 48,169.47 1 $ 1,633.10 1 $ 885.74 $ 12,854.03 $ 63,542.34 $ $ 8,873,716.09 Revised 6/10/25 6:23:46 AM City Council 7 — 182 7/15/2025 INSURANCE NOT REQUIRED WORK MAY PROCEED CITY CLERK DATE: FIRST AMENDMENT TO OFFICE LEASE BETWEEN -LDA(,A�N) SANTA ANA CA I SGF, LLC AND THE CITY OF SANTA ANA (UebMr A-) Exhibit A-2017- 64-02A THIS FIRST AMENDMENT TO OFFICE LEASE (this "First Amendment'') is entered into as of -S,, a (.p, 2023 {the ``Effective Date") by and between SANTA ANA CA I SGF, LLC, a Delaware limited liability company ("Landlord'), and THE CITY OF SANTA ANA, a charter city and municipal corporation ("Tenant"). f WITNESSETH: WHEREAS, Landlord, as successor -in -interest to CF SANTANA, LLC, a Delaware limited liability company, and Tenant entered into that certain Office Lease No. A-2017-264 dated October 7, 2017, Tenant Estoppel Certificate No. A-2017-264-01 dated February 8, 2018, and Exhibit B Notice of Lease Term Dates No. A-2017-264-02 dated February 16. 2018 (hereinafter collectively referred to as the "Lease"), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord that certain premises identified as Suite 200 containing approximately 19321 rentable square feet of office space (the "Premises") in the building located at 801 Civic Center Drive, Santa Ana, CA 92701 (the `'Building"); WHEREAS, Landlord and Tenant desire to amend the Lease to set a new Term of the Lease, subject to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the aforesaid premises and the other agreements and covenants hereafter set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged. the parties do hereby agree as follows: 1. Incorporation of Recitals. The above recitals are hereby incorporated into this First Amendment as if fully set forth herein. As used herein the term "Lease' shall mean the Lease as amended by this First Amendment. 2. Definitions. All capitalized terms used in this First Amendment shall have the meanings assigned to them in the Lease unless otherwise specified herein. 3. Term. The Initial Term as defined by Section 3, Basic Lease Provisions, of the Lease is hereby for a period of One Hundred Twenty (120) full calendar months, commencing on July 1, 2023 and expiring on June 30, 2033 (the "Term"). Tenant shall have the right to extend the Term for two (2) sixty (60) month periods, in accordance with Section 3.2.2, Standard Lease Provisions. of the Lease. 4. Base Rent. Commencing on July 1, 2023, Tenant shall pay Base Rent in the following amounts: Dates Annual Base Rent tvIonthly Installment of Base Rent Annual Rental Rate per RSF 7/l/2023 — 6/30/2024 $544,852.20 $45,404.35 $2.35 5910216.11 City Council 7 — 183 7/15/2025 Exhibit 3 7/l/2024 — 6/30/2025 $561,197.77 $46,766.48 $2.42 7/l/2025 — 6/30/2026 $578 033.70 $48,169.47 $2.49 7/l/2026 — 6/30/2027 $595 374.71 $49 614.56 $2.57 7/1/2027 — 6/30/2028 $613,235,95 $51,103.00 $2.64 7/1/2028 — 6/30/2029 $6311633.03 $52,636.09 $2.72 7/1/2029 -- 6/30/2030 $650 582.02 $54,215.17 $2.81 7/1/2030 — 6/30/2031 $670 099.48 $55,841.62 $2.89 7/1/2031 — 6/30/2032 $690,202.47 $57,51.6.87 $2.98 7/l/2032 — 6/30/2033 $710 908.54 $59,242.38 $3.07 5. Base Year. The "Base Year" is hereby amended to reflect calendar year 2023. 6. Subsection 14.1, Waiver of Liability and Indemnification, of the Standard Lease Provisions, is hereby amended as follows: Except to the extent caused by the gross negligence of Landlord or its agents, contractors or employees, Tenant hereby waives all claims and causes of action against Landlord and all of the other Landlord Parties for any damage to persons or property (.including; without limitation, loss of profits and intangible, property) in any way relating to Tenant's use and occupancy of the Premises from any cause whatsoever, including, without limitation fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks from any part the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or sub -surface or from any other place or caused by dampness, vandalism, malicious mischief. Tenant shall indemnify, defend, protect and :hold harmless Landlord and each of the Landlord Parties from and against any and all Claims that arise out of, are occasioned by or are in any way attributable to: (a) the use or occupancy of the Premises or any portion of the Project by Tenant, (b) the acts or omissions of"Tenant or any Tenant Party, (c) any default of this Lease by Tenant, or (d) any litigation or other proceedings between Tenant and any third party; provided that Tenant shall not be required to so indemnify, defend or hold Landlord or any of the other Landlord Parties harmless to the extent that any such Claims arise out of the gross negligence or willful misconduct of Landlord, its agents or employees. 7. Tenant JDVroyemetits. Landlord consents to (but does not require) "Tenant's completion of certain improvements to the Premises (collectively, the "Tenant Improvements"), subject to the terms and conditions of Exhibit A. attached hereto and made a part hereof. 8. As -Is Condition. Tenant accepts the Premises in its "AS -IS, WHERE -IS" condition as of the Effective Date, and Landlord makes no representation or warranty concerning the condition of the Leased Premises and has no obligation to construct, remodel, improve, repair, decorate or paint the Premises or any improvement on or a part of the Premises, except as may be otherwise set forth in the Lease. Tenant represents that (a) it has been in possession of the Premises pursuant to the Lease, (b) it has inspected the Premises prior to execution of this First Amendment, (c) it is not relying on any statement, representation or warranty of Landlord, its employees or agents, and (d) is fully satisfied with the condition of the Premises. 2 59102t6.1 City Council 7 — 184 7/15/2025 Exhibit 3 9. Parking. Section 2.3.2(c)(ii) is hereby deleted in its entirety and replaced with the following: "Notwithstanding the foregoing, each calendar month during the Term, Landlord shall provide to Tenant, without charge: (A) a number of Short Term Project Parking Validations (defined below) equal to the product of thirty (30) and the number of days in such calendar month (during the Term) and (B) a number of Long Term Project Parking Validations (defined below) equal to the product of one hundred eighty (180) and the number of days in such calendar month (during the Term), in each case to be used only by Tenant's Business Customers for parking in the Parking Facilities without charge, provided that (x) Landlord shall not, at any time during the 'Perm, be required under this Section 2.3.2(c)(ii) to provide a number of Project Parking Validations in any calendar month in excess of a number equal to the product of hvo hundred ten (210) and the number of days in such calendar month (during the Tenn) and (y) any Project Parking Validations provided by Landlord with respect to any particular calendar month that are not used during such calendar month. shall, at the election ofLandlord, either: (1) become null and void (and be returned to Landlord) or (2) be credited against Landlord's obligations to provide Project Parking Validations under this Section 2.3.2(c)(ii) for subsequent calendar months. No Project Parking Validations provided by Landlord to Tenant under this Section 2.3.2(c)(E) shall be used to accommodate parking, without charge, by any particular Tenant's Business Customer(s), for a period in excess of three (3) hours on any day without Landlord's prior approval (and Tenant shall not provide any particular Tenant's Business Customer more than one Project Parking Validation on any particular day). "Short Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to twenty (20) minutes without charge. "Long Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to one (1) hour without charge." 10. No Default. Each of Landlord and Tenant hereby affirm to each other that as of the Effective Date no breach, default, event of default, or other act, error, or omission which, with the giving of notice or passage of time or both would constitute a breach, default, or event of default by such party has occurred and is continuing under the Lease beyond any applicable notice or cure period. 11. Affirmation of -Lease Terms,. Except as modified by this First Amendment, Landlord and Tenant hereby ratify the Lease and agree that the Lease shall .remain unchanged and shall continue in full force and effect. In the event there is any conflict between the terms of the Lease and the terms set forth in this FirstAmendment, the terms specifically set out in this First Amendment shall control. From and after the Effective Date, any and all references to "the Lease" or "this Lease" in the Lease shall mean the Lease as modified by this First Amendment. 12. Mutual Authorization Representation. Each of Landlord and Tenant hereby represent and warrant to each other that: (a) this First Amendment (and each term and provision hereof) has been duly and appropriately authorized and executed by such party through proper written corporate or limited liability company action and approval; and (b) no additional consent, agreement, or approval is required with respect hereto. 591b2M11 City Council 7 — 185 7/15/2025 Exhibit 3 I3. Brokerage. Landlord and Tenant each represent that they had no dealings with any real estate broker, .finder, or other person with respect to this First Amendment in any manner, other than Lee & Associates Newport Beach, Inc. representing Tenant ("Tenant's Broker") and Newmark representing Landlord ("Landlord's Broker" and collectively with Tenant's Broker, the `Brokers"). Landlord shall pay Brokers a leasing commission in connection with this first Amendment pursuant to separate agreement. Tenant shall indemnify and hold Landlord harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or :fees claimed by any other real estate broker or agent in corniection with this First Amendment or its negotiation by reason of the act of Tenant. Landlord shall indemnify Tenant and hold Tenant harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of Landlord. 14. Miscellaneous. The submission of an unsigned copy of this First Amendment to Tenant shall not constitute an offer. This First Amendment (a) shall be binding upon an inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and assigns, (b) may be executed in two or.more counterparts, all of which together shall constitute but one and the same agreement, (c) shall be governed by and construed in accordance with the laws of the State of California and 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 this Agreement, (d) shall constitute the entire agreement between the parties relating to the subject matter hereof, all prior negotiations, agreements, and understandings (not including the Lease, as amended), whether oral or written, being hereby superseded and terminated, and (e) shall become effective and binding only upon execution and delivery by both Landlord and Tenant. The execution of facsimiles, including the use of electronic signatures, of this First Amendment shall be binding on the parties hereto. 17. E-SIGN and Counterparts. Landlord and Tenant agree: (a) that a party's electronic signature with respect to this Lease has been executed or adopted by the signatory with the intent to sign, and be bound by, this Lease; (b) delivery of this Lease via electronic transmission or other electronic means shall be valid delivery for all purposes; (c) this Lease and any additional information incidental hereto may be maintained as electronic records; (d) photocopies, facsimile transmissions, electronic images and other copies of this Lease and/or its signature pages, shall be valid, binding, effective and enforceable the same as originals for all purposes, and may be so admitted in any.judicial proceeding, regulatory proceeding or arbitration, and in making proof of this Lease it shall be unnecessary to produce the original hereof or any or all original signature pages; and (e) each party agrees to take any and al reasonable actions, .if any; as may be necessary or as may be reasonably requested by any other party to this Lease to further evidence such party's intent to be bound by the provisions ofthis Lease and to ensure compliance with the provisions of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001, et seq., the Uniform Electronic Transactions Act as incorporated into applicable law, and any other applicable law pertaining to electronic signatures. rRemainder• ofEake 11ntentiopgIl Blank- Signature Page Followsl 4 5910216.1 t City Council 7 — 186 7/15/2025 Exhibit 3 IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment to be effective as of the date first set forth above. ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By:,Oose Montoya, As istant City Attorney RECOMMENDED FOR APPROVAL: -v& , "/ Mike Garcia Executive Director Community Development Agency CITY OF SANTA ANA (TENANT): Kristine Ridge City Manager LANDLORD: SANTA ANA CA I SGF, LLC, a Delaware limited liability company B N Ti Mike Garcia - Executive Director Community Development Agency [SIGNATURE PAGE TO FIRST AMENDMENT TO OFFICE LEASE] 5910216.11 City Council 7 — 187 7/15/2025 Exhibit 3 EXHIBIT A WORK LETTER THIS WORK LETTER (this "Work Letter") is attached to and incorporated into the First Amendment. Supplementing the provisions of the Lease (as amended by the First Amendment), but without limiting those provisions, Landlord and Tenant agree as follows with respect to the Tenant Improvements to be installed in the Premises. I. Purpose. This Work Letter establishes responsibilities for the design and construction of the Tenant Improvements as well as the allocation of the costs of the Tenant Improvements. The terms, conditions, and requirements of the Lease, except where clearly inconsistent or inapplicable to this Work Letter, are incorporated into this Work Letter. 2. Definitions. The following defined terms used in this Work Letter shall have the meanings set forth below. Unless provided to the contrary herein, any other capitalized teen that is not defined in this Work Letter shall have the meaning given to that term in the Lease. (a) "Approved Working Drawings" is defined in Section 3(c) hereof. (b) "Building Systems" means the structural portions of the Building, the common area restrooms, elevators, the Building's HVAC, mechanical, electrical, plumbing, and fire and life safety systems and equipment (including, but not limited to, the fire alarm and fire sprinklers). (c) "Contractor" means the general contractor engaged by Landlord for performance of the Landlord Work pursuant to Section 4 hereof. (d) "Cast Proposal" is defined in Section 5(a) hereof. (e) "Days" means, unless otherwise indicated, calendar days. (t) "Landlord Coordination Fee" means a fee equal to five percent (5%) of the hard and soft costs of the Landlord Work charged by Landlord for its services in managing the design and construction of the Tenant Improvements, and such tee will be included in the cost of the Landlord Work and deducted from the Tenant Allowance. (g) "Landlord's Representative" means Dana Duarte as the only person authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other communication from or on behalf of Landlord .in connection with this Work. Letter unless such communication is in writing from Landlord's Representative. Landlord may change the Landlord's Representative at any time upon not less than five (5) days' advance written notice to Tenant. (h) "Landlord Work" means all work necessary and appropriate to complete the Tenant Improvements in accordance with this Work Letter and the Lease. 6 5910216.11 City Council 7 — 188 7/15/2025 Exhibit 3 (i) "Over -Allowance Amount" is defined in Section 10(d) hereof. 0) "Permits" is defined in Section 6(a) hereof. (k) "Punch List Worlc" means those minor corrections of construction or decoration details, and minor mechanical adjustments, that are required to cause any applicable portion of the Tenant Improvements as constructed to conform to the Approved Plans in all material respects and that do not materially interfere with Tenant's use or occupancy of the Building and the Premises. (1) "Space Plan" is defined in Section 3(a) hereof. (m) "Space Plan Allowance" shall be Zero and 15/100 Dollars ($0.15) per rentable square :foot of the Premises (i.e., up to $2,898,15), based on 19,321 rentable square feet of the Premises, and shall be included in the Tenant Allowance and deducted therefrom. (n) "Substantial Completion" of the Tenant Improvements shall be deemed to have occurred on the date that: (i) all Landlord Work has been performed in accordance with the terms of this Work Letter, other than any Punch List Work; and (ii) if required, Landlord has obtained and delivered to Tenant a permanent or temporary certificate of occupancy ("COO") with respect to the Premises, except to the extent the same cannot be obtained by reason of the incompletion of installations or other work that is the responsibility of Tenant (such as, but not limited to, the installation and making operational of Tenant's systems and telecommunications equipment), in which case Landlord shall obtain the same within a reasonable time after the same can be obtained. (o) "Tenant Allowance" shall be Twenty -fight and 00/100 Dollars ($28.00) per rentable square foot of the Premises (i.e., up to $540,988.00), based on 19,321 rentable square feet of the Premises. (p) "Tenant Contractor" or "Tenant Contractors" means any employees, agents, contractors, consultants, subcontractors, mechanics, suppliers and invitees of Tenant, whether or not directly employed by Tenant, each of whom shall be reasonably approves[ by Landlord before they may work in the Building. (q) "Tenant Delay" means a delay caused by any of the following: (i) Tenant's failure to timely approve the Working Drawings or any other matter requiring Tenant's approval; (ii) a breach by Tenant of the terms of this Work Letter or the Lease; (iii) Tenant's request for changes in any of the Working Drawings, but only if such a request actually causes a delay to Substantial Completion of the Premises; 7 59162W11 City Council 7 — 189 7/15/2025 Exhibit 3 (iv) Tenant's requirement for: (A) materials, components, finishes, or improvements which are different from, or not included in, Landlord's standard tenant improvement items for the Building (which have been provided to Tenant and of which Tenant acknowledges receipt); or (B) materials that are not available in a commercially reasonable time given the estimated date of Substantial Completion of the Premises, but only to the extent that such a requirement actually causes a delay to Substantial Completion of the Premises; or (v) any other acts or omissions of Tenant, or of any of the Tenant Contractors, their agents, or employees that continue more than one (1) day aver written notice thereof by Landlord. (r) "Tenant FF&E Allowance: means a portion of the Tenant Allowance in the amount of up to Ten and 00/100 Dollars ($10.00) per rentable square foot of the .Premises (i.e., up to $1.93,21 OM), which Tenant may use for Tenant's furniture, fixtures and equipment to be purchased and installed in the Premises and any costs of data cabling and IT infrastructure in connection with Tenant's furniture, fixtures and equipment. (s) "Tenant's Representative" means the Executive Director, Community Development, or the Economic Development Manager or their designee (either such individual acting alone) as the only person[s] authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry, or other communication from or on behalf of Tenant in connection with this Work Letter unless such communication is .in writing from Tenant's Representative. Tenant may change the Tenant's Representative[s] at any time upon not less than five (5) days' advance written notice to Landlord. (t) "Working Drawings" is defined in Section 3(b)hereof. 3. Plan Approval. (a) Prior to commencement of the Landlord Work, Landlord and Tenant shall approve detailed space plans (collectively, the "Space Plan") for the construction of the Tenant lmprovements, which space plans shall be prepared by Landlord's architect and subject to Tenant's reasonable approval within ten (10) days after receipt thereof. (b) Promptly following Tenant's approval of the Space Plan, Landlord shall cause its architcct and engineers to prepare and deliver to Tenant detailed specifications and engineered working drawings for the Tenant Improvements shown on the Space Plan, with such modifications to the Space Plan as shall be necessary to comply with the requirements of the Building Systems of the Building (the "Working Drawings"). (c) Tenant shall approve or disapprove the Working .Drawings in writing with in fourteen (14) business days after receipt. Tenant may only disapprove the Working Drawings to the extent such Working Drawings are inconsistent with the Space Plan and only if Tenant delivers to Landlord, within such fourteen (14) business day period, specific changes proposed by Tenant which are consistent with the Space Plan. If any such revisions are timely and properly proposed by Tenant, Landlord shall cause its architect and 5910216.11 City Council 7 — 190 7/15/2025 Exhibit 3 engineers to revise the Working Drawings to incorporate such revisions and submit the same for Tenant's approval in accordance with the foregoing provisions, and the parties shall follow the foregoing procedures for approving the Working Drawings until the same are finally approved by Landlord and Tenant. Upon Landlord's and Tenant's written approval of the Working Drawings, including any agreed changes pursuant to Sections 5 and 6, the same shall be known as the "Approved Working Drawings". 4. Construction Contracts. Landlord shall enter into a construction contract for the performance of the Landlord Work with the Contractor. Landlord shall use commercially reasonable efforts to obtain at least three (3) bids From each trade (other than mechanical, electrical, plumbing, and fire/life safety, for each of which Landlord shall require all work to be performed by Landlord's approved subcontractor for such trade) and shall select the lowest qualified bidder unless otherwise approved by Tenant in writing. Landlord shall require its Contractor to exercise reasonable efforts to avoid disruption of Tenant's business and to protect the health & safety of Tenant, its employees and its guests. This shall include, at a minimum, using all feasible methods to minimize danger, noise, vibration, fumes, dust and other pollution, and to the extent practicable, perform work outside of normal business hours. 5. Cost Estimate. (a) Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of the Tenant Improvements (the "Cost Proposal"). The Cost Proposal shall be provided to Tenant on an open book basis (i.e., Landlord shall make available to Tenant the economic terms of the construction agreement with the Contractor (including, without limitation, the cost of labor and materials, contractor fees and permit fees), as well as all bids received by Landlord for the Landlord Work, and reasonable documentation supporting Landlord's estimate of plan preparation costs and all other costs of the Landlord Work). (b) Within ten (10) days of the receipt of the same, Tenant shall either: (i) approve the Cost Proposal; or (ii) have a one-time right to propose modifications to the Working .Drawings so that the Cost Proposal does not exceed the amount of the Tenant Allowance. With the exception of the City's one-time right to modify as provided in this section, any proposed changes to the Working Drawings (other than changes that make the Working Drawings conform to the Space Plan) shall be subject to Landlord's approval, which approval shall not be unreasonably withheld, conditioned, or delayed. If Landlord approves the proposed revisions: (A) Landlord shall have the Working Drawings revised in accordance with. the approved revisions; and (B) Landlord shall submit a revised Cost Proposal to Tenant. Tenant shall notify Landlord in writing within ten (10) days whether it desires to proceed with such revisions. If Tenant fails to approve such revisions and revised Cost Proposal within such ten (10) day period; such failure shall be deemed to be a Tenant Delay. Any delays arising from further changes to the Working Drawings requested by Tenant shall be deemed to be Tenant Delays. (c) Tenant's final written approval of the Cost Proposal and the Approved Working Drawings shall be authorization by Tenant for Landlord to purchase all materials 9 5910216.1 t City Council 7 — 191 7/15/2025 Exhibit 3 set forth in the Cost Proposal and to promptly commence the construction of the Tenant Improvements in accordance with the Approved Working Drawings. 6. Performance of the Landlord Work. (a) Landlord shall cause the Contractor to obtain all applicable building permits for construction of the Landlord Work (collectively, the ".Permits"), and to perform the Landlord Work in a good and workmanlike manner and in compliance with the Permits and all applicable Laws in effect at the time of construction. All costs associated with obtaining Permits will be deducted from the Tenant Allowance. (b) If any local governmental agency requires revisions to the Approved Working Drawings, Tenant shall be deemed to have approved any adjustments to the Approved Working Drawings and the Cost Proposal resulting therefrom. If any Authority issuing Permits for the construction of the Tenant Improvements shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with .Landlord's obligations hereunder; (i.i) increase the cost of constructing the Tenant Improvements; or (i.ii) will materially delay the construction of the Tenant Improvements, .Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 7. Chanee Requests. No changes to the Approved Working Drawings or the agreed Cost Proposal may be made without the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion. If Tenant requests a change that would directly or indirectly delay the Substantial Completion of the Tenant Improvements, Landlord shall not be obligated to make such change unless Tenant agrees in writing that such delay (in the amount reasonably determined by Landlord) is a Tenant Delay. If Tenant requests a change to the Approved Working Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make such change unless Tenant agrees in writing to pay any such increase in. costs in accordance with Section t0. 8. Substantial Completion. When Landlord's architect certifies that the Landlord Work is Substantially Complete, Landlord shall notify Tenant thereof in writing, Tenant's Representative and Landlord's Representative shall at a mutually convenient date and time [but in no event later than ten (10) days after such notice] conduct a joint walls -through of the Premises in order to review the Tenant Improvements. Based upon said walk-through, Landlord's Representative and Tenant's Representative shall prepare a list of Punch List Work and, subject to Force Majeure, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord shall complete the Punch List Work items within thirty (30) days after such joint walk-through. in the event of any dispute as to whether Landlord has Substantially Completed the Tenant Improvements, the City will be alTorded an opportunity to provide input before the Landlord's architect renders a final decision on the dispute. The decision of .Landlord's architect shall be final and binding on the parties. Tenant agrees that, at the request of Landlord from titne to time after the initial .inspection, Tenant shall initial such punch list or execute revised lists of Punch List Work to reflect completion or partial completion of prior Punch List Work. 10 5910216.11 City Council 7 — 192 7/15/2025 Exhibit 3 9. Access by Tenant. Subject to the terms hereof and provided that Tenant and its agents do not interfere with the Contractor's work in the Building and the Premises, Landlord shall allow Tenant and any of the Tenant Contractors access to the applicable portions of the Premises at least ten (10) days prior to the Substantial Completion of the Landlord Work for the purpose of installing equipment and/or fixtures (including Tenant's data and telephone equipment) and Tenant's furniture in the Premises. Prior to Tenant's entry into the Premises, Tenant shall submit a schedule to Landlord and the Contractor, for their approval, which schedule shall detail the Tenant Contractors accessing the Premises and the timing and purpose of such entry. in connection with any such entry, Tenant acknowledges and agrees that all Tenant Contractors shall fully cooperate, work in harmony with and not, in any manner, materially interfere with Landlord or Landlord's contractors (including the Contractor), agents, or representatives in performing work in the Building and the Premises, or in performing any inspections, or interfere with the general operation of the Building. If at any time any of the Tenant Contractors shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain corrective actions as directed by Landlord, then Landlord may revolve Tenant's entry rights (as to an individual Tenant Contractor, or as to all Tenant Contractors, as Landlord shall deem appropriate). Tenant acknowledges and agrees that any such entry into and occupancy of the Premises or any portion thereof by Tenant or any Tenant Contractor shall be deemed to be subject to all the terms, covenants, conditions, and provisions of the Lease, excluding only the covenant to pay Rent (until the occurrence of the Lease Commencement Date). 10. Cost Allocation. (a) Provided this Lease is in full force and effect, and Tenant is not in default thereunder beyond any applicable notice and cure period, Landlord shall pay (i) the costs of Space Plan in an amount up to, but not exceeding, the Space flan Allowance, and (ii) the costs of the Tenant Work in an amount up to, but not exceeding, the Tenant Allowance. Landlord shall deduct the Landlord Coordination Fee orthe Tenant Improvements from the Tenant Allowance. (b) In no event shall Landlord be obligated to pay for the costs of any of Tenant's furniture, computer systems, telephone systems, equipment, or other personal property (whether or not such items may be depicted on the Approved Working Drawings) that exceed the Tenant FF&E Allowance. Eligible costs that exceed the Tenant FF&.E Allowance shall be borne by Tenant. (c) In the event that all costs associated with the Space Plan and design, permitting, and construction of the Tenant Improvements, including the Landlord Coordination Fee, exceeds the Space Plan Allowance and/or the Tenant .Allowance, as applicable, the amount of such excess (the "Over -Allowance Amount") shall be paid by Tenant to Landlord within thirty (30) days following delivery of an invoice by Landlord. Tenant shall .not be responsible for the Over -Allowance Amount if caused by Landlord. or Landlord Contractor's own negligence, willful misconduct, or delay. 5910216.11 City Council 7 — 193 7/15/2025 Exhibit 3 (d) Tenant shall not be entitled to receive (in cash or as a credit against any rental or otherwise) any portion of the Tenant Allowance not used to pay for the costs of the design, permitting, and construction ofthe Tenant improvements. IL Miscellaneous. (a) All Tenant Improvements to be performed by Landlord (and any installations in the Premises as set forth in the Approved Working Drawings, or otherwise) shall use Building -standard specifications, materials, finishes, and supplies, unless otherwise specified in the Approved Working Drawings. Landlord, in its sole discretion, may substitute items, materials, or finishes with other items, materials, or finishes of comparable kind and quality. Landlord, at its sole option, may also change mechanical plans and specifications where necessary for the installation or modification of the Building Systems to accommodate the Tenant Improvements, provided that any such changes shall not materially and adversely affect Tenant's use and occupancy of the Demised Premises for the Permitted Use. (b) Tenant acknowledges that the timely completion of the Tenant Improvements is of the utmost importance to Landlord and Tenant. Accordingly, Tenant hereby agrees to fully and diligently cooperate with all reasonable requests by Landlord in connection with or .related to the design and construction of the Tenant Improvements and the completion of the permitting process and, in connection therewith, Tenant shall respond to Landlord's requests for information and/or approvals, except as speciFically set forth herein to the contrary, within two (2) days following request by Landlord. Landlord and Tenant, and such other parties as may be useful or appropriate, shall meet on a scheduled basis to be determined by Landlord's Representative and Tenant's Representative, to discuss progress in connection with the same. (c) If at any time on or before the Substantial Completion of the Landlord Work, Tenant is in default under this Work Letter or under the Lease, which default remains uncured after the expiration of applicable notice and cure periods, then: (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to instruct the Contractor to cease the construction of the Landlord Work (in which case, Tenant shall be responsible for the Tenant Delay caused by such work stoppage); and (ii) all other obligations of Landlord under the terms of this Work Letter shall be suspended until such time as such default is fully and finally cured. (d) Landlord hereby assigns to Tenant all warranties by Contractor relating to the Tenant Improvements, which assignment shall be on a non-exclusive basis such that the warranties may be enforced by Landlord and/or Tenant; such warranties shall be for a twelve (12) month period. (e) Any portion of the Tenant Allowance not used within thirty-six (36) months of the Effective Date of this First Amendment shall be forfeited with no further obligation by Landlord with respect thereto. In no event shall Tenant be entitled to apply any unused portion of the Tenant .Allowance towards future payments of Base Rent and/or, except as expressly set forth herein, purchase of Tenant's furniture, fixtures and equipment. 12 5910216.11 City Council 7 — 194 7/15/2025 Finance and Management Services www.santa-ana.org/finance Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: eProcurement Bidding Platform Module Services AGENDA TITLE Agreement with PlanetBids, LLC for eProcurement Bidding Platform Module Services (Specification No. 25-045) (General Fund and Non -General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with PlanetBids, LLC to provide eProcurement Bidding Platform Module Services in an amount not to exceed $159,635, for a term beginning July 15, 2025 and expiring June 30, 2028, with provisions for one (1), one-year extension (Agreement No. A-2025-XXX). GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The Finance Department's Purchasing Division oversees centralized procurement for the City of Santa Ana, ensuring that all solicitations and contract awards are conducted in a responsive, fair, and impartial manner. In 2021, the City entered into an agreement with PlanetBids, LLC to streamline the procurement solicitation process. By implementing the Bid Management Module Services, the City has achieved a more efficient and transparent method for online advertising, monitoring, and awarding formal and informal bids and proposals. There are currently over 12,000 vendors subscribed to the City's designated platform, including 2,000-plus self -certified small or local vendors in the Orange County area. Vendor registration is easy and free, and allows businesses to receive real-time notifications of City bidding opportunities and updates. The PlanetBids, LLC platform provides a central repository for all material, professional services, non-public works, and public works project solicitations, and employs real-time notifications of requests for bids and proposals, as well as addenda notification, custom emails, and online Q&A management. The set of modules to be utilized are: Vendor Management, Bid Management, Bid Spec Library, and Emergency Operations. The contract also allows for the future addition of the Project Evaluation module to support best practices during the evaluation phase of solicitations. City Council 8-1 7/15/2025 eProcurement Bidding Platform Module Services July 15, 2025 Page 2 Staff evaluated available procurement options and product offerings in the market and determined that the eProcurement bidding platform and module services solutions provided by PlanetBids, LLC ensures efficient, equitable, and transparent solicitations for purchasing staff, and delivers a user-friendly platform experience to all bidders. Santa Ana Municipal Code, Section 2-807(d), authorizes the City to purchase against contracts from any public agency utilizing a competitive bid process. The Interlocal Purchasing System (TIPS) contract with PlanetBids, LLC (Contract No. 230105) for technology solutions, products, and services was awarded as a result of open, competitive bidding and meets the City's requirements. Utilizing this contract allows the City to streamline the purchasing process, ensure compliance, and leverage cost efficiencies associated with cooperative purchasing. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the current FY 2025-26 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration. The table below represents the estimated usage by fiscal year; actual expenditures may vary but will not exceed the aggregate amount of $159,635. Accounting Unit, Fiscal Accounting Unit- Fund Account Year Account # Description Description Total FMSA General Finance & Management 2025-26 01110120-66511 Fund Services, Purchasing $20,725 PWA PWA CIP Engineering 2025-26 01117612-66511 General Fund Services $4,355 PWA PWA Parks Maintenance 2025-26 01117651-66511 General Fund Services $4,355 PWA Internal Service Public Works 2025-26 10117601-66511 Funds Administrative Services $606 Public Works Water PWA Enterprise Administrative Engineering 2025-26 06017645-66511 Funds Services $4,355 FMSA General Finance & Management 2026-27 01110120-66511 Fund Services, Purchasing $22,797 PWA PWA CIP Engineering 2026-27 01117612-66511 General Fund Services $4,791 PWA PWA Parks Maintenance 2026-27 01117651-66511 General Fund Services $4,791 City Council 8-2 7/15/2025 eProcurement Bidding July 15, 2025 Page 3 Platform Module Services PWA Internal Service Public Works 2026-27 10117601-66511 Funds Administrative Services $667 Public Works Water PWA Enterprise Administrative Engineering 2026-27 06017645-66511 Funds Services $4,791 FMSA General Finance & Management 2027-28 01110120-66511 Fund Services, Purchasing $25,078 PWA PWA CIP Engineering 2027-28 01117612-66511 General Fund Services $5,269 PWA PWA Parks Maintenance 2027-28 01117651-66511 General Fund Services $5,269 PWA Internal Service Public Works 2027-28 10117601-66511 Funds Administrative Services $734 Public Works Water PWA Enterprise Administrative Engineering 2027-28 06017645-66511 Funds Services $5,270 OPTIONAL EXTENSION FMSA General Finance & Management 2028-29 01110120-66511 Fund Services, Purchasing $27,585 PWA PWA CIP Engineering 2028-29 01117612-66511 General Fund Services $5,797 PWA PWA Parks Maintenance 2028-29 01117651-66511 General Fund Services $5,797 PWA Internal Service Public Works 2028-29 10117601-66511 Funds Administrative Services $806 Public Works Water Administrative Engineering 2028-29 06017645-66511 PWA Water Services $5,797 TOTAL $159,635 EXHIBIT(S) 1. Agreement with PlanetBids, LLC Submitted By: Alex Trinidad, Executive Director of Finance and Management Services Agency Approved By: Alvaro Nunez, City Manager City Council 8-3 7/15/2025 1*114iIIOwl 1rI FPLANETB�DS Innovative eProcurement Solutions 13263 Ventura Blvd., Suite 101 • Studio City, CA, 91604 • (818) 992-1771 PB SystemTm TIPS SUPPORT SERVICES AGREEMENT WHEREAS, PlanetBids, LLC (F.K.A. Planet Bids, Inc.) and THE INTERLOCAL PURCHASING SYSTEM (TIPS), a Department of Texas Education Service Center Region 8, entered into a certain agreement entitled Administrative Services Agreement (No. 00005699) ("Agreement") on May 5, 2020 (the "Agreement"); and Customer wishes to purchase services from provider based on the terms of TIPS agreement with the terms for this specific Customer described herein. This SUPPORT SERVICES AGREEMENT ("Agreement"), which describes the terms and conditions applicable to use of the PlanetBids Online Support Services, is made and entered as of the Service Period defined below, by and between PLANETBIDS, LLC, a Delaware Limited Liability Company ("PlanetBids") and the following customer ("Customer") as described below: Customer Name: City of Santa Ana Street Address: 20 Civic Center Plaza City, State ZIP: Santa Ana CA 92701 Department: Purchasing Principal Contact: Lulu Medel Title: Administrative Services Manager Phone & Email: 714-647-5407; Imedel@santa-ana.org Method of Payment: Net 30 Days Initial Service Period: 07/15/2025 - 06/30/2028 THEREFORE, PlanetBids and the Customer agree as follows: PlanetBids Services. Upon acceptance of this Agreement, PlanetBids shall provide the following Support Services to Customer, subject to the terms and conditions of this Agreement and as more specifically described in Exhibit "A". a. "Services" shall include one or more of the following PlanetBids PB SystemTM modules or features if, and only if, listed in Exhibit "A". Customer shall not have access or use of any modules or features not listed in Exhibit "A". b. PlanetBids will market on behalf of Customer to drive Vendor engagement to participate in Customer's projects/bids as outlined in Exhibit "A". Fees and Payments. Support Fees. Customer agrees to pay PlanetBids set up and services fees as set forth in Exhibit "B" hereto. City Council 8-4 7/15/2025 EXHIBIT I a. Additional Services; Fees. If requested by Customer, PlanetBids will provide any or all of the following additional services at the fees set forth in Exhibit "B": Customization work in addition to standard setup shall be contracted in the following manner and at PlanetBids' current standard rates: (a) Customer shall submit a written request describing the proposed project; (b) PlanetBids conduct a feasibility and assessment of the project and the work required, (c) if the project is technically feasible, PlanetBids will submit to Customer a written estimate setting forth the price, estimated schedule and any conditions of the project. PlanetBids shall not proceed until approval is received in writing from Customer. 2. Training to Customer's designated users, in addition to that provided pursuant to Section 2(a)(1), is available at rates set in Exhibit "B". 3. Customer may, during the term of this Agreement, access and retrieve data in comma delimited format and documents, at no cost. Additional Services related to the retrieval or restoration of any of Customer's data from such back-up files are available, if necessary, at rates set forth in Exhibit "B". b. Purchase Orders/Billing. Purchase orders, billing or any related matters must be emailed to billing(aDplanetbids.com or mailed to the following address; PlanetBids, LLC.,13263 Ventura Blvd., Suite 101, Studio City, CA 91604 Attn: Finance or other address as specified by Company c. Payment Terms. Net 30, Please remit the full amount within 30 days from the date of this invoice. d. Tax. It shall be the responsibility of Customer to collect and pay any taxes, duties, imports, or tariffs that are applicable to sales via the Services. e. Credit Cards: 3% credit card fee will be applied to all transactions made through a credit card f. Late Fees: If Customer is overdue on any payment and fails to pay within specified payment term, then PlanetBids may assess, and Customer agrees to pay a late fee of either 1.5% per month, or the maximum amount allowable by applicable law, whichever is less. g. Insurance: Insurance verification is provided for no cost, to be added as an "additional insured" is an additional fee as defined in Exhibit "B". Disclaimer. PLANETBIDS MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NONINFRINGEMENT OF INTELLECTUAL PROPERTY OR OTHER VIOLATION OF RIGHTS, EVEN IF PLANETBIDS HAS BEEN MADE AWARE IN ADVANCE OF SUCH POTENTIAL RISK, NOR ANY WARRANTY REGARDING THE ACCURACY, LIKELY RESULTS, OR THE RELIABILITY OF ANY SITES LINKED INTO THE SERVICES. IN NO EVENT SHALL THE AGGREGATE LIABILITY OF PLANETBIDS HEREUNDER EXCEED $1,000,000.00 Notices. PlanetBids shall provide notice to Customer via email, or (at its discretion) via certified U.S. Mail, to the address provided in this Agreement or such other address provided by Customer to PlanetBids. Customer shall provide notice to PlanetBids via email to customerserviceeplanetBids.com, with a copy sent via certified U.S. Mail to the address on the membership registration. Notices will be effective 6 hours after sending if sent via email City Council 8-5 7/15/2025 1*114iIIOwl 1rI (unless the sender receives a response indicating that the message was undelivered) or 3 business days after the mailing date, whether or not received. Assignment. Neither party shall assign this Agreement or any of its rights or obligations without the prior written consent of the other party, and any such attempted assignment will be void, provided PlanetBids may transfer this Agreement without consent of Customer in connection with the sale or transfer of all or substantially all of its equity or assets. Subject to the above, this Agreement will be binding upon the parties' respective successors and permitted assigns. Authority to Sign. Customer represents and warrants (a) the Customer information provided is current, complete, and accurate, (b) that the person signing this Agreement is authorized to bind Customer, (c) Customer will update the information (including credit card information, if applicable) as required to keep such information current, complete and accurate. PlanetBids may, in its sole discretion, cancel or terminate this Agreement if Customer has willfully violated its obligations hereunder. Addendum. The parties agree and understand that Exhibit C to this Agreement contains updates, revisions, and additions to the terms and conditions of this Agreement, including but not limited to, inclusion of Insurance Requirements. Language found in this Addendum shall amend terms and conditions provided in this Agreement. -AGREED effective as of the date first written above. PlanetBids Vic siynwury_ Dw4DGis onw S. Ofl1 Ernod of sigriAury. tlaVidd�#er9Gai13.rnrn Tlrnc tmW Thummy.. June 26M. 2W5 750 Rd UTC ATTEST Signatory: .Jennifer L. Hall Title: City Ciertc Email of Signatory: Dam: APPROVED AS TO FORM SOMA R- CARVALHO City Attorney f _ e it e,( Signatory_ Andrea Garcia -Miller Title: Assistarrt City Attorney Email of Signatory_ Date: 6/23,12025 City of Santa Ana Signatory: Alvaro Nunez Title: City Manager Email of Signatory: Date_ RECOMMENDED FOR APPROVAL: mm Signatory. Alexander Trinidad Title: Acting Executive Director l=iriance and Management Services Email Df Signatory_ Date: City Council 8-6 7/15/2025 1*114iIIOwl 1rI EXHIBIT "A" STATEMENT OF WORK FOR SETUP, IMPLEMENTATION AND TRAINING 1. Customer System Configuration: Services available to Customer shall be utilized by the Purchasing Department and shall include: A. Access for up to (8) full licensed users of Customer to the following module(s) of the PlanetBids "PB SystemTMI': i. Vendor Management and Bid Management Modules ii. Advanced eBidding B. Access for up to (2) licensed users of Customer to the following module(s) of the PlanetBids "PB SystemTMI': i. Read -Only C. Access for up to (Agency -Wide) licensed users of Customer to the following module(s) of the PlanetBids "PB SystemTMII: i. Emergency Operations D. Access and use of the PlanetBids "Outreach" database for no additional cost. 2. PB SystemTm Access Services: PlanetBids rate for maintaining the PB SystemTM vendor and bid management is based upon an unlimited number of monthly transactions (Bids) and the number of user licenses acquired by Customer. PB SystemTm Access Services include the following: • System Administration — PlanetBids will be responsible for system and data backups, disaster recovery, system reliability, availability, privacy, and system security • Hosting Infrastructure — PlanetBids will be responsible for hosting Services, maintaining the network, hardware, and software infrastructure • Customer Service — Is available Monday through Friday, excluding statutory holidays (see Help Desk definition below) • Account Management — PlanetBids will provide a dedicated Account Manager for post -sales support, Services questions. 3. PB SystemTM Setup, Implementation and Online Training: • Online training will be provided as outlined below for only the PB Modules licensed and purchased by the Customer for the initial setup and configuration of the Service. PB Modules which were not purchased by Customer, training will be omitted. • PlanetBids will initially install for Customer the specified number of licensed Services users and configure PB modules. • PlanetBids will provide up to 3 months' access, by request, to an online training sandbox for Customers to practice using the Service during the initial setup period. • Vendor and Bid Management Modules: 2-hours and 45-minutes • Advanced eBidding for Public Works add -on Module: 15-minutes • PB SystemTM Project Evaluation Management Module: 45-minutes City Council 8-7 7/15/2025 EXHIBIT I • Insurance Certificate Management with My Insurance module: 30-minutes • Contract Management Module: 45-minutes • Includes training for DocuSign add -on to Contract Management. The DocuSign product or service is not included. Customer must purchase from DocuSign the required product or services access. • Agency Contracts add -on Module to Contracts Management: 15-minutes • Contract Compliance add -on module to Contract Management Module: 15-minutes • Business Certification Module: 30-minutes • Emergency Operations Module: 20-minute online training session 4. PB SystemTM setup, implementation and training consists of the following: A. Initial program definition The PlanetBids implementation manager will work with one (1) designated Customer project manager to develop a roadmap for system implementation. The implementation manager will define and present a project management schedule to the Customer project manager. Customer will be required to submit information according with the project management schedule. Upon completion and review of the Services by Customer, online training will be scheduled and performed. B. System implementation and administration PlanetBids will enter and configure Customer requirements into Services for each licensed user access for Customer for only the Modules purchased by the Customer. The following implementation services will be provided: a. Account Manager assigned to manage implementation process. b. Press kit developed by PlanetBids Marketing team, including initial press release for publishing to attract Vendors to register for new system. c. URL configured for Customer's procurement web page for Vendor registration. d. Customer shall publish official press releases to attract Vendors to new URL. PlanetBids will publish Customer press release to social media sites and other media outlets. e. PlanetBids will create and send an initial email campaign to any existing Vendor lists Customer may have access to or has compiled. Data will be sent to PlanetBids in comma delimited format or excel. f. Configuration of Customer's purchased Modules. g. Testing of Customer's purchased Modules h. Customer specific databases will be established. i. Complete bid management from bid submission to awarding. j. Electronic bidding tools configured. k. Daily backups. I. Services users and vendor support for the duration of the Agreement. City Council 8-8 7/15/2025 1*114iIIOwl 1rI 5. Professional Services PlanetBids will provide consulting services for custom reports or Services customizations, specific to Customer, not covered by this Statement of Work at an additional charge. Additional consulting services requested in writing by Customer will be billed at the rates set forth in Exhibit "B". No work will begin on professional services before a mutually agreed - upon statement of work is completed. 6. Help Desk The PlanetBids Help Desk is available for support (as defined below) via our telephone number (818) 992-1771, from 8:00 am to 5:00 pm, Monday through Friday, excluding statutory holidays. Online support, as well as on-line help services are also available at httos://solutions.r)lanetBids.com/su000rt . To ensure prompt assistance for licensed users of Customer's Services, PlanetBids requires the Customer to designate at least one, preferably two or three, Services Super Users. The Customer Super Users will be responsible to manage licensed user access, such as username and password, initiating or providing basic "Level 1" support to the licensed users of Customer's Services. While PlanetBids will offer Level 1 or Level 2 support, the designated Super Users will serve as the primary point of contact with PlanetBids. To provide instant service to vendors and contractors, PlanetBids recommends Customer to initiate or provide basic "Level 1" support although PlanetBids will provide Level 1 or Level 2 support at any time: Level 1 support representatives will attempt to answer most or all questions, including help to vendors with simple problems (edit profile, etc.) or general "how-to" questions (search functionality, bidding, etc.). Services related questions by Vendors/Contractors that cannot be answered or supported by Customer should be directed to a PlanetBids support representative. More complex, technical questions should be directed to a Level 2 PlanetBids support representative. • Level 2 support is more technical in nature. Level 2 questions may, for example, deal with Customer users (i.e., PB SystemT"' administrative users including buyers, project administrators, etc.) or with password issues requiring special assistance, or with possible product bugs or failures. In this case, some research and investigation may be required. 7. User License(s) Management Customer is responsible for monitoring and maintaining Services licensed users and ensuring all usernames and passwords are always up-to-date. Usernames and passwords are for authorized individual use only. City Council 8-9 7/15/2025 1*114iIIOwl 1rI EXHIBIT "B" FEES AND PAYMENTS a. Support Fees. Customer agrees to pay PlanetBids a total of $31,267.95 for the first year. Payment for Year 1 shall be due and payable 30 days from the time of execution of this Agreement. The fee(s) for each of the following years are as outlined in Table (A) below and are payable in advance within 30 days of the first day of each such year: 1. Setup Fee. Customer agrees to pay a setup fee of $0 for the Services installation, configuration, and testing of the Services portal link to Customer's website, plus administrator setup and one-time online user training for up to the number of user licenses and additional modules as outlined in this Agreement and Exhibit "A". 2. Service Fee Payment. Customer agrees to pay for using the Services modules, a service fee of $31,267.95 for first year of this Agreement and each of the following years as outlined in Table (A). A (10%) percent fee increase applies upon renewal each year. Table (A) PBSystam"MCD-JLES QLsaLttity te 7 t�onal AeasrxeaeG.cam, PrejadEoALa6b-M=n=gen�erl112'=1Cd-Uc,=`_ Ccn1•r4Prar_ emerrrf 2-r2'1,e4-1Tn Z'5% Read -Only En-,erenz-VUperstor..=. Si3h-7DW 8 26,712.22 22,703.44 23.06�79 Z7,567.96 $ A,S4,. 5,434.31 5.578.4p 6,57524 9 Remu ec Removed Remrmad Remmed 5 Removee Removed mmoved RemLwea 2 1.1C1.1=- ?,=11-31 1.332.44 1,41S5.68 n. -Wide 4,511 c,65.u8 5,461.54 6,G,:r.,75 331,267,95 534,&94,75 $37,834,22 S41,617,64 Total $31.267.95 934.294.75 537,834.22 S31,817,64 'Cusslomeris In ae"ing VMlSM users from 7 Lo nzw hrving8 users b. Additional Services. If requested by Customer in writing, PlanetBids will provide any or all of the following additional services. The following rates are current as of the date of this Agreement but are subject to an increase of not more than 10% per year after the first year of this Agreement. 1. Training: $975.00, for a single online training session of up to 2 hours. 2. For its own internal retrieval and restoration purposes, PlanetBids will record and maintain for a limited time a back-up of all data appearing on Customer's website on a daily basis. The duration of such data retained will be for a minimum of 7 years and determined by PlanetBids in its sole discretion thereafter. However, Customer may, during the term of this Agreement, access and retrieve data in text delimited Microsoft Excel format and documents, at no cost. Additional Services related to the retrieval or restoration any of Customer's data from such back-up files are available, if necessary, at PlanetBids current standard rates, which will vary depending on the level of services required, but not less than $250.00 per hour. 3. Customer to be added as an "Additional Insured" is $250/year. City Council 8 — 10 7/15/2025 EXHIBIT I EXHIBIT "C" ADDENDUM Initial Service Period: 07/15/2025 — 06/30/2028; with the option for the City to grant up to one (1) one-year renewal, exercisable by a writing by the City Manager and the City Attorney. Fees and Payments. h. The total amount to be expended under the term of this Agreement shall not exceed $159,635. Discount Service Agreement Extension. This section of the Agreement, including subsections A-E, are hereby struck from this Agreement. Insurance Requirements. PlanetBids shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, damages to property (including computer equipment), theft, or other misuse of Customer's data, infringement of intellectual property, invasion of privacy and breach of data, which may arise from or in connection with the performance of the work hereunder by PlanetBids, its agents, representatives, or employees. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000 general aggregate. 2. Cyber Liability: Insurance, with limits not less than $2,000,000 per occurrence or claim and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by PlanetBids in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, and release of private information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses. 3. Technology Professional Liability -Errors and Omissions Insurance (E&O): appropriate to the Consultant's profession and work hereunder, with limits not less than $2,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the PlanetBids in this agreement and shall include, but not be limited to, claims involving business interruption, damage to or destruction of electronic information, and alteration of electronic information. The policy shall provide coverage for PlanetBids's failure to provide professional services and/or products under this Agreement. The Policy shall include, or be endorsed to include, damage to, alteration of, loss of, or destruction of electronic data and/or information "property" of Customer in the care, custody, or control of PlanetBids. City Council 8 —11 7/15/2025 EXHIBIT I EXHIBIT "C" ADDENDUM 4. Workers' Compensation as required by the State of California, with statutory limits, and Employer's Liability insurance with limits of no less than $1,000,000 per accident, policy, employee, for bodily injury or disease. If PlanetBids maintains broader coverage and/or higher limits than the minimums shown above for any line of coverage, City of Santa Ana ("Customer" or "City") requires and shall be entitled to the broader coverage and/or the higher limits maintained by PlanetBids. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Customer. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1. City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under PlanetBids's CGL, AL and E&O policies, with respect to any liability arising out of work or operations performed by or on behalf of the PlanetBids including materials, parts, equipment, and personnel furnished in connection with such work or operations. 2. PlanetBids's Insurance companies agree to waive all rights of subrogation against City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by PlanetBids under this Agreement. 3. Except as otherwise provided in this Agreement, each party shall bear its own risks and liabilities, including but not limited to, losses, damages, and costs arising from its own actions and omissions or those of its agents, employees, or subcontractors. This includes but is not limited to, liability for bodily injury, property damage, and any other claims or liabilities arising out of or related to the performance of this Agreement. Further, each party agrees to indemnify and defend and hold harmless the other party from and against all claims, liabilities, damages, and expenses, including reasonable attorney fees, arising out of any property damage, personal injury, or death, sustained by such other party as a result of the negligence, gross negligence or willful misconduct of the identifying party or its agents or employees. 4. A severability of interest provision must apply for all the additional insureds, ensuring that PlanetBids's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non -renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: Executive Director, Finance and Management Services Agency, 20 Civic Center Plaza, M-17, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self -Insured Retentions City Council 8 — 12 7/15/2025 EXHIBIT I EXHIBIT "C" ADDENDUM Self -insured retentions must be declared to and approved by Customer. Customer may require PlanetBids to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state of California with a current A.M. Best rating of no less than A-:VII, unless otherwise acceptable to Customer. Claims Made Policies If any of the required policies provide coverage on a claims -made basis: 1. The retroactive date must be shown and must be before the date of the contract. 2. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of work. 3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the contract effective date, PlanetBids must purchase "extended reporting" coverage for a minimum of three (3) years after completion of work. Verification of Coverage PlanetBids shall furnish Customer with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause). Failure to obtain the required documents prior to the work beginning shall not waive PlanetBids's obligation to provide them. Subcontractors PlanetBids shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. Special Risks or Circumstances Customer reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Any modifications to the foregoing once the contract is in process/in active term will not effect the current standing of this Agreement. An amendment will be required to effectuate any changes and signed by both parties. Failure to Maintain Insurance Coverage If PlanetBids, for any reason, fails to maintain insurance coverage, which is required pursuant to this Agreement, for the entire term of this contract, the same shall be deemed a material breach of Agreement. Customer, at its sole option, may terminate this Agreement at any time and obtain damages from PlanetBids resulting from said breach. City Council 8 — 13 7/15/2025 EXHIBIT I juro City of Santa Ana Document ID 685ab6e9109950bf99d85781 Filename Santa Ana City of CA- 7-01-25 - CAO signed 6-23-25.pdf What Signed by David DiGiacomo davidd@planetbids.com Viewed by David DiGiacomo Q davidd@planetbids.com Viewed by David DiGiacomo 4@> davidd@planetbids.com When 26 Jun 2025 19:50 UTC 26 Jun 2025 19:49 UTC 26 Jun 2025 19:14 UTC AUDIT TRAIL PAGE Wnere IP 108.189.161.205 Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 IP 108.189.161.205 Mozilla/5.0 (Windows NT 10.0, Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 IP 108.189.161.205 Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 Viewed by David DiGiacomo 26 Jun 2025 IP 108.189.161.205 O davidd@planetbids.com 18:49 UTC Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 Sent for signing by Nataliebuckner@planetbids.com 26 Jun 2025 IP 99.142.81.149 0 nataliebuckner@planetbids.com 18:45 UTC Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 Edg/137.0.0.0 Sent for signing by Nataliebuckner@planetbids.com 24 Jun 2025 IP 99.142.81.149 0 nataliebuckner@planetbids.com 14:48 UTC Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 Edg/137.0.0.0 Created by Nataliebuckner@planetbids.com 24 Jun 2025 IP 99.142.81.149 + nataliebuckner@planetbids.com 14:32 UTC Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/137.0.0.0 Safari/537.36 Edg/137.0.0.0 City Council 8 — 14 7/15/2025 EXHIBIT I PlanetBids LLC Agreement - 7-15-25_Executive Dir Sig Need Final Audit Report Created: 2025-06-26 By: Kristin Andrade (kandrade@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAA4iV3wy26Dc5DHF3AgArJH006fMrQWUfh 2025-06-27 "PlanetBids LLC Agreement - 7-15-25_Executive Dir Sig Need" History Document created by Kristin Andrade (kandrade@santa-ana.org) 2025-06-26 - 11:12:21 PM GMT 71 Document emailed to Alexander Trinidad (atrinidad@santa-ana.org) for signature 2025-06-26 - 11:12:43 PM GMT Email viewed by Alexander Trinidad (atrinidad@santa-ana.org) 2025-06-26 - 11:12:52 PM GMT Document e-signed by Alexander Trinidad (atrinidad@santa-ana.org) Signature Date: 2025-06-27 - 0:00:21 AM GMT - Time Source: server Agreement completed. 2025-06-27 - 0:00:21 AM GMT P. Ado . ity ounce 8 — 15 7/15/2025 Information Technology www.santa-ana.org/IT i Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Enterprise Resource Planning System Software and Implementation Services AGENDA TITLE Agreements with Graviton Consulting Services, Inc. and Oracle Corp. for Enterprise Resource Planning (ERP) System Software and Implementation Services (Specification No. 23-132) (Non -General Fund) RECOMMENDED ACTION Approve agreement with Graviton Consulting Services, Inc. for the purchase of Oracle Cloud ERP subscription licensing, for an initial three-year term beginning September 1, 2025, with seven optional one-year renewals, in an aggregate amount not to exceed $5,026,843; and authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided the total cost does not exceed the approved aggregate amount (Agreement No. A-2025- XXX). 2. Approve an agreement with Graviton Consulting Services, Inc. for Oracle ERP implementation services, in an amount not to exceed $4,798,915, for a 35-month term beginning August 1, 2025, and expiring June 30, 2028 (Agreement No. A- 2025-XXX). 3. Approve agreement with Oracle America, Inc. for Public Sector Oracle Cloud Services, to govern the terms and conditions of the Oracle Cloud ERP services (Agreement No. A-2025-XXX). GOVERNMENT CODE 484308 APPLIES: Yes DISCUSSION On July 6, 1998, the City Council approved the purchase of the High Line Corporation's "Personality" payroll and human resources software to be used to comply with Y2K requirements. Since 1999, the City has utilized this system (which was upgraded in 2011 to a newer version called "ePersonality") to process payroll and manage personnel City Council 9-1 7/15/2025 Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 2 information. The system features also included time and attendance tracking, benefits administration, salary and position management, training and development, and labor relations administration. On March 3, 2008, the City Council approved the purchase of the Lawson financial system to replace a legacy mainframe system that was more than 20 years old at the time. This new system has been used since 2009 by all departments to process, track, and report on the City's financial information and transactions. Key functions of this system include general ledger, grant management, projects and activities, accounts payable, cash management, billing, accounts receivable, asset management, requisitions, purchase orders, inventory, business intelligence, and reporting. Together, the High Line and Lawson systems have been meeting the City's ERP needs for 25 years and 16 years, respectively. During that time, High Line Corporation was acquired by NeoGov and Lawson was acquired by Infor. The new owners of these two software systems have continued to support and enhance the systems over the years; and as updates were made available, City staff applied these updates to keep the applications running on supported versions. Although the vendors continue to provide system support and ongoing minor updates, both vendors have declared their systems to be end -of -life and they do not plan to release any new major version upgrades. Instead, they have encouraged customers to migrate to their new cloud -based, subscription versions. On December 6, 2022, the City Council approved an agreement with SDI Presence, LLP (SDI) to assist the City in the evaluation, selection, and negotiation of a new ERP solution. Because of the importance of this solution to meet the City's current and future operational requirements, it was prudent to choose a firm with extensive experience in helping public sector organizations select the appropriate ERP system. With the assistance of SDI, the City conducted an extremely thorough selection process that lasted more than two years. This process included a comprehensive needs assessment conducted by SDI, development and issuance of Requests for Qualifications (RFQ) for software vendors and implementation partners, consultation with staff at other agencies using prospective systems, development of a Request for Proposal (RFP), vendor demonstrations, proof -of -capability presentations, additional requests for clarifications, and, finally, contract negotiations. On December 13, 2023, the City issued RFP No. 23-132 for Enterprise Resource Planning (ERP) system, including Implementation Services on the City's online bid management system to vendors who had been qualified based on the issued RFQs. A summary of vendor participation and results is as follows: City Council 9-2 7/15/2025 Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 3 7 Vendors notified 0 Santa Ana vendors notified 7 Vendors downloaded the RFP packet 5 Proposals received Proposals were opened on February 14, 2024 and evaluated. The five proposals submitted by the RFP deadline were all determined to be responsive to the specifications and met the City's requirements. A selection team consisting of staff from the IT Department (IT), the Finance and Management Services Agency (FM), and the Human Resources Department (HR) evaluated the proposals, participated in half -day demonstrations, and subsequently short-listed the top two candidates to continue in the process. The top two candidates then participated in scripted, week-long, proof -of - capability demonstrations and responded to a Request for Clarifications, which included requests for their best pricing as well as other desired contracting terms and conditions. After careful consideration, the Graviton Consulting Services Inc. proposal to implement the Oracle Fusion Cloud ERP application was the top ranked proposal by the selection team. All five proposing firms' rankings according to the criteria listed in the RFP are as follows: Implementing Vendor Name/Product Location Rank Graviton Consulting Services Inc./Oracle Fusion Cloud Sacramento, CA 1 Cognizant Solutions (Collaborative Solutions)/Workday Teaneck, NJ 2 Avaap USA LLC/Workday Columbus, OH 3 Tyler Tech nolog ies/T ler EERP Yarmouth, ME 4 RPI Consultants/Infor Cloud Suite Baltimore, MD 5 The selected Oracle Fusion Cloud application is a true best of breed, cloud -based, Software as a Service (SaaS) product that will help the City to support business transformation, reduce risk from legacy systems, reduce manual processes, provide robust reporting capabilities, and meet the changing future demands of the City. Having a common foundation across applications provides the standardization that will allow the City to grow over time and see savings quicker by reducing redundant systems and streamlining processes. Oracle's Cloud solution provides shared technology, a common modern user interface, a secure unified data model, and universal easy -to -use reporting and analysis. The City expects to replace multiple stand-alone systems with this single solution. The City will be purchasing the Oracle Fusion Cloud subscriptions through Graviton as a reseller in order to align license purchases with the system implementation plan and to accommodate the City's requested terms and conditions (see Exhibits 2, 3, and 4). City Council 9-3 7/15/2025 Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 4 The City is committing to a minimum three-year agreement with no annual subscription increases. After the third year, the agreement includes seven, optional, one-year renewal periods, that include a subscription uplift that is capped at three -percent (3%). This locks in 10 years of pricing with the ability to cancel in any year after year three. Since subscription pricing is based on both modules utilized and the number of City staff in a given year, the not -to -exceed amount of $5,026,843 has been calculated to allow for fluctuations. During the selection process, the Teller Cashiering system was also selected; however, during planning, the team determined implementing that system was not feasible at this time. The team will re-evaluate replacing the existing cashiering system after the implementation of the ERP begins and may bring the item back to the City Council at a later time for approval of the additional cost. The Oracle Fusion Cloud system will be implemented in two overlapping phases. Phase 1 will be the Human Capital Management (HCM), Learning Management, and Payroll modules. This phase will last 16 months, with a targeted go -live of January 1, 2027. Phase 2 will be the ERP Financial Management modules. This phase will last 18 months, with a targeted go -live of July 1, 2027. The one-time implementation services cost is a not -to -exceed amount of $4,798,915 (see Exhibit 1). The selected platform allows for modular expansion, enabling the City to add new features or functional areas such as procurement enhancements, budgeting tools, or workforce planning as future needs arise. This flexibility ensures the system can evolve alongside the City's operational and strategic goals, supporting long-term efficiency and performance. Modules are licensed by either the number of total city employees or by the number of specific named users, which may be adjusted on an annual basis. To support ongoing adaptability and periodic staffing updates, it is recommended to authorize the City Manager, or their designee, to execute future ordering documents as necessary, provided that the total costs do not exceed the approved aggregate amount. This authorization allows the City to respond promptly to emerging needs to procure additional modules or services without delay, while maintaining strict fiscal control. Such flexibility is critical to maximizing the investment in the Oracle ERP system and ensuring it continues to meet the City's evolving requirements. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding for this project has been planned for and has been accumulated in the fund balance of the Information Technology fund. Funding of $3,000,000 is currently available in the Information Technology Department under the IT Projects accounting unit (10920149) for FY 2025-26 and the fund is projected to have funds to cover the City Council 9-4 7/15/2025 Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 5 implementation and subscription costs for the first three years. Funding for subsequent fiscal years will be included in proposed budgets for City Council consideration. The table below provides an estimated account distribution by fiscal year; however, actual distribution amounts and fiscal years may vary depending on the timing of implementation. Fiscal Accounting Fund Accounting Unit — Amount Year Unit - Account Description Account No. No. Information Description 2025-26 10920149- IT Projects — Computer $461,503 66511 Technology Software Subscriptions 2026-27 10920149- Information IT Projects — Computer $461,503 66511 Technology Software Subscriptions 2027-28 10920141- Information Enterprise Systems — $461,503 66511 Technology Computer Software Subscriptions $475,348 2028-29 10920141- Information Enterprise Systems — 66511 Technology Computer Software Subscriptions 2029-30 10920141- Information Enterprise Systems — $489,608 66511 Technology Computer Software _ Subscriptions $504,297 2030-31 10920141- Information Enterprise Systems — 66511 Technology Computer Software Subscriptions 2031-32 10920141- Information Enterprise Systems — $519,425 66511 Technology Computer Software _ Subscriptions $535,008 2032-33 10920141- Information Enterprise Systems — 66511 Technology Computer Software Subscriptions 2033-34 10920141- Information Enterprise Systems — $551,058 66511 Technology Computer Software Subscriptions 2034-35 10920141- Information Enterprise Systems — $567,590 66511 Technology Computer Software Subscriptions Total $5,026,843 City Council 9-5 7/15/2025 Enterprise Resource Planning System Software and Implementation Services July 15, 2025 Page 6 Fiscal Accounting Fund Accounting Unit — Amount Year Unit - Account Description Account No. No. Description 2025-26 10920149- Information IT Projects — Contract 62300 Technology Professional Services 2026-27 10920149- Information IT Projects — Contract 62300 Technology Professional Services 2027-28 10920149- Information IT Projects — Contract 62300 Technology Professional Services Total EXHIBIT(S) 1. Graviton Consulting Agreement for Implementation Services 2. Graviton Cloud Services Ordering Document - SaaS 3. Graviton Cloud Services Ordering Document — PaaS-laaS 4. Public Sector Agreement for Oracle Cloud Services Submitted By: Jack Ciulla, Chief Technology Innovations Officer Approved By: Alvaro Nunez, City Manager $1,756,235 $ 2,281,067 $ 761,613 $ 4,798,915 City Council 9-6 7/15/2025 AGREEMENT WITH GRAVITON CONSULTING SERVICES, INC. TO PROVIDE ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM AND ORACLE SYSTEM INTEGRATION SERVICES THIS AGREEMENT is made and entered into on this 15th day of July, 2025 by and between Graviton Consulting Services, Inc., a Nevada corporation ("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 City issued Request for Proposal ("RFP") No. 23-132, by which it sought consultants to provide Enterprise Resource Planning (ERP) system and Oracle System Integration Services. B. Consultant submitted a responsive proposal that was among those selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 23-132, which is incorporated herein by reference. C. Consultant represents that Consultant is able and willing to provide such services to the City. D. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $4,798,915.00, which is comprised of the following: (1) a base amount of $4,362,650.00; and (2) a 10% contingency in the amount of $436,265.00 for additional and as -needed services to be exercised at City's sole discretion. Page 1 of 10 City Council 9-7 7/15/2025 b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. City and Consultant agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. Consultant agrees to execute the City's standard ACH Vendor Payment Authorization and provide required documentation. Upon verification of the data provided, the City will be authorized to deposit payments directly into Consultant's account(s) with financial institutions. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on August 1, 2025 and terminate on June 30, 2028, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City 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 Consultant under this Agreement ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City 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 Agreement shall be at City's sole risk. 6. INSURANCE Consultant shall procure and maintain for the duration of the contract insurance against Page 2 of 10 City Council 9-8 7/15/2025 claims for security breaches, system failures, injuries to persons, damages to software, and damages to property (including computer equipment), theft, or other misuse of Customer's data, infringement of intellectual property, invasion of privacy and breach of data, which may arise from or in connection with the performance of the work hereunder by Consultant, its agents, representatives, or employees. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. 2. Technology Professional Liability Errors and Omissions Insurance (E&O): appropriate to the Consultant's profession and work hereunder, with limits not less than $2,000,000 per occurrence and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Consultant in this agreement and shall include, but not be limited to, claims involving business interruption, damage to or destruction of electronic information, and alteration of electronic information. The policy shall provide coverage for Consultant's failure to provide professional services and/or products under this Agreement. The Policy shall include, or be endorsed to include, damage to, alteration of, loss of, or destruction of electronic data and/or information "property" of Customer in the care, custody, or control of Consultant. 3. Automobile Liability (AL): Insurance Services Office Form CA 00 01 covering code 1 (any auto, with limits no less than $1,000,000 combined single limits. 4. Workers' Compensation (W/C): as required by the State of California, with statutory limits, and Employer's Liability insurance with limits of no less than $1,000,000 per accident, policy, employee, for bodily injury or disease. If Consultant maintains broader coverage and/or higher limits than the minimums shown above for any line of coverage, Customer requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Customer. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1. City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Consultant's CGL and E&O policies, with respect to any liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, equipment, and personnel furnished in connection with such work or operations. Page 3 of 10 City Council 9-9 7/15/2025 2. Consultant's Insurance companies agree to waive all rights of subrogation against City of Santa Ana, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Consultant under this Agreement. 3. For any claims related to this contract, Consultant's insurance coverage shall be primary and any insurance maintained by City of Santa Ana, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 4. A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non -renewal due to non- payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: Information Technology Department, 20 Civic Center Plaza, M-42, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self -Insured Retentions Self -insured retentions must be declared to and approved by Customer. Customer may require Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state of California with a current A.M. Best rating of no less than A-NII, unless otherwise acceptable to Customer. Claims Made Policies If any of the required policies provide coverage on a claims -made basis: 1. The retroactive date must be shown and must be before the date of the contract. 2. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of work. 3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the contract effective date, Consultant must purchase "extended reporting" coverage for a minimum of three (3) years after completion of work. Verification of Coverage Consultant shall furnish Customer with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause). Failure to obtain the required documents prior to the work beginning shall not Page 4 of 10 City Council 9-10 7/15/2025 waive Consultant's obligation to provide them. Customer reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Subcontractors Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein. Special Risks or Circumstances Customer reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Failure to Maintain Insurance Coverage If Consultant, for any reason, fails to maintain insurance coverage, which is required pursuant to this Agreement, for the entire term of this contract, the same shall be deemed a material breach of Agreement. Customer, at its sole option, may terminate this Agreement at any time and obtain damages from Consultant resulting from said breach. 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (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 negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this 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 arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product Page 5 of 10 City Council 9 —11 7/15/2025 or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this 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. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, 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 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE a. Consultant 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 under this Agreement. b. No immediate family members of either the Mayor, City Council Member, or any appointed City Official, including appointed board and commission members, as defined under the City's Municipal Code, whose position with the City shall award or influence the award of this Agreement, or any competing contract or amendment thereof, shall be employed in any capacity by the Consultant or have any other direct or indirect financial benefit or interest in this Agreement. c. The section also prohibits the awarding of any agreement, contract, grant, or any Page 6 of 10 City Council 9 — 12 7/15/2025 amendment to those awards, to any former full-time employee for one-year from date of employee separation except for any Ca1PERS retiree as authorized by City Council resolution d. The Consultant must comply with all conflict of interest laws, ordinances, and regulations now in effect or hereafter to be enacted during the term of this Agreement. The Consultant warrants that it is not now aware of any facts which conflict with the prohibitions defined above. If the Consultant hereafter becomes aware of any facts that might reasonably be expected to create a conflict of interest, it must immediately make full written disclosure of such facts to the City. Full written disclosure must include, but is not limited to, identification of all persons implicated and a complete description of all relevant circumstances. Failure to comply with the provisions of this paragraph will be a material breach of this Agreement. e. Consultant covenants that none of its directors, officers, employees, or agents shall participate in selecting or administrating any subcontract supported (in whole or in part) by City funds stemming from the Agreement where the awarding of the subcontract has any direct or indirect financial benefit or interest to any individual, as defined in subsections (b) and (c) above. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. 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 Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or 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 Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Page 7 of 10 City Council 9 — 13 7/15/2025 Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this 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 writing so specifies. 17. JURISDICTION - VENUE This 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 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 this Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term of this 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 of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. Page 8 of 10 City Council 9 — 14 7/15/2025 19. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this 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 communication in the manner provided in this Section, to the following persons: To City: City Clerk City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Chief Technology Innovations Officer, IT Department City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 To Consultant: Greg Catanzano Chief Executive Officer Graviton Consulting Services 8801 Folsom Blvd, Suite 120 Sacramento, CA, 95826 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, 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 time frames, weekends, federal, state, County or City holidays shall be excluded. 20. MISCELLANEOUS PROVISIONS 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 Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. Page 9 of 10 City Council 9 — 15 7/15/2025 b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By onathan T. Martinez Assistant City Attorney CITY OF SANTA ANA Alvaro Nunez City Manager RECOMENDED FOR APPROVAL Jack Ciulla Chief Technology Innovations Officer Information Technology Department GRAVITON CONSULTING SERVICES, INC. Z4 reg C tanza o Chief Executive Officer Graviton Consulting Services, Inc. Page 40 of 40 City Council 9 — 16 7/15/2025 EXHIBIT A SCOPE OF SERVICES City Council 9 — 17 7/15/2025 City of Santa Ana, CA RFP No. 23-132 ERP System, Including Implementation Services 4 ERP System Requirements 4.1 Required Functionality The City is seeking a highly integrated system that can serve as many of the City's various department's needs as possible. Table 5, Required Functionality, identifies the solution functionality that is required to be supported by any solution proposed in response to this RFP; if such solution does not offer the specified functionality directly, a 3rd party solution with which the proposed solution has been previously, successfully implemented in a comparable project for another public sector client must be proposed. Table 5 — Required Functionality I•I IL u.� . General Ledger (GL) / Accounting Employee Master File Budgeting, including Position Control Recruiting Procurement / Purchasing Onboarding Accounts Payable Benefits Administration / Open Enrollment Accounts Receivable / General Billing Leave Administration Vendor Management Learning Management Cash Receipts / Cashiering Performance Management Capital Asset Management Training and Certification Grant Management Personnel Actions Inventory Management Employee Self Service Contracts Management Time and Attendance Payroll Processing / Administration / Management Separation / Off -boarding Bank Reconciliation Financial Statements/Reporting Project Accounting 4.2 Additional System Functionality The City is interested in adopting modern, automated tools that support financial and human resources best practices. Key functionality in these areas would include, but not be limited to: dashboards, mobility, employee portal with electronic time reporting, vendor portal, workflow, robust inquiry and reporting capabilities, etc. Specific functional requirements have been provided in Appendix A— Requirements. 4.3 Required Interfaces Table 6, Required Interfaces, identifies several additional systems in use across the City for which interfaces with the replacement financial and/or human resources management systems will be required. Vendor proposals should identify each of these required interfaces and include the necessary work effort related to and cost of these interfaces; a detailed list of system integration requirements is included in Appendix A — ERP Requirements. 8-1 11 City Council 9 — 18 7/15/2025 City of Santa Ana, CA RFP No. 23-132 ERP System, Including Implementation Services Table 6 — Required Interfaces Department Citywide Laserfiche Document Management Parks & Recreation CivicRec Activity and site reservations Human Resources eSkill Pre -employment Testing and analysis Finance Business License Business License Tax Processing and Management Finance Questica Budget Preparation Finance/Public Works enQuesta Utility Billing & Customer Information Management Finance enQuesta Utility Billing Finance iNovah Cashiering Finance Custom Outbound/Inbound check file Finance Custom Inbound CC payments Police Department InTime Scheduling/timesheets Planning & Building/Public Works Clariti (To be implemented 2024) Replaces Santa Ana Property Information Network (SAPIN) Property Information & Tracking, Permitting, Inspections, Occupancy, Code Enforcement Human Resources Keenan Benefit Bridge Open Enrollment / Benefits Human Resources Insight Online Job Applicant Tracking Human Resources Onboard Employee onboarding Human Resources Perform Performance Management Human Resources Target / Vector Solutions Employee Training Management Human Resources Meridian Learning Management System Human Resources Adminsure Workers' Compensation claims management 4.4 Data Conversion The City desires to retain, convert and load its current and historical data (including records, libraries, supporting documents, and related file attachment meta -data) to the Future System. Table 7, Data Conversion Requirements, provides a list of data by functional areas and a description; a detailed list of data conversion requirements is included in Appendix A — ERP Requirements. City Council 9 — 19 7/1 5/225 1 12 City of Santa Ana, CA RFP No. 23-132 ERP System, Including Implementation Services Table 7 — Data Conversion Requirements RepositoryCurrent Infor Lawson ERP • General ledger financial data, vendor Information, customer (Current data goes back to 2006) information, budget data, project data, capital asset data, purchase orders, grant data, payment voucher data, customer invoices, payment data/history, contracts, inventory, various financial reports including but not limited to Trial Balance, Revenues & Expenditure ledgers. Questica • Budget detail data (Current data goes back to 2018) • Budget summary data High Line Corp. • Employee data, payroll history, job history, benefit elections, (Current data goes back to 2000) position data/history, performance data, training history, accrual balances. 4.5 Implementation Timeline The City is seeking guidance from the Proposers based on their experience for the recommended module phasing and timing. Proposers should clearly communicate all key assumptions along with their proposed schedule. The City is open to suggestions for how best to implement the Proposer's solution. The Proposer's recommended implementation timeline should be clearly articulated in their proposal response as described in Section 6 — Implementation Approach and Work Plan under the Proposal Submission Requirements discussed in Section 5 of this document. 4.6 Requirements Proposers must respond to the ERP Requirements included in Appendix A— ERP Requirements; responses should be entered into the document. Proposers are to respond to each of these requirements with one of the following response codes: • Y — Meets Requirement • N — Does Not Meet Requirement • W/C — Workaround Proposed or Customization Needed to Meet Requirement • T— Third -Party Solution to Meet Requirement Response Codes "Y" and "N" do not require written responses/comments unless the Proposers wish to present additional benefits or opportunities related to their solution and the requirement. However, response codes "W/C" and "T" do require written responses. For these response codes, Proposers must describe how the requirement will be met. City Council 9 — 20 7/1 5/225 1 13 EXHIBIT B COSTS - FEE PROPOSAL City Council 9 — 21 7/15/2025 EXHIBIT B COMPENSATION Fee Proposal including hourly rates if applicable The tables below represent the payment schedule for the implementation of Oracle Cloud for the City. For each payment, the table lists the estimated completion date and amount. Phase 1 HCM Implementation Payment Schedule No. 1 WBS ID 1.0.1 WWDeliverable Project Management Month 1 Estimated Completion Date 09/30/25 $25,000.00 2 1.2.1 Requirements, Use Cases, BPMs 10/10/25 $17,934.51 3 1.0.2 Project Management Month 2 10/31/25 $40,000.00 4 1.2.2 Business Process Familiarization 11/07/25 $56,550.28 5 1.0.3 Project Management Month 3 11/30/25 $40,000.00 6 1.0.4 Project Management Month 4 12/31/25 $40,000.00 7 1.3.2 CEMLI Cycle 1 01/02/26 $136,976.34 8 1.2.3 Conference Room Pilot 1 01/30/26 $80,635.49 9 1.0.5 Project Management Month 5 01/31/26 $40,000.00 10 1.0.6 Project Management Month 6 02/28/26 $40,000.00 11 1.3.3 CEMLI Cycle 2 03/27/26 $131,740.42 12 1.0.7 Project Management Month 7 03/31/26 $40,000.00 13 1.2.4 Conference Room Pilot 2 04/24/26 $71,210.85 14 1.0.8 Project Management Month 8 04/30/26 $40,000.00 15 1.0.9 Project Management Month 9 05/31/26 $40,000.00 16 1.3.4 CEMLI Cycle 3 06/19/26 $134,881.97 17 1.0.10 Project Management Month 10 06/30/26 $40,000.00 18 1.2.5 Conference Room Pilot 3 07/17/26 $65,974.93 19 1.0.11 Project Management Month 11 07/31/26 $40,000.00 20 1.3.5 CEMLI Cycle 4 08/21/26 $83,567.61 21 1.0.12 Project Management Month 12 08/31/26 $40,000.00 22 1.0.13 Project Management Month 13 09/30/26 $40,000.00 23 1.2.6 System Test 10/16/26 $142,421.69 24 1.0.14 Project Management Month 14 10/31/26 $40,000.00 25 1.3.6 CEMLI Cycle 5 11/13/26 $76,237.32 26 1.0.15 Project Management Month 15 11/30/26 $40,000.00 27 1.2.7 User Acceptance Test 12/11/26 $49,220.00 28 1.0.16 Project Management Month 16 12/31/26 $40,000.00 29 1.3.7 Production Cutover 01/01/27 $36,653.80 30 1.0.17 Project Management Month 17 01/31/27 $40,000.00 31 1.2.8 Production Support 03/26/27 $50,264.79 $1,799,270.00 ouncil 9-22 1113: N 16s6�©��R��ES Phase 2 ERP Implementation Payment Schedule ar 1 2.2.0 Deliverable Chart of Accounts Design Estimated Completion Date 01/02/26 Amount $58,840.81 2 2.0.1 Project Management Month 1 01/31/26 $15,000.00 3 2.2.1 Requirements, Use Cases, BPMs 02/27/26 $15,467.90 4 2.0.2 Project Management Month 2 02/28/26 $15,000.00 5 2.2.2 Business Process Familiarization 03/27/26 $74,145.19 6 2.0.3 Project Management Month 3 03/31/26 $50,000.00 7 2.0.4 Project Management Month 4 04/30/26 $50,000.00 8 2.3.2 CEMLI Cycle 1 05/22/26 $123,327.61 9 2.0.5 Project Management Month 5 05/31/26 $50,000.00 10 2.2.3 Conference Room Pilot 1 06/19/26 $89,524.03 11 2.0.6 Project Management Month 6 06/30/26 $50,000.00 12 2.0.7 Project Management Month 7 07/31/26 $50,000.00 13 2.3.3 CEMLI Cycle 2 08/14/26 $147,064.52 14 2.0.8 Project Management Month 8 08/31/26 $50,000.00 15 2.2.4 Conference Room Pilot 2 09/18/26 $60,103.63 16 2.0.9 Project Management Month 9 09/30/26 $50,000.00 17 2.0.10 Project Management Month 10 10/31/26 $50,000.00 18 2.3.4 CEMLI Cycle 3 11/13/26 $147,064.52 19 2.0.11 Project Management Month 11 11/30/26 $50,000.00 20 2.2.5 Conference Room Pilot 3 12/18/26 $60,103.63 21 2.0.12 Project Management Month 12 12/31/26 $50,000.00 22 2.3.5 CEMLI Cycle 4 01/29/27 $59,212.10 23 2.0.13 Project Management Month 13 01/31/27 $50,000.00 24 2.0.14 Project Management Month 14 02/28/27 $50,000.00 25 2.2.6 System Test 03/26/27 $149,293.34 26 2.0.15 Project Management Month 15 03/31/27 $50,000.00 27 2.3.6 CEMLI Cycle 5 04/23/27 $56,314.64 28 2.0.16 Project Management Month 16 04/30/27 $50,000.00 29 2.2.7 User Acceptance Test 05/21/27 $67,570.17 30 2.0.17 Project Management Month 17 05/31/27 $50,000.00 31 2.0.18 Project Management Month 18 06/30/27 $50,000.00 32 2.3.7 Production Cutover 07/02/27 $97,919.08 ouncil 9-23 1113: N 1&2©,2&------ Estimated . . .. 33 2.0.19 Project Management Month 19 07/31/27 $50,000.00 34 2.2.8 Production Support 10/01/27 $92,718.85 $2,178,670.00 Optional Services 1 Optional Oracle Fusion Analytics Implementation Services $84,710.00 2 Optional Cardon Solutions Implementation Services $300,000.00 ouncil 9-24 Graviton Consultant Agreement for City of Santa Ana (with exhibits) CAO signed(2070609.1) GC Final Audit Report 2025-06-30 Created: 2025-06-30 By: MELANIE TORRES (MTorres@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAAbt6teyhpolPwZsUWThDugYoKMH6r5xos "Graviton Consultant Agreement for City of Santa Ana (with exhi bits) CAO signed(2070609.1) GC" History Document created by MELANIE TORRES (MTorres@santa-ana.org) 2025-06-30 - 3:24:54 PM GMT Document emailed to Jack Ciulla Qciulla@santa-ana.org) for signature 2025-06-30 - 3:25:02 PM GMT Email viewed by Jack Ciulla Qciulla@santa-ana.org) 2025-06-30 - 3:25:07 PM GMT &0 Document e-signed by Jack Ciulla Ociulla@santa-ana.org) Signature Date: 2025-06-30 - 3:25:21 PM GMT - Time Source: server Agreement completed. 2025-06-30 - 3:25:21 PM GMT Ado i ounce . y 9 — 25 7/15/2025 Partner Name Graviton Consulting Services Inc. Partner Contact Greg Catanzano Partner Address 8801 Folsom Blvd, Ste 120 Phone Number (949) 466-7426 Sacramento CA 95826 Email Address acatanzano anaravitonconsultina.com End User Name CITY OF SANTA ANA End User Technical Contact Jack Ciulla End User Address 20 Civic Center Plz FL 8 Phone Number +1 (714) 647-5381 Santa Ana, CA 92701 Email Address jciulla a.santa-ana.orq New Subscription Data Unit Net Cloud Services Center Quantity Term List Fee Price Net Fee Region B91084 — Oracle Fusion Enterprise Resource North 1500 36 mo 2,079,000.00 3.47 187,110.00 Planning Cloud Service — Hosted Employee America B91086 — Oracle Fusion Procurement Cloud Service North 1500 36 mo 2,079,000.00 3.47 187,110.00 — Hosted Employee America B91064 — Oracle Fusion Supply Chain Execution North 1500 36 mo 1,485,000.00 2.48 133,650.00 Cloud Services — Hosted Employee America B84490 — Oracle Additional Test Environment for North 1 36 mo 247,500.00 618.75 22,275.00 Oracle Fusion Cloud Service — Each America B86841 — Oracle Fusion Document Recognition North 1500 36 mo 118,800.00 0.20 10,692.00 Cloud Service — Hosted Employee America B85800 — Oracle Fusion Human Capital Management North 1500 36 mo 891,000.00 1.49 80,190.00 Base Cloud Service — Hosted Employee America B87388 — Oracle Fusion Human Resource Help Desk North 1500 36 mo 237,600.00 0.40 21,384.00 Cloud Service — Hosted Employee America B95499 — Oracle Fusion HCM Communicate Cloud North 1500 36 mo 118,800.00 0.20 10,692.00 Service — Hosted Employee America B94925 — Oracle Fusion Talent Management Cloud North 1500 36 mo 415,800.00 0.69 37,422.00 Service — Hosted Named User America B75365 — Oracle Fusion Time and Labor Cloud North 1500 36 mo 178,200.00 0.30 16,038.00 Service — Hosted Named User America B84490 — Oracle Additional Test Environment for North 1 36 mo 247,500.00 618.75 22,275.00 Oracle Fusion Cloud Service — Each America B85242 — Oracle Fusion Learning Cloud Service — North 1500 36 mo 297,000.00 0.50 26,730.00 Hosted Named User America B95657 — Oracle Fusion Learning Connect Cloud North 1500 36 mo 118,800.00 0.20 10,692.00 Service — Hosted Named User America B86669 — Oracle Cloud Priority Support for SaaS: North 1 36 mo 49,500.00 1,237.50 44,550.00 Base Fee America B86668 — Oracle Cloud Priority Support for SaaS North 1 36 mo 58,271.40 1,456.79 52,444.26 America B91085 — Oracle Fusion Risk Management Cloud North 1500 36 mo 712,800.00 1.19 64,152.00 Service — Hosted Employee America B86668 — Oracle Cloud Priority Support for SaaS North 1 36 mo 26,195.40 654.89 23,575.86 America B110322 — Oracle Fusion Payroll Cloud Service for North 1500 36 mo 594,000.00 148.50 53,460.00 United States — Hosted Compensated Individual I America CPQ-3330527 - 1CIty CoU11Cll ISSUE? by (-&iton Consulting Services, Inc. 7/1562042025 Page 1 of 6 Data Unit Net Cloud Services Center Quantity Term List Fee price Net Fee Region B109620 — Oracle Fusion Workforce Compensation North 1500 36 mo 5,346.00 133.65 4,811.40 Cloud Service — Hosted Compensated Individual America B91920 — Oracle Enterprise Data Management North 10 36 mo 415,800.00 0.69 37,422.00 (EDM) Cloud Service — Hosted 1,000 Records America B86668 — Oracle Cloud Priority Support for SaaS North 1 36 mo 237,600.00 0.40 21,384.00 America Subtotal 10,613,512.80 $1,068,059.52 Fee Description Net Fee Cloud Services Fees $1,068,059.52 Total Fees $1,068,059.52 CPQ-3330527 - 1CIty CoU11Cll ISSUE? by (27viton Consulting Services, Inc. 7/1 5/,2PZ52025 Page 2 of 6 A. DESCRIPTION AND PRICES FOR ORDERED CLOUD SERVICES 1. Cloud Services Ordered City of Santa Ana, CA ("City", "You", "Your", or "End User"), has ordered the cloud services described above from Graviton Consulting Services, Inc. ("Graviton"). Your use of these cloud services is subject to the terms in this Ordering Document (the "Order" or "Ordering Document") and the Oracle Cloud Services executed between You and Oracle America, Inc. B. TERMS AND FEES FOR ORDERED CLOUD SERVICES 1. Oracle Contract Information a. Agreements. End User Cloud Services Agreement. The end user cloud services agreement applicable to this order is the following: Oracle Cloud Services Agreement 2. Currency a. All fees on this order are in US Dollars. 3. Terms US-CSA-CPQ-3330527 Effective Version Date: v062223 a. All products and services listed on this order are provided by Oracle under, and subject to, the terms of this order, including the agreement and all Oracle documents referenced in this order. You indicate your agreement to the terms of this order, including the agreement, by signing this order, and you represent that you have the authority to bind the company to whom this order is addressed above to the terms of this order and the agreement. As applicable, Oracle processes a partner's order after receipt of a purchase order or a valid credit card. Any terms and conditions on your purchase order are void and have no legal effect. For cloud services, you may not reduce the quantity of services purchased hereunder for distribution to the end user (e.g., user or record counts, storage, etc.), in whole or in part, during the Services Period set forth above. The Services Period for the cloud services commences on September 15, 2025. 4. Fees a. The cloud services payment frequency applies to all cloud services fees and taxes. All fees payable to Graviton are due 45 days from the invoice date. Once placed, your order is non -cancelable and the sums paid nonrefundable, except as otherwise provided herein or in the agreement. You will pay any sales, value-added or other similar taxes imposed by applicable law that Graviton must pay based on the cloud services you ordered, except for taxes based on Graviton's income. Unless specifically stated otherwise, fees for cloud services listed in this order are exclusive of taxes and expenses. You agree not to disclose the terms of this order to any third party. Cloud Services Payment Frequency: Your payment frequency is Quarterly. 5. Offer Validity a. This order is valid through 30-SEP-2025 and shall become binding upon execution by you and acceptance by Graviton. 6. Price Hold for Cloud Services During the Services Period, you may order additional quantities of the cloud services acquired under this order for distribution to the end user at the Unit Net Price specified above. This price hold does not apply to Eloqua Marketing Platform Cloud Service, to any Customer Success Services listed as cloud services in the Services Ordered table of this order (including, without limitation, Cloud Priority Support for SaaS, Enhanced Support Services for SaaS, Mission Critical Response for SaaS, Solution Support Center for SaaS, Oracle Mission Critical Support for SaaS, Oracle Critical Process Management for SaaS, Oracle Regression Testing Services for SaaS, Oracle Business Help Desk for SaaS, or Oracle Extensions and Integrations Support for SaaS), to any renewals or extensions of the cloud services ordered hereunder, to cloud services ordered pursuant to a separate Oracle discount or promotion, or to any cloud services other than those listed in the initial purchase under this order. 7. Non -Appropriation In the event the City has not appropriated funds for a new fiscal year period, and the City provides Graviton and Oracle with written notice of such non - appropriation, you may terminate this order immediately without penalty or expense; provided, however, that: (a) for each of the 12-month terms of the order, you must provide a purchase order, and (b) your issuance of each 12-month purchase order shall signify to Graviton and Oracle that all funds for the given 12-month term have been fully appropriated and encumbered by the City. In the event that the City provide the written notice as described above to terminate its order with Graviton for the cloud services specified in the tables above section A, you may terminate this order. Notwithstanding the foregoing, you agree to pay for all cloud services performed by Oracle prior to Oracle's receipt of the City's notice of non -appropriations and your written confirmation that the order between you and Graviton for the cloud services specified in the table above section A have been terminated. 8. No Auto -Renewal Notwithstanding any statement, to the contrary in the service specifications, the parties expressly agree that the cloud services acquired under this order will not auto -renew. CPQ-3330527 - 1CIty CoU11Cll ISSUE? by (28viton Consulting Services, Inc. 7/15/J2Q42025 Page 3 of 6 9. Rebalancing Notwithstanding anything to the contrary in this order and subject to the conditions specified below, you have the option to re -allocate the User and Usage quantities ("Rebalance" or "Rebalancing") among the following Oracle Cloud Services (and associated optional services) listed in this order as applicable but only within a pillar (as defined below): Oracle Fusion Cloud, Taleo Enterprise Cloud Services, Eloqua Cloud Services, Oracle RightNow Cloud Services and BigMachines Cloud Services. For the purposes of this Rebalance option, a pillar is equal to one of the following: CX, HCM or ERP. By providing Graviton and Oracle with written notice of your intent to exercise the option to Rebalance, you may exercise the option to Rebalance provided that: a. you may only Rebalance with respect to Cloud Services subscriptions that you have already purchased from Graviton and that are still in effect at the time of the Rebalancing; b. you may only Rebalance with respect to subscription Cloud Services (e.g., bases and options) and you may not apply Rebalancing to other services (such as managed services or professional/consulting services) or operational services such as Additional Test Environment or Virtual Private Network, which are not a user based metric or a usage based metric; c. you may Rebalance once within the first 12 months from the Cloud Services Start Date of this order, and once within the following 12 month period; d. you provide your Graviton sales representative with 30 days prior written notice of your intent to exercise the Rebalance (with the 30 day notice period being the "Thirty Day Period"), and you issue a new PO for the new or amended order (that reflects the results of the Rebalance) with a new invoicing schedule; e. you enter into a new or amended order with Graviton for distribution to the end user reflecting the results of the Rebalance within the Thirty Day Period; f. your annual renewable revenue, with respect to Cloud Services, has not decreased; g. you may not use this Rebalance option with any products that have pooled usage or in conjunction with any Oracle Cloud promotions; h. you may not Rebalance any fees which have already been used or that have already been applied to Cloud Services under this order; i. Rebalancing conversions are based on the list prices of the applicable Cloud Services as of the date of your original order; and j. Oracle may contact the City directly to confirm its consent to the Rebalancing (without which Oracle is not obligated to proceed with the Rebalancing) and to coordinate any related end user actions that may be required. 10. Option periods You shall have an option to renew your subscription for the same services listed in the table above at the same usage limits for Seven (7) additional 12 Months renewal periods, each "Option Period" for the fees specified. Professional Services are not included in the Periods. You must provide Graviton a minimum of 30 days' notice prior to the expiration of a service term of your intent to exercise an Option Period and you must execute an order for the new option period prior to the expiration date of the existing service period. The cloud services listed above may not be renewed at the option year pricing listed above if: (i) Oracle is no longer making such cloud services generally available to customers, or (ii) You are seeking to cancel or reduce the number of user licenses of the cloud services set forth in this ordering document. Option Period 1: (commencing the day after the last day of the Services Period specified on this order): $[Total 12-month annualized Cloud Services fees for the Services Period under this order] x 1.03% Option Period 2: $[Total 12-month annualized Cloud Services fees for Option Year 1] x 1.03% Option Period 3: $[Total 12-month annualized Cloud Services fees for Option Year 2] x 1.03% Option Period 4: $[Total 12-month annualized Cloud Services fees for Option Year 3] x 1.03% Option Period 5: $[Total 12-month annualized Cloud Services fees for Option Year 4] x 1.03% Option Period 6: $[Total 12-month annualized Cloud Services fees for Option Year 5] x 1.03% Option Period 7: $[Total 12-month annualized Cloud Services fees for Option Year 6] x 1.03% The order is subject to and incorporates the terms and conditions contained in Section C set forth below ("Additional End User Terms"). Oracle is an irrevocable third party beneficiary of the order between you and Graviton, but does not assume any of Graviton's obligations thereunder. Oracle will have no liability to the City arising out of or relating to Graviton's non-compliance with the End User Terms. Should the City fail to be in compliance with the additional End User Terms below, or because of any other circumstance outside of Oracle's control, Oracle may suspend or terminate the cloud services under this ordering document. In the event of termination, the end user's right to receive cloud services under this ordering document is automatically forfeited. 11. Price Hold For a period of 60 months from the Cloud Services Start Date of this order, You may order the Cloud Services specified below at the appropriate fee specified below, provided the Cloud Services are available in production release when ordered. Part No. Description Metric Monthly Fee B91150 Fusion ERP Analytics Hosted Named User Per Month 49.5 B98137 Oracle Fusion HCM Analytics Hosted Named User 49.5 CPQ-3330527 - 1CIty Council ISSUE? by (29iton Consulting Services, Inc. 7/1 5/j2QZ52025 Page 4 of 6 C. ADDITIONAL END USER TERMS 1. Additional End User Terms To Include In The End User Order a. The order is subject to and incorporates the terms and conditions contained in this section C in the form set forth below ("End User Terms"). Oracle is an irrevocable third party beneficiary of the order between Graviton and the City, but does not assume any of Graviton's obligations thereunder. Oracle will have no liability to the City arising out of or relating to the City's non-compliance with the End User Terms. Should the City fail to be in compliance with the additional End User Terms below, or because of any other circumstance outside of Oracle's control, then you agree Oracle may suspend or terminate the cloud services under this order. In the event of termination, the end user's right to receive cloud services under this order is automatically forfeited by you. 2. Non -Appropriation In the event funds are not appropriated for a new fiscal year period, You may terminate this order immediately without penalty or expense upon written notice to Graviton and to Oracle; provided, however, that: (a) for each of the 12-month terms of the order, You must provide a purchase order, and (b) Your issuance of each 12-month purchase order shall signify to Oracle that all funds for the given 12-month term have been fully appropriated and encumbered. Notwithstanding the foregoing, You agree to pay for all Services performed by Oracle prior to Oracle's and Graviton's receipt of Your notice of non -appropriation." 3. No Auto -Renewal Notwithstanding any statement to the contrary in the Service Specifications, You expressly agree that the Cloud Services acquired under this order will not auto -renew. 4. Option Periods You shall have an option to renew your subscription for the same services listed in this order at the same usage limits for Seven (7) additional 12 Months renewal periods, each "Option Period" for additional fees to be determined by Graviton. Professional Services are not included in the Option Periods. You must provide Graviton a minimum of 30 days' notice prior to the expiration of a service term of your intent to exercise an Option Period and execute an order for the new option period prior to the expiration date of the existing service period. The Cloud Services listed above may not be renewed at the option period pricing listed above if: (i) Oracle is no longer making such Cloud Services generally available to customers, or (ii) You are seeking to cancel or reduce the number of user licenses of the Cloud Services set forth in this order." D. Other 1. Order of Precedence In the event of inconsistencies between the terms contained in this order and the agreement referenced above, this order shall take precedence. This order will override and control over the terms contained in any purchase order. E. Modification to the End User Cloud Services Agreement 1. Limitation of Liability For the purposes of this order only, delete Section 7.2 under Section 7 (Limitation of Liability) of the End User Cloud Services Agreement and replace with the following: "IN NO EVENT SHALL THE AGGREGATE LIABILITY OF ORACLE AND OUR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR YOUR ORDER, WHETHER IN CONTRACT, TORT, OR OTHERWISE, EXCEED THE TOTAL AMOUNTS PAID AND PAYABLE UNDER YOUR ORDER FOR THE ORACLE PRODUCTS OR SERVICES GIVING RISE TO THE LIABILITY DURING THE THIRTY-SIX (36) MONTHS IMMEDIATELY PRECEDING THE DATE OF THE EVENT GIVING RISE TO THE LIABILITY." 2. Governing Law For the purposes of this order only, add the following as a new Section 18.6 under Section 18 (Other) of the End User Cloud Services Agreement: "This agreement is governed by the substantive and procedural laws of the State of California." CPQ-3330527 - 1CIty COUIICIi ISSUE? by (9@iton Consulting Services, Inc. 7/1 5/i2QZ52025 Page 5 of 6 F. NOT TO EXCEED CONTRACT AMOUNT The total amount to be expended on all PaaS, IaaS, and SaaS services during the term of this agreement, including any option periods, shall not exceed $5,027,000.00. The City Manager or their designee shall have authority to execute PaaS, IaaS, and/or SaaS Ordering Documents during the term of this agreement, including any option periods, provided the City's cumulative expenditures under such Ordering Documents do not exceed $5,027,000.00. This Section shall apply to all future ordering documents from September 1, 2025 — August 31, 2028, and any optional extensions exercised by the Parties, as approved by the City Council for the City of Santa Ana on July 15, 2025 G. ENTIRE AGREEMENT By signing below, we each agree that the agreement and this order constitute the entire agreement between You and Graviton with regard to the subject matter herein and as such, no other preprinted, non -negotiated or other terms and conditions on any document provided by partner or end user (e.g., on a purchase order or elsewhere) shall apply. This order is placed subject to the terms of the agreement. The signature below affirms your commitment to pay for the cloud services ordered in accordance with the terms of this order and the agreement. ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By athan T. Martinez Assistant City Attorney CITY OF SANTA ANA Alvaro Nunez City Manager RECCOMENDED FOR APPROVAL Jack Ciulla Chief Technology Innovations Officer Information Technology Department GRAVITON CONSULTING SERVICES, INC. Greg Ca anza o Chief Executive Officer Graviton Consulting Services, Inc. CPQ-3330527 - lCIty Council ISSUE? by (gAviton Consulting Services, Inc. 7/1 5/J2QZ52025 Page 6 of 6 Graviton OD-3330527 (Baas) City of Santa Ana, CA 2.0 (reed 6-26-2025) - CAO signed(2070607.2) Final Audit Report Created: 2025-06-30 By: MELANIE TORRES (MTorres@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAAg_XjBGnLgloSLHmDuGWYBCAaXphray8e 2025-06-30 "Graviton OD-3330527 (SaaS) City of Santa Ana, CA 2.0 (rec'd 6-26-2025) - CAO signed(2070607.2)" History Document created by MELANIE TORRES (MTorres@santa-ana.org) 2025-06-30 - 3:23:38 PM GMT Document emailed to Jack Ciulla Qciulla@santa-ana.org) for signature 2025-06-30 - 3:23:42 PM GMT Email viewed by Jack Ciulla Qciulla@santa-ana.org) 2025-06-30 - 3:23:53 PM GMT &0 Document e-signed by Jack Ciulla Ociulla@santa-ana.org) Signature Date: 2025-06-30 - 3:24:57 PM GMT - Time Source: server 49 Agreement completed. 2025-06-30 - 3:24:57 PM GMT Ado i y ounce . 9 — 32 7/15/2025 Partner Name Graviton Consulting Services Inc. Partner Contact Greg Catanzano Partner Address 8801 Folsom Blvd, Ste 120 Phone Number (949) 466-7426 Sacramento CA 95826 Email Address acatanzanoaaravitonconsultina.com End User Name CITY OF SANTA ANA End User Technical Contact Jack Ciulla End User Address 20 Civic Center Plz FL 8 Phone Number +1 (714) 647-5381 Santa Ana, CA 92701 Email Address jciulla santa-ana.org New Subscription Data Center Quantity Funded Cloud Services Term Region Allocation Value B88206 - Oracle PaaS and IaaS North 26100 12 mo 26,100.00 Universal Credits America Subtotal 26,100.00 Fee Description Net Fee Cloud Services Fees 26,100.00 Total Fees 26,100.00 City Council ISSUE? by (91ton Consulting Services, Inc. 7/1 5/,2Q42025 Page 1 of 37 Rate Card Pricing for IaaS/PaaS Public Cloud Services B88206 - Oracle PaaS and IaaS Universal Credits Cloud Service Category Discounts Cloud Service Category Discount % Management Cloud Service 0 Big Data Cloud Service 0 Application Development Cloud Service 0 Content Management Cloud Service 0 Analytics Cloud Service 0 Storage Cloud Service 0 Security and Identity Management Cloud Service 0 Enterprise Integration Cloud Service 0 Data Integration Cloud Service 0 Network Cloud Service 0 Compute Cloud Service 0 Data Management Cloud Service 0 Not Discount Eligible 0 City Council Issueg by C94viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 2 of 37 Usage Item Description Metric List Price Overage Net Unit Price Management Cloud Service B109358 - Oracle Cloud Infrastructure-MySQL Database- OCPU Per Hour 0.015 0.015 Oracle Ops Insights for MySQL HeatWave B109359 - Oracle Cloud Infrastructure-MySQL Database - Oracle Ops Insights for MySQL HeatWave ECPU Per Hour 0.0075 0.0075 B92809 - Oracle Cloud Infrastructure Logging Analytics-Archival Storage Logging Analytics Storage Unit 0.02 0.02 Per Hour B92888 - Oracle Cloud Infrastructure Ops Insights for Oracle Autonomous Databases -Basic OCPU Per Hour 0.0 0.0 B92889 - Oracle Cloud Infrastructure Ops Insights for Cloud Databases OCPU Per Hour 0.015 0.015 B92890 - Oracle Cloud Infrastructure Ops Insights for External Oracle Databases and Host Host CPU Core Per Hour 0.015 0.015 B92940 - Oracle Cloud Infrastructure Application Performance Monitoring Service -Tracing Data -Free 1,000 Events Per Hour 0.0 0.0 B92941 - Oracle Cloud Infrastructure Application Performance Monitoring Service -Tracing Data 100,000 Events Per Hour 0.65 0.65 B92942 - Oracle Cloud Infrastructure Application Performance Monitoring Service -Synthetic Usage 10 Monitor Runs Per Hour 0.02 0.02 B93082 - Oracle Cloud Infrastructure -Database Management - External DB BYOL Host CPU Core Per Hour 0.025 0.025 B93083 - Oracle Cloud Infrastructure -Database Management - External DB Host CPU Core Per Hour 0.05 0.05 B93426 - Oracle Cloud Infrastructure -Database Management - Cloud Databases OCPU Per Hour 0.05 0.05 B93705 - Oracle Cloud Infrastructure Ops Insights for Warehouse -Extract Gigabyte Per Month 2.0 2.0 B93706 - Oracle Cloud Infrastructure Ops Insights for Warehouse -Instance OCPU Per Hour 0.5377 0.5377 B95634 - Oracle Cloud Infrastructure Logging Analytics-Active Storage Logging Analytics Storage Unit 372.0 372.0 Per Month 0 - 35 City Council ISSUE? by C9&iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 3 of 37 Usage Item Description Metric List Price Overage Net Unit Price Logging Analytics Storage Unit 260.4 260.4 Per Month 35 - 103 Logging Analytics Storage Unit Per Month 103 - 223.2 223.2 999999999999999 B96199 - Oracle Cloud Infrastructure Ops Insights for Oracle Autonomous Databases -Basic ECPU Per Hour 0.0 0.0 B96200 - Oracle Cloud Infrastructure -Database Management - Autonomous Databases-ECPU ECPU Per Hour 0.025 0.025 B96629 - Oracle Cloud Infrastructure -Application Performance Monitoring Service -Synthetic Usage -Free 10 Monitor Runs Per Hour 0.0 0.0 B97140 - Oracle Cloud Infrastructure Ops Insights for Oracle Autonomous Databases -Full ECPU Per Hour 0.0075 0.0075 B99259 - Oracle Cloud Infrastructure -Application Performance Monitoring Service -Stack Monitoring -Enterprise Edition 10 Monitored Resources Per 0.38 0.38 Hour Big Data Cloud Service B108080 - Oracle Cloud Infrastructure Generative AI -Large Meta 10,000 Transactions 0.015 0.015 B108085 - Oracle Cloud Infrastructure Generative AI -Large Meta -Dedicated Al Unit Per Hour 12.0 12.0 B108711 -Oracle Cloud Infrastructure -Language -Dedicated Inferencing-Healthcare Inferencing Unit Hour 20.0 20.0 B93423 - Oracle Cloud Al Services -Language -Pre -trained Inferencing 1,000 Transactions 0 - 5 0.0 0.0 1,000 Transactions 5 - 0.25 0.25 999999999999999 B93555 - Oracle Big Data Service OCPU Per Hour 0.015 0.015 B94282 - Oracle Cloud Infrastructure -Data Labeling Annotated Data Record 0 - 1000 0.0 0.0 Annotated Data Record 1000 - 0.0002 0.0002 999999999999999 B94896 - Oracle Cloud Infrastructure -Speech Transcription Hour 0 - 5 0.0 0.0 Transcription Hour 5 - 0.5 0.5 999999999999999 B94973 - Oracle Cloud Infrastructure -Vision -Image Analysis 1,000 Transactions 0 - 5 0.0 0.0 1,000 Transactions 5 - 0.25 0.25 999999999999999 City Council ISSUE? by C9&iton Consulting Services, Inc. 7/1 5/,2PZ52025 Page 4 of 37 Usage Item Description Metric List Price Overage Net Unit Price B94974 - Oracle Cloud Infrastructure -Vision -OCR 1,000 Transactions 0 - 5 1,000 Transactions 5 - 0.0 0.0 999999999999999 1.0 1.0 B94977 - Oracle Cloud Infrastructure -Vision -Custom Training Training Hour 0 - 15 Training Hour 15 - 0.0 0.0 999999999999999 1.5 1.5 B95917 - Oracle Cloud Infrastructure -Language -Custom Inferencing 1000 Transactions B95918 - Oracle Cloud Infrastructure -Language -Custom 3.5 3.5 Inferencing-Dedicated Inferencing Unit Hour 0 - 15 Inferencing Unit Hour 15 - 0.0 0.0 999999999999999 1.5 1.5 B95919 - Oracle Cloud Infrastructure -Language -Custom Training Training Hour 0 - 15 Training Hour 15 - 0.0 0.0 999999999999999 1.5 1.5 B95920 - Oracle Cloud Infrastructure -Language -Text Translation 1000 Transactions 0 - 1 0.0 0.0 1000 Transactions 1 - 999999999999999 10.0 10.0 B96110 - Oracle Cloud Infrastructure -Document Understanding - OCR 1,000 Transactions 0 - 5 0.0 0.0 1,000 Transactions 5 - 999999999999999 1.0 1.0 B96111 - Oracle Cloud Infrastructure -Document Understanding - Document Properties 1,000 Transactions 0 - 5 0.0 0.0 1,000 Transactions 5 - 999999999999999 0.25 0.25 B96112 - Oracle Cloud Infrastructure -Document Understanding - Document Extraction 1,000 Transactions 0 - 5 1,000 Transactions 5 - 0.0 0.0 999999999999999 10.0 10.0 B96113 - Oracle Cloud Infrastructure -Document Understanding - Custom Training Training Hour 0 - 15 Training Hour 15 - 0.0 0.0 999999999999999 B97193 - Oracle Cloud Infrastructure -Document Understanding- 1.5 1.5 Custom Document Properties 1,000 Transactions 0 - 5 1,000 Transactions 5 - 999999999999999 0.0 0.0 B97194 - Oracle Cloud Infrastructure -Document Understanding- 1.5 1.5 Custom Document Extraction City Council ISSUE? by C97viton Consulting Services, Inc. 7/1 5/,2iQ42025 Page 5 of 37 Usage Item Description Metric List Price Overage Net Unit Price 1,000 Transactions 0 - 5 1,000 Transactions 5 - 999999999999999 0.0 0.0 30.0 30.0 Application Development Cloud Service B108130 - Oracle Backend for Spring Boot and Microservices- Standard Edition -Marketplace Each 0.0 0.0 B89646 - Oracle Visual Builder OCPU Per Hour 1.2365 1.2365 B90203 - Oracle Visual Builder Studio -Additional Storage Gigabyte Storage Capacity Per 1.6 1.6 Month B90260 - Oracle Digital Assistant Cloud Service Request 0.0232 0.0232 B90304 - Oracle Mobile Hub Cloud Service Request 0.0028 0.0028 B91346 - Oracle WebLogic Server Enterprise Edition for Oracle Cloud Infrastructure OCPU Per Hour 0.2581 0.2581 B91347 - Oracle WebLogic Suite for Oracle Cloud Infrastructure OCPU Per Hour 0.4646 0.4646 B92302 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service -Standard OCPU Per Hour 0.215 0.215 B92303 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service -Enterprise OCPU Per Hour 0.4301 0.4301 B92304 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service -Storage Terabyte Storage Capacity Per 70.4 70.4 Month B92305 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service-Enterprise-BYOL OCPU Per Hour 0.3226 0.3226 B92913 - Oracle WebLogic Server Enterprise Edition for Oracle Cloud Infrastructure Container Engine for Kubernetes OCPU Per Hour 0.2581 0.2581 B92914 - Oracle WebLogic Server Suite for Oracle Cloud Infrastructure Container Engine for Kubernetes OCPU Per Hour 0.4646 0.4646 B96582 - Oracle Tuxedo for Oracle Cloud Infrastructure OCPU Per Hour 0.5433 0.5433 B96583 - Oracle Tuxedo Enterprise Edition for Oracle Cloud Infrastructure OCPU Per Hour 0.8149 0.8149 B96584 - Oracle Tuxedo Mainframe Modernization Runtimes for City Council ISSUE? by C98viton Consulting Services, Inc. 7/1 5/,2iQ42025 Page 6 of 37 Usage Item Description Metric List Price Overage Net Unit Price Oracle Cloud Infrastructure OCPU Per Hour 1.0866 1.0866 Content Management Cloud Service B108776 - WebCenter Imaging For Oracle Cloud Infrastructure OCPU Per Hour 0.6394 0.6394 B108777 - WebCenter Enterprise Capture For Oracle Cloud Infrastructure OCPU Per Hour 0.417 0.417 B108778 - WebCenter Enterprise Capture Standard Edition For Oracle Cloud Infrastructure OCPU Per Hour 0.2085 0.2085 B108779 - WebCenter Sites For Oracle Cloud Infrastructure OCPU Per Hour 0.695 0.695 B108780 - WebCenter Sites Satellite Server For Oracle Cloud Infrastructure OCPU Per Hour 0.1738 0.1738 B108781 - WebCenter Portal For Oracle Cloud Infrastructure OCPU Per Hour 0.8688 0.8688 B108782 - WebCenter Forms Recognition For Oracle Cloud Infrastructure OCPU Per Hour 0.695 0.695 B108783 - WebCenter Content For Oracle Cloud Infrastructure OCPU Per Hour 1.1989 1.1989 B108784 - WebCenter Universal Content Management For Oracle Cloud Infrastructure OCPU Per Hour 0.7993 0.7993 B95279 - Media Services -Media Flow-Standard-H264-SD- Below 30fps Minute of Output Media Content 0.001 0.001 B95280 - Media Services -Media Flow-Standard-H264-SD- Above 30fps and Below 60fps Minute of Output Media Content 0.002 0.002 B95281 - Media Services -Media Flow-Standard-H264-SD- Above 60fps and Below 120fps Minute of Output Media Content 0.003 0.003 B95282 - Media Services -Media Flow-Standard-H264-HD- Below 30fps Minute of Output Media Content 0.003 0.003 B95283 - Media Services -Media Flow-Standard-H264-HD- Above 30fps and Below 60fps Minute of Output Media Content 0.004 0.004 B95284 - Media Services -Media Flow-Standard-H264-HD- Above 60fps and Below 120fps Minute of Output Media Content 0.01 0.01 B95285 - Media Services -Media Flow-Standard-H264-4k-Below 30fps Minute of Output Media Content 0.015 0.015 B95286 - Media Services -Media Flow-Standard-H264-4k-Above 30fps and Below 60fps City Council ISSUE? by C99iton Consulting Services, Inc. 7/1 5/,2Q42025 Page 7 of 37 Usage Item Description Metric List Price Overage Net Unit Price Minute of Output Media Content 0.018 0.018 B95287 - Media Services -Media Flow-Standard-H264-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.036 0.036 B95288 - Media Services -Media Flow-Stan dard-VP8-SD-Below 30fps Minute of Output Media Content 0.003 0.003 B95289 - Media Services -Media Flow-Standard-VP8-SD-Above 30fps and Below 60fps Minute of Output Media Content 0.004 0.004 B95290 - Media Services -Media Flow-Standard-VP8-SD-Above 60fps and Below 120fps Minute of Output Media Content 0.007 0.007 B95291 - Media Services -Media Flow-Standard-VP8-HD-Below 30fps Minute of Output Media Content 0.008 0.008 B95292 - Media Services -Media Flow-Standard-VP8-HD-Above 30fps and Below 60fps Minute of Output Media Content 0.01 0.01 B95293 - Media Services -Media Flow-Standard-VP8-HD-Above 60fps and Below 120fps Minute of Output Media Content 0.015 0.015 B95294 - Media Services -Media Flow-Standard-VP8-4k-Below 30fps Minute of Output Media Content 0.036 0.036 B95295 - Media Services -Media Flow-Standard-VP8-4k-Above 30fps and Below 60fps Minute of Output Media Content 0.04 0.04 B95296 - Media Services -Media Flow-Standard-VP8-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.05 0.05 B95297 - Media Services -Media Flow-Standard-H265VP9-SD- Below 30fps Minute of Output Media Content 0.005 0.005 B95298 - Media Services -Media Flow-Standard-H265VP9-SD- Above 30fps and Below 60fps Minute of Output Media Content 0.007 0.007 B95299 - Media Services -Media Flow-Standard-H265VP9-SD- Above 60fps and Below 120fps Minute of Output Media Content 0.012 0.012 B95300 - Media Services -Media Flow-Standard-H265VP9-HD- Below 30fps Minute of Output Media Content 0.01 0.01 B95301 - Media Services -Media Flow-Standard-H265VP9-HD- Above 30fps and Below 60fps Minute of Output Media Content 0.02 0.02 B95302 - Media Services -Media Flow-Standard-H265VP9-HD- Above 60fps and Below 120fps Minute of Output Media Content 0.03 0.03 B95303 - Media Services -Media Flow-Standard-H265VP9-4k- City Council ISSUE? by (4@/iton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 8 of 37 Usage Item Description Metric List Price Overage Net Unit Price Below 30fps Minute of Output Media Content 0.026 0.026 B95304 - Media Services -Media Flow-Standard-H265VP9-4k- Above 30fps and Below 60fps Minute of Output Media Content 0.05 0.05 B95305 - Media Services -Media Flow-Standard-H265VP9-4k- Above 60fps and Below 120fps Minute of Output Media Content 0.063 0.063 B95306 - Media Services -Media Flow-Speed-H264-SD-Below 30fps Minute of Output Media Content 0.002 0.002 B95307 - Media Services -Media Flow-Speed-H264-SD-Above 30fps and Below 60fps Minute of Output Media Content 0.003 0.003 B95308 - Media Services -Media Flow-Speed-H264-SD-Above 60fps and Below 120fps Minute of Output Media Content 0.004 0.004 B95309 - Media Services -Media Flow-Speed -H264-HD-Below 30fps Minute of Output Media Content 0.004 0.004 B95310 - Media Services -Media Flow-Speed-H264-HD-Above 30fps and Below 60fps Minute of Output Media Content 0.005 0.005 B95311 - Media Services -Media Flow-Speed-H264-HD-Above 60fps and Below 120fps Minute of Output Media Content 0.012 0.012 B95312 - Media Services -Media Flow-Speed -H264-4k-Below 30fps Minute of Output Media Content 0.018 0.018 B95313 - Media Services -Media Flow-Speed-H264-4k-Above 30fps and Below 60fps Minute of Output Media Content 0.02 0.02 B95314 - Media Services -Media Flow-Speed-H264-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.04 0.04 B95315 - Media Services -Media Flow-Speed-VP8-SD-Below 30fps Minute of Output Media Content 0.005 0.005 B95316 - Media Services -Media Flow-Speed-VP8-SD-Above 30fps and Below 60fps Minute of Output Media Content 0.006 0.006 B95317 - Media Services -Media Flow-Speed-VP8-SD-Above 60fps and Below 120fps Minute of Output Media Content 0.008 0.008 B95318 - Media Services -Media Flow-Speed-VP8-HD-Below 30fps Minute of Output Media Content 0.012 0.012 B95319 - Media Services -Media Flow-Speed-VP8-HD-Above 30fps and Below 60fps Minute of Output Media Content 0.015 0.015 City Council ISSUE? by (4Aviton Consulting Services, Inc. 7/1 5/J2Q42025 Page 9 of 37 Usage Item Description Metric List Price Overage Net Unit Price B95320 - Media Services -Media Flow-Speed-VP8-HD-Above 60fps and Below 120fps Minute of Output Media Content 0.018 0.018 B95321 - Media Services -Media Flow-Speed-VP8-4k-Below 30fps Minute of Output Media Content 0.048 0.048 B95322 - Media Services -Media Flow-Speed-VP8-4k-Above 30fps and Below 60fps Minute of Output Media Content 0.05 0.05 B95323 - Media Services -Media Flow-Speed-VP8-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.06 0.06 B95324 - Media Services -Media Flow-Speed-H265VP9-SD- Below 30fps Minute of Output Media Content 0.006 0.006 B95325 - Media Services -Media Flow-Speed-H265VP9-SD- Above 30fps and Below 60fps Minute of Output Media Content 0.008 0.008 B95326 - Media Services -Media Flow-Speed-H265VP9-SD- Above 60fps and Below 120fps Minute of Output Media Content 0.015 0.015 B95327 - Media Services -Media Flow-Speed-H265VP9-HD- Below 30fps Minute of Output Media Content 0.012 0.012 B95328 - Media Services -Media Flow-Speed-H265VP9-HD- Above 30fps and Below 60fps Minute of Output Media Content 0.025 0.025 B95329 - Media Services -Media Flow-Speed-H265VP9-HD- Above 60fps and Below 120fps Minute of Output Media Content 0.036 0.036 B95330 - Media Services -Media Flow-Speed-H265VP9-4k- Below 30fps Minute of Output Media Content 0.05 0.05 B95331 - Media Services -Media Flow-Speed-H265VP9-4k- Above 30fps and Below 60fps Minute of Output Media Content 0.06 0.06 B95332 - Media Services -Media Flow-Speed-H265VP9-4k- Above 60fps and Below 120fps Minute of Output Media Content 0.075 0.075 B95333 - Media Services -Media Flow-Quality-H264-SD-Below 30fps Minute of Output Media Content 0.003 0.003 B95334 - Media Services -Media Flow-Quality-H264-SD-Above 30fps and Below 60fps Minute of Output Media Content 0.004 0.004 B95335 - Media Services -Media Flow-Quality-H264-SD-Above 60fps and Below 120fps Minute of Output Media Content 0.005 0.005 B95336 - Media Services -Media Flow-Quality-H264-HD-Below 30fps City Council Issuag by (42/iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 10 of 37 Usage Item Description Metric List Price Overage Net Unit Price Minute of Output Media Content 0.005 0.005 B95337 - Media Services -Media Flow-Quality-H264-HD-Above 30fps and Below 60fps Minute of Output Media Content 0.006 0.006 B95338 - Media Services -Media Flow-Quality-H264-HD-Above 60fps and Below 120fps Minute of Output Media Content 0.015 0.015 B95339 - Media Services -Media Flow-Quality-H264-4k-Below 30fps Minute of Output Media Content 0.024 0.024 B95340 - Media Services -Media Flow-Quality-H264-4k-Above 30fps and Below 60fps Minute of Output Media Content 0.03 0.03 B95341 - Media Services -Media Flow-Quality-H264-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.05 0.05 B95342 - Media Services -Media Flow-Quality-VP8-SD-Below 30fps Minute of Output Media Content 0.006 0.006 B95343 - Media Services -Media Flow-Quality-VP8-SD-Above 30fps and Below 60fps Minute of Output Media Content 0.008 0.008 B95344 - Media Services -Media Flow-Quality-VP8-SD-Above 60fps and Below 120fps Minute of Output Media Content 0.01 0.01 B95345 - Media Services -Media Flow-Quality-VP8-HD-Below 30fps Minute of Output Media Content 0.015 0.015 B95346 - Media Services -Media Flow-Quality-VP8-HD-Above 30fps and Below 60fps Minute of Output Media Content 0.018 0.018 B95347 - Media Services -Media Flow-Quality-VP8-HD-Above 60fps and Below 120fps Minute of Output Media Content 0.02 0.02 B95348 - Media Services -Media Flow-Quality-VP8-4k-Below 30fps Minute of Output Media Content 0.054 0.054 B95349 - Media Services -Media Flow-Quality-VP8-4k-Above 30fps and Below 60fps Minute of Output Media Content 0.06 0.06 B95350 - Media Services -Media Flow-Quality-VP8-4k-Above 60fps and Below 120fps Minute of Output Media Content 0.07 0.07 B95351 - Media Services -Media Flow-Quality-H265VP9-SD- Below 30fps Minute of Output Media Content 0.03 0.03 B95352 - Media Services -Media Flow-Quality-H265VP9-SD- Above 30fps and Below 60fps Minute of Output Media Content 0.045 0.045 B95353 - Media Services -Media Flow-Quality-H265VP9-SD- City Council ISSUE? by (41ton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 11 of 37 Usage Item Description Metric List Price Overage Net Unit Price Above 60fps and Below 120fps Minute of Output Media Content 0.06 0.06 B95354 - Media Services -Media Flow-Quality-H265VP9-HD- Below 30fps Minute of Output Media Content 0.06 0.06 B95355 - Media Services -Media Flow-Quality-H265VP9-HD- Above 30fps and Below 60fps Minute of Output Media Content 0.09 0.09 B95356 - Media Services -Media Flow-Quality-H265VP9-HD- Above 60fps and Below 120fps Minute of Output Media Content 0.12 0.12 B95357 - Media Services -Media Flow-Quality-H265VP9-4k- Below 30fps Minute of Output Media Content 0.12 0.12 B95358 - Media Services -Media Flow-Quality-H265VP9-4k- Above 30fps and Below 60fps Minute of Output Media Content 0.18 0.18 B95359 - Media Services -Media Flow-Quality-H265VP9-4k- Above 60fps and Below 120fps Minute of Output Media Content 0.24 0.24 B95375 - Media Services -Media Streams GB of Packaged Content 0.05 0.05 Analytics Cloud Service B89630 - Oracle Analytics Cloud -Professional OCPU Per Hour 1.0753 1.0753 B89631 - Oracle Analytics Cloud -Enterprise OCPU Per Hour 2.1506 2.1506 B89636 - Oracle Analytics Cloud-Professional-BYOL OCPU Per Hour 0.3226 0.3226 B89637 - Oracle Analytics Cloud-Enterprise-BYOL OCPU Per Hour 0.3226 0.3226 B92335 - Essbase for Oracle Cloud Infrastructure OCPU Per Hour 1.3129 1.3129 B92682 - Oracle Analytics-Professional User Per Month 16.0 16.0 B92683 - Oracle Analytics-Enterprise User Per Month 80.0 80.0 B94568 - Oracle Analytics Server for Oracle Cloud Infrastructure OCPU Per Hour 1.75 1.75 Storage Cloud Service B89057 - Oracle Cloud Infrastructure -File Storage Gigabyte Storage Capacity per 0.3 0.3 Month B90938 - Oracle Cloud Infrastructure -Streaming -PUT or GET Gigabytes of Data Transferred 0.025 0.025 B90939 - Oracle Cloud Infrastructure -Streaming -Storage Gigabyte Per Hour 0.0002 0.0002 B91445 - Oracle Cloud Infrastructure -Block Volume -Free Gigabyte Storage Capacity per City Council Issueg by (44viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 12 of 37 Usage Item Description Metric List Price Overage Net Unit Price Month 0.0 0.0 B91627 - Oracle Cloud Infrastructure -Object Storage -Requests 10,000 Requests per Month 0 - 5 0.0 0.0 10,000 Requests per Month 5 - 999999999 0.0034 0.0034 B91628 - Oracle Cloud Infrastructure -Object Storage -Storage Gigabyte Storage Capacity per Month 0 - 10 0.0 0.0 Gigabyte Storage Capacity per Month 10 - 999999999 0.0255 0.0255 B91633 - Oracle Cloud Infrastructure -Archive Storage -Free Gigabyte Storage Capacity per Month 0 - 10 0.0 0.0 Gigabyte Storage Capacity per Month 10 - 999999999 0.0026 0.0026 B91961 - Oracle Cloud Infrastructure -Block Volume Storage Gigabyte Storage Capacity Per Month 0.0255 0.0255 B91962 - Oracle Cloud Infrastructure -Block Volume Performance Performance Units Per Gigabyte Per Month 0.0017 0.0017 B93000 - Oracle Cloud Infrastructure -Infrequent Access Storage -Storage Gigabyte Storage Capacity Per Month 0 - 10 0.0 0.0 Gigabyte Storage Capacity Per 0.01 0.01 Month 10 - 999999999999999 B93001 - Oracle Cloud Infrastructure -Data Retrieval -Storage Gigabyte Storage Retrieved Per 0.0 0.0 Month 0 - 10 Gigabyte Storage Retrieved Per 0.01 0.01 Month 10 - 999999999999999 B95410 - Oracle ZFS Storage -High Availability Instance Per Hour 1.85 1.85 Security and Identity Management Cloud Service B108188 - Oracle Cloud Infrastructure Cloud Guard Workload Protection Standard Node Per Hour 0.0069 0.0069 B108189 - Oracle Cloud Infrastructure Cloud Guard Workload Protection Limited Node Per Hour 0.0 0.0 13108190 - Oracle Cloud Guard Instance Security Adhoc Queries Enterprise Request 0 - 950000 0.0 0.0 Request 950000 - 0.001 0.001 999999999999999 B90328 - Oracle Cloud Infrastructure -Key Management -Private Vault Virtual Private Vault Per Hour 3.724 3.724 City Council ISSUE? by (4&iton Consulting Services, Inc. 7/1 5/j2QZ52025 Page 13 of 37 Usage Item Description Metric List Price Overage Net Unit Price B90555 - Oracle Identity Cloud Service -Enterprise User User Per Month 3.2 3.2 B90556 - Oracle Identity Cloud Service -Consumer User User Per Month 0.016 0.016 B90557 - Oracle Identity Cloud Service -Enterprise User-BYOL User Per Month 0.8 0.8 B90558 - Oracle Identity Cloud Service -Consumer User-BYOL User Per Month 0.004 0.004 B90936 - Oracle Identity Foundation Cloud Service Each 0.0 0.0 B92092 - Oracle Cloud Infrastructure-KMS Vault -Key Versions Key Version per Month 0 - 20 0.0 0.0 Key Version per Month 20 0.5334 0.5334 999999999 B93493 - Oracle Cloud Infrastructure Identity and Access Management -External User User Per Month 0.016 0.016 B93494 - Oracle Cloud Infrastructure Identity and Access Management -Oracle Apps Premium User Per Month 0.25 0.25 B93495 - Oracle Cloud Infrastructure Identity and Access Management -Premium User Per Month 3.2 3.2 B93496 - Oracle Cloud Infrastructure Identity and Access Management-SMS 1 SMS Message Sent 0 - 1000 0.0 0.0 1 SMS Message Sent 1000 0.03 0.03 999999999999999 B93497 - Oracle Cloud Infrastructure Identity and Access Management -Token Token 0 - 10000 0.0 0.0 Token 10000 - 999999999999999 0.004 0.004 B93498 - Oracle Cloud Infrastructure Identity and Access Management -Replication User Per Month 0.004 0.004 B94173 - Oracle Threat Intelligence Service API Calls 0.0 0.0 B94277 - Oracle Cloud Infrastructure -Web Application Firewall- Requests 1,000,000 Incoming Requests Per 0.0 0.0 Month 0 - 10 1,000,000 Incoming Requests Per 0.6 0.6 Month 10 - 999999999999999 B94579 - Oracle Cloud Infrastructure -Web Application Firewall- Instance Instance Per Month 0 - 1 0.0 0.0 Instance Per Month 1 - 5.0 5.0 999999999999999 B97172 - Oracle Access Governance for Oracle Cloud Infrastructure -Workforce User City Council Issueg by (4&iton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 14 of 37 Usage Item Description Metric List Price Overage Net Unit Price Workforce User Per Month 0 - 100000 0.1 0.1 Workforce User Per Month 100000 - 999999999999999 0.005 0.005 B97173 - Oracle Access Governance for Oracle Workloads - Workforce User Workforce User Per Month 0 - 10000 Workforce User Per Month 10000 -30000 Workforce User Per Month 30000 -999999999999999 B97179 - Oracle Access Governance Premium -Consumer User Consumer User Per Month B97180 - Oracle Access Governance for Oracle Workloads - Consumer User Consumer User Per Month B97181 - Oracle Access Governance Premium -Workforce User Workforce User Per Month 0 - 10000 Workforce User Per Month 10000 -30000 Workforce User Per Month 30000 -999999999999999 B98100 - Oracle Cloud Infrastructure -External Key Management Key Version Per Month B99597 - Oracle Cloud Infrastructure -Dedicated Key Management -(Minimum 3 HSM Partitions) 2.0 2.0 0.75 0.75 0.1 0.1 0.016 0.016 0.016 0.016 3.0 3.0 1.13 1.13 0.15 0.15 3.0 3.0 HSM Partition Per Hour 1.75 1.75 Enterprise Integration Cloud Service B89639 - Oracle Integration Cloud Service -Standard 5K Messages Per Hour 0.6452 0.6452 B89640 - Oracle Integration Cloud Service -Enterprise 5K Messages Per Hour 1.2903 1.2903 B89643 - Oracle Integration Cloud Service-Standard-BYOL 20K Messages Per Hour 0.3226 0.3226 B89644 - Oracle Integration Cloud Service-Enterprise-BYOL 20K Messages Per Hour 0.3226 0.3226 B92450 - Oracle SOA Suite for Oracle Cloud Infrastructure OCPU Per Hour 0.7231 0.7231 B92451 - Oracle SOA Suite for Oracle Cloud Infrastructure -with 626 Adapter for EDI OCPU Per Hour 1.2071 1.2071 B95504 - Oracle Cloud Infrastructure Process Automation -User Active Process User Per Hour 0.1 0.1 B95505 - Oracle Cloud Infrastructure Process Automation - Execution Pack Execution Pack Per Month 0 - 1 Execution Pack Per Month 1 - 999999999999999 0.0 0.0 125.0 125.0 City Council ISSUE? by (47viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 15 of 37 Usage Item Description Metric List Price Overage Net Unit Price Data Integration Cloud Service B88299 - Oracle Data Integrator Cloud Service OCPU Per Hour 0.7742 0.7742 B88406 - Oracle Data Integrator Cloud Service-BYOL OCPU Per Hour 0.1935 0.1935 B92598 - Oracle Cloud Infrastructure -Data Integration- Workspace Workspace Usage per Hour 0.16 0.16 B92599 - Oracle Cloud Infrastructure -Data Integration Gigabyte of Data Processed per 0.04 0.04 Hour B92695 - Oracle Stream Analytics for Oracle Cloud Infrastructure OCPU Per Hour 0.9498 0.9498 B92992 - Oracle Cloud Infrastructure-Golden Gate OCPU Per Hour 1.3441 1.3441 B92993 - Oracle Cloud Infrastructure-GoldenGate-BYOL OCPU Per Hour 0.3226 0.3226 B93306 - Oracle Cloud Infrastructure -Data Integration -Pipeline Operator Execution Execution Hour 0 - 30 0.0 0.0 Execution Hour 30 - 0.3 0.3 999999999999999 Network Cloud Service B107975 - Oracle Cloud Infrastructure-FastConnect 400 Gbps Port Hour 20.0 20.0 B88325 - Oracle Cloud Infrastructure-FastConnect 1 Gbps Port Hour 0.2125 0.2125 B88326 - Oracle Cloud Infrastructure-FastConnect 10 Gbps Port Hour 1.275 1.275 B88327 - Oracle Cloud Infrastructure -Outbound Data Transfer - Originating in North America, Europe, and UK Gigabyte Outbound Data Transfer 0.0 0.0 Per Month 0 - 10240 Gigabyte Outbound Data Transfer Per Month 10240 - 0.0085 0.0085 999999999999999 B88523 - Oracle Cloud Infrastructure -Email Delivery 1,000 Emails Sent 0 - 3 0.0 0.0 1,000 Emails Sent 3 0.085 0.085 999999999999999 B88525 - Oracle Cloud Infrastructure -DNS 1,000,000 Queries 0.85 0.85 B90323 - Oracle Cloud Infrastructure -Health Checks -Basic Endpoints Per Month 0.3 0.3 B90325 - Oracle Cloud Infrastructure -Health Checks -Premium Endpoints Per Month 1.3 1.3 B90327 - Oracle Cloud Infrastructure -DNS Traffic Management 1,000,000 DNS Traffic City Council ISSUE? by (48iiton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 16 of 37 Usage Item Description Metric List Price Overage Net Unit Price Management Queries 4.0 4.0 B90925 - Oracle Cloud Infrastructure -Monitoring -Ingestion Million Datapoints 0 - 500 0.0 0.0 Million Datapoints 500 - 999999999 0.0025 0.0025 B90926 - Oracle Cloud Infrastructure -Monitoring -Retrieval Million Datapoints 0 - 1000 0.0 0.0 Million Datapoints 1000 - 999999999 0.0015 0.0015 B90940 - Oracle Cloud Infrastructure-Notifications-HTTPS Delivery Million Delivery Operations 0 - 1 0.0 0.0 Million Delivery Operations 1 - 999999999 0.6 0.6 B90941 - Oracle Cloud Infrastructure -Notifications -Email Delivery 1,000 Emails Sent 0 - 1 0.0 0.0 1,000 Emails Sent 1 - 999999999 0.02 0.02 B92593 - Oracle Cloud Infrastructure -Logging -Storage Gigabyte Log Storage Per Month 0 - 10 0.0 0.0 Gigabyte Log Storage Per Month 10 - 999999999 0.05 0.05 B93004 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 1 1 SMS Message Sent 0 - 100 0.0 0.0 1 SMS Message Sent 100 - 999999999999999 0.015 0.015 B93005 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 2 1 SMS Message Sent 0 - 100 0.0 0.0 1 SMS Message Sent 100 - 999999999999999 0.045 0.045 B93006 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 3 1 SMS Message Sent 0 - 100 1 SMS Message Sent 100 - 0.0 0.0 999999999999999 0.086 0.086 B93007 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 4 1 SMS Message Sent 0 - 100 1 SMS Message Sent 100 - 0.0 0.0 999999999999999 B93008 - Oracle Cloud Infrastructure-Notifications-SMS 0.12 0.12 Outbound to Country Zone 5 1 SMS Message Sent 0 - 100 1 SMS Message Sent 100 - 999999999999999 0.0 0.0 B93030 - Oracle Cloud Infrastructure -Load Balancer Base 0.24 0.24 Load Balancer Hour 0 - 744 Load Balancer Hour 744 - 999999999 0.0 0.0 B93031 - Oracle Cloud Infrastructure -Load Balancer Bandwidth City Council ISSUE? by (49/iton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 17 of 37 Usage Item Description Metric List Price Overage Net Unit Price Mbps Per Hour 0 - 7440 0.0113 0.0113 Mbps Per Hour 7440 - 999999999 B93126 - Oracle Cloud Infrastructure-FastConnect 100Gbps 0.0 0.0 Port Hour 0.0001 0.0001 B93455 - Oracle Cloud Infrastructure -Outbound Data Transfer- Originating in APAC, Japan, and South America Gigabyte Outbound Data Transfer 10.75 10.75 Per Month 0 - 10240 Gigabyte Outbound Data Transfer Per Month 10240 - 999999999999999 0.0 0.0 B93456 - Oracle Cloud Infrastructure -Outbound Data Transfer - Originating in Middle East and Africa 0.025 0.025 Gigabyte Outbound Data Transfer Per Month 0 - 10240 Gigabyte Outbound Data Transfer Per Month 10240 - 999999999999999 0.0 0.0 B95697 - Oracle Cloud Infrastructure Queue 1,000,000 Requests 0 - 1 1,000,000 Requests 1 - 0.05 0.05 999999999999999 0.0 0.0 0.22 0.22 B109479 - Oracle Cloud Infrastructure-Compute-GPU-L40S GPU Per Hour 3.5 3.5 B109485 - Oracle Cloud Infrastructure-Compute-GPU-M1300X GPU Per Hour 6.0 6.0 13109529 - Oracle Cloud Infrastructure-Compute-Standard-A2 OCPU OCPU Per Hour 0.014 0.014 13109530 - Oracle Cloud Infrastructure-Compute-Standard-A2 Memory Gigabyte Per Hour 0.002 0.002 B88315 - Oracle Cloud Infrastructure -Compute -Bare Metal Standard-X5 OCPU Per Hour 0.0638 0.0638 B88317 - Oracle Cloud Infrastructure -Compute -Virtual Machine Standard-X5 OCPU Per Hour 0.0638 0.0638 B88513 - Oracle Cloud Infrastructure -Compute -Bare Metal Standard-X7 OCPU Per Hour 0.0638 0.0638 B88514 - Oracle Cloud Infrastructure -Compute -Virtual Machine Standard-X7 OCPU Per Hour 0.0638 0.0638 B88515 - Oracle Cloud Infrastructure -Compute -Bare Metal Dense)/O-X7 OCPU Per Hour 0.1275 0.1275 B88516 - Oracle Cloud Infrastructure -Compute -Virtual Machine Dense)/O-X7 City Council ISSUE? by (5@iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 18 of 37 Usage Item Description Metric List Price Overage Net Unit Price OCPU Per Hour 0.1275 0.1275 B88517 - Oracle Cloud Infrastructure -Compute -Bare Metal GPU Standard-X7 GPU Per Hour 1.275 1.275 B88518 - Oracle Cloud Infrastructure -Compute -Virtual Machine GPU Standard-X7 GPU Per Hour 1.275 1.275 B89734 - Oracle Cloud Infrastructure-Compute-GPU Standard- V2 GPU Per Hour 2.95 2.95 B90398 - Oracle Cloud Infrastructure-Compute-HPC-X7 OCPU Per Hour 0.075 0.075 B90425 - Oracle Cloud Infrastructure-Compute-Standard-E2 OCPU Per Hour 0.03 0.03 B90617 - Oracle Functions -Execution Time-10,000 Gigabyte Memory Seconds 0 - 40 0.0 0.0 Seconds 40 - 999999999 0.1417 0.1417 B90618 - Oracle Functions -Invocations 1,000,000 Function Invocations 0 0.0 0.0 -2 1,000,000 Function Invocations 2 0.2 0.2 - 999999999 B91119 - Oracle Cloud Infrastructure -Compute -Bare Metal Standard-131 OCPU Per Hour 0.0638 0.0638 B91120 - Oracle Cloud Infrastructure -Compute -Virtual Machine Standard-131 OCPU Per Hour 0.0638 0.0638 B91372 - Oracle Cloud Infrastructure -Compute -Microsoft SQL Enterprise OCPU Per Hour 1.47 1.47 B91373 - Oracle Cloud Infrastructure -Compute -Microsoft SQL Standard OCPU Per Hour 0.37 0.37 B91444 - Oracle Cloud Infrastructure -Compute -Virtual Machine Standard-E2 Micro -Free OCPU Per Hour 0.0 0.0 B92072 - Oracle Cloud Infrastructure -API Gateway-1,000,000 API Calls 1,000,000 API Calls Per Month 3.0 3.0 B92306 - Oracle Cloud Infrastructure-Compute-Standard-E3- OCPU OCPU Per Hour 0.025 0.025 B92307 - Oracle Cloud Infrastructure-Compute-Standard-E3- Memory Gigabyte Per Hour 0.0015 0.0015 B92740 - Oracle Cloud Infrastructure-Compute-GPU-E3 GPU Per Hour 3.05 3.05 B93113 - Oracle Cloud Infrastructure-Compute-Standard-E4 City Council IssUW by (5Aviton Consulting Services, Inc. 7/1 5/,2QZ52025 Page 19 of 37 Usage Item Description Metric List Price Overage Net Unit Price OCPU Per Hour 0.025 0.025 B93114 - Oracle Cloud Infrastructure-Compute-Standard-E4- Memory Gigabyte Per Hour 0.0015 0.0015 B93121 - Oracle Cloud Infrastructure -Compute -Dense I/O-E4 OCPU Per Hour 0.025 0.025 B93122 - Oracle Cloud Infrastructure -Compute -Dense I/O-E4 Gigabyte Memory Per Hour 0.0015 0.0015 B93123 - Oracle Cloud Infrastructure -Compute -Dense I/O-E4 NVMe Terabyte Per Hour 0.0612 0.0612 B93297 - Oracle Cloud Infrastructure-Compute-Standard-A1 OCPU Per Hour 0 - 3000 0.0 0.0 OCPU Per Hour 3000 - 0.01 0.01 999999999999999 B93298 - Oracle Cloud Infrastructure -Compute -Standard -Al - Memory B93311 - Oracle Cloud Infrastructure-Compute-Optimized-X9 B93312 - Oracle Cloud Infrastructure-Compute-Optimized-X9- Memory B93544 - Oracle Cloud Infrastructure-Compute-GPU-E4 B93704 - Oracle Cloud Infrastructure-Compute-GPU-T1 B94176 - Oracle Cloud Infrastructure-Compute-Standard-X9 B94177 - Oracle Cloud Infrastructure-Compute-Standard-X9- Memory B95518 - Oracle Cloud Infrastructure -Secure Desktop B95907 -Oracle Cloud Infrastructure-Compute-GPU-Al00-v2 B95909 -Oracle Cloud Infrastructure-Compute-GPU-Al 0 B96109 - Oracle Container Engine for Kubernetes-Virtual Node B96479 - Oracle Compute Cloud@Customer-Compute- Standard-E5 B96480 - Oracle Compute Cloud@Customer-Compute- Standard-ES-Memory B96481 - Oracle Compute Cloud@Customer-Block Volume Storage -Balanced Gigabyte Per Hour 0 - 18000 0.0 0.0 Gigabyte Per Hour 18000 - 999999999999999 0.0015 0.0015 OCPU Per Hour 0.054 0.054 Gigabyte Per Hour 0.0015 0.0015 GPU Per Hour 3.05 3.05 GPU Per Hour 1.55 1.55 OCPU Per Hour 0.04 0.04 Gigabyte Per Hour 0.0015 0.0015 Desktop Per Month 5.0 5.0 GPU Per Hour 4.0 4.0 GPU Per Hour 2.0 2.0 Virtual Node Per Hour 0.015 0.015 OCPU Per Hour 0.03 0.03 Gibibyte Memory Per Hour 0.002 0.002 City Council Issueg by 62iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 20 of 37 Usage Item Description Metric List Price Overage Net Unit Price Gigabyte Storage Capacity Per 0.0425 0.0425 Month B96482 - Oracle Compute Cloud@Customer-Block Volume Storage -Performance Gigabyte Storage Capacity Per 0.0595 0.0595 Month B96483 - Oracle Compute Cloud@Customer-File Storage Gigabyte Storage Capacity Per 0.3 0.3 Month B96484 - Oracle Compute Cloud@Customer-Object Storage - Storage Gigabyte Storage Capacity Per 0.0255 0.0255 Month B96485 - Oracle Compute Cloud@Customer-Load Balancer Load Balancer Hour 0.0113 0.0113 B96531 - Oracle Cloud Infrastructure-Compute-HPC-E5 OCPU Per Hour 0.044 0.044 B96545 - Oracle Container Engine for Kubernetes-Enhanced Cluster Cluster Per Hour 0.1 0.1 B97384 - Oracle Cloud Infrastructure-Compute-Standard-E5- OCPU OCPU Per Hour 0.03 0.03 B97385 - Oracle Cloud Infrastructure-Compute-Standard-E5- Memory Gigabytes Per Hour 0.002 0.002 B98202 - Oracle Cloud Infrastructure -Compute -Dense I/O-E5 OCPU OCPU Per Hour 0.03 0.03 B98203 - Oracle Cloud Infrastructure -Compute -Dense I/O-E5 Memory Gigabyte Per Hour 0.002 0.002 B98204 - Oracle Cloud Infrastructure -Compute -Dense I/O-E5 NVMe NVMe Terabyte Per Hour 0.0612 0.0612 B98415 - Oracle Cloud Infrastructure-Compute-GPU-1-1100 GPU Per Hour 10.0 10.0 Data Management Cloud Service B107951 - Oracle Exadata Exascale VM Filesystem Storage Gigabyte (GB) Storage Capacity 0.0425 0.0425 Per Month B107952 - Oracle Exadata Exascale Smart Database Storage Gigabyte (GB) Storage Capacity 0.1156 0.1156 Per Month B108030 - MySQL Database-ECPU ECPU Per Hour 0.0366 0.0366 B109166 - MySQL HeatWave-AWS-Storage Gigabyte Storage Capacity Per 0.03 0.03 Month B109169 - MySQL Database -Outbound Data Transfer -Inter OCI City Council ISSUW by (51ton Consulting Services, Inc. 7/1 5/j2QZ52025 Page 21 of 37 Usage Item Description Metric List Price Overage Net Unit Price Region Gigabyte Outbound Data Transfer 0.04 0.04 Per Month B109187 - MySQL Database-AWS-Ingress private endpoint Endpoint Per Hour 0.0214 0.0214 B109188 - MySQL Data base-AWS-Egress private endpoint Endpoint Per Hour 0.0106 0.0106 B109355 - Oracle Exadata Exascale RDMA Compute Infrastructure ECPU Per Hour 0.025 0.025 B109356 - Oracle Exadata Exascale Database ECPU ECPU Per Hour 0.336 0.336 B109357 - Oracle Exadata Exascale Database ECPU-BYOL ECPU Per Hour 0.0807 0.0807 B109375 - Oracle Exadata Exascale Additional Flash Cache Gigabyte (GB) Per Hour 0.0005 0.0005 B109380 - MySQL Database-ECPU-Free ECPU Per Hour 0.0 0.0 B109381 -Oracle Cloud Infrastructure HeatWave-Free HeatWave Capacity Per Hour 0.0 0.0 B109382 - Oracle Cloud Infrastructure H eatWave-Storage- Free Gigabyte Storage Capacity Per 0.0 0.0 Month B109383 - MySQL Database -Storage -Free Gigabyte Storage Capacity Per 0.0 0.0 Month B109384 - MySQL Database -Backup Storage -Free Gigabyte Storage Capacity Per 0.0 0.0 Month B109458 - MySQL Database-AWS-Private inbound and outbound network traffic B88290 - Oracle Database Cloud Service -Enterprise Edition - General Purpose B88291 - Oracle Database Cloud Service -Enterprise Edition Extreme Performance -General Purpose B88292 - Oracle Database Cloud Service -Enterprise Edition High Performance -General Purpose B88293 - Oracle Database Cloud Service -Standard Edition - General Purpose B88294 - Oracle Database Backup Service -Outbound Data Transfer Gigabyte (GB) of Data 0.0086 0.0086 Transferred OCPU Per Hour 16161ali=3109M OCPU Per Hour OCPU Per Hour 0.4301 0.4301 1.3441 1.3441 0.8871 0.8871 0.215 0.215 Gigabyte Outbound Data Transfer 0.0 0.0 per Month 0 - 1 Gigabyte Outbound Data Transfer City Council Issueg by (54viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 22 of 37 Usage Item Description Metric List Price Overage Net Unit Price per Month 1 - 10240 0.096 0.096 Gigabyte Outbound Data Transfer per Month 10240 - 51200 0.072 0.072 Gigabyte Outbound Data Transfer per Month 51200 - 153600 0.056 0.056 Gigabyte Outbound Data Transfer per Month 153600 - 512000 0.04 0.04 Gigabyte Outbound Data Transfer per Month 512000 - 999999999 0.04 0.04 B88295 - Oracle Database Backup Service -GET and all other Requests 10000 Requests Per Month 0.0032 0.0032 B88296 - Oracle Database Backup Service -PUT, COPY, POST or LIST Requests 1000 Requests Per Month 0.004 0.004 B88297 - Oracle Database Backup Service -Storage Capacity Gigabyte Storage Capacity per Month 0 - 1024 0.0211 0.0211 Gigabyte Storage Capacity per 0.0208 0.0208 Month 1024 - 51200 Gigabyte Storage Capacity per 0.0204 0.0204 Month 51200 - 512000 Gigabyte Storage Capacity per 0.0201 0.0201 Month 512000 - 1024000 Gigabyte Storage Capacity per 0.0197 0.0197 Month 1024000 - 5120000 Gigabyte Storage Capacity per 0.0194 0.0194 Month 5120000 - 999999999 B88402 - Oracle Database Cloud Service -Enterprise Edition Extreme Performance RAC-BYOL OCPU Per Hour 0.1935 0.1935 B88404 - Oracle Database Cloud Service -All Editions-BYOL OCPU Per Hour 0.1935 0.1935 B88592 - Exadata Database OCPU-Dedicated Infrastructure OCPU Per Hour 1.3441 1.3441 B88593 - Oracle Cloud Infrastructure -Database Exadata Quarter Rack-X6 Hosted Environment Per Hour 51.0753 51.0753 B88594 - Oracle Cloud Infrastructure -Database Exadata Half Rack-X6 Hosted Environment Per Hour 102.1506 102.1506 B88595 - Oracle Cloud Infrastructure -Database Exadata Full Rack-X6 Hosted Environment Per Hour 204.3011 204.3011 B88847 - Exadata Database OCPU-Dedicated Infrastructure- BYOL OCPU Per Hour 0.3226 0.3226 B88854 - Oracle Cloud Infrastructure -Database Exadata Full Rack-X6-BYOL Hosted Environment Per Hour 135.914 135.914 B88855 - Oracle Cloud Infrastructure -Database Exadata Half City Council ISSUE? by (5&iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 23 of 37 Usage Item Description Metric List Price Overage Net Unit Price Rack-X6-BYOL Hosted Environment Per Hour 67.957 67.957 B88856 - Oracle Cloud Infrastructure -Database Exadata Quarter Rack-X6-BYOL Hosted Environment Per Hour 33.9785 33.9785 B89737 - Oracle NoSQL Database Cloud Service -Write Write Unit Per Month 0.1254 0.1254 B89738 - Oracle NoSQL Database Cloud Service -Read Read Unit Per Month 0.0064 0.0064 B89739 - Oracle NoSQL Database Cloud Service -Storage Gigabyte Storage Capacity Per 0.066 0.066 Month B89980 - Oracle Database Exadata Cloud at Customer - Database OCPU OCPU Per Hour 1.3441 1.3441 B89981 - Oracle Database Exadata Cloud at Customer - Database OCPU-BYOL OCPU Per Hour 0.3226 0.3226 B89999 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Quarter Rack-X7 Hosted Environment Per Hour 21.5054 21.5054 B90000 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Half Rack-X7 Hosted Environment Per Hour 43.0107 43.0107 B90001 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Full Rack-X7 Hosted Environment Per Hour 86.0215 86.0215 B90230 - Oracle Database Backup Cloud -Object Storage Gigabyte Storage Capacity Per 0.0051 0.0051 Month B90231 - Oracle Database Backup Cloud -Archive Storage Gigabyte Storage Capacity Per 0.0005 0.0005 Month B90455 - Oracle Autonomous Transaction Processing-Exadata Storage Terabyte Storage Capacity Per 118.4 118.4 Month B90569 - Oracle Base Database Service -Standard OCPU Per Hour 0.215 0.215 B90570 - Oracle Base Database Service -Enterprise OCPU Per Hour 0.4301 0.4301 B90571 - Oracle Base Database Service -High Performance OCPU Per Hour 0.8871 0.8871 B90572 - Oracle Base Database Service -Extreme Performance OCPU Per Hour 1.3441 1.3441 B90573 - Oracle Base Database Service-BYOL OCPU Per Hour 0.1935 0.1935 B90777 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Base System Hosted Environment Per Hour 10.7527 10.7527 City Council ISSUE? by (5&iton Consulting Services, Inc. 7/1 5/j2PZ52025 Page 24 of 37 Usage Item Description Metric List Price Overage Net Unit Price B91121 - Oracle Cloud SQL -Compute Capacity OCPU Per Hour 0.1075 0.1075 B91128 - Oracle Big Data Service -Compute -Standard OCPU Per Hour 0.1344 0.1344 B91129 - Oracle Big Data Service -Compute -Dense 1/0 OCPU Per Hour 0.214 0.214 B91130 - Oracle Big Data Service-Compute-HPC OCPU Per Hour 0.1536 0.1536 B91363 - Gen 2 Exadata Cloud at Customer -Database OCPU OCPU Per Hour 1.3441 1.3441 B91364 - Gen 2 Exadata Cloud at Customer -Database OCPU- BYOL OCPU Per Hour 0.3226 0.3226 B91391 - Oracle Autonomous Data Warehouse -Free OCPU Per Hour 0.0 0.0 B91392 - Oracle Autonomous Data Warehouse-Exadata Storage -Free Terabyte Storage Capacity Per 0.0 0.0 Month B91393 - Oracle Autonomous Transaction Processing -Free OCPU Per Hour 0.0 0.0 B91394 - Oracle Autonomous Transaction Processing-Exadata Storage -Free Terabyte Storage Capacity Per 0.0 0.0 Month B91535 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Quarter Rack-X8 Hosted Environment Per Hour 14.5162 14.5162 B91536 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Half Rack-X8 Hosted Environment Per Hour 29.0323 29.0323 B91537 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Full Rack-X8 Hosted Environment Per Hour 58.0645 58.0645 B91631 - Oracle Cloud Infrastructure -Data Safe for Database Cloud Service -Audit Record Collection Over 1 Million Records 10,000 Audit Records Per Target 0.1 0.1 Per Month B91632 - Oracle Cloud Infrastructure -Data Safe for Database Cloud Service Each 0.0 0.0 B92023 - MySQL HeatWave-Standard Node Per Hour 0.3536 0.3536 B92024 - MySQL Database for HeatWave-Standard Node Per Hour 0.3536 0.3536 B92181 - Oracle Autonomous Transaction Processing - Dedicated OCPU Per Hour 1.3441 1.3441 B92182 - Oracle Autonomous Data Warehouse -Dedicated OCPU Per Hour 1.3441 1.3441 City Council ISSUE? by (57viton Consulting Services, Inc. 7/1 5562042025 Page 25 of 37 Usage Item Description Metric List Price Overage Net Unit Price B92183 - Oracle Autonomous Transaction Processing- Dedicated-BYOL OCPU Per Hour 0.3226 0.3226 B92184 - Oracle Autonomous Data Ware house- Dedicated- BYOL OCPU Per Hour 0.3226 0.3226 B92212 - Oracle Autonomous JSON Database OCPU Per Hour 0.3226 0.3226 B92380 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Quarter Rack-X8M Hosted Environment Per Hour 14.5162 14.5162 B92381 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Database Server-X8M Hosted Environment Per Hour 2.9032 2.9032 B92382 - Oracle Cloud Infrastructure -Database Exadata Infrastructure -Storage Server-X8M Hosted Environment Per Hour 2.9032 2.9032 B92418 - Exadata Cloud at Customer -Autonomous Transaction Processing Database OCPU Per Hour 1.3441 1.3441 B92419 - Exadata Cloud at Customer -Autonomous Data Warehouse Database OCPU Per Hour 1.3441 1.3441 B92420 - Exadata Cloud at Customer -Autonomous Transaction Processing -Database OCPU-BYOL OCPU Per Hour 0.3226 0.3226 B92421 - Exadata Cloud at Customer -Autonomous Data Warehouse -Database OCPU-BYOL OCPU Per Hour 0.3226 0.3226 B92425 - MySQL Data base-Standard-E2 OCPU Per Hour 0.0467 0.0467 B92426 - MySQL Database -Storage Gigabyte Storage Capacity per 0.04 0.04 Month B92483 - MySQL Database -Backup Storage Gigabyte Storage Capacity per 0.04 0.04 Month B92627 - Oracle NoSQL Database Cloud -Write -Free Write Unit Per Month 0.0 0.0 B92628 - Oracle NoSQL Database Cloud -Read -Free Read Unit Per Month 0.0 0.0 B92629 - Oracle NoSQL Database Cloud -Storage -Free Gigabyte Storage Capacity Per 0.0 0.0 Month B92733 - Oracle Cloud Infrastructure -Data Safe for On - Premises Databases & Databases on Compute Target Database Per Month 0 - 200.0 200.0 100 Target Database Per Month 100 - 150.0 150.0 300 City Council ISSUE? by (58viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 26 of 37 Usage Item Description Metric List Price Overage Net Unit Price Target Database Per Month 300 - 500 100.0 100.0 Target Database Per Month 500 - 999999999999999 50.0 50.0 B92734 - Oracle Cloud Infrastructure -Data Safe for On - Premises Databases & Databases on Compute 10,000 Audit Records Per Target Per Month 0.1 0.1 B92759 - MySQL Analytics-Bare Metal Standard-E2 Node Per Hour B92807 - MySQL Database -Bare Metal Standard-E2 0.5018 0.5018 Node Per Hour B92911 - Oracle APEX Application Development 0.5018 0.5018 OCPU Per Hour 0.3226 0.3226 B92962 - MySQL Data base-Standard-E3 OCPU Per Hour 0.038 0.038 B92963 - MySQL Data base -Stan dard-E3-Memory Gigabyte Per Hour 0.0022 0.0022 B93199 - Oracle Cloud Infrastructure Database Migration Migration Hour 0.2 0.2 B93320 - Oracle APEX Application Development -Free OCPU Per Hour 0.0 0.0 B93380 - Exadata Cloud Infrastructure -Quarter Rack-X9M Hosted Environment Per Hour 14.5162 14.5162 B93381 - Exadata Cloud Infrastructure -Database Server-X9M Hosted Environment Per Hour 2.9032 2.9032 B93382 - Exadata Cloud Infrastructure -Storage Server-X9M Hosted Environment Per Hour 2.9032 2.9032 B93546 - MySQL Database for HeatWave-Bare Metal Standard Node Per Hour 2.2144 2.2144 B93709 - Oracle Cloud Infrastructure Search with OpenSearch HA Node Per Hour 0.25 0.25 B93710 - Oracle NoSQL Database Cloud -Write -Auto Write Unit Per Month 3.135 3.135 B93711 - Oracle NoSQL Database Cloud -Read -Auto Read Unit Per Month 0.16 0.16 B93712 - Oracle NoSQL Database Cloud -Hosted Environment Hosted Environment Per Month 28,796.0 28,796.0 B95240 - Oracle Database Autonomous Recovery Service Virtualized GB Per Month 0.0306 0.0306 B95241 - Oracle Database Zero Data Loss Autonomous Recovery Service Virtualized GB Per Month 0.04 0.04 B95264 - Oracle Cloud Infrastructure Application Performance Monitoring Service -Stack Monitoring Standard Edition 0.075 0.075 B95427 - MySQL Database-AWS-Storage City Council ISSUE? by (59iton Consulting Services, Inc. 7/1 5/,2iQ42025 Page 27 of 37 Usage Item Description Metric List Price Overage Net Unit Price Gigabyte Storage Capacity Per 0.132 0.132 Month B95428 - MySQL Database-AWS-Backup Storage Gigabyte Storage Capacity Per 0.0476 0.0476 Month B95435 - MySQL Data base -Stan dard-AMD E4-Compute OCPU Per Hour 0.038 0.038 B95436 - MySQL Database-Standard-AMD E4-Memory Gigabyte Per Hour 0.0022 0.0022 B95437 - MySQL Database -Standard -Intel X7-Compute OCPU Per Hour 0.062 0.062 B95438 - MySQL Database -Standard -Intel X7-Memory Gigabyte Per Hour 0.0022 0.0022 B95439 - MySQL Database -Standard -Intel X9-Compute OCPU Per Hour 0.062 0.062 B95440 - MySQL Database -Standard -Intel X9-Memory Gigabyte Per Hour 0.0022 0.0022 B95441 - MySQL Database -Optimized -Intel X9-Compute OCPU Per Hour 0.082 0.082 B95442 - MySQL Database -Optimized -Intel X9-Memory Gigabyte Per Hour 0.0022 0.0022 B95485 - Oracle Cloud Infrastructure Full Stack Disaster Recovery Service OCPU Per Hour 0.0128 0.0128 B95701 - Oracle Autonomous Data Warehouse-ECPU ECPU Per Hour 0.336 0.336 B95702 - Oracle Autonomous Transaction Processing-ECPU ECPU Per Hour 0.336 0.336 B95703 - Oracle Autonomous Data Warehouse-ECPU-BYOL ECPU Per Hour 0.0807 0.0807 B95704 - Oracle Autonomous Transaction Processing-ECPU- BYOL ECPU Per Hour 0.0807 0.0807 B95706 - Oracle Autonomous Database Storage for Transaction Processing B95708 - Oracle Autonomous Data Warehouse-Exadata Cloud @Customer-ECPU B95709 - Oracle Autonomous Transaction Processing-Exadata Cloud @Customer-ECPU B95710 - Oracle Autonomous Data Warehouse-Exadata Cloud@Customer-ECPU-BYOL B95711 - Oracle Autonomous Transaction Processing-Exadata Cloud@Customer-ECPU-BYOL B95712 - Oracle Autonomous Data Warehouse-Dedicated- Gigabyte Storage Capacity Per Month ECPU Per Hour ECPU Per Hour ECPU Per Hour ECPU Per Hour 0.1156 0.336 0.336 0.0807 00-11YA 0.1156 0.336 0.336 0.0807 City Council ISSUE? by (6@iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 28 of 37 Usage Item Description Metric List Price Overage Net Unit Price ECPU ECPU Per Hour 0.336 0.336 B95713 - Oracle Autonomous Transaction Processing- Dedicated-ECPU ECPU Per Hour 0.336 0.336 B95714 - Oracle Autonomous Data Ware house- Dedicated- ECPU-BYOL ECPU Per Hour 0.0807 0.0807 B95715 - Oracle Autonomous Transaction Processing- Dedicated-ECPU-BYOL ECPU Per Hour 0.0807 0.0807 B95754 - Oracle Autonomous Database Storage Gigabyte Storage Capacity Per 0.0244 0.0244 Month B96157 - MySQL HeatWave-AWS HeatWave Capacity Per Hour 0.049 0.049 B96158 - MySQL Database-AWS-ECPU ECPU Per Hour 0.049 0.049 B96159 - MySQL Database-AWS-Outbound Data Transfer -Inter AWS Region Gigabyte of Data Transferred 0.0504 0.0504 B96160 - MySQL Database-AWS-Outbound Data Transfer -To Internet Gigabyte of Data Transferred 0.0911 0.0911 B96625 - Oracle Cloud Infrastructure-HeatWave-Storage Gigabyte Storage Capacity Per 0.02 0.02 Month B96626 - Oracle Cloud Infrastructure-HeatWave HeatWave Capacity Per Hour 0.011 0.011 B97191 - Oracle NoSQL Database Cloud -Regional Replicated Write Write Unit Per Month 0.36 0.36 B97197 - Oracle Base Database Service on Arm -Enterprise OCPU Per Hour 0.2151 0.2151 B97198 - Oracle Base Database Service on Arm -High Performance OCPU Per Hour 0.4436 0.4436 B97199 - Oracle Base Database Service on Arm -Extreme Performance OCPU Per Hour 0.6721 0.6721 B97200 - Oracle Base Database Service on Arm-BYOL OCPU Per Hour 0.0968 0.0968 B98217 - Oracle Cloud Infrastructure Cache with Redis-Low Memory (up to 10 GB per node) Redis Memory Gigabyte Per Hour 0.0194 0.0194 B98277 - Oracle Autonomous Transaction Processing-Exadata Cloud @Customer -Developer Instance Per Hour 0.0 0.0 B98278 - Oracle Autonomous Data Warehouse-Exadata Cloud @Customer -Developer City Council ISSUE9 by fiAviton Consulting Services, Inc. 7/1 5/J2Q42025 Page 29 of 37 Usage Item Description Metric List Price Overage Net Unit Price Instance Per Hour 0.0 0.0 B98279 - Oracle Autonomous Transaction Processing - Dedicated -Developer Instance Per Hour 0.0 0.0 B98280 - Oracle Autonomous Data Ware house -Dedicated - Developer Instance Per Hour 0.0 0.0 B99060 - Oracle Cloud Infrastructure Database with PostgreSQL-X86 OCPU Per Hour 0.098 0.098 B99062 - Oracle Cloud Infrastructure Database Optimized Storage Gigabyte Storage Capacity Per 0.072 0.072 Month B99591 - Oracle Cloud Infrastructure Cache with Redis-High Memory (over 10 GB per node) Redis Memory Gigabyte Per Hour 0.0136 0.0136 B99593 - Oracle Globally Distributed Autonomous Transaction Processing -Dedicated ECPU Per Hour 0.3864 0.3864 B99594 - Oracle Globally Distributed Autonomous Transaction Processing-Dedicated-BYOL ECPU Per Hour 0.0928 0.0928 B99595 - Oracle Globally Distributed Autonomous Data Warehouse -Dedicated ECPU Per Hour 0.3864 0.3864 B99596 - Oracle Globally Distributed Autonomous Data Warehouse-Dedicated-BYOL ECPU Per Hour 0.0928 0.0928 B99708 - Oracle Autonomous JSON Database-ECPU ECPU Per Hour 0.0807 0.0807 B99709 - Oracle APEX Application Development-ECPU ECPU Per Hour 0.0807 0.0807 Not Discount Eligible B108077 - Oracle Cloud Infrastructure Generative AI -Large Cohere 10,000 Transactions 0.0219 0.0219 B108078 - Oracle Cloud Infrastructure Generative AI -Small Cohere 10,000 Transactions 0.004 0.004 B108079 - Oracle Cloud Infrastructure Generative AI -Embed Cohere 10,000 Transactions 0.001 0.001 B108082 - Oracle Cloud Infrastructure Generative AI -Large Cohere -Dedicated Al Unit Per Hour 24.0 24.0 B108083 - Oracle Cloud Infrastructure Generative AI -Small Cohere -Dedicated Al Unit Per Hour 6.5 6.5 B108084 - Oracle Cloud Infrastructure Generative AI -Embed City Council Issuag by (62iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 30 of 37 Usage Item Description Metric List Price Overage Net Unit Price Cohere -Dedicated Al Unit Per Hour 10.9 10.9 B108806 - Oracle Cloud VMware Solution-BM.GPU.A10.64- Monthly Commit Node Per Hour 16.0 16.0 B108807 - Oracle Cloud VMware Sol ution-BM.GPU.A10.64-1 Year Commit Node Per Hour 13.0 13.0 B108808 - Oracle Cloud VMware Sol ution-BM.GPU.A10.64-3 Year Commit Node Per Hour 11.0 11.0 B108809 - Oracle Cloud VMware Solution -Base - BM. Standard. E5.48-Hourly Commit Node Per Hour 16.6617 16.6617 B108810 - Oracle Cloud VMware Solution-Base- BM.Standard. E5.48-1 Year Commit Node Per Hour 13.1604 13.1604 B108811 -Oracle Cloud VMware Solution-Base- BM.Standard. E5.48-3 Year Commit Node Per Hour 10.6119 10.6119 B88318 - Oracle Cloud Infrastructure -Compute -Windows OS OCPU Per Hour 0.092 0.092 B92386 - Oracle Cloud VMware Solution OCPU Per Hour 0.2031 0.2031 B92615 - Roving Edge Device -Compute Optimized- Rugged ized Resource Possession Per Day 160.0 160.0 B92686 - Oracle Analytics for Fusion Applications -Free Hosted Named User 0.0 0.0 B93039 - Roving Edge Device -Compute Optimized -Standard Resource Possession Per Day 160.0 160.0 B93040 - Roving Edge Device -Compute Optimized- Unreturnable/Loss Fee Each 45,000.0 45,000.0 B93288 - Oracle Cloud VMware Solution-BM.Dense1O2.52- Hourly Commit OCPU Per Hour 0.2437 0.2437 B93289 - Oracle Cloud VMware Sol ution-BM.DenselO2.52-1 Year Commit OCPU Per Hour 0.1625 0.1625 B93290 - Oracle Cloud VMware Sol ution-BM.DenselO2.52-3 Year Commit OCPU Per Hour 0.132 0.132 B93307 - Autonomous JSON Database -Free OCPU Per Hour 0.0 0.0 B93421 - Oracle Cloud VMware Solution-HCX Enterprise - Monthly OCPU Per Hour 0.0126 0.0126 B95178 - Oracle Cloud VMware Solution-BM.DenselO.E4.64- Hourly Commit OCPU Per Hour 0.2437 0.2437 City Council ISSUE? by (61ton Consulting Services, Inc. 7/1 5/J2Q42025 Page 31 of 37 Usage Item Description Metric List Price Overage Net Unit Price B95179 - Oracle Cloud VMware Solution-BM.DenselO.E4.64- Monthly Commit OCPU Per Hour 0.2031 0.2031 B95180 - Oracle Cloud VMware Solution-BM.DenselO.E4.64-1 year Commit OCPU Per Hour 0.1625 0.1625 B95181 - Oracle Cloud VMware Solution-BM.DenselO.E4.64-3 year Commit OCPU Per Hour 0.132 0.132 B95228 - Roving Edge Ultra Resource Possession Per Day 45.0 45.0 B95229 - Roving Edge Ultra Non -Return or Loss Fee Each 35,000.0 35,000.0 B95403 - Oracle Cloud Infrastructure -Network Firewall Instance Instance Per Hour 2.75 2.75 B95404 - Oracle Cloud Infrastructure -Network Firewall Data Processing Gigabyte of Data Processed 0 - 0.0 0.0 10240 Gigabyte of Data Processed 0.01 0.01 10240 - 999999999999999 B95411 - Oracle Cloud VMware Solution-BM.DenselO.E4.32- Hourly Commit OCPU Per Hour 0.3047 0.3047 B95412 - Oracle Cloud VMware Solution-BM.DenselO.E4.32- Monthly Commit OCPU Per Hour 0.2539 0.2539 B95413 - Oracle Cloud VMware Solution-BM.DenselO.E4.32-1 year Commit OCPU Per Hour 0.2031 0.2031 B95414 - Oracle Cloud VMware Solution-BM.DenselO.E4.32-3 year Commit OCPU Per Hour 0.165 0.165 B95415 - Oracle Cloud VMware Solution-BM.DenselO.E4.128- Hourly Commit OCPU Per Hour 0.195 0.195 B95416 - Oracle Cloud VMware Solution-BM.DenselO.E4.128- Monthly Commit OCPU Per Hour 0.1625 0.1625 B95417 - Oracle Cloud VMware Sol ution-BM.Densel0.E4.128-1 year Commit OCPU Per Hour 0.13 0.13 B95418 - Oracle Cloud VMware Sol ution-BM.Densel0.E4.128-3 year Commit OCPU Per Hour 0.1056 0.1056 B97102 - Oracle Cloud VMware Solution-Base- BM.Standard2.12-Hourly Commit Node Per Hour 4.714 4.714 B97103 - Oracle Cloud VMware Solution-Base- BM.Standard2.12-1 Year Commit City Council Issuag by (64viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 32 of 37 Usage Item Description Metric List Price Overage Net Unit Price Node Per Hour 3.7144 3.7144 B97104 - Oracle Cloud VMware Solution-Base- BM.Standard2.12-3 Year Commit Node Per Hour 2.953 2.953 B97105 - Oracle Cloud VMware Solution-Base- BM.Standard3.16-Hourly Commit Node Per Hour 5.554 5.554 B97106 - Oracle Cloud VMware Solution-Base- BM.Standard 3.16-1 Year Commit Node Per Hour 4.2943 4.2943 B97107 - Oracle Cloud VMware Solution-Base- BM.Standard 3.16-3 Year Commit Node Per Hour 3.3522 3.3522 B97108 - Oracle Cloud VMware Solution-Base- BM.Standard. E4.32-Hourly Commit Node Per Hour 9.2565 9.2565 B97109 - Oracle Cloud VMware Solution-Base- BM.Standard. E4.32-1 Year Commit Node Per Hour 6.9223 6.9223 B97110 - Oracle Cloud VMware Solution-Base- BM.Standard. E4.32-3 Year Commit Node Per Hour 5.2233 5.2233 B97111 - Oracle Cloud VMware Solution -Expansion -Hourly Commit OCPU Per Hour 0.1605 0.1605 B97112 - Oracle Cloud VMware Solution-Expansion-1 Year Commit OCPU Per Hour 0.1092 0.1092 B97113 - Oracle Cloud VMware Solution-Expansion-3 Year Commit OCPU Per Hour 0.0739 0.0739 City Council ISSUE? by (6&iton Consulting Services, Inc. 7/1 5/,2Q42025 Page 33 of 37 A. DESCRIPTION AND PRICES FOR ORDERED CLOUD SERVICES 1. Cloud Services Ordered City of Santa Ana, CA ("City", "You", "Your", or "End User"), has ordered the cloud services described above from Graviton Consulting Services, Inc. ("Graviton"). Your use of these cloud services is subject to the terms in this Ordering Document (the "Order" or "Ordering Document") and the Oracle Cloud Services executed between You and Oracle America, Inc. B. TERMS AND FEES FOR ORDERED CLOUD SERVICES 1. Oracle Contract Information a. Agreements. End User Cloud Services Agreement. The end user cloud services agreement applicable to this order is the following: Effective Version Date: Oracle Cloud Services Agreement US-CSA-CPQ-3330527 v062223 2. Currency: All fees on this ordering document are in US Dollars. 3. Terms: All products and services listed on this order are provided by Oracle under, and subject to, the terms of this order, including the agreement and all Oracle documents referenced in this order. You indicate your agreement to the terms of this order, including the agreement, by signing this order, and you represent that you have the authority to bind the company to whom this order is addressed above to the terms of this order and the agreement. As applicable, Oracle processes a partner's order after receipt of a purchase order or a valid credit card. Any terms and conditions on your purchase order are void and have no legal effect. For cloud services, you may not reduce the quantity of services purchased hereunder for distribution to the end user (e.g., user or record counts, storage, etc.), in whole or in part, during the Services Period set forth above. The Services Period for the cloud services commences on September 15, 2025. 4. Fees: The cloud services payment frequency applies to all cloud services fees and taxes. All fees payable to Graviton are due 45 days from the invoice date. Once placed, your order is non -cancelable and the sums paid nonrefundable, except as otherwise provided herein or in the agreement. You will pay any sales, value-added or other similar taxes imposed applicable law that Graviton must pay based on the cloud services You ordered, except for taxes based on Graviton's income. Unless specifically stated otherwise, fees for cloud services listed in this Order are exclusive of taxes and expenses. You agree not to disclose the terms of this ordering document to any third party. Cloud Services Payment Frequency: Your payment frequency is Monthly in Arrears as described in the service specifications. The service specifications applicable to the cloud services and the consulting/professional services ordered may be accessed at www.oracle.com/contracts. Cloud Services Overage Bill To: In the event of an overage as described in the service descriptions, You shall be invoiced for such overage(s). 5. Offer Validity: This order is valid through 30-SEP-2025 and shall become binding upon execution by You and acceptance by Graviton. 6. Data Center Region Your services environment (as defined in the CSA) will reside in the data center region identified in the table above. 7. Funded Allocation Additional Terms As described in the Oracle PaaS and IaaS Universal Credits — Service Descriptions document available at http://www.oracle.com/contracts, the following terms apply to your Oracle PaaS and IaaS Universal Credits. Under the "Funded Allocation Model", Oracle and Graviton allow You the flexibility to fund an annual amount to Oracle as specified in the "Funded Allocation Value" in Your Order, which is to be applied towards the future usage of eligible Oracle IaaS and PaaS Cloud Services specified in the rate card attached to Your Order or as seen in the Cloud Portal provided such Cloud Services are available in production release when ordered, at the fees specified in the rate card. The total Funded Allocation Value of Your Order is reflected in the "Funded Allocation Value" column and the applicable Services Period for that value will be as specified in Your Order. Graviton will invoice you monthly in arrears based on your actual usage for the prior month at the rates for each activated Oracle IaaS and PaaS Cloud Service as City Council ISSUW by (6%iton Consulting Services, Inc. 7/1 5/,j2QZ52025 Page 34 of 37 defined in Your Order Overage If, at the end of any month during the Services Period, You have exceeded the Funded Allocation Value, You must provide additional funding for Your usage, or You must cease to use the applicable Cloud Services. If You have exceeded the Funded Allocation Value and You have not ended Your use of the Services, You will be subject to overage fees. The increased services shall be equal to the actual usage/capacity that exceeds the Funded Allocation Value amount. Graviton will invoice You monthly in arrears for the excess usage of the Oracle IaaS and PaaS Cloud Service at the Overage Unit Net Price specified in the rate card of Your Order or as seen in the Cloud Portal. Such invoice shall not require a separate ordering document. You shall pay the invoice in accordance with this Order's payment terms. You may set quotas, alerts and use other monitoring tools within the Cloud Portal to assist You in managing and tracking Your usage. If there is a dispute on the amount of the overages invoice: i) You shall promptly notify Graviton in writing of the dispute and the basis for Your dispute. Your notification to Graviton must include a detailed written explanation of Your objection to the overages invoice. Your written notice to Graviton must be delivered to Graviton before the due date for your overages payment to Graviton ("Your payment date"). ii) If no written objection is provided to Graviton prior to Your payment date of the Graviton overages invoice, then You must transmit payment to Graviton for the Graviton overages invoice. Additional Services If Oracle adds additional service offerings to the list of eligible Oracle IaaS and PaaS Cloud Services within Your Cloud Services Account during the Services Period, You may activate and use those service offerings and the discount will be applied based on the Cloud Service category discount specified in the rate card attached to Your Order or as seen in the Cloud Portal. The development, release, and timing of any future features, functionality or service offerings remains at the sole discretion of Oracle Corporation. Replenishment of Account at End of Services Period If You are continuing to use services after the end of the Services Period specified in Your Order and You have not extended the Services period and increased the Funded Allocation Value for use of eligible Oracle IaaS and PaaS Cloud Services, You will be charged for the actual usage of all services that You activate and/or have activated within your Cloud Services Account based on Graviton's then current price list for such services. Upon extending the term of the Services Period and increasing the amount of the Funded Allocation Value through a new order or modification of Your existing Order, You will receive the Cloud Services category discounts specified in the rate card attached to Your new order or modification of the existing Order or as seen in the Cloud Portal. Roving Edge Parts. Roving Edge Infrastructure parts are limited -availability parts. This Order is not eligible for any Roving Edge Infrastructure products or services, even if a Roving Edge part number is specified in the Rate Card of this Order or seen in the Cloud Portal. C. Additional End User Terms This Order is subject to and incorporates the terms and conditions contained in this Section C in the form set forth below ("End User Terms"). Oracle is an irrevocable third -party beneficiary of the order between Graviton and the City, but does not assume any of Graviton's obligations thereunder. Oracle will have no liability to the City arising out of or relating to the City's non-compliance with the End User Terms. Should the City fail to be in compliance with the additional End User Terms below, or because of any other circumstance outside of Oracle's control, then you agree Oracle may suspend or terminate the cloud services under this Order. In the event of termination, the end user's right to receive cloud services under this Order is automatically forfeited. 1. Data Center Region Availability for UCM Platform and data center region availability information for Oracle Platform as a Service (PaaS) Cloud Services and for Oracle Infrastructure as a Service (laaS) Cloud Services is provided on the Oracle Cloud Portal at https://cloud.oracle.com/data-regions. 2. No Auto -Renewal Notwithstanding any statement, to the contrary in the Service Specifications, You expressly agree that the Services acquired under this Order will not auto -renew. D. Other 1. Order of Precedence In the event of inconsistencies between the terms contained in this Order and the agreement referenced above, this Order shall take precedence. This Order will override and control over the terms contained in any purchase order. City Council ISSUW by (67viton Consulting Services, Inc. 7/1 5/J2Q42025 Page 35 of 37 E. NOT TO EXCEED CONTRACT AMOUNT The total amount to be expended on all PaaS, IaaS, and SaaS services during the term of this agreement, including any option periods, shall not exceed $5,027,000.00. The City Manager or their designee shall have authority to execute PaaS, IaaS, and/or SaaS Ordering Documents during the term of this agreement, including any option periods, provided the City's cumulative expenditures under such Ordering Documents do not exceed $5,027,000.00. This Section shall apply to all future ordering documents from September 1, 2025 — August 31, 2028, and any optional extensions exercised by the Parties, as approved by the City Council for the City of Santa Ana on July 15, 2025. F. Entire Agreement By signing below, we each agree that this Order constitutes the entire agreement between You and Graviton with regard to the subject matter herein and as such, no other preprinted, non -negotiated or other terms and conditions on any document by partner or end user (e.g., on a purchase order or elsewhere) shall apply. This order is placed subject to the terms of the agreement. The signature below affirms your commitment to pay for the cloud services ordered in accordance with the terms of this order and the agreement. ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM SONIA R. CARVALHO City Attorney By onathan T. Martin Assistant City Attorney CITY OF SANTA ANA Alvaro Nunez City Manager RECCOMENDED FOR APPROVAL Jack Ciulla Chief Technology Innovations Officer Information Technology Department GRAVITON CONSULTING SERVICES, INC. Greg atan ano Chief Executive Officer Graviton Consulting Services, Inc. City Council ISSUE9 by figviton Consulting Services, Inc. 7/1 5J/,j2Q42025 Page 36 of 37 City Council ISSUE? by (69iton Consulting Services, Inc. 7/1 5/J2Q42025 Page 37 of 37 Graviton OD (PaaS-1aaS) City of Santa Ana, CA 1.0 (rec'd 6-26-2025) - CAO signed(2070608.2) Final Audit Report 2025-06-30 Created: 2025-06-30 By: MELANIE TORRES (MTorres@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAA02ZN8SmKOXRy3pyZ9iB2n4AKTvxryQiY "Graviton OD (PaaS-IaaS) City of Santa Ana, CA 1.0 (rec'd 6-26 -2025) - CAO signed(2070608.2)" History Document created by MELANIE TORRES (MTorres@santa-ana.org) 2025-06-30 - 3:26:11 PM GMT Document emailed to Jack Ciulla Qciulla@santa-ana.org) for signature 2025-06-30 - 3:26:23 PM GMT Email viewed by Jack Ciulla Qciulla@santa-ana.org) 2025-06-30 - 3:26:33 PM GMT &0 Document e-signed by Jack Ciulla Ociulla@santa-ana.org) Signature Date: 2025-06-30 - 3:26:49 PM GMT - Time Source: server Agreement completed. 2025-06-30 - 3:26:49 PM GMT Ado i ounce . y 9 — 70 7/15/2025 Confidential - Oracle Restricted C)RACLE® PUBLIC SECTOR AGREEMENT FOR ORACLE CLOUD SERVICES This Public Sector Agreement for Oracle Cloud Services (this "Agreement") is between Oracle America, Inc. ("Oracle," "we," "us," or "our") and the entity that has executed this Agreement as identified in the signature block below ("You" or "Your"). This Agreement sets forth the terms and conditions that govern orders placed under this Agreement. 1. USE OF THE SERVICES 1.1. We will make the Oracle services listed in Your order (the "Services") available to You pursuant to this Agreement and Your order. Except as otherwise stated in this Agreement or Your order, You have the non- exclusive, worldwide, limited right to use the Services during the period defined in Your order, unless earlier terminated in accordance with this Agreement or Your order (the "Services Period"), solely for Your internal business operations. You may allow Your Users (as defined below) to use the Services for this purpose, and You are responsible for their compliance with this Agreement and Your order. 1.2. The Service Specifications describe and govern the Services. During the Services Period, we may update the Services and Service Specifications to reflect changes in, among other things, laws, regulations, rules, technology, industry practices, patterns of system use, and availability of Third Party Content (as defined below). Oracle updates to the Services or Service Specifications will not materially reduce the level of performance, functionality, security or availability of the Services during the Services Period of Your order. 1.3. You may not, and may not cause or permit others to: (a) use the Services to harass any person; cause damage or injury to any person or property; publish any material that is false, defamatory, harassing or obscene; violate privacy rights; promote bigotry, racism, hatred or harm; send unsolicited bulk e-mail, junk mail, spam or chain letters; infringe intellectual or other property rights; sell, manufacture, market and/or distribute any product or service in violation of applicable laws; or otherwise violate applicable laws, ordinances or regulations; (b) perform or disclose any benchmarking or availability testing of the Services, except as permitted in the Service Specifications; (c) perform or disclose any performance or vulnerability testing of the Services without Oracle's prior written approval, except as permitted in the Service Specifications, or perform or disclose network discovery, port and service identification, vulnerability scanning, password cracking or remote access testing of the Services; or (d) use the Services to perform cyber currency or crypto currency mining ((a) through (d) collectively, the "Acceptable Use Policy"). In addition to other rights that we have in this Agreement and Your order, we have the right to take remedial action if the Acceptable Use Policy is violated, and such remedial action may include removing or disabling access to material that violates the policy. 2. FEES AND PAYMENT 2.1. All fees payable are due within 30 days from the invoice date. Once placed, Your order is non -cancelable and the sums paid nonrefundable, except as provided in this Agreement or Your order. You will pay any sales, value- added or other similar taxes imposed by applicable law that we must pay based on the Services You ordered, except for taxes based on our income. Fees for Services listed in an order are exclusive of taxes and expenses, unless expressly stated otherwise in Your order. 2.2. If You exceed the quantity of Services ordered, then You promptly must purchase and pay fees for the excess quantity. 2.3. You understand that You may receive multiple invoices for the Services. Invoices will be submitted to You pursuant to Oracle's Invoicing Standards Policy, available at https://www.oracle.com/contracts/cloud-services. 3. OWNERSHIP RIGHTS AND RESTRICTIONS 3.1. You or Your licensors retain all ownership and intellectual property rights in and to Your Content (as defined below). We or our licensors retain all ownership and intellectual property rights in and to the Services, derivative works thereof, and anything developed or delivered by or on behalf of us under this Agreement. Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 1 of 10 188 n lyl I oun-cl y zuzn9 — 71 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted 3.2. You may have access to Third Party Content through use of the Services. Unless otherwise stated in Your order, all ownership and intellectual property rights in and to Third Party Content and the use of such content is governed by separate third party terms between You and the third party. 3.3. You have the authority to and do grant us the right to host, use, process, display and transmit Your Content to provide the Services pursuant to and in accordance with this Agreement and Your order. You have sole responsibility for the accuracy, quality, integrity, legality, reliability, and appropriateness of Your Content, and for obtaining all rights related to Your Content required by Oracle to perform the Services. 3.4. Except as permitted by this Agreement or Your order, You may not, and may not cause or permit others to: (a) modify, make derivative works of, disassemble, decompile, reverse engineer, reproduce, republish, download, or copy any part of the Services (including data structures or similar materials produced by programs); (b) access or use the Services to build or support, directly or indirectly, products or services competitive to Oracle; or (c) license, sell, transfer, assign, distribute, outsource, permit timesharing or service bureau use of, commercially exploit, or make available the Services to any third party. 4. NONDISCLOSURE 4.1. By virtue of this Agreement, the parties may disclose to each other information that is confidential ("Confidential Information"). Confidential Information shall be limited to the terms and pricing under this Agreement and Your order, Your Content residing in the Services, and all information clearly identified as confidential at the time of disclosure. 4.2. A party's Confidential Information shall not include information that: (a) is or becomes a part of the public domain through no act or omission of the other party; (b) was in the other party's lawful possession prior to the disclosure and had not been obtained by the other party either directly or indirectly from the disclosing party; (c) is lawfully disclosed to the other party by a third party without restriction on the disclosure; or (d) is independently developed by the other party. 4.3 Subject to applicable law, each party agrees not to disclose the other party's Confidential Information to any third party other than as set forth in the following sentence for a period of five years from the date of the disclosing party's disclosure of the Confidential Information to the receiving party; however, we will protect the confidentiality of Your Content residing in the Services for as long as such information resides in the Services. Each party may disclose Confidential Information only to those employees, agents or subcontractors who are required to protect it against unauthorized disclosure in a manner no less protective than required under this Agreement, and each party may disclose the other party's Confidential Information in any legal proceeding or to a governmental entity as required by law. 4.4 The parties acknowledge and agree that You and this Agreement are subject to applicable freedom of information or open records laws. Should You receive a request under such law for Oracle's Confidential Information, You agree to give Oracle adequate prior notice of the request and before releasing Oracle's Confidential Information to a third party, in order to allow Oracle sufficient time to seek injunctive relief or other relief against such disclosure. 5. PROTECTION OF YOUR CONTENT 5.1. In order to protect Your Content provided to Oracle as part of the provision of the Services, Oracle will comply with the applicable administrative, physical, technical and other safeguards, and other applicable aspects of system and content management, available at https://www.oracle.com/contracts/cloud-services. 5.2. To the extent Your Content includes Personal Information (as that term is defined in the applicable data privacy policies and the Data Processing Agreement (as defined below)), Oracle will furthermore comply with the following: a. the relevant Oracle privacy policies applicable to the Services, available at http://www.oracle.com/us/legal/privacy/overview/index.htm1; and b. the applicable version of the Data Processing Agreement for Oracle Services (the "Data Processing Agreement"), unless stated otherwise in Your order. The version of the Data Processing Agreement applicable to Your order (i) is available at https://www.oracle.com/contracts/cloud-services and is incorporated herein by reference, and (ii) will remain in force during the Services Period of Your order. In Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 2 of 10 188 I ouh- y zuzn9 — 72 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted the event of any conflict between the terms of the Data Processing Agreement and the terms of the Service Specifications (including any applicable Oracle privacy policies), the terms of the Data Processing Agreement shall take precedence. 5.3. Without prejudice to Sections 5.1 and 5.2 above, You are responsible for (a) any required notices, consents and/or authorizations related to Your provision of, and our processing of, Your Content (including any Personal Information) as part of the Services, (b) any security vulnerabilities, and the consequences of such vulnerabilities, arising from Your Content, including any viruses, Trojan horses, worms or other harmful programming routines contained in Your Content, and (c) any use by You or Your Users of the Services in a manner that is inconsistent with the terms of this Agreement and/or Your order. To the extent You disclose or transmit Your Content to a third party, we are no longer responsible for the security or confidentiality of such content outside of Oracle's control. 5.4. Unless otherwise specified in Your order (including in the Service Specifications), Your Content may not include any data that imposes specific data security, data protection, or regulatory obligations on Oracle in addition to or different from those specified in the Data Processing Agreement, Service Specifications or this Agreement. If Your Content includes any of the foregoing data (e.g., certain regulated health or payment card information), Oracle will process such data only pursuant to the terms of Your order, the Data Processing Agreement, Service Specifications and this Agreement. You are responsible for complying with Your specific regulatory, legal or data security obligations which may apply to such data. If available for the Services, You may purchase additional services from us (e.g., Oracle Payment Card Industry Compliance Services) designed to address specific data security, data protection or regulatory requirements applicable to such data. 6. WARRANTIES, DISCLAIMERS AND EXCLUSIVE REMEDIES 6.1. Each party represents that it has validly entered into this Agreement and that it has the power and authority to do so. We warrant that during the Services Period we will perform the Services using commercially reasonable care and skill and in all material respects as described in the Service Specifications (the "Services Warranty"). If the Services provided to You were not performed as warranted, You must promptly provide us with a written notice that describes the deficiency in the Services (including, as applicable, the service request number notifying us of the deficiency in the Services). 6.2. WE DO NOT WARRANT THAT THE SERVICES WILL BE PERFORMED ERROR -FREE OR UNINTERRUPTED, THAT WE WILL CORRECT ALL SERVICES ERRORS, OR THAT THE SERVICES WILL MEET YOUR REQUIREMENTS OR EXPECTATIONS. WE ARE NOT RESPONSIBLE FOR ANY ISSUES RELATED TO THE PERFORMANCE, OPERATION OR SECURITY OF THE SERVICES THAT ARISE FROM YOUR CONTENT OR THIRD PARTY CONTENT OR SERVICES PROVIDED BY THIRD PARTIES. FOR ANY BREACH OF THE SERVICES WARRANTY, YOUR EXCLUSIVE REMEDY AND OUR ENTIRE LIABILITY SHALL BE THE CORRECTION OF THE DEFICIENT SERVICES THAT CAUSED THE BREACH OF WARRANTY, OR, IF WE CANNOT SUBSTANTIALLY CORRECT THE DEFICIENCY IN A COMMERCIALLY REASONABLE MANNER, YOU MAY END THE DEFICIENT SERVICES AND WE WILL REFUND TO YOU THE FEES PAID FOR THE DEFICIENT SERVICES FOR THE PERIOD OF TIME DURING WHICH THE SERVICES WERE DEFICIENT. 6.3. TO THE EXTENT NOT PROHIBITED BY LAW, THESE WARRANTIES ARE EXCLUSIVE AND THERE ARE NO OTHER EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS, INCLUDING FOR SOFTWARE, HARDWARE, SYSTEMS, NETWORKS OR ENVIRONMENTS OR FOR MERCHANTABILITY, SATISFACTORY QUALITY AND FITNESS FOR A PARTICULAR PURPOSE. 7. LIMITATION OF LIABILITY 7.1.IN NO EVENT WILL EITHER PARTY OR ITS AFFILIATES BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES, OR ANY LOSS OF REVENUE, PROFITS (EXCLUDING FEES UNDER THIS AGREEMENT), SALES, DATA, DATA USE, GOODWILL, OR REPUTATION. 7.2. IN NO EVENT SHALL THE AGGREGATE LIABILITY OF ORACLE AND OUR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR YOUR ORDER, WHETHER IN CONTRACT, TORT, OR OTHERWISE, EXCEED THE TOTAL AMOUNTS ACTUALLY PAID UNDER YOUR ORDER FOR THE ORACLE Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 3 of 10 188 I oun-cl y zuzn9 — 73 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted PRODUCTS OR SERVICES GIVING RISE TO THE LIABILITY DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE DATE OF THE EVENT GIVING RISE TO SUCH LIABILITY. 8. INDEMNIFICATION If a third party makes a claim against either You or Oracle ("Recipient," which may refer to You or us, depending upon which party received the Material), that any information, design, specification, instruction, software, service, data, hardware, or material (collectively, "Material") furnished by either You or us ("Provider," which may refer to You or us depending on which party provided the Material) infringes the third party's intellectual property rights, the Provider, at the Provider's sole cost and expense, will, to the extent not prohibited by law, defend the Recipient against the claim and indemnify the Recipient from the damages, liabilities, costs and expenses awarded by the court to the third party claiming infringement or the settlement agreed to by the Provider, if the Recipient does the following: a. notifies the Provider promptly in writing, not later than 30 days after the Recipient receives notice of the claim (or sooner if required by applicable law); b. gives the Provider sole control of the defense and any settlement negotiations to the extent permitted by law; and c. gives the Provider the information, authority and assistance the Provider needs to defend against or settle the claim. 8.1. If the Provider believes or it is determined that any of the Material may have violated a third party's intellectual property rights, the Provider may choose to either modify the Material to be non -infringing (while substantially preserving its utility or functionality) or obtain a license to allow for continued use, or if these alternatives are not commercially reasonable, the Provider may end the license for, and require return of, the applicable Material and refund any unused, prepaid fees the Recipient may have paid to the other party for such Material. If such return materially affects our ability to meet obligations under the relevant order, then we may, upon 30 days' prior written notice, terminate the order and refund any unused, prepaid fees for the Services under the terminated order. If such Material is third party technology and the terms of the third party license do not allow us to terminate the license, then we may, upon 30 days' prior written notice, end the Services associated with such Material and refund any unused, prepaid fees for such Services. 8.2. The Provider will not indemnify the Recipient if the Recipient (a) alters the Material or uses it outside the scope of use identified in the Provider's user or program documentation or Service Specifications, or (b) uses a version of the Material which has been superseded (and the Recipient has been notified in writing of the new version), if the infringement claim could have been avoided by using an unaltered current version of the Material which was made available to the Recipient. The Provider will not indemnify the Recipient to the extent that an infringement claim is based upon any material not furnished by the Provider. We will not indemnify You to the extent that an infringement claim is based on Third Party Content or any material from a third party portal or other external source that is accessible or made available to You within or by the Services (e.g., a social media post from a third party blog or forum, a third party web page accessed via a hyperlink, marketing data from third party data providers, etc.). 8.3. This Section 8 provides the parties' exclusive remedy for any claims or damages under Section 8.1 9. TERM AND TERMINATION 9.1. Unless this Agreement is terminated earlier, You may place orders governed by this Agreement for a period of five years from the date You accept this Agreement. Even if terminated, this Agreement will continue to govern any order for the duration of the Services Period of such order. 9.2. Services shall be provided for the Services Period defined in Your order. Notwithstanding anything to the contrary in the Service Specifications, the Services You order will not be automatically renewed. 9.3. We may suspend Your and/or Your Users' access to, or use of, the Services if we believe that (a) there is a significant threat to the functionality, security, integrity, or availability of the Services or any content, data, or applications in the Services; (b) You or Your Users are accessing or using the Services to commit an illegal act; (c) there is a violation of the Acceptable Use Policy; or (d) You provided false account or payment information or Your digital payment method is refused. When reasonably practicable and lawfully permitted, we will provide You with advance notice of any such suspension. For Services with the applicable operational capability, Oracle will Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 4 of 10 188 I oun-cl y zuzn9 — 74 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted use reasonable efforts to limit any suspension only to the portion of the Services related to the issue causing suspension. We will use reasonable efforts to re-establish the Services promptly after we determine that the issue causing the suspension has been resolved. During any suspension period, we will make Your Content (as it existed on the suspension date) available to You. Any suspension under this Section shall not excuse You from Your payment obligations. 9.4. If either of us breaches a material term of this Agreement or any order and fails to correct the breach within 30 days of written specification of the breach (provided in accordance with Section 16.1 below), then the breaching party is in default and the non -breaching party may terminate (a) in the case of breach of any order, the order under which the breach occurred; or (b) in the case of breach of this Agreement, this Agreement and any orders that have been placed under this Agreement. If we terminate any orders as specified in the preceding sentence, You must pay within 30 days all amounts that have accrued prior to such termination, as well as all sums remaining unpaid for the terminated order(s) plus related taxes and expenses. Except for nonpayment of fees, the non - breaching party may agree in its sole discretion to extend the 30 day period for so long as the breaching party continues reasonable efforts to cure the breach. You agree that if You are in default under this Agreement and/or Your order, You may not use those Services ordered. 9.5 You may terminate this Agreement at any time without cause by giving Oracle 30 days prior written notice of such termination. Termination of the Agreement will not affect orders that are outstanding at the time of termination. Those orders will be performed according to their terms as if this Agreement were still in full force and effect. However, those orders may not be renewed or extended subsequent to termination of this Agreement. 9.6 At the end of the Services Period, we will make Your Content (as it existed at the end of the Services Period) available for retrieval by You during a retrieval period specified in the Service Specifications. Following the retrieval period, and except as may be required by law, we will delete any of Your Content that remains in the Services. Our data deletion practices are described in more detail in the Service Specifications. 9.7 Provisions that survive termination or expiration of this Agreement are those relating to limitation of liability, indemnification, payment and others which by their nature are intended to survive. 10. THIRD PARTY CONTENT, SERVICES AND WEBSITES 10.1. The Services may enable You to link to, transfer Your Content or Third Party Content to, or otherwise access, third parties' websites, platforms, content, products, services, and information ("Third Party Services"). Oracle does not control and is not responsible for Third Party Content or Third Party Services. You are solely responsible for complying with the terms of access and use of Third Party Services, and if Oracle accesses or uses any Third Party Services on Your behalf to facilitate performance of the Services, You are solely responsible for ensuring that such access and use, including through passwords, credentials or tokens issued or otherwise made available to You, is authorized by the terms of access and use for such services. If You transfer or cause the transfer of Your Content or Third Party Content from the Services to a Third Party Service or other location, that transfer constitutes a distribution by You and not by Oracle. 10.2. Any Third Party Content we make accessible is provided on an "as -is" and "as available" basis without any warranty of any kind. We disclaim all liabilities arising from or related to Third Party Content. 10.3. You acknowledge that: (a) the nature, type, quality and availability of Third Party Content may change at any time during the Services Period, and (b) features of the Services that interoperate with Third Party Services, such as Facebook TM, YouTubeTm and Twitter TM, etc., depend on the continuing availability of such third parties' respective application programming interfaces (APIs). We may need to update, change or modify the Services under this Agreement as a result of a change in, or unavailability of, such Third Party Content, Third Party Services or APIs. Any change to Third Party Content, Third Party Services or APIs, including their unavailability, during the Services Period does not affect Your obligations under this Agreement or the applicable order, and You will not be entitled to any refund, credit or other compensation due to any such changes. 11. SERVICE MONITORING, ANALYSES AND ORACLE -PROVIDED SOFTWARE 11.1. We continuously monitor the Services to facilitate Oracle's operation of the Services; to help resolve Your service requests; to detect and address threats to the functionality, security, integrity, and availability of the Services as well as any content, data, or applications in the Services; and to detect and address illegal acts or violations of the Acceptable Use Policy. Oracle monitoring tools do not collect or store any of Your Content residing Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 5 of 10 188 I oun-cl y zuzn9 — 75 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted in the Services, except as needed for such purposes. Oracle does not monitor, and does not address issues with, non -Oracle software provided by You or any of Your Users that is stored in, or run on or through, the Services. Information collected by Oracle monitoring tools (excluding Your Content) may also be used to assist in managing Oracle's product and service portfolio, to help Oracle address deficiencies in its product and service offerings, and for license management purposes. 11.2. We may (a) compile statistical and other information related to the performance, operation and use of the Services, and (b) use data from the Services in aggregated form for security and operations management, to create statistical analyses, and for research and development purposes (above clauses (a) and (b) are collectively referred to as "Service Analyses"). We retain all intellectual property rights in Service Analyses. 11.3. We may provide You with the ability to obtain certain Oracle -provided Software (as defined below) for use with the Services. Unless we specify that separate terms will apply to Oracle -provided Software, any Oracle - provided Software is provided as part of the Services and You have the non-exclusive, worldwide, limited right to use, and allow Your Users to use, such Oracle -provided Software, subject to the terms of this Agreement and Your order, solely to facilitate Your authorized use of the Services. Your right to use any Oracle -provided Software will terminate upon the earlier of our notice (by web posting or otherwise) or the end of the Services associated with the Oracle -provided Software. Your right to use any part of the Oracle -provided Software that is licensed under the separate terms is not restricted in any way by this Agreement. 12. HARDWARE DEVICES The terms in this Section 12 (Hardware Devices) only apply to an order which includes a Hardware Device. 12.1. Your order may include a Hardware Device (as defined below), which You may use with the applicable Services as described in the Service Specifications. The terms of this Agreement and Your order (including those terms that refer to Services) govern Hardware Devices, the Operating System and Integrated Software (both as defined below), unless expressly stated otherwise in this Section 12, or if the terms by their nature would be inapplicable to Hardware Devices. 12.2. We provide a limited warranty for Hardware Devices as described in the Oracle Hardware Warranty available at http://www.oracle.com/contracts/hardware. Any changes to the Oracle Hardware Warranty will not apply to Hardware Devices ordered prior to such change. 12.3. We provide technical support services for Hardware Devices as described in the Service Specifications and/or Oracle's Hardware and Systems Support Policies in effect at the time the technical support services are provided (available at http://www.oracle.com/contracts/hardware), as applicable. 12.4. With respect to our indemnification for Hardware Devices under Section 8, notwithstanding the provisions of Section 8.2, if we believe or it is determined that the Hardware Device (or portion thereof) may have violated a third party's intellectual property rights, we may choose to either replace or modify the Hardware Device (or portion thereof) to be non -infringing (while substantially preserving its utility or functionality) or obtain a right to allow for continued use, or if these alternatives are not commercially reasonable, we may remove the applicable Hardware Device (or portion thereof) and refund the net book value for the Hardware Device. 12.5. "Hardware Device" is defined as hardware that meets both of the following requirements: (a) the hardware is managed by or used as part of the Services, and (b) the hardware is designated as a Hardware Device by Oracle. Title to Hardware Devices will transfer to You upon delivery to You unless otherwise specified in Your order. 12.6. "Operating System" refers to the software that manages the Hardware Device. You have the right to use the Operating System delivered with the Hardware Device (and any updates acquired through our technical support services) only as incorporated in, and as part of, the Hardware Device and subject to the terms of the license agreement(s) delivered with or on the Hardware Device. Current versions of the license agreements are located in the documentation for the Hardware Device. 12.7. "Integrated Software" refers to any software or programmable code that is embedded or integrated in a Hardware Device and enables the functionality of the Hardware Device. Integrated Software does not include and You do not have rights to (a) code or functionality for diagnostic, maintenance, repair or technical support services; or (b) separately licensed applications, development tools, or system management software or other code that is separately licensed by us or a third party. You have the limited, non-exclusive right to use Integrated Software Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 6 of 10 188 I oun-cl y zuzn9 — 76 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted delivered with a Hardware Device (and any updates acquired through our technical support services) only as incorporated in, and as part of, the Hardware Device and subject to any terms delivered with or on the Hardware Device and/or in the applicable documentation. 12.8. We or our licensors retain all ownership and intellectual property rights in and to the Operating System and Integrated Software. The Hardware Device may contain or require the use of third party technology that is provided with or pre -installed on the Hardware Device. Third party technology is licensed under terms which we may provide to You (i) with or on the Hardware Device, (ii) in the applicable product documentation, (iii) in the readme files, or (iv) in the notice files. Your right to use this third party technology under separate license terms are not restricted in any way by this Agreement. We do not warrant or provide any technical support services for this third party technology. 12.9. The Operating System or Integrated Software may include separate works, identified in a readme file, notice file or the applicable documentation, which are licensed under open source or similar license terms; Your rights to use the Operating System and Integrated Software under such terms are not restricted in any way by this Agreement. The appropriate terms associated with these separate works can be found in the readme files, notice files or in the documentation accompanying the Operating System and Integrated Software. For software (i) that is part of the Operating System or Integrated Software and (ii) that You receive from us in binary form and (iii) that is licensed under an open source license that gives You the right to receive the source code for that binary, You may obtain a copy of the applicable source code from https://oss.oracle.com/sources/ or http://www.oracle.com/goto/opensoureecode. If the source code for the software was not provided to You with the binary, You may also receive a copy of the source code on physical media by submitting a written request pursuant to the instructions in the "Written Offer for Source Code" section of the latter website. 13. EXPORT 13.1. Export control and economic sanctions laws and regulations ("export laws") of the United States and any other relevant local export laws apply to the Oracle Products and Services ordered under this Agreement. Such export laws govern use of the Oracle Products and Services (including technical data) and any Oracle products or services deliverables provided under this Agreement, and You and we each agree to comply with all such export laws (including "deemed export" and "deemed re-export" regulations). You agree that no data, information, software programs and/or materials resulting from the Oracle products or services (or direct product thereof) will be exported, directly or indirectly, in violation of these laws, or will be used for any purpose prohibited by these laws including, without limitation, nuclear, chemical, or biological weapons proliferation, or development of missile technology. 13.2. You acknowledge that the Services are designed with capabilities for You and Your Users to access the Services without regard to geographic location and to transfer or otherwise move Your Content between the Services and other locations such as User workstations. You are solely responsible for the authorization and management of User accounts across geographic locations, as well as export control and geographic transfer of Your Content. 14. FORCE MAJEURE Neither You nor we shall be responsible for failure or delay of performance if caused by: an act of war, hostility, or sabotage; act of God; pandemic; electrical, internet, or telecommunication outage that is not caused by the obligated party; government restrictions (including, without limitation, an embargo, economic sanction or the denial or cancelation of any export, import or other license); or other event outside the reasonable control of the obligated party. Both You and we will use reasonable efforts to mitigate the effect of a force majeure event. If such event continues for more than 30 days, either of You or we may cancel unperformed Services and affected orders upon written agreement. This Section does not excuse either party's obligation to take reasonable steps to follow its normal disaster recovery procedures or Your obligation to pay for the Services. 15. UCITA The Uniform Computer Information Transactions Act does not apply to this Agreement or to orders placed under it. Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 7 of 10 188 n 171 I oun-cl y zuzn9 — 77 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted 16. NOTICE 16.1. Any notice required under this Agreement shall be provided to the other party in writing. If You have a legal dispute with us or if You wish to provide a notice under the Indemnification Section of this Agreement, or if You become subject to insolvency or other similar legal proceedings, You will promptly send written notice to: Oracle America, Inc., 500 Oracle Parkway Redwood Shores, CA 94065, Attention: General Counsel, Legal Department. 16.2. We may give notices applicable to our Services customers by means of a general notice on the Oracle portal for the Services, and notices specific to You (a) by electronic mail to Your e-mail address on record in our account information or (b) by written communication sent by first class mail or pre -paid post to Your address on record in our account information. 16.3. You may register to receive notice of updates to the Oracle Cloud Hosting and Delivery Policies and the Data Processing Agreement (and certain other Service Specifications made available by Oracle) at http://www.oracle.com/contracts/cloud-services. 17. ASSIGNMENT You may not assign this Agreement or give or transfer the Services or any interest in the Services to another individual or entity. 18. OTHER 18.1. We are an independent contractor, and each party agrees that no partnership, joint venture, or agency relationship exists between the parties. 18.2. Our business partners and other third parties, including any third parties with which the Services have integrations or that are retained by You to provide consulting services, implementation services or applications that interact with the Services, are independent of Oracle and are not Oracle's agents. Even if recommended by us, we are not liable for, bound by, or responsible for any problems with the Services or Your Content arising due to any acts or omissions of any business partner or third party, unless the business partner or third party is providing Services as our subcontractor or is otherwise engaged by Oracle in connection with performance of its obligations under this Agreement, and, if so, then only to the same extent as we would be responsible for our resources under this Agreement. 18.3. If any term of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term shall be replaced with another term consistent with the purpose and intent of this Agreement. 18.4. Except for actions for nonpayment or breach of Oracle's proprietary rights, no action, regardless of form, arising out of or relating to this Agreement may be brought by either party more than two years after the cause of action has accrued. 18.5. Prior to entering into an order governed by this Agreement, You are solely responsible for determining whether the Services meet Your technical, business or regulatory requirements. Oracle will cooperate with Your efforts to determine whether use of the standard Services are consistent with those requirements. Additional fees may apply to any additional work performed by Oracle or changes to the Services. You remain solely responsible for Your regulatory compliance in connection with Your use of the Services. 19. ENTIRE AGREEMENT 19.1. You agree that this Agreement and the information which is incorporated into this Agreement by written reference (including reference to information contained in a URL or referenced policy), together with the applicable order, is the complete agreement for the Oracle Products and Services ordered by You and supersedes all prior or contemporaneous agreements, proposals, negotiations, demonstrations or representations, written or oral, regarding such Oracle Products and Services. 19.2. It is expressly agreed that the terms of this Agreement and any Oracle order shall supersede the terms in any purchase order, procurement internet portal, or other similar non -Oracle document, and no terms included in Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 8 of 10 188 I oun-cl y zuzn9 — 78 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted any such purchase order, portal, or other non -Oracle document shall apply to Your order. In the event of any inconsistencies between the terms of an order and the Agreement, the order shall take precedence; however, unless expressly stated otherwise in an order, the terms of the Data Processing Agreement shall take precedence over any inconsistent terms in an order. This Agreement and orders hereunder may not be modified and the rights and restrictions may not be altered or waived except in a writing signed or accepted online by authorized representatives of You and of Oracle; however, Oracle may update the Service Specifications, including by posting updated documents on Oracle's websites. No third party beneficiary relationships are created by this Agreement. 20. AGREEMENT DEFINITIONS 20.1. "Oracle -provided Software" means any software agent, application or tool that Oracle makes available to You specifically for purposes of facilitating Your access to, operation of, and/or use with, the Services. 20.2. "Program Documentation" refers to the user manuals, help windows, readme files for the Services and any Oracle -provided Software. You may access the documentation online at http://oracle.com/contracts or such other address specified by Oracle. 20.3. "Service Specifications" means the following documents, as applicable to the Services under Your order: (a) the Oracle Cloud Hosting and Delivery Policies, the Program Documentation, the Oracle service descriptions, and the Oracle Corporate Security Practices; (b) Oracle's privacy policies; and (c) any other Oracle documents that are referenced in or incorporated into Your order. The following do not apply to any non -Cloud Oracle service offerings acquired under Your order, such as professional services: the Oracle Cloud Hosting and Delivery Policies and Program Documentation. The following do not apply to any Oracle -provided Software: the Oracle Cloud Hosting and Delivery Policies. 20.4. "Third Party Content" means all software, data, text, images, audio, video, photographs and other content and material, in any format, that are obtained or derived from third party sources outside of Oracle that You may access through, within, or in conjunction with Your use of, the Services. Examples of Third Party Content include data feeds from social network services, rss feeds from blog posts, Oracle data marketplaces and libraries, dictionaries, and marketing data. Third Party Content includes third -party sourced materials accessed or obtained by Your use of the Services or any Oracle -provided tools. 20.5. "Users" means, for Services, those employees, contractors, and end users, as applicable, authorized by You or on Your behalf to use the Services in accordance with this Agreement and Your order. For Services that are specifically designed to allow Your clients, agents, customers, suppliers or other third parties to access the Services to interact with You, such third parties will be considered "Users" subject to the terms of this Agreement and Your order. 20.6. "Your Content" means all software, data (including Personal Information), text, images, audio, video, photographs, non -Oracle or third party applications, and other content and material, in any format, provided by You or any of Your Users that is stored in, or run on or through, the Services. Services under this Agreement, Oracle -provided Software, other Oracle Products and Services, and Oracle intellectual property, and all derivative works thereof, do not fall within the meaning of the term "Your Content." Your Content includes any Third Party Content that is brought by You into the Services by Your use of the Services or any Oracle -provided tools. 21. CLOUD SERVICES AGREEMENT EFFECTIVE DATE The Effective Date of this Cloud Services Agreement is (DATE TO BE COMPLETED BY ORACLE) THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. THE SIGNATURE BLOCK FOR THIS AGREEMENT FOLLOWS IMMEDIATELY ON THE NEXT PAGE. Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 9 of 10 188 I oun-cl y zuzn9 — 79 7/15/2025 Confidential - Oracle Restricted Confidential - Oracle Restricted Company Name: CITY OF SANTA ANA ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM Y6L1V.-Iw iD:�%,10Me City Attorney By athan T. Martinez Assistant City Attorney Oracle America, Inc. Authorized Signature: Name: Ea Signed by: suk'f' (W" 8EE94F5680DA412... Ashlee walleck Title: Contract specialist Signature Date: 09-7un-2025 1 11:24 AM PDT Agreement No.: US-CSA-CPQ-3330527 CITY OF SANTA ANA Alvaro Nunez City Manager RECCOMENDED FOR APPROVAL Jack Ciulla Chief Technology Innovations Officer Information Technology Department Cloud —Cloud Services Agreement (CSA)_US Public Sector_v062223 US_ENG Page 10 of 10 1$$ I ouh- y zuzn9 — 80 7/15/2025 Confidential - Oracle Restricted Oracle - Public Sector Agreement for Oracle Cloud Services (CAO signed)(2070727.1) (002) Final Audit Report 2025-06-30 Created: 2025-06-30 By: MELANIE TORRES (MTorres@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAALdOBE-WINFkgm9yBQ3Z4RxAwiu7uMHEX "Oracle - Public Sector Agreement for Oracle Cloud Services (C AO signed)(2070727.1) (002)" History Document created by MELANIE TORRES (MTorres@santa-ana.org) 2025-06-30 - 3:22:37 PM GMT Document emailed to Jack Ciulla Qciulla@santa-ana.org) for signature 2025-06-30 - 3:22:41 PM GMT Email viewed by Jack Ciulla Qciulla@santa-ana.org) 2025-06-30 - 3:22:52 PM GMT &0 Document e-signed by Jack Ciulla Ociulla@santa-ana.org) Signature Date: 2025-06-30 - 3:24:35 PM GMT - Time Source: server Agreement completed. 2025-06-30 - 3:24:35 PM GMT Ado i ounce . y 9 — 81 7/15/2025 Planning and Building Agency www.santa-ana.org/pb Item # 10 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Approval of Historic Property Preservation Agreements AGENDA TITLE Historic Property Preservation Agreements for the Properties Located at 1001 N. Olive Street and 1011 N. Olive Street RECOMMENDED ACTION Authorize the City Manager or designee to execute the attached Mills Act agreement with the below -referenced property owners for the identified structure(s) (Agreement Nos. A- 2025-XXX and A-2025-XXX). [Includes determination that the proposed projects are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption(s)/Environmental Review Nos. 2025-28 and 2025-30 will be filed for the project.] Table 1: Mills Act Agreements Approved by the Historic Resources Commission (HRC) Property Owner(s) Historic Property Preservation Agreement No. Address/House Vote by HRC Kevin Shuler and Brian 5:0:0:2 (Commissioner renting Stoddart representing 2025-03 1001 N. Olive Street Escamilla and Padilla Palm Springs absent) Modern, LLC Robert James Manson 5:0:0:2 (Commissioner and Alma Cristina 2025-04 1011 N. Olive Street Escamilla and Padilla Manson absent) GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On June 4, 2025, the Historic Resources Commission (HRC) recommended that the City Council authorize the City Manager to execute the Mills Act agreements listed in Table 1, above, with the identified property owners for historic structure(s) in the City, subject to non -substantive changes approved by the City Manager and City Attorney. This action allows for the approval of a Historic Property Preservation Agreement (Mills Act Contract) which provides a property tax reduction whereby property owners agree to reinvest the City Council 10 — 1 7/15/2025 Approval of Historic Property Preservation Agreements July 15, 2025 Page 2 tax savings towards the maintenance of the historic property. Additionally, the agreement prevents inappropriate alterations to the protected historic structure(s). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed projects are exempt from further review. The following Categorical Exemptions will be filed for this project: • ER No. 2025-28 (1001 N. Olive Street) • ER No. 2025-30 (1011 N. Olive Street) FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $1,611.16 annually noted below, for a period of not less than ten years. HPPA No. Address Estimate Exhibit No. 2025-03 1001 N. Olive Street $766.06 1-2 2025-04 1011 N. Olive Street $845.10 3-4 Total for All Properties: $1,611.16 EXHIBITS 1. Mills Act Agreement — 1001 N. Olive Street 2. HRC Staff Report — 1001 N. Olive Street 3. Mills Act Agreement — 1011 N. Olive Street 4. HRC Staff Report — 1011 N. Olive Street Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency Approved By: Alvaro Nunez, City Manager City Council 10 — 2 7/15/2025 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Palm Springs Deepwell Modern, LLC, a California Limited Liability Company, (hereinafter collectively referred to as "Owner"), owner of real property located at 1001 North Olive Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1001 North Olive Street and 915 W Tenth Street, Santa Ana, CA, 92703 (referred to collectively as 111001 North Olive Street") and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property." C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. City Council 10 — 3 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on July 16, 2025, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Executive Summary" and "Historical Property Description" attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. City Council 10-4 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, "Proposed Structure Improvements" or "Work Plan" and the City Council Historic Property Preservation Agreement (HPPA No. 2025-03) staff report dated June 4, 2025. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including 1) exterior painting with period - appropriate color palette; 2) landscape improvements including trimming of plantings along primary (west and south) facades to better showcase original building features from the public right-of-way; 3) general maintenance to include: wood window assessment, stucco assessment, and roof assessment of primary residence and detached garages (at roof, assess clay tiles, parapet, flashing, and primary roof for damage). Repair or replace in -kind, as needed; 4) remove non - compatible wooden garage gate and wooden pedestrian door at the rear yard along the west fagade. Planning approval required for new gate and door; 5) repair west facade exterior stairs at entrance to 1001 N Olive Street: concrete repair/replacement and new paint. Assess front porch floor at entrance to 1001 N Olive Street and repair as needed; 6) replace rear yard porch steps (between City Council 10 — 5 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 residence and detached garage at 1001 N Olive Street) with historically -compatible material; and 7) conceal, relocate, or remove wire cover along east fagade of 915 W Tenth Street. Assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need. g. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 1/2) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default City Council 10 — 6 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1001 North Olive Street, Assessor Parcel Number, 405-284-13, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. C. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner's representative shall provide the buyer of this property with notice that the property is listed on the City's historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City Council 10 — 7 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk Owner: Palm Springs Deepwell Modern LLC, a California Limited Liability Company Kevin Shuler and Brian Stoddart 2001 North Heliotrope Drive Santa Ana, CA 92706 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive City Council 10 — 8 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} City Council 10 — 9 7/15/2025 ATTEST: JENNIFER L. HALL City Clerk OWNERS Date: 612512025 1 19:35 EDT 6/25/2025 1 18:11 PDT Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: BR ON SALVATIERRA Deputy City Attorney MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 CITY OF SANTA ANA ALVARO NUNEZ City Manager Doc�S ignrd by: By.- 1 Palm 'I e9 %11 odeiu LLC, a Califol'M'a Limited Liability Company KEVIN SHULER 5' d by: By: Palm Sprin b Modem LLC, a California Limited Liability Company BRIAN STODDART RECOMMENDED FOR APPROVAL: ALI PFZESBKtOUR Executive Director Planning and Building Agency City Council 10 — 10 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: THE WEST 87.25 FEET OF LOT 28 OF TRACT NO. 354, HUNTINGTON SQUARE, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 15, PAGE 26 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY CALIFORNIA. Assessor's Parcel Number: 405-284-13 City Council 10 —11 7/15/2025 Exhibit B EXECUTIVE SUMMARY Freund House 1001 North Olive Street Santa Ana, CA 92703 NAME Freund House REF. NO. ADDRESS 1001 North Olive Street CITY Santa Ana ZIP 92703 ORANGE COUNTY YEAR BUILT 1924 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT I N/A NEIGHBORHOOD I Washington Square CALIFORNIA REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE �5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Mission/Spanish Revival The Mission/Spanish Colonial Revival style, as its name implies, encompasses two major subcategories. The Mission Revival vocabulary, popular between 1890 and 1920, drew its inspiration from the missions of the Southwest. Identifying features include curved parapets (or espadana); red tiled roofs and coping; low-pitched roofs, often with overhanging eaves; porch roofs supported by large, square piers; arches; and wall surfaces commonly covered in smooth stucco. The Spanish Colonial Revival flourished between 1915 and 1940, reaching its apex during the 1920s and 1930s. The movement received widespread attention after the Panama -California Exposition in San Diego in 1915, where lavish interpretations of Spanish and Mexican prototypes were showcased. Easily recognizable hallmarks of the Spanish Colonial Revival are low-pitched roofs, usually with little or no overhangs and red tile roof coverings, flat roofs surrounded by tiled parapets; and stuccoed walls. The Spanish vocabulary also includes arches; asymmetry; balconies and patios; window grilles; and decorative elements of wood, wrought iron, tile, or stone. SUMMARY/CONCLUSION: The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3 EXPLANATION OF CODES: • California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, "How to Nominate Resources to the California Register of Historical Resources," September 4, 2001.) 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. 5S3: Appears to be individually eligible for local listing or designation through survey evaluation. City Council 10 - 12 7/15/2025 State of California —The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Listings Review Code Primary #. HRI # Trinomial_ NRHP Status Reviewer Page 1 of 5 Resource name(s) or number (assigned by recorder) Freund House Date P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad: Anaheim Quadrangle California -Orange County 7.5-Minute Series Date: 2022 *c. Address 1001 North Olive Street and 915 West loth Street City: Santa Ana Zip: 92703 *e. Other Locational Data: Assessor's Parcel Number 405-284-13 *133a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) Located on a corner parcel in Washington Square, the Freund House is a one-story, multiple -family Mission Revival style residence (Figure 1). The main residential building has two primary facades. The primary (west) facade contains the entrance to the unit addressed as 1001 North Olive Street and the primary (south) facade contains the entrance to the unit addressed as 915 West loth Street (Figure 2). Asymmetrical in design, the building features a rectangular -shaped plan with a parapet roof that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the multifamily building is clad in smooth stucco. The main entrance to each unit is located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern. Adjacent to each entrance door is a large fixed wood window with Prairie style upper divided lights (Figure 3). Both porches are raised above two shallow concrete -clad steps and contain wide arches. (See Continuation Sheet 3 of 5) *P3b. Resource Attributes: (list attributes and codes) HP3. Multiple family property and HP4. Ancillary Building (garages) *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5b. Photo: (view and date) (Figure 1) Primary (west) facade, view northeast, January 2025 *P6. Date Constructed/Age and Sources: ■historic 19241 Original Building Permit *P7. Owner and Address: Palm Springs Deepwell Modern, LLC 2001 N Heliotrope Drive Santa Ana, CA 92706 *P8. Recorded by: Andrea Dumovich Heywood City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: June 4, 2025 *P10. Survey Type: Intensive Survey Update *P11. Report Citation: (Cite survey report and other sources, or enter "none") None *Attachments: ❑None ❑Location Map ❑Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record ❑Archaeological Record ❑District Record ❑Linear Feature Record ❑Milling Station Record ❑Rock Art Record ❑Artifact Record ❑Photograph Record ❑ Other (list) DPR 523A (1/95) *Required information City Council 10 — 13 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 4 *NRHP Status Code 5S3 *Resource Name or #: Freund House 131. Historic Name: Freund House 132. Common Name: Same 133. Original Use: Multiple Family Residence 134. Present Use: Multiple Family Residence *135. Architectural Style: Mission Revival *136. Construction History: (Construction date, alterations, and date of alterations): September 8, 1924. Permit to construct double apartments and garages. $6, 000. July 8, 1982. Reroof. $3,960. June 16, 1995. Reroof. $5,100. Unknown date. Residential unit fronting loth Street changed addresses from 1003 North Olive Street to 915 West loth Street. *137. Moved? ■No ❑Yes ❑Unknown Date: Original location: *138. Related Features: None B9a. Architect: Unknown b. Builder: Unknown *1310. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1924 Property Type: Multiple Family Residence Applicable Criteria: C13 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Freund House is architecturally significant as an intact example of a Mission Revival style house in Santa Ana. The original building permit, for the address range 1001-1003 North Olive Street, is dated September 8, 1924 and indicates it was built as double apartments and garages, at a cost of $6, 000. The original architect and builder are unknown. At an unknown date, the residential unit fronting loth Street changed addresses from 1003 North Olive Street to 915 West loth Street. Because of the unclear address history, city directory research was only completed for the 1001 North Olive Street address. The earliest known occupant is Charles Freund, who is listed on the original building permit for 1001 North Olive Street. City directories note Mr. Freund as the building's owner through 1926. An obituary article notes Freund was an interior decorator that had lived in Santa Ana between 1918 and 1945, the year he died (The Register, August 23, 1945). In 1927, T T Lackey and in 1930, J R Ott resided at the subject property. Mrs. K A O'Brien is listed from circa 1933-1935. Tenant Bales Redmond is noted in 1936. By 1937, R U Smith occupied the unit. City directories note G W Wilkins from circa 1940-1945, and a newspaper article notes Wilkins remained through 1949 (The Register, March 10, 1949). There was no directory available for 1948. In 1949 Mrs. E Hollingsworth is identified as a building tenant, who remained until she died in 1956 (The Register, October 22, 1956). P V Plummer also occupied the unit in 1956 (See Continuation Sheet 3). B11. Additional Resource Attributes: (List attributes and codes) *1312. References: (See Continuation Sheet 4 of 5.) B13. Remarks: None *1314. Evaluator: Andrea Dumovich Heywood, City of Santa Ana. *Date of Evaluation: June 4, 2025 (This space reserved for official comments.) Sketch Map Freund House 1001 N Olive Street 4 QLI m Z ti eo L -- FLOWER N 6T.90' �0' ? • x �6' ]�• I o000 175' P5• � N W lw # Ln A V � p •+ �� so• o' o. � DPR 523BQ*)COUIICI1 10 - 14 7j1 AWHd information State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 3 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 0 Continuation ❑ Update *P3a. Description (continued): Both primary (west and south) facades contain one tripartite window adjacent to the front porch (Figure 4). The window is composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights that flank a large fixed wood window. The tripartite's fixed central window on the primary (west) fagade contains Prairie style divided upper lights while the primary (south) fixed window had no muntins. A shed roof clad in clay tiles projects above the tripartite window on the primary (west) fagade (Figure 5). Window fenestration along the primary (south), east, and north fagades include double -hung wood windows with ogee lugs and Prairie style divided upper lights (Figure 6). Additional windows include a single wood hopper window on the primary (south) fagade, a fixed wood window and five double -hung wood windows without Prairie style divided lights at the north (side) fagade, and two double -hung wood windows without Prairie style divided lights at the east (side) fagade. Both residential units contains a detached single -car garage, situated at the property's north boundary. Particular to only the primary (west) fagade is a wingwall porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians (Figure 7). The primary (south) fagade's garage parapet is joined to the main residential building, creating an illusion that it is attached to the residence. The property is landscaped with a variety of small and medium-sized vegetation and trees such as palm trees, cactus, and agave. *B10. Significance (continued): According to city directories, 1001 N Olive Street was occupied by LM Brozenick in 1960. Two newspaper articles describe Lou Brozenick's extensive wood working hobby. In the late 1950s through 1970s, Brozenick worked on creating a wall -sized world map made out of wood, using wood specific to each country. The project took 17 years to complete due to difficulties with obtaining directly sourced wood from each country. A 1966 article notes that Brozenick worked on this project at his apartment at 10071 Lampson, Garden Grove, after living in Santa Ana. Therefore his artistic affiliations are not related to the subject property at 1001 North Olive Street (The Register, September 11, 1966 and December 4, 1975). The years 1963-1987 do not include the subject address in the directory or the directory itself was not available for research. A newspaper article mentions Mrs. Emily Jane Hayhurst as a resident of 915 W 101" Street in 1965, who passed away that year (The Register, June 16, 1965). Historic building permits identify Joel Tardiff as building owner from at least 1975-1978. Permit history and directories reveal John Harwood owned the property from circa 1981-2003. By 2020, Steven Wayne Lively sold the property to current owners Palm Springs Deepwell Modern, LLC, represented by Kevin Shuler and Brian Stoddart. No pertinent information was uncovered regarding the former owners and tenants during the time of ownership/occupancy of 1001 North Olive Street. The Freund House is located in Washington Square, a neighborhood located northwest of the city center bounded by West Seventeenth Street on the north, West Civic Center Drive on the south, North Flower Street on the east, and North Bristol Street on the west. Most of this area was owned by the family of Jacob Ross, who had purchased portions of the Rancho Santiago de Santa Ana in 1868 and 1869. Walnuts and other crops were grown in the area during the late nineteenth and early twentieth centuries, with a few farmhouses, most notably the Ross -McNeal House at 1020 North Baker Street, dotting the landscape. By 1905, Baker and Towner were the only streets in the neighborhood, which extended from Hickey (now Civic Center) only as far as Washington and which contained only about a dozen homes. The status quo had not changed much by 1915, when a brick yard was located at the northern terminus of Olive Street at Hickey. In 1925, the beginning of the development that would convert this largely agricultural area into a middle class neighborhood of single-family homes over the next 25 years had begun. In the late 1920s and early 1930s, the Tudor Revival and Spanish Colonial Revival homes were the standard, with American Colonial Revival saltboxes and ranch style homes favored in the years before and after World War Il. During the 1930s, many of the homes were built by local contractor Emmett Rogers, who sold lots and built homes according to standard plans, which individual property owners could customize to their tastes ("Washington Square: A Neighborhood of Pride, " Washington Square Neighborhood Association). With the return of servicemen following the war and the accompanying demand for homes in southern California, the development of Washington Square was all but completed. The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. Located in Washington Square, the house cost $6,000 to build in 1924. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3)). Character -defining features of the Mission Revival style exhibited by the house include its rectangular -shaped plan; two primary (west and south) facades; asymmetrical design; parapet roof that wraps around the entire building; no extended eaves; smooth stucco cladding; main entrance to each unit located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern; large fixed wood window with Prairie style upper divided lights; raised front porches with wide arches; tripartite window adjacent to the front porch composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights flanking a large fixed wood window; shed roof clad in clay tiles at the primary (west) fagade; double -hung wood windows with ogee lugs and (some windows with or without); Prairie style divided upper lights; single hopper window on primary (south) fagade; two detached single -car garages; primary (west) fagade porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians; small and medium vegetation and landscape. DPR 523LCIty Council 10 — 15 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 4 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 0 Continuation ❑ Update *1312. References (continued): Ancestry.com. U.S., City Directories, 1822-1995 [database on-line]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. 1930 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2002. Ancestry.com. 1940 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations, Inc., 2012. . California, U.S., Marriage Index, 1960-1985 [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2007. City of Santa Ana Building Permits McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2013. Newspapers. com (Santa Ana Daily Register, The Register) Office of Historic Preservation. "Instructions for Recording Historical Resources. " Sacramento: March 1995. Sanborn maps. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. DPR 523LCIty Council 10 — 16 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 5 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 0 Continuation ❑ Update 3C�C�►ilCiTiY:71 _d, �k Figure 2. the primary (south) fagade contains the entrance to the unit addressed as 915 West 10th Street, facing north. Figure 4. Tripartite window adjacent to the front porch, facing east. Figure 6. Double -hung wood windows with ogee lugs and Prairie style divided upper lights at the primary (south) fagade, facing north. Figure 3. Main entrance is composed of a single glazed wood door with a Prairie style muntin pattern. Adjacent is a large fixed wood window with Prairie style upper divided li hts, facin east. Figure 5. A shed roof clad in clay tiles projects above the tripartite window on the primary (west) fagade, facing east. Figure 7. Porte-cochere extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians, facing east. DPR 523LCIty Council 10 — 17 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with City Council 10 — 18 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. City Council 10 — 19 7/15/2025 Exhibit D: Proposed Structure Improvements ("Work Plan") 1001 North Olive Street Item Year Improvement 1 2025 Exterior repainting with period -appropriate color palette 2 2025 Landscape improvements including trimming of plantings along primary (west and south) facades to better showcase original building features from the public right- of-way. 3 2026 General maintenance to include: wood window assessment, stucco assessment, and roof assessment of primary residence and detached garages (at roof, assess clay tiles, parapet, flashing, and primary roof for damage). Repair or replace in -kind, as needed. 4 2027 Remove non -compatible wooden garage gate and wooden pedestrian door at the rear yard along the west fagade. Planning approval required for new gate and door. 5 2028 Repair west fagade exterior stairs at entrance to 1001 N Olive Street: concrete repair/replacement and new paint. Assess front porch floor at entrance to 1001 N Olive Street and repair as needed. 6 2029 Replace rear yard porch steps (between residence and detached garage at 1001 N Olive Street) with historically -compatible material. 7 2030 Conceal, relocate, or remove wire cover along east fagade of 915 W 101h Street. Assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need. 8 2031 Replace two (2) metal -frame windows at rear doors (each located at the rear entrance of each unit) with wood -frame window. City Council 10 — 20 7/15/2025 Planning and Building Agency Item # 10 "oRr City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Historic Resources Commission Staff Report June 4, 2025 Topic: HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03 — Freund House (1001 North Olive Street) RECOMMENDED ACTIONS 1. Adopt a resolution approving Historic Resources Commission Application No. 2025-02 and Historic Register Categorization No. 2025-02 (Exhibit 1); and 2. Recommend that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement with Palm Springs Deepwell Modern, LLC, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 2). EXECUTIVE SUMMARY Kevin Shuler and Brian Stoddart representing Palm Springs Deepwell Modern, LLC, are requesting approval to designate an existing Mission Revival style multifamily residence located at 1001 North Olive Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. The property qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style multifamily building. It is worthy of "Contributive" categorization because it contributes to the overall character and history of the Washington Square neighborhood and is a representative example of Mission Revival architecture in Santa Ana, including its parapet roof, open porches with wide arches, and red tile shed roof, among other features. DISCUSSION Project Location and Site Description The subject property is located on a corner lot with Olive Street to the west and Tenth Street to the south, in the Washington Square neighborhood. The site contains a 1,564- square-foot, Mission Revival style multifamily residence (addressed 1001 North Olive Street and 915 West Tenth Street and referred to collectively as 1001 North Olive Street" City Council 10 — 21 7/15/2025 HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03— Freund House (1001 North Olive Street) June 4, 2025 Page 2 throughout this report) and two detached garages on a 5,053-square-foot residential lot (Exhibit 3). Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS-2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be 50 or more years old. The structure identified meets the selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section 30-2 of the Santa Ana Municipal Code, as the structure is 101 years old and is a sound example of period architecture. No known code violations exist on record for this property. The Freund House is architecturally significant as an intact example of a Mission Revival style house in Santa Ana. The original building permit, for the address range 1001-1003 North Olive Street, is dated September 8, 1924, and indicates it was built as double apartments and garages, at a cost of $6,000. The original architect and builder are unknown. At an unknown date, the residential unit fronting Tenth Street changed addresses from 1003 North Olive Street to 915 West Tenth Street. Because of the unclear address history, city directory research was only completed for the 1001 North Olive Street address. The earliest known occupant is Charles Freund, who is listed on the original building permit for 1001 North Olive Street. City directories note Mr. Freund as the building's owner through 1926. An obituary article notes Freund was an interior decorator that had lived in Santa Ana between 1918 and 1945, the year he died (The Register, August 23, 1945). In 1927, T. T. Lackey and in 1930, J. R. Ott resided at the subject property. Mrs. K. A. O'Brien is listed from circa 1933-1935. Tenant Bales Redmond is noted in 1936. By 1937, R. U. Smith occupied the unit. City directories note G. W. Wilkins from circa 1940-1945, and a newspaper article notes Wilkins remained through 1949 (The Register, March 10, 1949). There was no directory available for 1948. In 1949 Mrs. E. Hollingsworth is identified as a building tenant, who remained until she died in 1956 (The Register, October 22, 1956). P. V. Plummer also occupied the unit in 1956 (See Continuation Sheet 3). City Council 10 — 22 7/15/2025 HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03— Freund House (1001 North Olive Street) June 4, 2025 Page 3 According to city directories, 1001 North Olive Street was occupied by L. M. Brozenick in 1960. Two newspaper articles describe Lou Brozenick's extensive wood working hobby. In the late 1950s through 1970s, Brozenick worked on creating a wall -sized world map made out of wood, using wood specific to each country. The project took 17 years to complete due to difficulties with obtaining directly sourced wood from each country. A 1966 article notes that Brozenick worked on this project at his apartment at 10071 Lampson Avenue, Garden Grove, after living in Santa Ana. Therefore, his artistic affiliations are not related to the subject property at 1001 North Olive Street (The Register, September 11, 1966 and December 4, 1975). The years 1963-1987 do not include the subject address in the directory or the directory itself was not available for research. A newspaper article mentions Mrs. Emily Jane Hayhurst as a resident of 915 West Tenth Street in 1965, who passed away that year (The Register, June 16, 1965). Historic building permits identify Joel Tardiff as building owner from at least 1975-1978. Permit history and directories reveal John Harwood owned the property from circa 1981-2003. By 2020, Steven Wayne Lively sold the property to current owners Palm Springs Deepwell Modern, LLC, represented by Kevin Shuler and Brian Stoddart. No pertinent information was uncovered regarding the former owners and tenants during the time of ownership/occupancy of 1001 North Olive Street. Located on a corner parcel in Washington Square, the Freund House is a one-story, Mission Revival style multifamily residence. The main residential building has two primary facades. The primary (west) fagade contains the entrance to the unit addressed as 1001 North Olive Street and the primary (south) fagade contains the entrance to the unit addressed as 915 West Tenth Street. Asymmetrical in design, the building features a rectangular -shaped plan with a parapet roof that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the multifamily building is clad in smooth stucco. The main entrance to each unit is located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern. Adjacent to each entrance door is a large fixed wood window with Prairie style upper divided lights. Both porches are raised above two shallow concrete -clad steps and contain wide arches. Both primary (west and south) facades contain one tripartite window adjacent to the front porch. The window is composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights that flank a large fixed wood window. The tripartite's fixed central window on the primary (west) facade contains Prairie style divided upper lights while the primary (south) fixed window had no muntins. A shed roof clad in clay tiles projects above the tripartite window on the primary (west) fagade. Window fenestration along the primary (south), east, and north facades include double - hung wood windows with ogee lugs and Prairie style divided upper lights. Additional windows include a single wood hopper window on the primary (south) fagade, a fixed wood window and five double -hung wood windows without Prairie style divided lights at City Council 10 — 23 7/15/2025 HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03— Freund House (1001 North Olive Street) June 4, 2025 Page 4 the north (side) fagade, and two double -hung wood windows without Prairie style divided lights at the east (side) fagade. Both residential units contain a detached single -car garage, situated at the property's north boundary. Particular to only the primary (west) fagade is a porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians. The primary (south) fagade's garage parapet is joined to the main residential building, creating an illusion that it is attached to the residence. The property is landscaped with a variety of small and medium- sized vegetation and trees such as palm trees, cactus, and agave. Character -defining features of the Freund House include, but may not be limited to: its rectangular -shaped plan; two primary (west and south) facades; asymmetrical design; parapet roof that wraps around the entire building; no extended eaves; smooth stucco cladding; main entrance to each unit located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern; large fixed wood window with Prairie style upper divided lights; raised front porches with wide arches; tripartite window adjacent to the front porch composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights flanking a large fixed wood window; shed roof clad in clay tiles at the primary (west) fagade; double -hung wood windows with ogee lugs and (some windows with or without) Prairie style divided upper lights; single hopper window on primary (south) fagade; two detached single -car garages; primary (west) fagade porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians; small and medium vegetation and landscape. The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. Located in Washington Square, the house cost $6,000 to build in 1924. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana. Mills Act Agreement Ordinance No. NS-2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed City Council 10 — 24 7/15/2025 HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03— Freund House (1001 North Olive Street) June 4, 2025 Page 5 value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • A mechanism to provide for property rehabilitation • Incentives for potential buyers to purchase historic structures • Discouraging inappropriate alterations to the property The property has no identified unauthorized modifications. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement subject to a completion of future improvements as described in an attached Work Plan. Overall, future improvements (Work Plan) proposed by the homeowner during the initial ten years of the Mills Act Agreement include the following: exterior painting, landscaping, and general maintenance. Staff suggests adding the following items to the Work Plan: 1) remove non -compatible wooden garage gate and wooden pedestrian door at the rear yard along the west facade; 2) repair west facade exterior stairs at entrance to 1001 North Olive Street through concrete repair/replacement and new paint; 3) assess front porch floor at entrance to 1001 North Olive Street and repair as needed; 4) replace rear yard porch steps (between residence and detached garage at 1001 North Olive Street) with historically -compatible material; 5) conceal, relocate, or remove wire cover along east facade of 915 W Tenth Street and assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need; and 6) replace two (2) metal -frame windows at rear doors (each located at the rear entrance of each unit) with wood -frame window. Planning Division staff will ensure that the proposed work will be done sensitively and will maintain the property's character -defining features as part of the Mills Act Agreement for this property. As part of the Mills Act approval process, staff will work with the applicant to ensure that a bronze plaque is installed honoring and recognizing the structure. The plaque will include the historic name, address, year built, and local historic register designation. Lastly, the site will be subject to general maintenance and upkeep requirements including, but not limited to, replacement or restoration of damaged character -defining features, landscaping upkeep, painting, etc. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement to enable the Mills Act. Public Notification The subject site is located within the Washington Square Neighborhood Association. The president of this Neighborhood Association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public City Council 10 — 25 7/15/2025 HRCA No. 2025-02, HRC No. 2025-02, HPPA No. 2025-03— Freund House (1001 North Olive Street) June 4, 2025 Page 6 hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 1,000 feet of the project site. At the time of this printing, no correspondence, either written or electronic, has been received from any members of the public. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15331 of the CEQA Guidelines (Class 31 — Historical Resource Restoration/Rehabilitation) as these actions are designed to preserve historic resources. Based on this analysis, a Notice of Exemption, Environmental Review No. 2025-28, will be filed for this project. FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $766.06 annually, for a period of not less than ten years. EXHIBITS 1. Resolution 2. Mills Act Agreement 3. 500-Foot Radius Map 4. Copy of Public Notice Submitted By: James Williams, Contract Planner Approved By: Ali Pezeshkpour, AICP, Acting Executive Director, Planning and Building Agency City Council 10 — 26 7/15/2025 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. 2025-XX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2025-02 TO PLACE THE PROPERTY LOCATED AT 1001 NORTH OLIVE STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2025-02 PLACING SAID PROPERTY WITHIN THE CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines, and declares as follows: A. On June 4, 2025, the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2025-02) and categorization (Historic Resources Commission Categorization No. 2025- 02) of the Freund House located at 1001 North Olive and 915 W Tenth Street, Santa Ana (referred to collectively as "1001 North Olive Street"). B. The Freund House has distinctive architectural features of the Mission Revival style and was built in 1924. C. The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. The house displays characteristics of the Mission Revival style through its use of parapet roof, open porches with wide arches, and red tile shed roof, among other original features. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana. Character -defining features of the Freund House include, but may not be limited to: rectangular -shaped plan; two primary (west and south) facades; asymmetrical design; parapet roof that wraps around the entire building; no extended eaves; smooth stucco cladding; main entrance to each unit located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern; large fixed wood window with Prairie style upper divided lights; raised front porches with wide arches; tripartite window adjacent to the front porch composed of a wood frame encasing two double - hung wood windows with ogee lugs and Prairie style divided upper lights flanking a large fixed wood window; shed roof clad in clay tiles at the primary City Council 10 — 27 Resolutio'nlRi 92 A-XX Page 1 of 7 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 (west) fagade; double -hung wood windows with ogee lugs and (some windows with or without) Prairie style divided upper lights; single hopper window on primary (south) fagade; two detached single -car garages; primary (west) fagade wingwall that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance for pedestrians; small and medium vegetation and landscape. D. The legal owner of the property is Palm Springs Deepwell Modern, LLC, a California Limited Liability Company. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimum standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. H. In addition to meeting the standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code, the applicant has agreed, as part of the requested Mills Act agreement Work Plan, to restoration of select elements described therein within the first five years of the Agreement's term, including 1) exterior painting with period - appropriate color palette; 2) landscape improvements including trimming of plantings along primary (west and south) facades to better showcase original building features from the public right-of-way; 3) general maintenance to include: wood window assessment, stucco assessment, and roof assessment of primary residence and detached garages (at roof, assess clay tiles, parapet, flashing, and primary roof for damage). Repair or replace in -kind, as needed; 4) remove non -compatible wooden garage gate and wooden pedestrian door at the rear yard along the west fagade. Planning approval required for new gate and door; 5) repair west fagade exterior stairs at entrance to 1001 N Olive Street: concrete repair/replacement and new paint. Assess front porch floor at entrance to 1001 N Olive Street and repair as needed; 6) replace rear yard porch steps (between residence and detached garage at 1001 N Olive Street) with historically -compatible material; and 7) conceal, relocate, or remove wire cover along east fagade of 915 W Tenth Street. Assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under CEQA Guidelines Section 15331, Class 31, as these actions are designed to preserve historical resources. Categorical Exemption No. ER-2025-28 will be filed for this project. City Council 10 — 28 Res oIutio/nlh29�A Page 2 of 7 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 Section 3. The Historic Resources Commission of the City of Santa Ana, after conducting the public hearing, hereby approves: A. Historic Resources Commission Application No. 2025-02 to place the Freund House located at 1001 North Olive Street, Santa Ana, 92703 on the historical register, and B. Historic Register Categorization No. 2025-02 placing the Freund House located at 1001 North Olive Street, Santa Ana, 92703 within the Contributive category, as conditioned in Exhibit B, attached hereto and incorporated herein. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto, the report entitled "Historical Property Description," and the public testimony, all of which are incorporated herein by this reference. Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the Planning Division, and is hereby approved and adopted, and together with the staff report and this Resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this Resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder's Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. ADOPTED this 4th day of June, 2025. Edward Murashie Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Brandon Salvatierra Deputy City Attorney City Council 10 — 29 Resolutio1nlP9b A-XX Page 3 of 7 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 AYES: NOES: ABSTAIN: NOT PRESENT: City Council 10 — 30 Resolutio'nl�t2 -XX Page 4 of 7 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, GEMA ZAPIEN, Acting Historic Resources Commission Secretary, do hereby attest to and certify the attached Resolution No. 2025-XX to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on June 4, 2025. Date: Gema Zapien Acting Commission Secretary City of Santa Ana City Council 10 — 31 Resolutio'nl�t2 -XX Page 5 of 7 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT A LEGAL DESCRIPTION APN Address Legal Description Owner Names 405-284-13 1001 North Olive Street THE LAND REFERRED TO Kevin Shuler and HEREIN BELOW IS SITUATED Brian Stoddart IN THE COUNTY OF ORANGE, representing STATE OF CALIFORNIA AND Palm Springs IS DESCRIBED AS FOLLOWS: Deepwell Modern, LLC, a THE WEST 87.25 FEET OF California Limited LOT 28 OF TRACT NO. 354, Liability HUNTINGTON SQUARE, IN Company THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 15, PAGE 26 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY CALIFORNIA. Resolution No. 2025-XX Page 6 of 7 City Council 10 — 32 7/15/2025 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT B Conditions of Approval for Historic Resources Commission Al2plication No. 2025-02 and Historic Resources Commission Categorization No. 2025-02 The Applicant must comply with each condition listed below prior to exercising the rights conferred by the Historic Resource Commission's approval and the City of Santa Ana Register of Historic Properties pursuant to Section 30-6 of the Santa Ana Municipal Code. The Applicant must remain in compliance with all condition(s) listed below: 1. Within 180 days of execution of this resolution, the applicant shall install a bronze plaque as per a template on file with the Planning Division honoring and recognizing the structure at 1001 North Olive Street, historically known as the Freund House. The plaque shall include the historic name, address, year built, and local historic register designation. The final dimensions, location, text and description on the plaque shall be reviewed and approved by Planning Division staff. 2. The applicant shall regularly maintain all landscaping in the front yard area (pruning and thinning trees and shrubs) so that the historic building and its character -defining features (including but not limited to the parapet roof, front porches, smooth stucco siding, wood frame windows with Prairie style muntin pattern, and clay tile shed roof) are visible from the public right-of-way. Resolution No. 2025-XX Page 7 of 7 City Council 10 — 33 7/15/2025 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Palm Springs Deepwell Modern, LLC, a California Limited Liability Company, (hereinafter collectively referred to as "Owner"), owner of real property located at 1001 North Olive Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1001 North Olive Street and 915 W Tenth Street, Santa Ana, CA, 92703 (referred to collectively as "1001 North Olive Street") and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property." C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. City Council 10 — 34 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on July 16, 2025, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Executive Summary" and "Historical Property Description" attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. City Council 10 — 35 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, "Proposed Structure Improvements" or "Work Plan" and the City Council Historic Property Preservation Agreement (HPPA No. 2025-03) staff report dated June 4, 2025. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including 1) exterior painting with period - appropriate color palette; 2) landscape improvements including trimming of plantings along primary (west and south) facades to better showcase original building features from the public right-of-way; 3) general maintenance to include: wood window assessment, stucco assessment, and roof assessment of primary residence and detached garages (at roof, assess clay tiles, parapet, flashing, and primary roof for damage). Repair or replace in -kind, as needed; 4) remove non - compatible wooden garage gate and wooden pedestrian door at the rear yard along the west fagade. Planning approval required for new gate and door; 5) repair west fagade exterior stairs at entrance to 1001 N Olive Street: concrete repair/replacement and new paint. Assess front porch floor at entrance to 1001 N Olive Street and repair as needed; 6) replace rear yard porch steps (between City Council 10 — 36 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 residence and detached garage at 1001 N Olive Street) with historically -compatible material; and 7) conceal, relocate, or remove wire cover along east fagade of 915 W Tenth Street. Assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need. g. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 %2) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default City Council 10 — 37 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1001 North Olive Street, Assessor Parcel Number, 405-284-13, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. C. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner's representative shall provide the buyer of this property with notice that the property is listed on the City's historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City Council 10 — 38 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk Owner: Palm Springs Deepwell Modern LLC, a California Limited Liability Company Kevin Shuler and Brian Stoddart 2001 North Heliotrope Drive Santa Ana, CA 92706 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive City Council 10 — 39 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} City Council 10 — 40 7/15/2025 ATTEST: JENNIFER L. HALL City Clerk OWNERS Date: Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: BRANDON SALVATIERRA Deputy City Attorney MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 CITY OF SANTA ANA ALVARO NUNEZ City Manager By: Palm Springs Deepwell Modern LLC, a California Limited Liability Company KEVIN SHULER By: Palm Springs Deepwell Modern LLC, a California Limited Liability Company BRIAN STODDART RECOMMENDED FOR APPROVAL: ALI PEZESHKPOUR Acting Executive Director Planning and Building Agency City Council 10 — 41 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: THE WEST 87.25 FEET OF LOT 28 OF TRACT NO. 354, HUNTINGTON SQUARE, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP THEREOF RECORDED IN BOOK 15, PAGE 26 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY CALIFORNIA. Assessor's Parcel Number: 405-284-13 City Council 10 — 42 7/15/2025 EXECUTIVE SUMMARY Freund House 1001 North Olive Street Santa Ana, CA 92703 NAME Freund House REF. NO. ADDRESS 1001 North Olive Street CITY Santa Ana ZIP 92703 ORANGE COUNTY YEAR BUILT 1924 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT N/A NEIGHBORHOOD Washington Square CALIFORNIA REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE 5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Mission/Spanish Revival The Mission/Spanish Colonial Revival style, as its name implies, encompasses two major subcategories. The Mission Revival vocabulary, popular between 1890 and 1920, drew its inspiration from the missions of the Southwest. Identifying features include curved parapets (or espadana); red tiled roofs and coping; low-pitched roofs, often with overhanging eaves; porch roofs supported by large, square piers; arches; and wall surfaces commonly covered in smooth stucco. The Spanish Colonial Revival flourished between 1915 and 1940, reaching its apex during the 1920s and 1930s. The movement received widespread attention after the Panama -California Exposition in San Diego in 1915, where lavish interpretations of Spanish and Mexican prototypes were showcased. Easily recognizable hallmarks of the Spanish Colonial Revival are low-pitched roofs, usually with little or no overhangs and red tile roof coverings, flat roofs surrounded by tiled parapets; and stuccoed walls. The Spanish vocabulary also includes arches; asymmetry; balconies and patios; window grilles; and decorative elements of wood, wrought iron, tile, or stone. SUMMARY/CONCLUSION: The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3 EXPLANATION OF CODES: • California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, "How to Nominate Resources to the California Register of Historical Resources," September 4, 2001.) 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. 5S3: Appears to be individually eligible for local listing or designation through survey evaluation. City Council 10 - 43 7/15/2025 State of California —The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Listings Review Code Primary #. HRI # Trinomial NRHP Status Reviewer Page 1 of 5 Resource name(s) or number (assigned by recorder) Freund House Date P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad: Anaheim Quadrangle California -Orange County 7.5-Minute Series Date: 2022 *c. Address 1001 North Olive Street and 915 West 10t" Street City: Santa Ana Zip: 92703 *e. Other Locational Data: Assessor's Parcel Number 405-284-13 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) Located on a corner parcel in Washington Square, the Freund House is a one-story, multiple -family Mission Revival style residence (Figure 1). The main residential building has two primary facades. The primary (west) facade contains the entrance to the unit addressed as 1001 North Olive Street and the primary (south) facade contains the entrance to the unit addressed as 915 West 10th Street (Figure 2). Asymmetrical in design, the building features a rectangular -shaped plan with a parapet roof that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the multifamily building is clad in smooth stucco. The main entrance to each unit is located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern. Adjacent to each entrance door is a large fixed wood window with Prairie style upper divided lights (Figure 3). Both porches are raised above two shallow concrete -clad steps and contain wide arches. (See Continuation Sheet 3 of 5) *P3b. Resource Attributes: (list attributes and codes) HP3. Multiple family property and HP4. Ancillary Building (garages) *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5b. Photo: (view and date) (Figure 1) Primary (west) facade, view northeast, January 2025 *P6. Date Constructed/Age and Sources: ■historic 19241 Original Building Permit *P7. Owner and Address: Palm Springs Deepwell Modern, LLC 2001 N Heliotrope Drive Santa Ana, CA 92706 *P8. Recorded by: Andrea Dumovich Heywood City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: June 4, 2025 *P10. Survey Type: Intensive Survey Update *P11. Report Citation: (Cite survey report and other sources, or enter "none") None *Attachments: ❑None ❑Location Map ❑Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record ❑Archaeological Record ❑District Record ❑Linear Feature Record ❑Milling Station Record ❑Rock Art Record ❑Artifact Record ❑Photograph Record ❑ Other (list) DPR 523A (1/95) *Required information City Council 10 — 44 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 4 *NRHP Status Code 5S3 *Resource Name or #: Freund House 131. Historic Name: Freund House 132. Common Name: Same 133. Original Use: Multiple Family Residence 134. Present Use: Multiple Family Residence *135. Architectural Style: Mission Revival *136. Construction History: (Construction date, alterations, and date of alterations): September 8, 1924. Permit to construct double apartments and garages. $6, 000. July 8, 1982. Reroof. $3,960. June 16, 1995. Reroof. $5,100. Unknown date. Residential unit fronting 10t" Street changed addresses from 1003 North Olive Street to 915 West 10r" Street. *137. Moved? ■No ❑Yes ❑Unknown Date: Original location: *138. Related Features: None B9a. Architect: Unknown b. Builder: Unknown *1310. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1924 Property Type: Multiple Family Residence Applicable Criteria: C13 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Freund House is architecturally significant as an intact example of a Mission Revival style house in Santa Ana. The original building permit, for the address range 1001-1003 North Olive Street, is dated September 8, 1924 and indicates it was built as double apartments and garages, at a cost of $6, 000. The original architect and builder are unknown. At an unknown date, the residential unit fronting 101 Street changed addresses from 1003 North Olive Street to 915 West 101 Street. Because of the unclear address history, city directory research was only completed for the 1001 North Olive Street address. The earliest known occupant is Charles Freund, who is listed on the original building permit for 1001 North Olive Street. City directories note Mr. Freund as the building's owner through 1926. An obituary article notes Freund was an interior decorator that had lived in Santa Ana between 1918 and 1945, the year he died (The Register, August 23, 1945). In 1927, T T Lackey and in 1930, J R Ott resided at the subject property. Mrs. K A O'Brien is listed from circa 1933-1935. Tenant Bales Redmond is noted in 1936. By 1937, R U Smith occupied the unit. City directories note G W Wilkins from circa 1940-1945, and a newspaper article notes Wilkins remained through 1949 (The Register, March 10, 1949). There was no directory available for 1948. In 1949 Mrs. E Hollingsworth is identified as a building tenant, who remained until she died in 1956 (The Register, October 22, 1956). P V Plummer also occupied the unit in 1956 (See Continuation Sheet 3). B11. Additional Resource Attributes: (List attributes and codes) *1312. References: (See Continuation Sheet 4 of 5.) B13. Remarks: None *1314. Evaluator: Andrea Dumovich Heywood, City of Santa Ana. *Date of Evaluation: June 4, 2025 (This space reserved for official comments.) Sketch Map Freund House 1001 N Olive Street 4 QLI m Z x ti eo• -- FLOWER N 6T.90' �0' ? • x �6' ]�• I o000 175' P5• � � G ^3 tiI N W lw # Ln A V � p •+ so• o' o. � DPR 523BC(r1Vbfi)COUIICII 10 — 45 7/15A2�-id information State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 3 of 5 Resource Name: (<Name_ of Structure))*Recorded by Andrea Dumovich Heywood "Date June 4, 2025 ❑x Continuation ❑ Update *P3a. Description (continued): Both primary (west and south) facades contain one tripartite window adjacent to the front porch (Figure 4). The window is composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights that flank a large fixed wood window. The tripartite's fixed central window on the primary (west) fagade contains Prairie style divided upper lights while the primary (south) fixed window had no muntins. A shed roof clad in clay tiles projects above the tripartite window on the primary (west) fagade (Figure 5). Window fenestration along the primary (south), east, and north fagades include double -hung wood windows with ogee lugs and Prairie style divided upper lights (Figure 6). Additional windows include a single wood hopper window on the primary (south) fagade, a fixed wood window and five double -hung wood windows without Prairie style divided lights at the north (side) fagade, and two double -hung wood windows without Prairie style divided lights at the east (side) fagade. Both residential units contains a detached single -car garage, situated at the property's north boundary. Particular to only the primary (west) fagade is a wingwall porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians (Figure 7). The primary (south) fagade's garage parapet is joined to the main residential building, creating an illusion that it is attached to the residence. The property is landscaped with a variety of small and medium-sized vegetation and trees such as palm trees, cactus, and agave. *1310. Significance (continued): According to city directories, 1001 N Olive Street was occupied by LM Brozenick in 1960. Two newspaper articles describe Lou Brozenick's extensive wood working hobby. In the late 1950s through 1970s, Brozenick worked on creating a wall -sized world map made out of wood, using wood specific to each country. The project took 17 years to complete due to difficulties with obtaining directly sourced wood from each country. A 1966 article notes that Brozenick worked on this project at his apartment at 10071 Lampson, Garden Grove, after living in Santa Ana. Therefore his artistic affiliations are not related to the subject property at 1001 North Olive Street (The Register, September 11, 1966 and December 4, 1975). The years 1963-1987 do not include the subject address in the directory or the directory itself was not available for research. A newspaper article mentions Mrs. Emily Jane Hayhurst as a resident of 915 W 10"' Street in 1965, who passed away that year (The Register, June 16, 1965). Historic building permits identify Joel Tardiff as building owner from at least 1975-1978. Permit history and directories reveal John Harwood owned the property from circa 1981-2003. By 2020, Steven Wayne Lively sold the property to current owners Palm Springs Deepwell Modern, LLC, represented by Kevin Shuler and Brian Stoddart. No pertinent information was uncovered regarding the former owners and tenants during the time of ownership/occupancy of 1001 North Olive Street. The Freund House is located in Washington Square, a neighborhood located northwest of the city center bounded by West Seventeenth Street on the north, West Civic Center Drive on the south, North Flower Street on the east, and North Bristol Street on the west. Most of this area was owned by the family of Jacob Ross, who had purchased portions of the Rancho Santiago de Santa Ana in 1868 and 1869. Walnuts and other crops were grown in the area during the late nineteenth and early twentieth centuries, with a few farmhouses, most notably the Ross -McNeal House at 1020 North Baker Street, dotting the landscape. By 1905, Baker and Towner were the only streets in the neighborhood, which extended from Hickey (now Civic Center) only as far as Washington and which contained only about a dozen homes. The status quo had not changed much by 1915, when a brick yard was located at the northern terminus of Olive Street at Hickey. In 1925, the beginning of the development that would convert this largely agricultural area into a middle class neighborhood of single-family homes over the next 25 years had begun. In the late 1920s and early 1930s, the Tudor Revival and Spanish Colonial Revival homes were the standard, with American Colonial Revival saltboxes and ranch style homes favored in the years before and after World War ll. During the 1930s, many of the homes were built by local contractor Emmett Rogers, who sold lots and built homes according to standard plans, which individual property owners could customize to their tastes ("Washington Square: A Neighborhood of Pride, " Washington Square Neighborhood Association). With the return of servicemen following the war and the accompanying demand for homes in southern California, the development of Washington Square was all but completed. The Freund House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Mission Revival style home in Santa Ana. Located in Washington Square, the house cost $6,000 to build in 1924. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Mission Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3)). Character -defining features of the Mission Revival style exhibited by the house include its rectangular -shaped plan; two primary (west and south) facades; asymmetrical design; parapet roof that wraps around the entire building; no extended eaves; smooth stucco cladding; main entrance to each unit located within a front porch and is composed of a single glazed wood door with a Prairie style muntin pattern; large fixed wood window with Prairie style upper divided lights; raised front porches with wide arches; tripartite window adjacent to the front porch composed of a wood frame encasing two double -hung wood windows with ogee lugs and Prairie style divided upper lights flanking a large fixed wood window; shed roof clad in clay tiles at the primary (west) fagade; double -hung wood windows with ogee lugs and (some windows with or without); Prairie style divided upper lights; single hopper window on primary (south) fagade; two detached single -car garages; primary (west) fagade porte-cochere that extends across the north driveway, containing an arched entrance for vehicular access and a smaller arched entrance, or wingwall, for pedestrians; small and medium vegetation and landscape. DPR 5231-CIty Council 10 — 46 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 4 of 5 Resource Name: (<Name_ of Structure))*Recorded by Andrea Dumovich Heywood "Date June 4, 2025 ❑x Continuation ❑ Update *1312. References (continued): Ancestry.com. U.S., City Directories, 1822-1995 [database on-line]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. 1930 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2002. Ancestry.com. 1940 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations, Inc., 2012. . California, U.S., Marriage Index, 1960-1985 [database on-line]. Provo, UT, USA: Ancestry. corn Operations Inc, 2007. City of Santa Ana Building Permits McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2013. Newspapers.com (Santa Ana Daily Register, The Register) Office of Historic Preservation. "Instructions for Recording Historical Resources. " Sacramento: March 1995. Sanborn maps. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. DPR 5231-CIty Council 10 — 47 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 5 of 5 Resource Name: (<Name_ of Structure))*Recorded by Andrea Dumovich Heywood "Date June 4, 2025 ❑x Continuation ❑ Update 4maruonai L Figure 2. the primary (south) fagade contains the Figure 3. Main entrance is composed of a single glazed entrance to the unit addressed as 915 West 10th Street, wood door with a Prairie style muntin pattern. Adjacent is facing north. a large fixed wood window with Prairie style upper divided lights, facin east. Figure 4. Tripartite window adjacent to the front porch, facing east. Figure 5. A shed roof clad in clay tiles projects above the tripartite window on the primary (west) fagade, facing east. Figure 6. Double -hung wood windows with ogee lugs and I Figure 7. Porte-cochere extends across the north Prairie style divided upper lights at the primary (south) driveway, containing an arched entrance for vehicular fagade, facing north. access and a smaller arched entrance, or wingwall, for pedestrians, facing east. DPR 5231-CIty Council 10 — 48 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with City Council 10 — 49 7/15/2025 MILLS ACT AGREEMENT 1001 North Olive Street Santa Ana, CA 92703 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. City Council 10 — 50 7/15/2025 Exhibit D: Proposed Structure Improvements ("Work Plan") 1001 North Olive Street Item Year Improvement 1 2025 Exterior repainting with period -appropriate color palette 2 2025 Landscape improvements including trimming of plantings along primary (west and south) facades to better showcase original building features from the public right- of-way. 3 2026 General maintenance to include: wood window assessment, stucco assessment, and roof assessment of primary residence and detached garages (at roof, assess clay tiles, parapet, flashing, and primary roof for damage). Repair or replace in -kind, as needed. 4 2027 Remove non -compatible wooden garage gate and wooden pedestrian door at the rear yard along the west facade. Planning approval required for new gate and door. 5 2028 Repair west fagade exterior stairs at entrance to 1001 N Olive Street: concrete repair/replacement and new paint. Assess front porch floor at entrance to 1001 N Olive Street and repair as needed. 6 2029 Replace rear yard porch steps (between residence and detached garage at 1001 N Olive Street) with historically -compatible material. 7 2030 Conceal, relocate, or remove wire cover along east fagade of 915 W 101" Street. Assess all exposed pipes and wires throughout the property and conceal, relocate, or remove as need. 8 2031 Replace two (2) metal -frame windows at rear doors (each located at the rear entrance of each unit) with wood -frame window. City Council 10 — 51 7/15/2025 7: , 3F feet H RCA NO. 2025-02, H RC NO. 2025-02, H P PA NO. 2025-03 1001 NORTH OLIVE STREET FREUND HOUSE PLANNING AND BUILDING AGENCY City Council 10 — 52 7/15/2025 ORANGE COUNTY REPORTER SINCE 1921- Mailing Address: 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 Visit us @ www.LegalAdstore.com GEMA ZAPIEN CITY OF SANTA ANA/PLANNING & BUILDING AGENCY 20 CIVIC CENTER PLAZA 2ND FLR SANTA ANA, CA 92702 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description 1001 North Olive Street To the right is a copy of the notice you sent to us for publication in the ORANGE COUNTY REPORTER. Thank you for using our newspaper. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 05/23/2025 The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. Publication $137.70 ONLINE $20.00 www.capublicnotices.com $20.00 Total $177.70 Daily Journal Corporation Serving your legal advertising needs throughout California. ORANGE COUNTY REPORTER, SANTA ANA (714) 543-2027 BUSINESS JOURNAL, RIVERSIDE (951) 784-0111 DAILY COMMERCE, LOS ANGELES (213) 229-5300 LOS ANGELES DAILY JOURNAL, LOS ANGELES (213) 229-5300 SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO (800) 640-4829 SAN JOSE POST -RECORD, SAN JOSE (408) 2874866 THE DAILY RECORDER, SACRAMENTO (916) 444-2355 THE DAILY TRANSCRIPT, SAN DIEGO (619) 232-3486 THE INTER -CITY EXPRESS, OAKLAND (510) 2724747 OR# 3928372 NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION The City of Santa Ana encourages the public to participate in the decision - making process. We encourage you to contact us prior to the Public Hearing if you have any questions. Historic Resources Commission Action: The Historic Resources Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Their decision is final unless appealed to the City Council within 10 days of the decision by any interested party or group. Project Location: 1001 North Olive Street and 915 West Tenth Street located within the Single Family Residence (R1) zoning district. Project Applicant: Kevin Shuler and Brian Stoddart (Applicant) representing Palm Springs Deepwell Modern, LLC (Property Owner) Project Description: Request for approval of Historic Resources Commission Application (HRCA) No. 2025-02, Historic Register Categorization (HRC) No. 2025-02, and Historic Property Preservation Application (HPPA) No. 2025-03 to allow the placement and categorization in the Santa Ana Register of Historical Properties as "Contributive" and to execute a Historic Property Preservation Agreement with the City of Santa Ana. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resources. Categorical Exemption No. ER-2025-28 will be filed for this project. Meeting Details: This matter will be heard on Wednesday, June 4, at 4:30 p.m. in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate virtually in this meeting, please visit www.santa-ana.org/pb/meeting- participation. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments5-sa nta-ana.org (reference the topic in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at: https://santa- ana.pdmegov.com/public/portal. Who To Contact For Questions: Should you have any questions, please contact James Williams with the Planning and Building Agency at JWilliams@santa- ana.org or 714-647-5899 or Pedro Gomez at PGomez@santa-ana.org or 714-667-2790. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Historic Resources Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas an espanol, favor de Ilamar a Nuvia Ocampo al (714) 667- 2732. N6ucAnli6nIacb5ngti6ngVi6t, xin di e n tho a i cho Kristie Ha (714) 667-2206. 5/23/25 OR-3928372# ' CITY OF SANTA ANA Planning and Building Agency 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.org/pba NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION Historic Resources Commission Action: The Historic Resources Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Their decision is final unless appealed to the City Council within 10 days of the decision by any interested party or group. Project Location: 1001 North Olive Street and 915 West Tenth Street located within the Single Family Residence (R1) zoning district. Project Applicant: Kevin Shuler and Brian Stoddart (Applicant) representing Palm Springs Deepwell Modern, LLC (Property Owner) Project Description: Request for approval of Historic Resources Commission Application (HRCA) No. 2025-02, Historic Register Categorization (HRC) No. 2025-02, and Historic Property Preservation Application (HPPA) No. 2025-03 to allow the placement and categorization in the Santa Ana Register of Historical Properties as "Contributive" and to execute a Historic Property Preservation Agreement with the City of Santa Ana. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review under Section 15331, Class 31, as these actions are designed to preserve a historic resources. Categorical Exemption No. ER-2025-28 will be filed for this project. Meeting Details: This matter will be heard on Wednesday, June 4, 2025, at 4:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate virtually in this meeting, please visit www.santa-ana.org/pb/meeting-participation. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments(a-).santa-ana.org (reference the topic in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at: https://santa-ana.primegov.com/public/portal. Who To Contact For Questions: Should you have any questions, please contact James Williams with the Planning and Building Agency at JWilliams(asanta-ana.org or 714-647-5899 or Pedro Gomez at PGomezCcD_santa-ana.org or 714-667-2790. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the ni lblirr, hearing dinsrrihed in this ngtica or in written correspondence City Council 10 — 54 7/15/2025 delivered to the Historic Resources Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas en espanol, favor de Ilamar a Nuvia Ocampo al (714) 667-2732. Neu can lien lac bang tieng Viet, An dien thoai cho Kristie Ha (714) 667-2206. 500' RADIUS NOTIFICATION MAP "IRA L w I"-. "@, T0W_ YA ill Ukr� uncil i �" • �.r � raffia 1001 North Clive Street bUU-oot .er5 ap 7/15/2025 of NOTICE OF PUBLIC HEARING - BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION The City of Santa Ana encourages the public to participate in the decision -making process. We encourage you to contact us prior to the Public Hearing if you have any questions. Historic Resources Commission Action: The Historic Resources Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. ' Their decision is final unless appealed to the City Council within 10 days of the decision by any interested party or group. Project Location: 1001 North Olive Street and 915 West Tenth Street located within the Single Family Residence (R1) zoning district. (Applicant) representing Palm Springs Project Applicant: Kevin Shuler and Brian Stoddart (App' ) p 9��. Deepwell Modern, LLC (Property Owner) Proiect Description: Request for approval of Historic Resources Commission Application (HRCA) No. 2025-02, Historic Register Categorization (HRC) No. 2025-02, and Historic Property Preservation An, -!ration (HPPA) No. 2025-03 to allow the placement and categorization in the Santa Ana Ri ate, of i- torical Properties as "Contributive" and to execute a Historic Property Preservation Agreement w tith the City of Santa Ana. Environmental Impact: Pureuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review; der Section 15331, Class 31, as these actions are designed to preserve a historic resour• ategorical Exemption No. ER- 2025-28 will be filed for this project. Meeting Details: This matter will be heard on Wednesday, June 4, at 4:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate virtually in this meeting, please visit www.santa-ana.org/pb/meeting-I)articipation. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments ansanta-ana.orci (reference the topic in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza - M20. Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the r public hearing at: https://santa-ana.primegov.com/public/i)ortal. Who To Contact For Questions: Should you have any questions, please contact James *' Williams with the Planning and Building Agency at JWilliamssanta-ana.org or 714-647-5899 (c- .• _=Y -b�, 1 k_ or Pedro Gomez at PGomersanta ana.ora or 714-667 2790. @ Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Historic Resources Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas en espanol, favor de Ilamar a Nuvia Ocampo al (714) 667-2732. Neu can lien lac bang tieng Viet, xin dign tho4i cho Kristie Ha (714) 667-2206. 10-5 �. Y fl l 1 �Ml NA. 1 � , 1t- 1 �1 I I` RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Robert James Manson and Alma Cristina Manson, Trustees, or their successors in interest, of The Robert and Alma Manson Living Trust dated March 4, 2024, and any amendments thereto, (hereinafter collectively referred to as "Owner"), owner of real property located at 1011 North Olive Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1011 North Olive Street, Santa Ana, CA, 92703 and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property." C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. City Council 10 — 58 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on July 16, 2025, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Executive Summary" and "Historical Property Description" attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. City Council 10 — 59 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, "Proposed Structure Improvements" or "Work Plan" and the City Council Historic Property Preservation Agreement (HPPA No. 2025-04) staff report dated June 4, 2025. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including inspecting and restoring all original wood windows and window trim; painting the non -original garage window with a trim to match the main house; fixing the uneven metal flashing at the primary and south facades; reroofing the property and addressing metal flashing concealment or replacement per discretion of Planning staff. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. City Council 10 — 60 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 '/2) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to City Council 10 — 61 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1011 North Olive Street, Assessor Parcel Number, 405-284-11, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. C. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner's representative shall provide the buyer of this property with notice that the property is listed on the City's historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk Owner: Robert James Manson and Alma Cristina Manson The Robert and Alma Manson Living Trust 1011 N Olive Street City Council 10 — 62 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 Santa Ana, CA 92703 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. City Council 10 — 63 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} City Council 10 — 64 7/15/2025 ATTEST: JENNIFER L. HALL City Clerk OWNERS 06/27/25 Date: 06/27/25 Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: B DON SALVATIERRA Deputy City Attorney MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 CITY OF SANTA ANA ALVARO NUNEZ City Manager A�,uaae B :BERT1 AN '0 ROBERT JAMES MANSON Trustee of The Robert and Alma Manson Living Trust dated March 4, 2024 By. fhi l MAN S ON ALMA CRISTINA MANSON Trustee of The Robert and Alma Manson Living T€ust dated March 4, 2024 RECOMMENDED FOR APPROVAL: 0AC. xxzf�� PEZES&KKOUR Executive Director Plannitig and Building Agency City Council 10 — 65 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 26 OF TRACT NO. 354, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, SHOWN ON MAP THEREOF RECORDED IN BOOK 15, PAGE(S) 26 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. Assessor's Parcel Number: 405-284-11 City Council 10 — 66 7/15/2025 Exhibit B EXECUTIVE SUMMARY Worswick House 1011 North Olive Street Santa Ana, CA 92703 NAME Worswick House REF. NO. ADDRESS 1011 North Olive Street CITY Santa Ana ZIP 92703 ORANGE COUNTY YEAR BUILT 1923 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT I N/A NEIGHBORHOOD I Washington Square CALIFORNIA REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE �5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Mission/Spanish Revival The Mission/Spanish Colonial Revival style, as its name implies, encompasses two major subcategories. The Mission Revival vocabulary, popular between 1890 and 1920, drew its inspiration from the missions of the Southwest. Identifying features include curved parapets (or espadana); red tiled roofs and coping; low-pitched roofs, often with overhanging eaves; porch roofs supported by large, square piers; arches; and wall surfaces commonly covered in smooth stucco. The Spanish Colonial Revival flourished between 1915 and 1940, reaching its apex during the 1920s and 1930s. The movement received widespread attention after the Panama -California Exposition in San Diego in 1915, where lavish interpretations of Spanish and Mexican prototypes were showcased. Easily recognizable hallmarks of the Spanish Colonial Revival are low-pitched roofs, usually with little or no overhangs and red tile roof coverings, flat roofs surrounded by tiled parapets; and stuccoed walls. The Spanish vocabulary also includes arches; asymmetry; balconies and patios; window grilles; and decorative elements of wood, wrought iron, tile, or stone. SUMMARY/CONCLUSION: The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3 EXPLANATION OF CODES: • California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, "How to Nominate Resources to the California Register of Historical Resources," September 4, 2001.) 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. 5S3: Appears to be individually eligible for local listing or designation through survey evaluation. City Council 10 - 67 7/15/2025 State of California —The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Listings Review Code Primary #. HRI # Trinomial_ NRHP Status Reviewer Page 1 of 5 Resource name(s) or number (assigned by recorder) Worswick House Date P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad: Anaheim Quadrangle California -Orange County 7.5-Minute Series Date: 2022 *c. Address 1011 North Olive Street City: Santa Ana Zip: 92703 *e. Other Locational Data: Assessor's Parcel Number 405-284-11 *133a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) The Worswick House is a one story, single-family, Spanish Revival style residence located on a moderately sized parcel in the Washington Square neighborhood (Figure 1). The asymmetrical residence exhibits a square -shaped plan with a parapet roof clad in clay the coping that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the house is clad in a smooth, 30130 sand stucco finish. The primary (west) facade is divided into four bays. A Palladian wood window and arched partially enclosed patio with the building's main entrance encompase the northern two bays. The Palladian window has what appears to be two casement windows with a centered fixed window and divided lights at all three window segments, located behind a low, wrought iron balconet (Figure 2). The main entrance door is composed of a single, wood paneled door. The southern third and fourth bays each contain a multilight casement wood window with a prominent wood sill (Figure 3). (See Continuation Sheet 3 of 5.) *P3b. Resource Attributes: (list attributes and codes) HP2. Single family property and HP4. Ancillary Building (garage) *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5b. Photo: (view and date) (Figure 1) Primary (west) facade, view northeast, January 2025 *P6. Date Constructed/Age and Sources: ■historic 19231 Original Building Permit *P7. Owner and Address: The Robert and Alma Manson Living Trust dated March 4, 2024 1011 N Olive Street Santa Ana, CA 92703 *P8. Recorded by: Andrea Dumovich Heywood City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: June 4, 2025 *P10. Survey Type: Intensive Survey Update *P11. Report Citation: (Cite survey report and other sources, or enter "none") None *Attachments: ❑None ❑Location Map ❑Sketch Map ■Continuation Sheet ■Building, Structure, and Object Record ❑Archaeological Record ❑District Record ❑Linear Feature Record ❑Milling Station Record ❑Artifact Record ❑Photograph Record ❑ Other (list) DPR 523A (1/95) ❑Rock Art Record *Required information City Council 10 — 68 7/15/2025 State of California -The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 5 *NRHP Status Code 5S3 *Resource Name or #: Worswick House 131. Historic Name: Worswick House 132. Common Name: Same 133. Original Use: Single Family Residence 134. Present Use: Single Family Residence *135. Architectural Style: Spanish Revival *136. Construction History: (Construction date, alterations, and date of alterations): January 1923. Permit to construct a residence and garage. $4, 000. November 12, 1938. Reroof by Kelly. $35. September 28, 1939. Reroof by Holmes. $65. December 10, 1945. Alteration to residence by Fred Warren. $150. October 9, 1950. Reroof for O. Stevens by Holmes. $150. June 7, 1976. Patio cover by Curtis J. Reynolds, owner. $200. April25, 1990. Reroof residence. $1,500. April 25, 1990. Reroof garage. $500. November 19, 2024. Installation of new stucco over existing stucco. New stucco finish to be a 30130 sand finish. Entire house & 3 walls of detached garage. *137. Moved? ■No ❑Yes ❑Unknown Date: Original location: *138. Related Features: None B9a. Architect: A. H Worswick b. Builder: A. H Worswick *1310. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1923 Property Type: Single Family Residence Applicable Criteria: C13 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Worswick House is architecturally significant as an intact example of a Spanish Revival style house in Santa Ana. The original building permit is dated January 1923 and indicates it was built as a residence and garage, at a cost of $4,000. The original architect, builder, and owner was A. H. Worswick, who is listed on the original building permit as the owner, and noted in newspaper advertisements as the property's designer and builder. A 1923 newspaper advertisement titled, "Beautiful New Spanish Bungalow, " states, "This most attractive home is stuccoed with everlasting magnesite, the most approved exterior plaster. Two large porches have cement the floors to match roofing tile... This is a truly artistic home, designed for comfort and convenience, built with care and convenience --and charmingly located" (The Register, May 3, 1923). Orange County Archives (OCA) reveal that the Worswick family generally owned the property until 1928, despite some short-lived lot transactions between the Worswicks and McFaddens. (See Continuation Sheet 3). B11. Additional Resource Attributes: (List attributes and codes) *1312. References: (See Continuation Sheet 4 of 5.) B13. Remarks: None *1314. Evaluator: Andrea Dumovich Heywood, City of Santa Ana. *Date of Evaluation: June 4, 2025 DPR 523B (1/95) (This space reserved for official comments.) Sketch Map Worswick House 1011 N Olive Street "a OLIVE cr.sa eon aa- �e• m y fl 1 i z�°�0000LJl,= � 135' P5• v a u ti 4tion LZor MT so• o� o. I --FLOWER - -� N City Council 10 - 69 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 3 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 0 Continuation ❑ Update *P3a. Description (continued): Fenestration throughout the property primarily includes wood -frame, multi -light windows and doors, with the exception of a non -original partially glazed wood door with metal window frames at the rear (west) fagade. Window operation consists of casement, hung, and awning types. Hung style windows throughout the residence primarily have a four -over -one style muntin pattern (Figure 4). The property contains a one -car, detached garage at the site's southeast corner (Figure 5). A parapet roof clad in clay tile coping wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior is clad in a smooth, 30130 sand stucco finish to match the main residence. At the west (primary) fagade, the garage has a pair of wooden French doors with divided lights and colorful tile trim. A single, vinyl slider window is located at the garage's north (side) fagade. Additional architectural features include an arched decorative alter below the primary front -facing gable at the primary (west) fagade, stucco -clad chimney and open patio with a partial wood trellis at the south (side) fagade, two asphalt -clad shed roofs and concrete porch steps at the rear (east) fagade, clay tile walkway between the sidewalk and the porch steps of the main building entrance, and clay tiles at the south patio (Figure 6 and Figure 7). The property is landscaped with a synthetic front lawn, low shrubs, palm trees and a fruit tree. *B10. Significance (continued): In 1924, A L Olinger moved into the subject property and is listed in city directories as the occupant through 1926. In 1927, city directories list H W Sweasy as the primary occupant and OCA note Mrs. Mason Yould also lived there that same year and through 1929. In 1928, the Worswicks sold to Ruth Marr Gay. In 1930, C E Terry is listed as another occupant in City Directories. In 1933, the tenant is noted as C I Reagan in city directories and as Donald Wolfe Massie in the OCA. From circa 1935 - 1937, E B Kruger resided at the property. In 1939, Gay sold the property to Jennie U. and Bert C. Lowen. By circa 1940, Mr. and Mrs. Ralph W DeForest, grain dealer, occupied the residence. In 1943, the Lowens sold to Thomas W. and Lucile S. Patterson, and the Patternsons sold to Joseph M. and Harry S. Burman that same year. The Burmans continued to make several land transactions amongst various Burman family members in 1943. According to OCA, in 1944 Harry Burman sold his company A-1 Cleaners and Laundry" to his wife Ann Burman and her two brothers. At the time, A-1 Cleaners had four downtown Santa Ana locations and a production plant at Stafford and Santiago. Following the sale, Harry Burman purchased from Robert Ramsey the Dixie Castle nightclub, which was located then on Highway 101 (today known as the 1-5 Freeway). In 1945, Mrs. Ann Burman is noted as the property owner in city directories. In 1945, Ann Burman and Michael Gole (partial interest owner) sold to Fred N. and Hazel R. Warren. Fred Warren, wallpaper hanger, resided at the subject property through 1947. The Warrens sold the property in 1947 to Oscar and Clara Stevens. Oscar Steven is noted as the property owner through 1968. Building occupants included Archie M. Monson, in 1959, and John J. Strizel in 1967. Stevens died in 1968 and the lot was purchased by Jean Nossum in 1972. In 1975, Nossum sold to Curtis J. and Barbara S. Reynolds, who then sold to Steven A. and Christine M. Emmons in 1978. City directories were unavailable for the years 1963-1978. By 1983, the Emmons sold to Douglas K. and Betty J. Pinnecker who then sold to Monica M. Marchman in 1988. One year later, Marchman sold to Paul A. Pereira and Deborah L. Poole. The house went into default and by 1995, the Federal Home Loan Mortgage Corp. sold to Alan Lee, who then sold the property to an investment company in 1998. In 1998, Ramiro and Olga Vernonica Tavares owned the property and from 1999-2003 it was owned by Raul Ramirez (later jointly owned with Michael Davis). In 2003, Deborah Ann Capalety purchased the property (later known as the Robert and Deborah Ann Capalety Trust), who remained the owner until 2022, when it was purchased by current owners Robert James and Alma Cristina Manson. No other information was uncovered. The Worswick House is located in Washington Square, a neighborhood located northwest of the city center bounded by West Seventeenth Street on the north, West Civic Center Drive on the south, North Flower Street on the east, and North Bristol Street on the west. Most of this area was owned by the family of Jacob Ross, who had purchased portions of the Rancho Santiago de Santa Ana in 1868 and 1869. Walnuts and other crops were grown in the area during the late nineteenth and early twentieth centuries, with a few farmhouses, most notably the Ross -McNeal House at 1020 North Baker Street, dotting the landscape. By 1905, Baker and Towner were the only streets in the neighborhood, which extended from Hickey (now Civic Center) only as far as Washington and which contained only about a dozen homes. The status quo had not changed much by 1915, when a brick yard was located at the northern terminus of Olive Street at Hickey. In 1925, the beginning of the development that would convert this largely agricultural area into a middle class neighborhood of single-family homes over the next 25 years had begun. In the late 1920s and early 1930s, the Tudor Revival and Spanish Colonial Revival homes were the standard, with American Colonial Revival saltboxes and ranch style homes favored in the years before and after World War Il. During the 1930s, many of the homes were built by local contractor Emmett Rogers, who sold lots and built homes according to standard plans, which individual property owners could customize to their tastes ("Washington Square: A Neighborhood of Pride, " Washington Square Neighborhood Association). With the return of servicemen following the war and the accompanying demand for homes in southern California, the development of Washington Square was all but completed. DPR 523LCIty Council 1 0 — 70 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 4 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 O Continuation ❑ Update The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. Located in Washington Square, the house cost $4,000 to build in 1923. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3)). Character -defining features of the Spanish Revival style exhibited by the house include its square - shaped plan; asymmetrical fagade; parapet roof clad in clay tile coping that wraps around the entire building, concealing the flat, built-up roof; roof with no extended eaves; smooth, 30130 sand stucco finish; primary (west) fagade divided into four bays; Palladian wood window with wrought iron balconet at primary fagade; arched partially enclosed patio with the building's main entrance; main entrance door is composed of a single, wood paneled door; two multilight casement wood windows with a prominent wood sill at the primary fagade; remaining fenestration including wood -frame, multi -light windows and doors with window operation consisting of casement, hung, and awning types; hung -style windows throughout the residence primarily with a four -over -one style muntin pattern; one -car, detached garage; arched decorative alter below the primary front -facing gable at the primary (west) fagade; stucco -clad chimney; Hollywood driveay, and front yard lawn and landscaping. *1312. References (continued): Ancestry.com. U.S., City Directories, 1822-1995 [database on-line]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. 1930 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2002. Ancestry.com. 1940 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations, Inc., 2012. . California, U.S., Marriage Index, 1960-1985 [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2007. City of Santa Ana Building Permits McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2013. Newspapers. com (Santa Ana Daily Register, The Register) Office of Historic Preservation. "Instructions for Recording Historical Resources. " Sacramento: March 1995. Sanborn maps. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. DPR 523LCIty Council 10 — 71 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 5 of 5 Resource Name: «Name_ of Structure))*Recorded by Andrea Dumovich Heywood *Date June 4, 2025 0 Continuation ❑ Update Additional Figures: i =rr ti ;3 Figure 2. Palladian window located behind a low, Figure 3. The main entrance door is composed of a wrought iron balconet, facing east single, wood paneled door. The southern third and fourth bays each contain a multilight casement wood window with a prominent wood sill, facing northeast. � �oR Figure 4. Hung style windows throughout the residence Figure 5. A one -car, detached garage at the site's primarily have a four -over -one style muntin pattern, southeast corner, facing east. facing northeast. Figure 6. Stucco -clad chimney, facing north. Figure 7. At the rear, two asphalt -clad shed roofs and concrete porch steps at the rear (east) fagade, facing west. DPR 523LCIty COUInCII 1 0 — 72 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with City Council 10 — 73 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. City Council 10 — 74 7/15/2025 Exhibit D: Proposed Structure Improvements ("Work Plan") 1011 North Olive Street Item Year Improvement 1 2027 Inspect all windows and window trim. Ensure all windows are in good working condition. Repair or replace windows and window trim, in -kind with matching material, as needed. 2 2028 Paint the single garage window trim with a darker color to match the window frame colors on the main residence. 3 2029 Address metal flashing at roofline: Fix the uneven metal flashing at the primary front -facing gable of the west fagade and along the south fagade. 4 2030 Reroof built up roof at main residence and detached garage. Metal flashing along the entire residential building shall be assessed by Planning Division staff. Potential requirement for new flashing during reroof, or complete concealment of existing flashing, per the discretion of Planning Division staff. 5 2031 Replace rear (east) door with period -appropriate door, subject to Planning Division staff review and approval. City Council 10 — 75 7/15/2025 Planning and Building Agency Item # 10 "oRr City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Historic Resources Commission Staff Report June 4, 2025 Topic: HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04 — Worswick House (1011 North Olive Street) RECOMMENDED ACTIONS 1. Adopt a resolution approving Historic Resources Commission Application No. 2022-09 and Historic Register Categorization No. 2025-03 (Exhibit 1); and 2. Recommend that the City Council authorize the City Manager and Clerk of the Council to execute the attached Mills Act agreement with The Robert and Alma Manson Living Trust dated March 4, 2024, subject to non -substantive changes approved by the City Manager and City Attorney (Exhibit 2). EXECUTIVE SUMMARY Robert James Manson and Alma Cristina Manson, Trustees, or their successors in interest, of The Robert and Alma Manson Living Trust dated March 4, 2024, and any amendments thereto, are requesting approval to designate an existing Spanish Revival style single-family residence located at 1011 North Olive Street to the Santa Ana Register of Historical Properties, as well as approval to execute a Mills Act agreement with the City of Santa Ana. The property qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style single-family residence. It is worthy of "Contributive" categorization because it contributes to the overall character and history of the Washington Square neighborhood and is a representative example of Spanish Revival architecture in Santa Ana, including its arched entry porch, clay tile roof and roof coping, and smooth stucco, among other features. DISCUSSION Project Location and Site Description The subject property is located on the east side of Olive Street, between Washington Avenue and Tenth Street, in the Washington Square neighborhood in Santa Ana. The site contains a 1,204-square-foot, Spanish Revival style single-family residence and detached garage on a 5,863-square-foot residential lot (Exhibit 3). City Council 10 — 76 7/15/2025 HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04— Worswick House (1011 North Olive Street) June 4, 2025 Page 2 Analysis of the Issues Historical Listing In March 1999, the City Council approved Ordinance No. NS-2363 establishing the Historic Resources Commission and the Santa Ana Register of Historical Properties. The Historic Resources Commission may, by resolution and at a noticed public hearing, designate as a historical property any building or part thereof, object, structure, or site having importance to the history or architecture of the city in accordance with the criteria set forth in Section 30-2 of the Santa Ana Municipal Code (SAMC). This project entails applying the selection criteria established in Chapter 30 of the Santa Ana Municipal Code (Places of Historical and Architectural Significance) to determine if this structure is eligible for historic designation to the Santa Ana Register of Historical Properties. The first criterion for selection requires that the structures be 50 or more years old. The structure identified meets the selection criteria for inclusion on the Santa Ana Register of Historical Properties pursuant to criteria contained in Section 30-2 of the Santa Ana Municipal Code, as the structure is 102 years old and is a sound example of period architecture. No known code violations exist on record for this property. The Worswick House is architecturally significant as an intact example of a Spanish Revival style house in Santa Ana. The original building permit is dated January 1923 and indicates it was built as a residence and garage, at a cost of $4,000. The original architect, builder, and owner was A. H. Worswick, who is listed on the original building permit as the owner, and noted in newspaper advertisements as the property's designer and builder. A 1923 newspaper advertisement titled, "Beautiful New Spanish Bungalow," states, "This most attractive home is stuccoed with everlasting magnesite, the most approved exterior plaster. Two large porches have cement tile floors to match roofing tile ... This is a truly artistic home, designed for comfort and convenience, built with care and convenience --and charmingly located" (The Register, May 3, 1923). Orange County Archives (OCA) reveal that the Worswick family generally owned the property until 1928, despite some short-lived lot transactions between the Worswicks and McFaddens. In 1924, A. L. Olinger moved into the subject property and is listed in city directories as the occupant through 1926. In 1927, city directories list H. W. Sweasy as the primary occupant and OCA notes Mrs. Mason Yould also lived there that same year and through 1929. In 1928, the Worswicks sold to Ruth Marr Gay. In 1930, C. E. Terry is listed as another occupant in city directories. In 1933, the tenant is noted as C. I. Reagan in city directories and as Donald Wolfe Massie in the OCA. From circa 1935-1937, E. B. Kruger resided at the property. In 1939, Gay sold the property to Jennie U. and Bert C. Lowen. By circa 1940, Mr. and Mrs. Ralph W. DeForest, grain dealer, occupied the residence. In 1943, the Lowens sold to Thomas W. and Lucile S. Patterson, and the Patternsons sold to Joseph M. and Harry S. Burman that same year. The Burmans continued to make several land transactions amongst various Burman family members in 1943. According City Council 10 — 77 7/15/2025 HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04— Worswick House (1011 North Olive Street) June 4, 2025 Page 3 to OCA, in 1944 Harry Burman sold his company "A-1 Cleaners and Laundry" to his wife Ann Burman and her two brothers. At the time, A-1 Cleaners had four downtown Santa Ana locations and a production plant at Stafford and Santiago streets. Following the sale, Harry Burman purchased from Robert Ramsey the Dixie Castle nightclub, which was located then on Highway 101 (today known as the 1-5 Freeway). In 1945, Mrs. Ann Burman is noted as the property owner in city directories. In 1945, Ann Burman and Michael Gole (partial interest owner) sold to Fred N. and Hazel R. Warren. Fred Warren, wallpaper hanger, resided at the subject property through 1947. The Warrens sold the property in 1947 to Oscar and Clara Stevens. Oscar Steven is noted as the property owner through 1968. Building occupants included Archie M. Monson, in 1959, and John J. Strizel in 1967. Stevens died in 1968 and the lot was purchased by Jean Nossum in 1972. In 1975, Nossum sold to Curtis J. and Barbara S. Reynolds, who then sold to Steven A. and Christine M. Emmons in 1978. City directories were unavailable for the years 1963-1978. By 1983, the Emmons sold to Douglas K. and Betty J. Pinnecker who then sold to Monica M. Marchman in 1988. One year later, Marchman sold to Paul A. Pereira and Deborah L. Poole. The house went into default and by 1995, the Federal Home Loan Mortgage Corp. sold to Alan Lee, who then sold the property to an investment company in 1998. In 1998, Ramiro and Olga Vernonica Tavares owned the property and from 1999-2003 it was owned by Raul Ramirez (later jointly owned with Michael Davis). In 2003, Deborah Ann Capalety purchased the property (later known as the Robert and Deborah Ann Capalety Trust), who remained the owner until 2022, when it was purchased by current owners Robert James and Alma Cristina Manson. No other information was uncovered. The Worswick House is a one story, single-family, Spanish Revival style residence located on a moderately -sized parcel in the Washington Square neighborhood. The asymmetrical residence exhibits a square -shaped plan with a parapet roof clad in clay tile coping that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the house is clad in a smooth, 30/30 sand stucco finish. The primary (west) fagade is divided into four bays. A Palladian wood window and arched partially enclosed patio with the building's main entrance encompasses the northern two bays. The Palladian window has what appears to be two casement windows with a centered fixed window and divided lights at all three window segments, located behind a low, wrought iron balconet. The main entrance door is composed of a single, wood paneled door. The southern third and fourth bays each contain a multi -light casement wood window with a prominent wood sill. Fenestration throughout the property primarily includes wood -frame, multi -light windows and doors, with the exception of a non -original partially glazed wood door with metal window frames at the rear (west) fagade. Window operation consists of casement, hung, and awning types. Hung style windows throughout the residence primarily have a four - over -one style muntin pattern. City Council 10 — 78 7/15/2025 HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04— Worswick House (1011 North Olive Street) June 4, 2025 Page 4 The property contains a one -car, detached garage at the site's southeast corner. A parapet roof clad in clay tile coping wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior is clad in a smooth, 30/30 sand stucco finish to match the main residence. At the west (primary) fagade, the garage has a pair of wooden French doors with divided lights and colorful tile trim. A single, vinyl slider window is located at the garage's north (side) fagade. Additional architectural features include an arched decorative alter below the primary front -facing gable at the primary (west) fagade, stucco -clad chimney and open patio with a partial wood trellis at the south (side) fagade, two asphalt -clad shed roofs and concrete porch steps at the rear (east) fagade, clay tile walkway between the sidewalk and the porch steps of the main building entrance, and clay tiles at the south patio. The property is landscaped with a synthetic front lawn, low shrubs, palm trees and a fruit tree. Character -defining features of the Worswick House include, but may not be limited to: asymmetrical fagade; parapet roof clad in clay tile coping that wraps around the entire building, concealing the flat, built-up roof; roof with no extended eaves; smooth, 30/30 sand stucco finish; primary (west) fagade divided into four bays; Palladian wood window with wrought iron balconet at primary fagade; arched partially enclosed patio with the building's main entrance; main entrance door is composed of a single, wood paneled door; two multi -light casement wood windows with a prominent wood sill at the primary fagade; remaining fenestration including wood -frame, multi -light windows and doors with window operation consisting of casement, hung, and awning types; hung -style windows throughout the residence primarily with a four -over -one style muntin pattern; one -car, detached garage; arched decorative alter below the primary front -facing gable at the primary (west) fagade; stucco -clad chimney; and front yard lawn and landscaping. The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. Located in Washington Square, the house cost $4,000 to build in 1923. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana. Mills Act Agreement Ordinance No. NS-2382 authorized the Historic Resources Commission to execute Historic Property Preservation Agreements (HPPA), commonly known as Mills Act agreements for eligible properties (Exhibit 2). To be eligible for the Mills Act, the property must be listed on the Santa Ana Register of Historical Properties. The Historic Resources Commission Application and Historic Register Categorization actions proposed for this site authorize the listing of the property on the local register. The agreement provides monetary incentives to the property owner in the form of a property tax reduction in exchange for the owner's voluntary commitment to maintain the property in a good state City Council 10 — 79 7/15/2025 HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04— Worswick House (1011 North Olive Street) June 4, 2025 Page 5 of repair as necessary to maintain its character and appearance. Once recorded, the agreement generates a different valuation method in determining the property's assessed value, resulting in tax savings for the owner. Aside from the tax savings, the benefits include: • Long term preservation of the property and visual improvement to the neighborhood • A mechanism to provide for property rehabilitation • Incentives for potential buyers to purchase historic structures • Discouraging inappropriate alterations to the property The property has no identified unauthorized modifications. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement subject to a completion of future improvements as described in an attached Work Plan. Overall, future improvements (Work Plan) proposed by the homeowner during the initial ten years of the Mills Act Agreement include the following: new roof and general maintenance. Staff suggests adding the following items to the Work Plan: 1) address metal flashing at roofline: fix the uneven metal flashing at the primary front -facing gable of the west fagade and along the south fagade; 2) inspect all windows and window trim, ensure all windows are in good working condition, and repair or replace windows and window trim, in -kind with matching material, as needed; 3) paint the single garage window trim with a darker color to match the window frame colors on the main residence; 4) during time of reroof, metal flashing along the entire residential building shall be assessed by Planning Division staff, with potential requirement for new flashing during reroof, or complete concealment of existing flashing, per the discretion of Planning Division staff; and 5) replace rear (east) door with period -appropriate door, subject to Planning Division staff review and approval. Staff will ensure that the proposed work will be done sensitively and will maintain the property's character -defining features as part of the Mills Act Agreement for this property. As part of the Mills Act approval process, staff will work with the applicant to ensure that a bronze plaque is installed honoring and recognizing the structure. The plaque will include the historic name, address, year built, and local historic register designation. Lastly, the site will be subject to general maintenance and upkeep requirements including, but not limited to, replacement or restoration of damaged character -defining features, landscaping upkeep, painting, etc. Upon consideration of the application, it is recommended that the City enter into a Historic Property Preservation Agreement to enable the Mills Act. City Council 10 — 80 7/15/2025 HRCA No. 2022-09, HRC No. 2025-03, HPPA No. 2025-04— Worswick House (1011 North Olive Street) June 4, 2025 Page 6 Public Notification The subject site is located within the Washington Square Neighborhood Association. The president of this Neighborhood Association was notified by mail 10 days prior to this public hearing. In addition, the project site was posted with a notice advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 1,000 feet of the project site. At the time of this printing, no correspondence, either written or electronic, has been received from any members of the public. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15331 of the CEQA Guidelines (Class 31 — Historical Resource Restoration/Rehabilitation) as these actions are designed to preserve historic resources. Based on this analysis, a Notice of Exemption, Environmental Review No. 2025-30, will be filed for this project. FISCAL IMPACT The Historic Property Preservation Agreement will reduce the Property Tax revenue account 01102002-50011 to the City by an estimated $845.10 annually, for a period of not less than ten years. EXHIBITS 1. Resolution 2. Mills Act Agreement 3. 500-Foot Radius Map 4. Copy of Public Notice Submitted By: James Williams, Contract Planner Approved By: Ali Pezeshkpour, AICP, Acting Executive Director, Planning and Building Agency City Council 10 — 81 7/15/2025 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 RESOLUTION NO. 2025-XX A RESOLUTION OF THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA APPROVING HISTORIC RESOURCES COMMISSION APPLICATION NO. 2022-09 TO PLACE THE PROPERTY LOCATED AT 1011 NORTH OLIVE STREET, SANTA ANA, ON THE HISTORICAL REGISTER AND APPROVING HISTORIC REGISTER CATEGORIZATION NO. 2025-03 PLACING SAID PROPERTY WITHIN THE CONTRIBUTIVE CATEGORY BE IT RESOLVED BY THE HISTORIC RESOURCES COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Historic Resources Commission of the City of Santa Ana hereby finds, determines, and declares as follows: A. On June 4, 2025, the Historic Resources Commission held a duly noticed public hearing for the placement on the Santa Ana Register of Historical Properties (Historic Resources Commission Application No. 2022-09) and categorization (Historic Resources Commission Categorization No. 2025- 03) of the Worswick House located at 1011 North Olive Street, Santa Ana. B. The Worswick House has distinctive architectural features of the Spanish Revival style and was built in 1923. C. The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. The house displays characteristics of the Spanish Revival style through its use of its arched entry porch, clay tile roof and roof coping, and smooth stucco, among other original features. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana. Character -defining features of the Worswick House include, but may not be limited to: its square -shaped plan; asymmetrical fagade; parapet roof clad in clay tile coping that wraps around the entire building, concealing the flat, built-up roof; roof with no extended eaves; smooth, 30/30 sand stucco finish; primary (west) fagade divided into four bays; Palladian wood window with wrought iron balconet at primary fagade; arched partially enclosed patio with the building's main entrance; main entrance door is composed of a single, wood paneled door; two multi -light casement wood windows with a prominent wood sill at the primary fagade; remaining fenestration including wood -frame, multi -light windows and doors with window operation consisting of casement, hung, and awning types; hung -style windows City Council 10 — 82 Resolutio/n1P9� A-XX Page 1 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 throughout the residence primarily with a four -over -one style muntin pattern; one -car, detached garage; arched decorative alter below the primary front - facing gable at the primary (west) fagade; stucco -clad chimney; and front yard lawn and landscaping. D. The legal owner of the property is Robert James Manson and Alma Cristina Manson, Trustees, or their successors in interest, of The Robert and Alma Manson Living Trust dated March 4, 2024, and any amendments thereto. E. The legal description for the subject property is attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein. F. The subject property meets the standards for placement on the City of Santa Ana Register of Historic Properties pursuant to Section 30-2 of the Santa Ana Municipal Code. G. The subject property meets the minimum standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code. H. In addition to meeting the standards for placement in the Contributive category pursuant to Section 30-2.2(3) of the Santa Ana Municipal Code, the applicant has agreed, as part of the requested Mills Act agreement Work Plan, to restoration of select elements described therein within the first five years of the Agreement's term, including inspecting and restoring all original wood windows and window trim; painting the non -original garage window with a trim to match the main house; fixing the uneven metal flashing at the primary and south facades; reroofing the property and addressing metal flashing concealment or replacement per discretion of Planning staff. Section 2. In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review under CEQA Guidelines Section 15331, Class 31, as these actions are designed to preserve historical resources. Categorical Exemption No. ER-2025-30 will be filed for this project. Section 3. The Historic Resources Commission of the City of Santa Ana, after conducting the public hearing, hereby approves: A. Historic Resources Commission Application No. 2022-09 to place the Worswick House located at 1011 North Olive Street, Santa Ana, 92703 on the historical register, and B. Historic Register Categorization No. 2025-03 placing the Worswick House located at 1011 North Olive Street, Santa Ana, 92703 within the Contributive category, as conditioned in Exhibit B, attached hereto and incorporated herein. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Staff report and exhibits attached thereto, the report entitled "Historical Property Description," and the public testimony, all of which are incorporated herein by this reference. City Council 10 — 83 Resolutio'nlP9b A-XX Page 2 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 Section 4. For the subject property, a report entitled "Historical Property Description" is on file with the Planning Division, and is hereby approved and adopted, and together with the staff report and this Resolution, justify the findings for placement on the City of Santa Ana Register of Historical Properties into a category. The Historic Resources Commission Secretary is authorized and directed to include this Resolution in the City of Santa Ana Register of Historical Properties. Section 5. The Historic Resources Commission Secretary is hereby directed to file a certified copy of this Resolution with the County Recorder's Office after the adoption of this Resolution pursuant to Public Resources Code Section 5029. ADOPTED this 4t" day of June, 2025. Edward Murashie Chairperson APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Brandon Salvatierra Deputy City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: City Council 10 — 84 Res oIutiolnlht29�A xx Page 3 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, GEMA ZAPIEN, Acting Historic Resources Commission Secretary, do hereby attest to and certify the attached Resolution No. 2025-XX to be the original resolution adopted by Historic Resources Commission of the City of Santa Ana on June 4, 2025. Date: Gema Zapien Acting Commission Secretary City of Santa Ana City Council 10 — 85 Resolutio'nlP9b A-XX Page 4 of 6 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT A LEGAL DESCRIPTION APN Address Legal Description Owner Names 405-284-11 1011 North Olive Street THE LAND REFERRED TO Robert James HEREIN BELOW IS SITUATED Manson and IN THE CITY OF SANTA ANA, Alma Cristina COUNTY OF ORANGE, STATE Manson OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 26 OF TRACT NO. 354, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, SHOWN ON MAP THEREOF RECORDED IN BOOK 15, PAGE(S) 26 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. Resolution No. 2025-XX Page 5 of 6 City Council 10 — 86 7/15/2025 FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 EXHIBIT B Conditions of Approval for Historic Resources Commission Al2plication No. 2022-09 and Historic Resources Commission Categorization No. 2025-03 The Applicant must comply with each condition listed below prior to exercising the rights conferred by the Historic Resource Commission's approval and the City of Santa Ana Register of Historic Properties pursuant to Section 30-6 of the Santa Ana Municipal Code. The Applicant must remain in compliance with all condition(s) listed below: Within 180 days of execution of this resolution, the applicant shall install a bronze plaque as per a template on file with the Planning Division honoring and recognizing the structure at 1011 North Olive Street, historically known as the Worswick House. The plaque shall include the historic name, address, year built, and local historic register designation. The final dimensions, location, text and description on the plaque shall be reviewed and approved by Planning Division staff. 2. The applicant shall regularly maintain all landscaping in the front yard area (pruning and thinning trees and shrubs) so that the historic building and its character defining features (including but not limited to arched entry porch, clay tile roof and roof coping, Palladian window and original wood windows, and smooth stucco) are visible from the public right-of-way. Resolution No. 2025-XX Page 6 of 6 City Council 10 — 87 7/15/2025 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: Clerk of the Council FREE RECORDING PURSUANT TO GOVERNMENT CODE § 27383 HISTORIC PROPERTY PRESERVATION AGREEMENT This Historic Property Preservation Agreement ("Agreement") is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the of the State of California (hereinafter referred to as "City"), and Robert James Manson and Alma Cristina Manson, Trustees, or their successors in interest, of The Robert and Alma Manson Living Trust dated March 4, 2024, and any amendments thereto, (hereinafter collectively referred to as "Owner"), owner of real property located at 1011 North Olive Street, Santa Ana, California, in the County of Orange and listed on the Santa Ana Register of Historical Properties. RECITALS A. The City Council of the City of Santa Ana is authorized by California Government Code Section 50280 et seq. (known as the "Mills Act") to enter into contracts with owners of qualified historical properties to provide for appropriate use, maintenance, rehabilitation and restoration such that these historic properties retain their historic character and integrity. B. The Owner possesses fee title in and to that certain qualified real property together with associated structures and improvements thereon, located at 1011 North Olive Street, Santa Ana, CA, 92703 and more particularly described in Exhibit "A," attached hereto and incorporated herein by reference, and hereinafter referred to as the "Historic Property." C. The Historic Property is officially designated on the Santa Ana Register of Historical Properties pursuant to the requirements of Chapter 30 of the Santa Ana Municipal Code. D. City and Owner, for their mutual benefit, now desire to enter into this Agreement which defines and limits the use and alteration of this Historic Property in order to enhance and maintain its value as a cultural and historical resource for Owner and for the community; to prevent inappropriate alterations to the Historic Property and to ensure that repairs, additions, new building, and other changes are appropriate; and to ensure that rehabilitation and maintenance are carried out in an exemplary manner. City Council 10 — 88 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 E. Owner and City intend to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Section 50280 et seq., which will enable the Historic Property to qualify for an assessment of valuation as a restricted historical property pursuant to Article 1.9, Sec. 439 et seq., Chapter 3 Part 2 of Division 1 of the California Tax and Revenue Code. NOW, THEREFORE, the City of Santa Ana and the Owner of the Historic Property agree as follows: 1. Effective Date and Terms of Agreement. This Agreement shall be effective and commence on July 16, 2025, and shall remain in effect for a term of ten (10) years thereafter. Each year, upon the anniversary of the effective date of this Agreement, such initial term will automatically be extended as provided in California Government Code Sections 50280 through 50290 and in Section 2, below. 2. Renewal. a. Each year on the anniversary of the effective date of this Agreement, a year shall automatically be added to the initial ten (10) year term of this Agreement unless written notice of nonrenewal is served as provided herein. b. If the Owner or the City desire(s) in any year not to renew the Agreement, the Owner or City shall serve written notice of nonrenewal of the Agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the Agreement as provided herein. C. Within 30 days from receipt of City's notice of nonrenewal, the Owner may file a written protest of City's decision of nonrenewal. The City may, at any time prior to the annual renewal date of the Agreement, withdraw its notice to the Owner of nonrenewal. d. If either the Owner or the City serves notice to the other of nonrenewal in any year, the Agreement shall remain in effect for the balance of the term then remaining, either from its original execution or from the last renewal of the Agreement, whichever may apply. 3. Standards and Conditions for Historic Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements and restrictions: a. Owner shall maintain the Historic Property in a good state of repair and shall preserve, maintain, and, where necessary, restore or rehabilitate the property and its character - defining features described in the "Executive Summary" and "Historical Property Description" attached hereto, marked collectively as Exhibit B, notably the general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings, textures, details, mass, roof line, porch and other aspects of the appearance of the exterior to the satisfaction of the City. City Council 10 — 89 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 b. All changes to the Historic Property shall comply with applicable City plans and regulations, and conform to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation, namely the U.S. Secretary of the Interior's Standards and Guidelines for Historic Preservation Projects. These guidelines are attached hereto, marked as Exhibit C, and incorporated herein by this reference. Owner shall continually maintain the Historic Property in the same or better condition. C. A view corridor enabling the general public to see the Historic Property from the public right-of-way shall be maintained, and Owner shall not be permitted to block the view corridor to the property with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the historic landmark by the public. d. The following are prohibited: demolition of the Historic Property or destruction of character -defining features of the building or site; removal of trees and other major vegetation unless removal is approved by a rehabilitation plan approved by the Historic Resources Commission; paving of yard surface; exterior alterations or additions unless approved by the Historic Resources Commission and such alterations are in keeping with the Secretary of Interior's Standards; deteriorating, dilapidated or unrepaired structures such as fences, roofs, doors, walls, and windows; storage of junk, trash, debris, discarded or unused objects such as cars, appliances, or furniture; and other unsightly by decoration, structure or vegetation which is unsightly by reason of its height, condition, or inappropriate location. e. Owner shall allow reasonable periodic inspection by prior appointment, as needed or at least every five (5) years after the initial inspection, of the interior and exterior of the Historic Property by representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization, to determine the Owner's compliance with the terms and provisions of this Agreement. As part of the periodic inspection, Owner shall supply information in a format determined acceptable by the representatives of the City of Santa Ana, the County Assessor, the State Department of Parks and Recreation, and the State Board of Equalization information required to determine compliance with the terms of this Agreement. f. Owner shall implement the rehabilitation and restoration work items as discussed in detail in Exhibit D, "Proposed Structure Improvements" or "Work Plan" and the City Council Historic Property Preservation Agreement (HPPA No. 2025-04) staff report dated June 4, 2025. All work items shall be completed within the first ten years of the Mills Act Agreement, with specific items completed within the first five years including inspecting and restoring all original wood windows and window trim; painting the non -original garage window with a trim to match the main house; fixing the uneven metal flashing at the primary and south facades; reroofing the property and addressing metal flashing concealment or replacement per discretion of Planning staff. Proof of completion, as requested by the City of Santa Ana, will be required in order to satisfy and maintain the Mills Act Agreement. Staff approval is required before items are amended or removed/replaced from the improvements list. City Council 10 — 90 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 4. Furnishing of Information. The Owner hereby agrees to furnish the City with any and all information requested which may be necessary or advisable to determine compliance with the terms and provisions of this Agreement. 5. Cancellation. a. The City, following a duly noticed public hearing by the City Council as set forth in Government Code Section 50280, et. seq., may cancel this Agreement if it determines that the Owner have breached any of the conditions of this Agreement, or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified Historic Property, or if the City determines that the Owner have failed to restore or rehabilitate the property in the manner specified in Section 3 of this Agreement. If a contract is cancelled for these reasons, the Owner shall pay a cancellation fee to the County Auditor as set forth in Government Code Section 50286. This cancellation fee shall be a percentage (currently set at twelve and one-half (12 %2) percent by Government Code Section 50286) of the current fair market value of the property at the time of the cancellation, as determined by the county assessor, without regard to any restriction imposed pursuant to this Agreement. b. If the Historic Property is destroyed by earthquake, fire, flood or other natural disaster such that in the opinion of the City Building Official more than sixty (60) percent of the original fabric of the structure must be replaced, this Agreement shall be canceled immediately because, in effect, the historic value of the structure will have been destroyed. No fee shall be imposed in the case of destruction by acts of God or natural disaster. C. If the Historic Property is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of this Agreement, this Agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288. 6. Enforcement of Agreement. a. In lieu of and/or in addition to any provisions to cancel the Agreement as referenced herein, City may specifically enforce, or enjoin the breach of, the terms of the Agreement. In the event of a default, under the provisions to cancel the Agreement by Owner, the City shall give written notice to Owner by registered or certified mail, and if such a violation is not corrected to the reasonable satisfaction of the City Manager or designee within thirty (30) days thereafter, or if not corrected within such a reasonable time as may be required to cure the breach or default, or default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by Owner), then City may, without further notice, declare a default under the terms of this Agreement and may bring any action necessary to specifically enforce the obligations of Owner growing out of the terms of this Agreement, apply to any court, state or federal, for injunctive relief against any violation by Owner or apply for such relief as may be appropriate. b. City does not waive any claim of default by the Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City's regulations governing historic properties are available to City to City Council 10 — 91 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 pursue in the event that there is a breach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 7. Binding effect of Agreement. a. Owner hereby subjects the Historic Property, located at 1011 North Olive Street, Assessor Parcel Number, 405-284-11, and more particularly described in Exhibit A, in the City of Santa Ana, to the covenants, conditions, and restrictions as set forth in this Agreement. b. City and Owner hereby declare their specific intent that the covenants, conditions and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon Owner's successors and assigns in title or interest to the Historic Property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the Historic Property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the tenants, restrictions, and reservations expressed in this Agreement regardless of whether such covenants, conditions and restrictions are set forth in such contract, deed, or other instrument. C. This property is listed in the Santa Ana Register of Historical Properties (Register). In any real property transaction, the owner of this property or the owner's representative shall provide the buyer of this property with notice that the property is listed on the City's historic Register. 8. No Compensation. Owner shall not receive any payment from City in consideration of the obligation imposed under this Agreement, it being recognized that the consideration for the execution of this Agreement is the substantial public benefit to be derived therefrom and the advantage that will accrue to Owner as a result of the effect upon the assessed value of the Property on the account of the restrictions on the use and preservation of the Property. 9. Notice. Any notice required by the terms of this Agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto. City: City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702 Attn: City Clerk Owner: Robert James Manson and Alma Cristina Manson The Robert and Alma Manson Living Trust 1011 N Olive Street City Council 10 — 92 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 Santa Ana, CA 92703 10. General Provisions. a. None of the terms, provisions, or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions or conditions cause them to be considered joint ventures or members of any joint enterprise. b. The Owner agrees to and shall indemnify and hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or operations of the Owner or those of his or her contractor, subcontractor, agent, employee, or other person acting on his or her behalf which relates to the use, operation, and maintenance of the Historic Property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all actions for damages caused by, or alleged to have been caused by, reason of the Owner's activities in connection with the Historic Property. C. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this Agreement regardless of whether or not City prepared, supplied, or approved the plans, specifications or other documents for the Historic Property. d. All of the agreements, rights, covenants, conditions, and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the Historic Property, whether by operation of law on in any manner whatsoever. e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney's fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. g. This Agreement shall be construed and governed in accordance with the laws of the State of California, with venue in Orange County. City Council 10 — 93 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 11. Recordation. No later than twenty (20) days after the parties execute and enter into this Agreement, the City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Orange. 12. Amendments. This Agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto. 13. Effective Date This Agreement shall be effective on the day and year first written above in Section 1. {Signature page follows} City Council 10 — 94 7/15/2025 ATTEST: JENNIFER L. HALL City Clerk OWNERS Date: Date: APPROVED AS TO FORM: SONIA CARVALHO City Attorney By: BRANDON SALVATIERRA Deputy City Attorney MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 CITY OF SANTA ANA ALVARO NUNEZ City Manager By: ROBERT JAMES MANSON Trustee of The Robert and Alma Manson Living Trust dated March 4, 2024 Lo ALMA CRISTINA MANSON Trustee of The Robert and Alma Manson Living Trust dated March 4, 2024 RECOMMENDED FOR APPROVAL: ALI PEZESHKPOUR Acting Executive Director Planning and Building Agency City Council 10 — 95 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 26 OF TRACT NO. 354, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, SHOWN ON MAP THEREOF RECORDED IN BOOK 15, PAGE(S) 26 INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. Assessor's Parcel Number: 405-284-11 City Council 10 — 96 7/15/2025 EXECUTIVE SUMMARY Worswick House 1011 North Olive Street Santa Ana, CA 92703 NAME Worswick House REF. NO. ADDRESS 1011 North Olive Street CITY Santa Ana ZIP 92703 ORANGE COUNTY YEAR BUILT 1923 LOCAL REGISTER CATEGORY: Contributive HISTORIC DISTRICT N/A NEIGHBORHOOD Washington Square CALIFORNIA REGISTER CRITERIA FOR EVALUATION C/3 CALIFORNIA REGISTER STATUS CODE 5S3 Location: ❑ Not for Publication ® Unrestricted ❑ Prehistoric ® Historic ❑ Both ARCHITECTURAL STYLE: Mission/Spanish Revival The Mission/Spanish Colonial Revival style, as its name implies, encompasses two major subcategories. The Mission Revival vocabulary, popular between 1890 and 1920, drew its inspiration from the missions of the Southwest. Identifying features include curved parapets (or espadana); red tiled roofs and coping; low-pitched roofs, often with overhanging eaves; porch roofs supported by large, square piers; arches; and wall surfaces commonly covered in smooth stucco. The Spanish Colonial Revival flourished between 1915 and 1940, reaching its apex during the 1920s and 1930s. The movement received widespread attention after the Panama -California Exposition in San Diego in 1915, where lavish interpretations of Spanish and Mexican prototypes were showcased. Easily recognizable hallmarks of the Spanish Colonial Revival are low-pitched roofs, usually with little or no overhangs and red tile roof coverings, flat roofs surrounded by tiled parapets; and stuccoed walls. The Spanish vocabulary also includes arches; asymmetry; balconies and patios; window grilles; and decorative elements of wood, wrought iron, tile, or stone. SUMMARY/CONCLUSION: The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3 EXPLANATION OF CODES: • California Register Criteria for Evaluation: (From California Office of Historic Preservation, Technical Assistance Series # 7, "How to Nominate Resources to the California Register of Historical Resources," September 4, 2001.) 3: It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. • It embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. 5S3: Appears to be individually eligible for local listing or designation through survey evaluation. City Council 10 - 97 7/15/2025 State of California —The Resources Agency DEPARTMENT OF PARKS AND RECREATION PRIMARY RECORD Other Listings Review Code Primary #. HRI # Trinomial NRHP Status Reviewer Page 1 of 5 Resource name(s) or number (assigned by recorder) Worswick House Date P1. Other Identifier: *P2. Location: ❑Not for Publication ■Unrestricted *a. County Orange County *b. USGS 7.5' Quad: Anaheim Quadrangle California -Orange County 7.5-Minute Series Date: 2022 *c. Address 1011 North Olive Street City: Santa Ana Zip: 92703 *e. Other Locational Data: Assessor's Parcel Number 405-284-11 *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries) The Worswick House is a one story, single-family, Spanish Revival style residence located on a moderately sized parcel in the Washington Square neighborhood (Figure 1). The asymmetrical residence exhibits a square -shaped plan with a parapet roof clad in clay tile coping that wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior of the house is clad in a smooth, 30130 sand stucco finish. The primary (west) facade is divided into four bays. A Palladian wood window and arched partially enclosed patio with the building's main entrance encompase the northern two bays. The Palladian window has what appears to be two casement windows with a centered fixed window and divided lights at all three window segments, located behind a low, wrought iron balconet (Figure 2). The main entrance door is composed of a single, wood paneled door. The southern third and fourth bays each contain a multilight casement wood window with a prominent wood sill (Figure 3). (See Continuation Sheet 3 of 5.) *P3b. Resource Attributes: (list attributes and codes) HP2. Single family property and HP4. Ancillary Building (garage) *P4. Resources Present: ■Building ❑Structure ❑Object ❑Site ❑District ❑Element of District ❑Other P5b. Photo: (view and date) (Figure 1) Primary (west) facade, view northeast, January 2025 *P6. Date Constructed/Age and Sources: ■historic 19231 Original Building Permit *P7. Owner and Address: The Robert and Alma Manson Living Trust dated March 4, 2024 1011 N Olive Street Santa Ana, CA 92703 *P8. Recorded by: Andrea Dumovich Heywood City of Santa Ana 20 Civic Center Plaza M-20 Santa Ana, CA 92702 *P9. Date Recorded: June 4, 2025 *P10. Survey Type: Intensive Survey Update *P11. Report Citation: (Cite survey report and other sources, or enter "none") None *Attachments: ❑None ❑Location Map ❑sketch Map ■continuation Sheet ■Building, Structure, and Ubject Record ❑Archaeological Record ❑District Record ❑Linear Feature Record ❑Milling Station Record ❑Artifact Record ❑Photograph Record ❑ Other (list) DPR 523A (1/95) ❑Rock Art Record *Required information City Council 10 — 98 7/15/2025 State of California -The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI# BUILDING, STRUCTURE, AND OBJECT RECORD Page 2 of 5 *NRHP Status Code 5S3 *Resource Name or #: Worswick House 131. Historic Name: Worswick House 132. Common Name: Same 133. Original Use: Single Family Residence 134. Present Use: Single Family Residence *135. Architectural Style: Spanish Revival *136. Construction History: (Construction date, alterations, and date of alterations): January 1923. Permit to construct a residence and garage. $4, 000. November 12, 1938. Reroof by Kelly. $35. September 28, 1939. Reroof by Holmes. $65. December 10, 1945. Alteration to residence by Fred Warren. $150. October 9, 1950. Reroof for O. Stevens by Holmes. $150. June 7, 1976. Patio cover by Curtis J. Reynolds, owner. $200. April25, 1990. Reroof residence. $1,500. April 25, 1990. Reroof garage. $500. November 19, 2024. Installation of new stucco over existing stucco. New stucco finish to be a 30130 sand finish. Entire house & 3 walls of detached garage. *137. Moved? ■No ❑Yes ❑Unknown Date: Original location: *138. Related Features: None B9a. Architect: A. H Worswick b. Builder: A. H Worswick *1310. Significance: Theme Residential Architecture Area Santa Ana Period of Significance: 1923 Property Type: Single Family Residence Applicable Criteria: C13 (Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity) The Worswick House is architecturally significant as an intact example of a Spanish Revival style house in Santa Ana. The original building permit is dated January 1923 and indicates it was built as a residence and garage, at a cost of $4,000. The original architect, builder, and owner was A. H. Worswick, who is listed on the original building permit as the owner, and noted in newspaper advertisements as the property's designer and builder. A 1923 newspaper advertisement titled, "Beautiful New Spanish Bungalow," states, "This most attractive home is stuccoed with everlasting magnesite, the most approved exterior plaster. Two large porches have cement tile floors to match roofing tile ... This is a truly artistic home, designed for comfort and convenience, built with care and convenience --and charmingly located" (The Register, May 3, 1923). Orange County Archives (OCA) reveal that the Worswick family generally owned the property until 1928, despite some short-lived lot transactions between the Worswicks and McFaddens. (See Continuation Sheet 3). B11. Additional Resource Attributes: (List attributes and codes) *1312. References: (See Continuation Sheet 4 of 5.) B13. Remarks: None *1314. Evaluator: Andrea Dumovich Heywood, City of Santa Ana. *Date of Evaluation: June 4, 2025 DPR 523B (1/95) (This space reserved for official comments.) Sketch Map Worswick House 1011 N Olive Street "a OLIVE cr.sa eon aa- �e• m y fl 1 i z�°�0000LJl,= � 135' P5• v a u cam. ti 4:1on L� so• oo. I --FLOWER - -� N City Council 10 - 99 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 3 of 5 Resource Name: (<Name_ of Structure))*Recorded by Andrea Dumovich Heywood "Date June 4, 2025 ❑x Continuation ❑ Update *P3a. Description (continued): Fenestration throughout the property primarily includes wood -frame, multi -light windows and doors, with the exception of a non -original partially glazed wood door with metal window frames at the rear (west) fagade. Window operation consists of casement, hung, and awning types. Hung style windows throughout the residence primarily have a four -over -one style muntin pattern (Figure 4). The property contains a one -car, detached garage at the site's southeast corner (Figure 5). A parapet roof clad in clay tile coping wraps around the entire building, concealing the flat, built-up roof. The roof has no extended eaves. The exterior is clad in a smooth, 30130 sand stucco finish to match the main residence. At the west (primary) fagade, the garage has a pair of wooden French doors with divided lights and colorful the trim. A single, vinyl slider window is located at the garage's north (side) fagade. Additional architectural features include an arched decorative alter below the primary front -facing gable at the primary (west) fagade, stucco -clad chimney and open patio with a partial wood trellis at the south (side) fagade, two asphalt -clad shed roofs and concrete porch steps at the rear (east) fagade, clay tile walkway between the sidewalk and the porch steps of the main building entrance, and clay tiles at the south patio (Figure 6 and Figure 7). The property is landscaped with a synthetic front lawn, low shrubs, palm trees and a fruit tree. *1310. Significance (continued): In 1924, A L Olinger moved into the subject property and is listed in city directories as the occupant through 1926. In 1927, city directories list H W Sweasy as the primary occupant and OCA note Mrs. Mason Yould also lived there that same year and through 1929. In 1928, the Worswicks sold to Ruth Marr Gay. In 1930, C E Terry is listed as another occupant in City Directories. In 1933, the tenant is noted as C I Reagan in city directories and as Donald Wolfe Massie in the OCA. From circa 1935 - 1937, E B Kruger resided at the property. In 1939, Gay sold the property to Jennie U. and Bert C. Lowen. By circa 1940, Mr. and Mrs. Ralph W DeForest, grain dealer, occupied the residence. In 1943, the Lowens sold to Thomas W. and Lucile S. Patterson, and the Patternsons sold to Joseph M. and Harry S. Burman that same year. The Burmans continued to make several land transactions amongst various Burman family members in 1943. According to OCA, in 1944 Harry Burman sold his company A-1 Cleaners and Laundry" to his wife Ann Burman and her two brothers. At the time, A-1 Cleaners had four downtown Santa Ana locations and a production plant at Stafford and Santiago. Following the sale, Harry Burman purchased from Robert Ramsey the Dixie Castle nightclub, which was located then on Highway 101 (today known as the 1-5 Freeway). In 1945, Mrs. Ann Burman is noted as the property owner in city directories. In 1945, Ann Burman and Michael Gole (partial interest owner) sold to Fred N. and Hazel R. Warren. Fred Warren, wallpaper hanger, resided at the subject property through 1947. The Warrens sold the property in 1947 to Oscar and Clara Stevens. Oscar Steven is noted as the property owner through 1968. Building occupants included Archie M. Monson, in 1959, and John J. Strizel in 1967. Stevens died in 1968 and the lot was purchased by Jean Nossum in 1972. In 1975, Nossum sold to Curtis J. and Barbara S. Reynolds, who then sold to Steven A. and Christine M. Emmons in 1978. City directories were unavailable for the years 1963-1978. By 1983, the Emmons sold to Douglas K. and Betty J. Pinnecker who then sold to Monica M. Marchman in 1988. One year later, Marchman sold to Paul A. Pereira and Deborah L. Poole. The house went into default and by 1995, the Federal Home Loan Mortgage Corp. sold to Alan Lee, who then sold the property to an investment company in 1998. In 1998, Ramiro and Olga Vernonica Tavares owned the property and from 1999-2003 it was owned by Raul Ramirez (later jointly owned with Michael Davis). In 2003, Deborah Ann Capalety purchased the property (later known as the Robert and Deborah Ann Capalety Trust), who remained the owner until 2022, when it was purchased by current owners Robert James and Alma Cristina Manson. No other information was uncovered. The Worswick House is located in Washington Square, a neighborhood located northwest of the city center bounded by West Seventeenth Street on the north, West Civic Center Drive on the south, North Flower Street on the east, and North Bristol Street on the west. Most of this area was owned by the family of Jacob Ross, who had purchased portions of the Rancho Santiago de Santa Ana in 1868 and 1869. Walnuts and other crops were grown in the area during the late nineteenth and early twentieth centuries, with a few farmhouses, most notably the Ross -McNeal House at 1020 North Baker Street, dotting the landscape. By 1905, Baker and Towner were the only streets in the neighborhood, which extended from Hickey (now Civic Center) only as far as Washington and which contained only about a dozen homes. The status quo had not changed much by 1915, when a brick yard was located at the northern terminus of Olive Street at Hickey. In 1925, the beginning of the development that would convert this largely agricultural area into a middle class neighborhood of single-family homes over the next 25 years had begun. In the late 1920s and early 1930s, the Tudor Revival and Spanish Colonial Revival homes were the standard, with American Colonial Revival saltboxes and ranch style homes favored in the years before and after World War ll. During the 1930s, many of the homes were built by local contractor Emmett Rogers, who sold lots and built homes according to standard plans, which individual property owners could customize to their tastes ("Washington Square: A Neighborhood of Pride, " Washington Square Neighborhood Association). With the return of servicemen following the war and the accompanying demand for homes in southern California, the development of Washington Square was all but completed. DPR 5231-CIt)f Council 10 — 100 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 4 of 5 Resource Name: (<Name_ of Structure))*Recorded by Andrea Dumovich Heywood "Date June 4, 2025 0 Continuation ❑ Update The Worswick House qualifies for listing in the Santa Ana Register of Historical Properties under Criterion 1 as an intact example of a Spanish Revival style home in Santa Ana. Located in Washington Square, the house cost $4, 000 to build in 1923. The recommended categorization is "Contributive" because it contributes to the overall character and history of Washington Square and is a representative example of Spanish Revival architecture in Santa Ana (Santa Ana Municipal Code, Section 30-2.2(3)). Character -defining features of the Spanish Revival style exhibited by the house include its square - shaped plan; asymmetrical fagade; parapet roof clad in clay the coping that wraps around the entire building, concealing the flat, built-up roof, roof with no extended eaves; smooth, 30130 sand stucco finish; primary (west) fagade divided into four bays; Palladian wood window with wrought iron balconet at primary fagade; arched partially enclosed patio with the building's main entrance; main entrance door is composed of a single, wood paneled door; two multilight casement wood windows with a prominent wood sill at the primary fagade; remaining fenestration including wood -frame, multi -light windows and doors with window operation consisting of casement, hung, and awning types; hung -style windows throughout the residence primarily with a four -over -one style muntin pattern; one -car, detached garage; arched decorative alter below the primary front -facing gable at the primary (west) fagade; stucco -clad chimney; Hollywood driveay, and front yard lawn and landscaping. *612. References (continued): Ancestry.com. U.S., City Directories, 1822-1995 [database on-line]. Lehi, UT, USA: Ancestry.com Operations, Inc., 2011. 1930 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2002. Ancestry.com. 1940 United States Federal Census [database on-line]. Provo, UT, USA: Ancestry.com Operations, Inc., 2012. . California, U.S., Marriage Index, 1960-1985 [database on-line]. Provo, UT, USA: Ancestry.com Operations Inc, 2007. City of Santa Ana Building Permits McAlester, Virginia Savage. A Field Guide to American Houses. New York: Alfred A. Knopf, 2013. Newspapers. com (Santa Ana Daily Register, The Register) Office of Historic Preservation. "Instructions for Recording Historical Resources. " Sacramento: March 1995. Sanborn maps. Whiffen, Marcus. American Architecture Since 1780. Cambridge: MIT Press, 1969. DPR 5231-CIty Council 10 — 101 7/15/2025 State of California —The Resources Agency Primary # DEPARTMENT OF PARKS AND RECREATION HRI # CONTINUATION SHEET Trinomial Page 5 of 5 Resource Name: (<Name—of_Structure)) *Recorded by Andrea Dumovich Heywood "Date June 4, 2025 ❑x Continuation ❑ Update Additional Figures: i p Figure 2. Palladian window located behind a low, Figure 3. The main entrance door is composed of a wrought iron balconet, facing east. single, wood paneled door. The southern third and fourth bays each contain a multilight casement wood window with a prominent wood sill, facing northeast. —- Figure 4. Hung style windows throughout the residence Figure 5. A one -car, detached garage at the site's primarily have a four -over -one style muntin pattern, southeast corner, facing east. facing northeast. - x Figure 6. Stucco -clad chimney, facing north. Figure 7. At the rear, two asphalt -clad shed roofs and concrete porch steps at the rear (east) fagade, facing west. DPR 5231-CIty Council 10 — 102 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 Exhibit C Exterior work shall be reviewed by the Historic Resources Commission and subject to the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings, as follows: 1. Every reasonable effort shall be made to provide a compatible use for a property which requires minimal alteration of the building, structure, or site and its environment, or to use a property for its originally intended purpose. 2. The distinguishing original qualities or character of a building, structure or site and its environment shall not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible. 3. All buildings, structures, and sites shall be recognized as products of their own time. Alterations that have no historical basis and which seek to create an earlier appearance shall be discouraged. 4. Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site and its environment. These changes may have acquired significance in their own right, and this significance shall be recognized and respected. 5. Distinctive stylistic features or examples of skilled craftsmanship which characterize a building, structure, or site shall be treated with sensitivity. 6. Deteriorated architectural features shall be repaired rather than replaced, whenever possible. In the event replacement is necessary, the new material should match the material being replaced in composition, design, color, texture, and other visual qualities. Repair or replacement of missing architectural features should be based on accurate duplications of features, substantiated by historic, physical, or pictorial evidence rather than on conjectural designs or the availability of different architectural elements from the other buildings or structures. 7. The surface cleaning of structures shall be undertaken with the gentlest means possible. Sandblasting and other cleaning methods that will damage the historic building materials shall not be undertaken. 8. Every reasonable effort shall be made to protect and reserve archaeological resources affected by, or adjacent to any project. 9. Contemporary design for alterations and additions to existing properties shall not be discouraged when such alterations and additions do not destroy significant historical, architectural or cultural material, and such design is compatible with City Council 10 — 103 7/15/2025 MILLS ACT AGREEMENT 1011 North Olive Street Santa Ana, CA 92703 size, scale, color, material and character of the property, neighborhood, or environment. 10. Wherever possible, new additions or alterations to structures shall be done in such a manner that if such additions or alterations need to be removed in the future, the essential form and integrity of the structure would be unimpaired. City Council 10 — 104 7/15/2025 Exhibit D: Proposed Structure Improvements ("Work Plan") 1011 North Olive Street Item Year Improvement 1 2027 Inspect all windows and window trim. Ensure all windows are in good working condition. Repair or replace windows and window trim, in -kind with matching material, as needed. 2 2028 Paint the single garage window trim with a darker color to match the window frame colors on the main residence. 3 2029 Address metal flashing at roofline: Fix the uneven metal flashing at the primary front -facing gable of the west facade and along the south facade. 4 2030 Reroof built up roof at main residence and detached garage. Metal flashing along the entire residential building shall be assessed by Planning Division staff. Potential requirement for new flashing during reroof, or complete concealment of existing flashing, per the discretion of Planning Division staff. 5 2031 Replace rear (east) door with period -appropriate door, subject to Planning Division staff review and approval. City Council 10 — 105 7/15/2025 61 •13Q2 130 1302 T303 t a.: c1130 , s 1 12 3Mir` s 1,1 0 1115Q _� 141115 L 11.1 • 1.114 "go, 3 315 111' ' 11.11 1112 111 , 1110 11Q _ Q4 tIN 11C1 v.^" lU S 1C28 I 1G23 1020 10 024 1C 3 1022 102 10 f 1016 1017 Q2Q 1f.? �' 1G�0 1015 r �l 6 # 1G1h 1 11 100 - 1011.+°" 1C1.2 SITE 162 too 1• A •1002 100 1042 1 �iG 2 � rn 929 925M 025 92C 919 92.1 i 924 923'We � 91.9 a20' 519 S 1�8 t}41 i 913 9. 915 916 915. 514 90f ■ 912 - a 932 91 �;; 510 1 901 908 90 835 ■ 90111E v �Y 827 826 825 828 82 �" + •= 819 823 g� S 1 824• 521 822 H RCA NO. 2022-09, H RC NO. 2025-03, H P PA NO. 2025-04 1011 NORTH OLIVE STREET WORSWICK HOUSE PLANNING AND BUILDING AGENCY City Council 10 — 106 7/15/2025 ORANGE COUNTY REPORTER SINCE 1921- Mailing Address: 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 Visit us @ www.LegalAdstore.com GEMA ZAPIEN CITY OF SANTA ANA/PLANNING & BUILDING AGENCY 20 CIVIC CENTER PLAZA 2ND FLR SANTA ANA, CA 92702 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description 1011 North Olive Street To the right is a copy of the notice you sent to us for publication in the ORANGE COUNTY REPORTER. Thank you for using our newspaper. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): 05/23/2025 The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. Publication $136.00 www.capublicnotices.com $20.00 Total $156.00 Daily Journal Corporation Serving your legal advertising needs throughout California. ORANGE COUNTY REPORTER, SANTA ANA (714) 543-2027 BUSINESS JOURNAL, RIVERSIDE (951) 784-0111 DAILY COMMERCE, LOS ANGELES (213) 229-5300 LOS ANGELES DAILY JOURNAL, LOS ANGELES (213) 229-5300 SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO (800) 640-4829 SAN JOSE POST -RECORD, SAN JOSE (408) 2874866 THE DAILY RECORDER, SACRAMENTO (916) 444-2355 THE DAILY TRANSCRIPT, SAN DIEGO (619) 232-3486 THE INTER -CITY EXPRESS, OAKLAND (510) 2724747 OR# 3928376 NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION The City of Santa Ana encourages the public to participate in the decision - making process. We encourage you to contact us prior to the Public Hearing if you have any questions. Historic Resources Commission Action: The Historic Resources Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Their decision is final unless appealed to the City Council within 10 days of the decision by any interested party or group. Project Location: 1011 North Olive Street located within the Single Family Residence (R1) zoning district. Project Applicant: Robert James Manson and Alma Cristina Manson, with The Robert and Alma Manson Living Trust dated March 4, 2024 (Property Owner & Applicant) Project Description: Request for approval of Historic Resources Commission Application (HRCA) No. 2022-09, Historic Register Categorization (HRC) No. 2025-03, and Historic Property Preservation Application (HPPA) No. 2025-04 to allow the placement and categorization in the Santa Ana Register of Historical Properties as "Contributive" for the above mentioned property and to execute a Historic Property Preservation Agreement with the City of Santa Ana. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER- 2025-30 will be filed for this project. Meeting Details: This matter will be heard on Wednesday, June 4, at 4:30 p.m. in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate virtually in this meeting, please visit www.santa-ana.org/pb/meeting- participation. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments5-sa nta-ana.org (reference the topic in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at: https://santa- ana. pri megov.com/public/portal. Who To Contact For Questions: Should you have any questions, please contact James Williams with the Planning and Building Agency at JWilliams@santa- ana.org or 714-647-5899 or Pedro Gomez at PGomez@santa-ana.org or 714-667-2790. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Historic Resources Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas an espafiol, favor de Hamer a Nuvia Ocampo at (714) 667- 2732. NaucanlienI@cbangtiangVi4t, An di 4 n tho @ i cho Kristie He (714) 667-2206. 5/23/25 OR-3928376# CITY OF SANTA ANA -L' Planning and Building Agency 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.org/pba NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA HISTORIC RESOURCES COMMISSION Historic Resources Commission Action: The Historic Resources Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Their decision is final unless appealed to the City Council within 10 days of the decision by any interested party or group. Project Location: 1011 North Olive Street located within the Single Family Residence (R1) zoning district. Project Applicant: Robert James Manson and Alma Cristina Manson, with The Robert and Alma Manson Living Trust dated March 4, 2024 (Property Owner & Applicant) Project Description: Request for approval of Historic Resources Commission Application (HRCA) No. 2022-09, Historic Register Categorization (HRC) No. 2025-03, and Historic Property Preservation Application (HPPA) No. 2025-04 to allow the placement and categorization in the Santa Ana Register of Historical Properties as "Contributive" for the above mentioned property and to execute a Historic Property Preservation Agreement with the City of Santa Ana. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review under Section 15331, Class 31, as this action is designed to preserve a historic resource. Categorical Exemption No. ER-2025-30 will be filed for this project. Meeting Details: This matter will be heard on Wednesday, June 4, 2025, at 4:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate virtually in this meeting, please visit www.santa-ana.org/pb/meeting-participation. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments(D_santa-ana.org (reference the topic in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at: https://santa-ana.primegov.com/public/portal. Who To Contact For Questions: Should you have any questions, please contact James Williams with the Planning and Building Agency at JWilliams(ab-santa-ana.org or 714-647-5899 or Pedro Gomez at PGomez(a_santa-ana.org or 714-667-2790. City Council 10 — 108 7/15/2025 Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Historic Resources Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas en espanol, favor de Ilamar a Nuvia Ocampo al (714) 667-2732. Neu can lien lac bang tieng Viet, An dien thoai cho Kristie Ha (714) 667-2206. 15 t: 500' RADIUS NOTIFICATION MAP Mag EG �.r Ir ?In Ilk 'j 0 -` 92- 924 I ncil 500-Foot Bi r1f %P 7/15/2025 NOTICE OF PUBLIC H BEFORE THE SANT RING HISTORIC RESOURCES NA C City of Santa Ana MISSION encourages the p p courage you to contact us prior to tl e Public Hearing I e decision -making process. We iistoric Resources Commission have any questions. Action: The Historic Iblic Hearing to receive public testimony, and will take rces Commission Their decision is final unless appealed to the City Council noon the item cubed below. interested party or group. 10 days of the decision by any Proiect Location: 1011 North Olive Street located wit a Single Family Residence (RI zoning district. Protect Applicant: Robert James Manson and Alma C a Manson, with The Robert and Alma Manson Living Trust dated March 4, 2024 (Property Owner & Applicant) )roiect Description: Request for approval of Historic Resources Commission Application HRCA) No. 2022-09, Historic Register Categorization (HRC) No.2025-03, and Historic Property Preservation Application (HPPA) No. 2025-04 to allow the placement and categorization in the Santa Ana Register of Historical Properties as "Contributive" for the above mentioned property and to execute a Historic Property Preservation Agreement with the City of Santa Ana. uality ct Environmental Impact: Pursuant to thfromfurthornia erreview under nvironmental Section 1539 ,Class 31,aE is exemptlion No. ER-2025.3( CEQA Guidelines, the project this action is designed to preserve a historic resource. Categorical Exemption June 4, at 4:30 p.m. in the City will be filed for this project. ublic may Santa Ana, C 1. Members of the p Meeti� D�talls; This matter will be he on Wednesday, t up to date information on how 22 Civic Center Plaza, a,or I blmeetin - artici ation. Council Chambers, In person or join via zoom. For attend this meeting ease visit www. ou may send writer to participate virtually in this meeting, P adicipate in the meeting, Y is in the subject line comments.. If you are unable top or (reference the top Written Com gAeComments Santa-ana. Civic Center Of City of Santa Ana, 20 m on the day comments by a mall to P Secretary. comments is 3:30 p the Commission but Ocampo, Recording it written or mail to Nuvia 1 Deadii�e to sub it not be distributed to Santa Ana, CA g270 after the deadline may including Comments received the proposed actionlsl^or to the meeting• of the record. regarding 72 hours p on the City website Will be made part additional details ore Information: be found es Get M tem, may ublicl oria contact Jam Where To discretionary rime ov.coml leaseor 714.647 5899 the full text of the ana. questions• p at: htt s://sanla have any nta ana.or public hearing s: Should You illiams lhose questions ency at JWW�` Who To Con`hotPl90 9rining a � Building A00 or 714 667o 7maY be limited to raising "Iwnl of to __ above matter, Y n this at PGomeZ City C°un°il of the city Williams with hearing described Pedro e to or Gom a the decisioed n oat the public s Commission or Z73� N� If youuo hsomerl one else the Hials stor`ingesource- aawpc al 4) iis, zsoe. real ,,,oar a viNristie No Irt41 s ce deliv ublic Nu issues Onden rj0r to, the P el, favor de Ila�n'ho31 cho torte Ana at or p tas en asps" viet, xin die Banta a preguo b5ng ti@ng SINu c_an lien lac -110 /15/2025 jj 77 :;!�^ 41 Planning and Building Agency www.santa-ana.org/pb Item # XX City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: The Village Santa Ana Specific Plan — ALUC Overrule Initiation (1561 W. Sunflower Avenue) AGENDA TITLE Authorize the Planning Division to Prepare and Provide Notice to the County of Orange Airport Land Use Commission (ALUC) in Accordance with Public Utilities Code Section 21676(b) for The Village Santa Ana Specific Plan Located at 1561 W. Sunflower Avenue Currently Undergoing Public Review and Entitlements Processing with the City RECOMMENDED ACTION Adopt a resolution authorizing the Planning Division to initiate the preparation and drafting of findings and determination overruling the County of Orange Airport Land Use Commission's Determination of Inconsistency associated with the proposed The Village Santa Ana Specific Plan located at 1561 W. Sunflower Avenue and to provide notice in accordance with Section 21676(b) of the Public Utilities Code to the County of Orange Airport Land Use Commission and the State of California Department of Transportation's Division of Aeronautics. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE PLANNING DIVISION TO INITIATE THE PREPARATION AND DRAFTING OF FINDINGS IN SUPPORT OF OVERRULLING THE ORANGE COUNTY AIRPORT LAND USE COMMISSION'S DETERMINATION OF INCONSISTENCY ASSOCIATED WITH THE PROPOSED THE VILLAGE SANTA ANA SPECIFIC PLAN PROJECT LOCATED AT 1561 WEST SUNFLOWER AVENUE AND TO PROVIDE NOTICE OF INTENT TO OVERRULE THE AIRPORT LAND USE COMMISSION'S DETERMINATION IN ACCORDANCE WITH SECTION 21676(B) OF THE PUBLIC UTILITIES CODE TO THE COUNTY OF ORANGE AIRPORT LAND USE COMMISSION AND THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION'S DIVISION OF AERONAUTICS AT LEAST 45 DAYS PRIOR TO THE FUTURE PUBLIC HEARING DATE FOR THE PROPOSED PROJECT AND PROPOSED OVERRULING ACTION BY THE CITY COUNCIL [includes determination that this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15061(b)(3) of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly.] City Council 11 — 1 7/15/2025 The Village Santa Ana Specific Plan — ALUC Overrule Initiation (1561 W. Sunflower Avenue) July 15, 2025 Page 2 GOVERNMENT CODE 484308 APPLIES: No DISCUSSION Pursuant to Public Utility Code (PUC) Section 21676(b), prior to the amendment of a general plan or specific plan, or the adoption or approval of a zoning ordinance or building regulation within the planning boundary established by the Orange County Airport Land Use Commission (ALUC) pursuant to Sections 21676 and 21676.5 of the PUC for the John Wayne Airport (JWA), the City shall first refer the proposed action to ALUC. If ALUC determines that the proposed action is inconsistent with the JWA Airport Environs Land Use Plan (AELUP), the City may, after a public hearing, propose to overrule the Commission's determination by a two-thirds vote of the City Council if it makes specific consistency findings in accordance with PUC Section 21670. Adhering to this procedure, it is standard practice for the City to refer projects governed by PUC Section 21676(b) under the AELUP to the ALUC for their review and determination during the project review phase. The City referred the proposed specific plan to ALUC for their review and determination because the project is located within the AELUP. On June 19, 2025, ALUC held a public hearing on the proposed project and found The Village Santa Ana Specific Plan to be inconsistent with the AELUP for JWA pursuant to AELUP Sections 2.1.3 and 3.2.1 and Public Utilities Code (PUC) Section 21674. These sections empower the ALUC "to assist local agencies in ensuring compatible land uses in the vicinity of existing airports to the extent that the land in the vicinity of those airports is not already devoted to incompatible uses" and "to coordinate planning at the state, regional and local levels so as to provide for the orderly development of air transportation, while at the same time protecting the public health, safety and welfare." As a final review authority on legislative acts for land use matters within the City, the City Council may choose to overrule the ALUC's decision by following the procedure established in PUC sections 21676 and 21676.5. Before the decision to overrule the ALUC's Determination of Inconsistency may take place, the City Council must adopt a resolution that authorizes initiation of the two-step overrule process. The first step in the overrule process is to provide notice to ALUC and the California Department of Transportation (Caltrans) Division of Aeronautics of the City's intention to overrule the ALUC's determination by providing the two agencies with a Notice of Intent at least 45 days in advance of the overruling action by the City Council. In turn, ALUC may provide comments to the City Council within 30 days of receiving the Notice of Intent. If ALUC's comments are not available within this time limit, the City Council may act without them. The comments by ALUC are advisory to the City Council. However, should comments be received, the City Council must include comments from ALUC in the public record of any final decision to overrule ALUC. The second step in the overrule process is to conduct a City Council 11 — 2 7/15/2025 The Village Santa Ana Specific Plan — ALUC Overrule Initiation (1561 W. Sunflower Avenue) July 15, 2025 Page 3 public hearing through which the City Council needs to make specific findings that the proposed overruling is consistent with the purposes stated in PUC Section 21670. The City Council's adoption of this resolution is procedural and does not constitute the project's approval, nor does it predispose the City's future action on the project or the decision to overrule or not. Following the date of adoption of the resolution, there is no maximum time limit by which the City Council must hold the public hearing on the proposed project and overrule the ALUC's determination. As a result, the recommendation to approve the resolution authorizing the Planning Division to initiate the preparation and drafting of findings and determination overruling the County of Orange Airport Land Use Commission's Determination of Inconsistency does not set forth any required timeframes for future hearing dates and actions. ENVIRONMENTAL IMPACT The requested action is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, as the proposed action will not have a significant effect on the environment. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBITS 1. Resolution Authorizing Staff to Provide Notice of Intent to Overrule 2. Draft Notice of Intent with Findings to Overrule ALUC's Determination Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency Approved By: Alvaro Nunez, City Manager City Council 11 — 3 7/15/2025 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE PLANNING DIVISION TO INITIATE THE PREPARATION AND DRAFTING OF FINDINGS IN SUPPORT OF OVERRULING THE ORANGE COUNTY AIRPORT LAND USE COMMISSION'SDETERMINATION OF INCONSISTENCY ASSOCIATED WITH THE PROPOSED THE VILLAGE SANTA ANA SPECIFIC PLAN PROJECT LOCATED AT 1561 WEST SUNFLOWER AVENUE AND TO PROVIDE NOTICE OF INTENT TO OVERRULE THE AIRPORT LAND USE COMMISSION'S DETERMINATION IN ACCORDANCE WITH SECTION 21676(B) OF THE PUBLIC UTILITIES CODE TO THE COUNTY OF ORANGE AIRPORT LAND USE COMMISSION AND THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION'S DIVISION OF AERONAUTICS AT LEAST 45 DAYS PRIOR TO THE FUTURE PUBLIC HEARING DATE FOR THE PROPOSED PROJECT AND PROPOSED OVERRULING ACTION BY THE CITY COUNCIL 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. On June 19, 2025, the County of Orange Airport Land Use Commission (ALUC) held a public hearing on the above -referenced project and found the proposed The Village Santa Ana Specific Plan ("Project") located at 1561 West Sunflower Avenue to be inconsistent with the 2008 Airport Environs Land Use Plan ("AELUP") for John Wayne Airport ("JWA") pursuant to AELUP Sections 2.1.3 and 3.2.1 and Public Utilities Code ("PUC") Section 21674. B. PUC Section 21674 empowers the ALUC "to assist local agencies in ensuring compatible land uses in the vicinity of existing airports to the extent that the land in the vicinity of those airports is not already devoted to incompatible uses," and "to coordinate planning at the state, regional and local levels so as to provide for the orderly development of air transportation, while at the same time protecting the public health, safety and welfare." C. As a final review authority on legislative acts for land use matters within the City, the City Council may choose to overrule the ALUC's decision by following the Resolution No. 2025-XXX City Council 11 — 4 7/1 F 2,b of 4 procedure established in PUC sections 21676 and 21676.5. Before the decision to overrule the ALUC's Determination of Inconsistency may take place, the City Council must adopt a resolution that authorizes initiation of the two-step overrule process. D. At least 45 days prior to any decision to overrule ALUC, the governing body shall provide ALUC and the State Department of Transportation (Caltrans) Division of Aeronautics a copy of the proposed decision to overrule along with supportive findings. ALUC may provide comments to the City Council within 30 days of receiving the proposed decision and findings. If ALUC's comments are not available within this time limit, the City Council may act without them. Should comments be received, the City Council must include the comments from ALUC in the public record of any final decision to overrule ALUC. This decision shall be determined at a public hearing to make the specific findings that the proposed overruling is consistent with the purposes stated in PUC Section 21670. E. Staff is hereby directed to conduct further studies as necessary in order to draft and provide notice of the findings in support of the overrule. The 45-day period will begin after staff has forwarded the intent to overrule along with the supportive findings. F. The Council's adoption of this Resolution is procedural and does not constitute the proposed Project's approval nor does it predispose the City's future action on the Project or any decision to overrule. G. Should the Council adopt this Resolution directing staff to conduct further studies as necessary in order to make the findings in support of the overrule, a public hearing will be required for Council consideration of the final supplemental environmental impact report, and any associated entitlement applications, for the Project. Section 2. The City Council finds that the requested action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15061(b)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly. Specifically, the resolution does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment because it is limited to the City's proposal to overrule the ALUC's determination and does not commit the City to approve the Project. Concurrent with the review of the proposed Specific Plan, supplemental Environmental Impact Report No. 2025-01 (State Clearinghouse No. 2020029087) has been prepared for the proposed Specific Plan as a whole and will be presented to the City Council for consideration, along with the requested zoning ordinance amendment and amendment application, at a future hearing date. Resolution No. 2025-XXX City Council 11 — 5 71113Hof 4 Section 3. The City Council directs staff to forward a letter to the ALUC and Caltrans Division of Aeronautics, indicating the City of Santa Ana's intent to overrule ALUC's determination of inconsistency for the Project. Section 4. The City Council directs staff to conduct further studies, as necessary, in order to prepare and forward findings to the ALUC and Caltrans Division of Aeronautics in support of the City's intent to overrule the ALUC's determination that the proposed Project is inconsistent with the JWA AELUP. Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney ltAq- y Melissa M. Crosthwaite Senior Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution No. 2025-XXX City Council 11 — 6 71113AZKSof 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2025-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 12025. Date: City Clerk City of Santa Ana Resolution No. 2025-XXX City Council 11 — 7 7/15/21e 4 of 4 MAYOR Valerie Amezcua MAYOR PRO TEM Benjamin Vazquez COUNCILMEMBERS Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan July XX, 2025 CITY OF SANTA ANA PLANNING AND BUILDING AGENCY 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.orq Julie Fitch, Executive Officer Orange County Airport Land Use Commission 3160 Airway Avenue Costa Mesa, CA 92626 CITY MANAGER Alvaro Nunez CITY ATTORNEY Sonia R. Carvalho CITY CLERK Jennifer L. Hall Also sent via email to: Ifitchocair.com RE: NOTICE OF INTENT TO OVERRULE THE DETERMINATION OF INCONSISTENCY FOR THE VILLAGE SANTA ANA SPECIFIC PLAN PROPOSED AT 1561 WEST SUNFLOWER AVENUE The purpose of this letter is to inform you of the City of Santa Ana's intention to recommend that the Santa Ana City Council adopt the attached findings to overrule the June 19, 2025, Airport Land Use Commission's ("ALUC") determination of inconsistency for the Village Santa Ana Specific Plan ("Project") with the Airport Environs Land Use Plan ("AELUP") for John Wayne Airport ("JWA"). On July 15, 2025, the Santa Ana City Council met and (1) approved issuing a Notice of Intent to Overrule and (2) determined to give notice to the ALUC of its decision to overrule as required by California Public Utilities Code ("PUC") Section 21676(b). Pursuant to PUC Section 21676, the City hereby respectfully gives proper notice of its intention to overrule and submits the attached draft findings (attached hereto as Exhibit A) for review. PUC Section 21676(b) requires that a public agency making a decision to overrule shall give notice to the California Department of Transportation (Caltrans), Aeronautics Division, and ALUC at least 45 days prior to the final decision to overrule. After notification, Caltrans and ALUC have 30 days from the receipt of notice to provide advisory comments to the City. The City looks forward to receiving comments within the timeframes mandated by the PUC. At this time, the proposed Project has not been scheduled for public hearing before the Santa Ana City Council. Valerie Amezcua David Penaloza Mayor /p��``P /� and 2 Ward 1 Ward 3 Q Ward 4 / (� Ward 6 vamezcua(cD anta-ana.org Ci azhef a.org tphan(a7 Santa-ana.orq lessielopez(gDisanta-anall — upbacerra(G7santa-ana.org lryanhernande s 52Q,2S dpenaloza(u7santa-ana.orq Notice of Intent to Overrule & Draft Findings — Sunflower Avenue) July XX, 2025 Page 2 of 2 The Village Santa Ana Specific Plan (1561 W. Should you have any questions regarding this notice and/or on the proposed Project, please feel free to contact me by phone at (714) 647-5481 or by email at JGuevaraasanta-ana.org. Thank you for your prompt attention on this matter. Sincerely, Jerry C. Guevara, AICP Senior Planner Exhibit: A: Draft Findings to Overrule ALUC's Determination City Council 11 — 9 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 1 of 10 A. The City of Santa Ana is required to provide findings supporting the overrule of the Orange County Airport Land Use Commission ("ALUC") determination as required in the California Public Utilities Code ("PUC") Section 21676(b). Based on the following Findings of Fact and the associated substantial evidence in the public record, the proposed action by the City on The Village Santa Ana Specific Plan Project ("Project") at the northeast corner of West Sunflower Avenue and Bear Street, transected by South Plaza Drive (1561 W. Sunflower Avenue ("Project Street")) and related zoning change (amendment application) are consistent with the purposes of the State Aeronautics Act as stated in PUC Section 21670. B. The proposed Project provides for the orderly development of John Wayne Airport ("JWA"), and its surrounding area and promotes the overall goals and objectives of the State noise standards by avoiding new noise and safety problems, and protecting the public health, safety and welfare through the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards to the extent that this area is not already devoted to incompatible uses. This Project would not add any new residential or commercial noise impacts to the JWA 65 dBA Community Noise Equivalent Level ("CNEL") noise area. C. It is in the public interest to provide for the orderly development of each public use airport in the State of California ("State") and the area surrounding these airports so as to promote the overall goals and objectives of the State airport noise standards adopted pursuant to PUC Section 21669 and to prevent the creation of new noise and safety problems. D. To provide for the orderly development of JWA and the area surrounding the airport, the ALUC adopted the 2008 Airport Environs Land Use Plan ("AELUP") on April 17, 2008. The AELUP guides development proposals to provide for orderly development of the airport and the area surrounding the airport through implementation of the standards in Section 2.1 (aircraft noise, safety compatibility zones, building height restrictions). E. The ALUC is required to use the State Airport Land Use Planning Handbook ("Handbook") that was updated by the California Department of Transportation, Division of Aeronautics ("Caltrans") in 2011. The AELUP for JWA has not been updated to incorporate the Handbook nor has it been updated with information about the operation and environmental effects of JWA as reflected in its most recent Final Environmental Impact Report ("EIR") certified by the Orange County Board of Supervisors on June 25, 2019 for the General Aviation Improvement Program ("GAIP"). City Council 11 — 10 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 2 of 10 F. As the Project proposes a zone change and adoption of a Specific Plan, and pursuant to PUC Section 21676, the City of Santa Ana referred the proposed Project to the ALUC for review. G. The ALUC has adopted FAR Part 77 as the criteria for determining height restrictions in Orange County. FAR Part 77 requires notification to the Federal Aviation Administration ("FAA") for any project that would be more than 200 feet in height above ground level or within the imaginary surface of a 100:1 slope extending outward for 20,000 feet from the nearest runway. The Project Site is located within the 206-foot-high imaginary surface area for JWA, thus requiring FAA notification. The proposed mixed -use buildings that are a part of the Project would be a maximum of 25 stories high, with the tallest point on the buildings being 315 feet above the existing ground level. H. On June 19, 2025, the City of Santa Ana presented the Project to the ALUC for a determination of consistency with the JWA AELUP. The ALUC staff report for that hearing found that the proposed Project is consistent with AELUP issues of aircraft noise, flight tracks and safety, and heliports. The staff report noted that with regard to AELUP issues of height restrictions, the Project is inconsistent per Section 2.1.3 of the AELUP, which states that "a Determination of No Hazard to Air Navigation does not automatically equate to a Consistency determination by the ALUC and that the Commission may find a project Inconsistent based on an Obstruction determination", and Section 3.2.1 of the AELUP, which states that "within the boundaries of the AELUP, any land use may be found to be inconsistent with the AELUP which... permits structures of excessive height in areas which would affect adversely the continued operation of the airport; or permit activities or facilities that would affect adversely aeronautical operations." The proposed Project would allow buildings up to 25 stories and/or 315 feet, which would penetrate the FAR Part 77 Horizontal Obstruction Imaginary Surface for JWA. On June 19, 2025, the ALUC held a public hearing and, by unanimous vote, adopted a resolution finding the Project inconsistent with the AELUP for the stated reasons set forth in the staff report. J. The City of Santa Ana has the general police power to control land use within its territorial jurisdiction (Cal. Const., art. XI 11, § 7). This constitutional authority is acknowledged in State law (PUC §§ 21676, 21676.5) and the ALUC process allowing for overrule of an ALUC finding of inconsistency. K. Pursuant to PUC Section 21676(b), the City may overrule the commission by a two-thirds vote of the City Council if it makes specific findings that the Project is consistent with the purposes of the State Aeronautics Act. City Council 11 —11 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 3 of 10 L. The City finds that the Project is consistent with the AELUP and with the purposes of the State Aeronautics Act based on the following Findings of Fact and substantial evidence: a. The ALUC lacks evidence of the Project's inconsistency with the AELUP. The proposed zone change under the Project allows establishment of a specific plan, which contains permissive uses and development standards, but does not specify exact locations and heights of each implementing development that falls within the scope of the specific plan. Moreover, during the June 19, 2025 ALUC hearing on the Project, ALUC staff incorrectly described the City of Santa Ana's General Plan Update as belonging to the City of Costa Mesa, and the project site was incorrectly described as being at the northwest corner of Plaza Drive and Sunflower Avenue. During the ALUC hearing, ALUC Commissioners and ALUC staff referred to dated information about the effect of existing and planned tall buildings in the Airport vicinity on instrument procedures and aircraft on instrument approaches and departures to and from the airport. In 2009, the FAA implemented state-of-the-art, precision Global Positioning Satellite (GPS) procedures using Area Navigation (RNAV) technology to improve access to the airport in poor weather conditions. These procedures consider existing tall buildings in the vicinity of the airport along with high terrain north of the airport for the entire fleet of aircraft that use the airport. Further, the FAA's study of the Project included a review of the proposed 25-story buildings, in context with both existing and proposed tall buildings, existing and proposed approach and departure procedures, and the entire fleet of aircraft making use of the airport. The FAA, based on its aeronautical study and public circularization to airlines serving the airport, and all aeronautical users including airport operations staff, issued Determinations of No Hazard to Air Navigation on September 6, 2024. Despite the FAA's study, its circularization and its determination of no hazard, the ALUC found the project inconsistent based on an "obstruction" determination. No evidence of a substantial aeronautical impact of an obstruction was provided by the ALUC. b. During the June 19, 2025 ALUC hearing on the Project, City staff and the Project applicant provided supplemental information about the nature of a specific plan, how implementing projects will be reviewed, information on existing high-rises in the vicinity, FAA notification requirements for buildings exceeding 200 feet in height, and that the Final Supplemental Environmental Impact Report ("SEIR") for the Project would contain a mitigation measure requiring "Notice of Airport in Vicinity," to be included in all lease/rental agreements and post outdoor signage informing the public of the presence of operating aircraft, which demonstrates further compliance with the AELUP and to minimize potential future noise complaints. Despite this information, the ALUC voted to find the Project inconsistent per section 2.1.3 and 3.2.1 of the AELUP. City Council 11 — 12 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 4 of 10 C. Noise. The residential and commercial land uses under the proposed Project are consistent with the aircraft noise standards of the AELUP. The Project is located outside of the JWA 60 to 65 dBA CNEL aircraft noise contours. Aircraft noise analysis was completed in the Project's SEIR (State Clearinghouse No. 2020029087) and presented at the ALUC hearing. The JWA GAIP EIR also contains noise analysis demonstrating that the Project is outside of the 60 dBA CNEL noise contour. This noise analysis is based on one year's worth of aircraft operations in all runway operating configurations for both existing aircraft fleet mixes and future fleet forecasts. This analysis includes the time of day of all operations and includes noise penalties for evening (7 p.m. to 10 p.m.) and night (10 p.m. to 7 a.m.) aircraft operations of five and ten decibels per operation. Residential land uses are normally consistent in areas impacted by aircraft noise up to 60 dBA CNEL and commercial land uses up to 65 dBA CNEL as shown in the AELUP Table 1. These are the same noise standards used by the FAA and the State of California to identify compatible land uses near airports. ii. The Project is located outside of the JWA single -event aircraft noise contours. The detailed aircraft noise analysis completed as part of the JWA GAIP EIR included analysis of single event aircraft noise. This analysis included single event noise contours for the noisiest aircraft making regular use of JWA. iii. The Project includes a required measure notifying future residents. The conditions of approval include notification measures, which includes a measure requiring "Notice of Airport in Vicinity," to be included in all lease/rental agreements and to post outdoor signage informing the public of the presence of operating aircraft, which demonstrates further compliance with the AELUP and efforts to minimize potential future noise complaints. iv. The General Plan Update ("GPU") in 2022 addresses noise, safety, hazards, and other related impacts from development in the vicinity of the Airport. Projects approved under the GPU would be required to comply with FAA airspace protection regulations using the AELUP consistency determination process. V. The AELUP establishes aircraft noise exposure exterior noise level compatibility thresholds for new development by land use category. According to the exterior noise thresholds outlined in the AELUP, multi -family residential development is considered normally consistent with exterior noise levels of less than 60 dBA CNEL, conditionally consistent with exterior noise levels between 60 and 65 dBA CNEL and normally inconsistent with exterior noise level City Council 11 — 13 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 5 of 10 above 65 Dba CNEL. For commercial retail land use, exterior noise levels are considered normally consistent with exterior noise levels of less than 65 dBA CNEL and conditionally consistent with exterior noise level above 65 dBA CNEL. The Project site is located outside of both the airport's planned and actual 60 CNEL contours of JWA. Therefore, according to the AELUP, the Project's residential, open space, and commercial retail land uses are normally consistent with JWA aircraft noise exposure exterior noise level compatibility standards. Also, the airport related noise at the Project site does not exceed the City's municipal code permissible noise levels. Additionally, the County's General Aviation Noise Ordinance prohibits commercial aircraft departures between the hours of 10.00 p.m. and 7.00 a.m. and arrivals between the hours of 11.00 p.m. and 7.00 a.m. These restrictions substantially limit the aircraft noise during the noise sensitive nighttime hours for residential use. d. Safety. The residential and commercial land uses under the proposed project are consistent with the safety standards of the AELUP. The Project is not in any of the AELUP safety zones. The Project is located outside of the runway protection zone ("RPZ"). The Project is located more than 0.40 miles from the outer edge of AELUP Zone 6, Traffic Pattern Zone as depicted in Appendix D. Further, AELUP Appendix D states the "Basic Compatibility Qualities" of Zone 6 as "Allow residential uses" and "Allow most nonresidential uses." Project is not in the JWA RPZ. The Project is located approximately 1.5 miles from the outer edge of the nearest JWA RPZ. ii. The FAA's Determinations of No Hazard to Air Navigation for the Mixed -Use development structures are the only source of authoritative, aviation safety findings regarding the project. The FAA has conducted an aeronautical study (49 U.S.C. §44718 and 14 CFR Part 77) of the individual structures within the Specific Plan and has issued its Determinations of No Hazard on September 6, 2024. iii. In this case it is important to first establish what entity has authority over the use of airspace over the project site. "The United States Government has exclusive sovereignty of airspace of the United States" (49 U.S.C. § 40103(a)(1)). iv. In order to use this airspace, the FAA Administrator is responsible for: (1) Plans and policy for the safe use of the navigable airspace (49 U.S.C. § 40103(b)(1); and (2) "[R]egulations on the flight of aircraft (including regulations on safe altitudes) for navigating, protecting and identifying aircraft; protecting individuals and property on the ground; using the navigable airspace efficiently; and preventing collision between aircraft, between aircraft and land or City Council 11 — 14 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 6 of 10 water vehicle, and between aircraft and airborne objects" (49 U.S.C. § 40103(b)(2)). V. The FAA's aeronautical studies for project structures are the definitive standard for assessing compliance with federal aviation safety laws and regulations (49 U.S.C. § 77.1(c)). This federal authority is recognized in State law (Cal. PUC §21240). vi. The City of Santa Ana has the local police powers to control land use on the site (Cal. Const., art. XI 11, § 7). This constitutional authority is acknowledged in State law (PUC §21670 and §21676) and the ALUC process (AELUP §4.11) allowing for overrule of an ALUC finding of inconsistency. vii. The other entities that have processed or commented on this project have aviation safety duties and responsibilities related to this matter. Each of these entities relies on or ultimately defers to the FAA's authoritative aviation safety role in airspace determinations. viii. The AELUP for JWA, Section 2.1.3 Building Height Restrictions states, "In adopting criteria for building height restrictions in the vicinities of airports, the Commission considered only one standard and that was Federal Aviation Regulations Part 77 ([14 CFR] Part 77) entitled, Objects Affecting Navigable Airspace. "These regulations are the only definitive standard available [emphasis added] and the standard most generally used." ix. Section 2.1.3 also recognizes FAA aeronautical studies beyond 14 CFR Part 77 surfaces as the standard for review, "In addition to the `imaginary surfaces,' the Commission will use all of the FAR Part 77.23 standards along with the results of FAA aeronautical studies, [emphasis added] or other studies deemed necessary by the Commission, in order to determine if a structure is an `obstruction."' This section goes on to state: The Commission considers and recognizes the FAA as the single "Authority" for analyzing project impact on airport or aeronautical operations, or navigational -aid siting, including interference with navigational- aids or published flight paths and procedures. The Commission also considers the FAA as the "Authority" for reporting the results of such studies and project analyses. The Commission will not consider the findings of reports or studies conducted by parties other than the FAA unless the FAA certifies and adopts such findings as true and correct. X. Section 2.1.3 adds reference to FAA Advisory Circular 150/5190- 4A, A Model Zoning Ordinance to Limit Height of Objects Around Airports for Commission Review. This FAA Advisory Circular provides specific guidance for establishing zoning regulations along City Council 11 — 15 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 7 of 10 with specific guidance on a "variance" process for potential obstructions. At Section 3.b., "The Federal Aviation Administration (FAA) conducts aeronautical studies on obstructions which examine their effect on such factors as: aircraft operational capabilities; electronic and procedural requirements; and, airport hazard standards. If an aeronautical study shows that an obstruction, when evaluated against these factors, has no substantial adverse effect upon the safe and efficient use of navigable airspace, then the obstruction is considered not to be a hazard to air navigation [emphasis added]." xi. Caltrans Division of Aeronautics — Caltrans publishes the California Airport Land Use Planning Handbook ("Handbook") in accordance with State Law with the purpose to, "provide information to ALUCs, their staffs, airport proprietors, cities, counties, consultants, and the public; to identify the requirements and procedures for preparing effective compatibility planning documents; and define exemptions where applicable (Caltrans, 2011)." The Handbook provides specific guidance for assessing potential airspace obstructions in Section 4.5 Airspace Protection. xii. JWA — The FAA requires airport sponsors like Orange County to accept specific grant assurances when they accept federal funding. Hazard Removal and Mitigation and Compatible Land Use are two of these assurances (49 U.S.C. § 47107(a)(9) and (10)). For hazard removal, the Airport relies on the FAA's aeronautical study to meet its requirement. For compatible land use, the Airport relies on coordination with the surrounding cities and the ALUC. The following are the specific assurances: xiii. Hazard Removal and Mitigation. It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards. The proposed Project would not result in hazards related to excessive glare, light, steam, smoke, dust, or electronic interference. Exterior lighting fixtures and security lighting would be installed in accordance with the City's Municipal Code Division 3, Building Security Regulations, which includes specifications for shielding and intensity of security lighting. In addition, the proposed Project would not use highly reflective surfaces, and does not include large areas of glass on the buildings. Therefore, the City Council 11 — 16 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 8 of 10 proposed Project would not generate substantial sources of glare. Operation of the proposed residential and commercial uses would not generate substantial quantities of steam, smoke, or dust emissions. Dust emissions are regulated by Southern California Air Quality Management District ("SCAQMD") requirements and construction related air quality emissions that could include steam, smoke, and dust emissions would be less than significant with implementation of the standard SCAQMD Rules. The proposed Project would include the use of typical electronics, such as computers, televisions, and other electronics with wireless capability. These types of electronics are currently being used by the existing land uses on the site, and other uses in the vicinity of the site. The new residential and commercial uses on the site would use similar technology that does not cause electronic interference that could affect aircraft. Thus, impacts related to electronic interference with operations of JWA would not occur. xiv. Compatible Land Use. It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, if the Project is for noise compatibility program implementation, it will not cause or permit any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended. e. Height. The residential and commercial land uses under the proposed Project are consistent with the height standards of the AELUP. The allowable height of structures surrounding an airport is described in FAR Part 77 as the allowable height at which safe movement of aircraft occurs. The regulation requires that notice be given to the FAA if there is a proposal to construct a structure that would exceed a 100:1 slope of an imaginary surface extending outward for 20,000 feet from the nearest runway at JWA. Beyond the 100:1 imaginary surface, FAR Part 77 requires notification to FAA for any project that will be more than 200 feet in height above the ground level. i. The proposed buildings associated with the Specific Plan would not exceed the sloping, three-dimensional 100:1 (one percent sloping City Council 11 — 17 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 9 of 10 surface from the nearest runway over 3,200 feet in actual length) FAA notification surface to require the Filing of FAA Form 7460-1. The buildings exceeding 200 feet in height in the Specific Plan area will not exceed the sloping, three-dimensional 50:1 FAA precision instrument Approach Surface to JWA Runway 20R. iii. Each future site -specific implementing development under the Project will be required to be submitted through the City's development review process, at which point if a specific building is proposed within the FAA Notification Area that exceeds 200 feet in height, FAA notification compliance would be required through the development review process. iv. In addition to requiring FAA notification for any buildings exceeding 200 feet in height within the Project area, AELUP and FAR Part 77 require an FAA aeronautical study to be conducted to ensure that the proposed structures would not constitute a hazard to air navigation. Overflight. "Close to the JWA approach centerline" as identified by the ALUC is neither an FAA nor an AELUP standard. The FAA is the only authoritative source of aviation safety data and the FAA does not have a "close to the JWA approach centerline" standard. The AELUP clearly identifies its airport land use planning standards around aircraft noise, safety, and height. Objective measures of these standards are clearly identified in AELUP Section 2.1. The Specific Plan is drafted to be consistent with each of these objective standards. iii. Two-dimensional flight tracks do nothing to inform the impact of overflights. The ALUC provided limited arrival and departure flight tracks in its ALUC staff report. iv. Aircraft noise contours used to objectively measure noise impact already assume flight tracks and actual operating conditions for a full year including future operations. Limited information presented within the staff report packet dated June 19, 2025 of arrival flight tracks and limited information on departure flight tracks are not representative of a general condition and are not substantive evidence. V. The project is located outside of the JWA single event noise exposure areas documented in the JWA General Aviation City Council 11 — 18 7/15/2025 Exhibit A: Draft ALUC Overrule Findings — The Village Santa Ana Specific Plan (1561 W. Sunflower Avenue) Page 10 of 10 Improvement Program EIR certified on June 25, 2019. g. Heliports. Heliports are not a part of the Project. h. Zone Change. The proposed zone change (amendment application) is consistent with the objective AELUP aircraft noise, safety and height standards and is therefore consistent with the larger planning role of the ALUC. "Close to the JWA approach centerline" is not an FAA or an ALUC standard. There is no substantiation that overflights of new residents would be disturbed or annoyed. The Project is located outside of the 60 dBA CNEL noise contour. As such, the Project would not add any new residential or commercial noise impacts to the JWA 65 dBA CNEL noise area. ii. Flight tracks limited information was provided in the ALUC staff report. f These flight tracks are not unique and are fully accounted for in the one year of overflights used to measure CNEL noise impacts associated with JWA. iii. Flight tracks limited information for arrivals and departures are not unique and are fully accounted for in the single -event noise contours produced for the JWA GAIP EIR. The Project is located outside of these single -event noise contours. iv. Per Section 1.2 of the AELUP for JWA, the purpose of the AELUP is to safeguard the general welfare of the inhabitants within the vicinity of the airport and to ensure the continued operations of the airport. The method by which the ALUC achieves this purpose is through the application of the objective standards contained in Section 2.1 of the AELUP. As demonstrated in the ALUC staff report and, in these Findings, the Specific Plan and application for each implementing project is and will be consistent with each of the standards. As a result, the ALUC has met their duty under Section 1.2 by ensuring that the Specific Plan meets these standards. V. Additionally, Section 2.1.4 of the AELUP for JWA and PUC Section 21674 charge the Commission to coordinate at the local level to ensure compatible land use planning. The method by which the ALUC achieves this charge is through the application of the objective standards contained in Section 2.1 of the AELUP. As demonstrated in the ALUC staff report and, in these Findings, the Project is consistent with each of the standards. As a result, the ALUC has met their duty under Section 2.1.4 and PUC Section 21674 by ensuring that the Project meets these standards. City Council 11 — 19 7/15/2025 Planning and Building Agency www.santa-ana.org/pb Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Density Bonus Agreement No. 2025-03 — Olive Crest at 2130 E. Fourth Street AGENDA TITLE Density Bonus Agreement No. 2025-03 to Facilitate the Construction of a Fifteen -Unit Multi - Family Residential Development, Including Three Units Proposed as Affordable to Very Low -Income Households RECOMMENDED ACTIONS 1. Determine that, pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the recommended action (below) is exempt from further review under Section 15168 (Program EIR); 2. Adopt a resolution approving Density Bonus Agreement No. 2025-03; RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN -UNIT MULTI -FAMILY RESIDENTIAL DEVELOPMENT, INCLUDING THREE UNITS PROPOSED AS AFFORDABLE TO VERY LOW-INCOME HOUSEHOLDS, AT THE PROPERTY LOCATED AT 2130 E. FOURTH STREET (APN: 400-091-23); and 3. Authorize the City Manager to execute a Density Bonus Agreement with Olive Crest, with a 55-year covenant term, for a rental residential development consisting of a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households, at the property located at 2130 E. Fourth Street (Agreement No. A-2025-XXX). GOVERNMENT CODE §84308 APPLIES: Yes EXECUTIVE SUMMARY Donald Verleur ("Applicant"), with Olive Crest ("Property Owner"), is requesting approval of Density Bonus Agreement (DBA) No. 2025-03 to allow the construction of a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI), City Council 12 — 1 7/15/2025 Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 2 at the property located at 2130 E. Fourth Street ("Project"). As proposed, the Project will utilize concessions and a waiver or reduction to deviate from development standards as memorialized by the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607. Staff recommends approval of the Applicant's request as the Project meets the General Plan goals and policies and will contribute to the City's housing stock through the production of rental housing units. Additionally, the Project contributes to the community's affordable housing stock, aims to provide housing for at -risk young adults, represents a significant reinvestment in an underutilized site, and does not result in adverse environmental impacts or serious public health concerns. Plannina Commission Action On June 23, 2025, the Planning Commission held a public hearing for the Project and voted 5:0:2, with Vice -Chair Ramos and Commissioner Leo absent, to approve certain deviations (three development concessions and a waiver or reduction), based on the required findings, with concessions and the waiver to be memorialized in a Density Bonus Agreement, pursuant to Section 41-1607 of the SAMC. Pursuant to Section 41-1602(d), the DBA requires City Council approval. DISCUSSION Table 1: Project and Location Information Item Information Project Address and Council Ward 2130 E. Fourth Street — Ward 3 Nearest Intersection Fourth Street and Golden Circle Drive General Plan Designation District Center — Medium High (DC-3) Zoning Designation Professional (P); Village Center District within the Metro East Use OverZone MEMU North Professional Offices Surrounding Land Uses East Medical and Professional Offices South Multifamily Residential West Professional Offices Property Size Gross Area: 2.64 acres 115,029 square feet Net Area: 0.32 acres 13,801 square feet 53,089-square-foot (gross floor area) office building occupied by Existing Site Development Olive Crest offices, and surface parking lot. There's 31,266 square feet of useable office area, including 16,359 square feet on the first floor and 14,907 square feet on the second floor. Use Permissions Multi -Family Residential (permitted under MEMU, as part of SB 330 request Uses Article XVI.I (Density Bonus); and Active Urban Zoning Code Sections Affected within the Metro East Mixed Use Overlay Zone MEMU. City Council 12 — 2 7/15/2025 Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 3 Project Description The development will consist of two identical, two-story buildings each 7,976 square feet in size, to be located towards the rear (south) of the existing site. The Project would be developed with a gross density of 5.68 dwelling units per acre (du/ac) and a net density of 46.87 du/ac, well below the permitted 90 du/ac by the DC-3 land use designation. The property is currently improved with a two-story, 53,089-square-foot office building and associated surface parking lot, which will remain and continue to be occupied by Olive Crest, a nonprofit organization providing family and youth services. To accommodate the proposed development, 27 parking spaces will be removed from the existing surface lot. The new residential buildings will coexist with the existing office use in a horizontal mixed -use configuration that is functionally integrated, physically compatible, and consistent with the zoning allowances under the Metro East Mixed Use Overlay (MEMU). The units are designed as flats/apartments with Building Al having seven two -bedroom units and an area dedicated as Common Area, to include a community room, office, bathroom, and laundry area. Building A2 would include eight two -bedroom units. The unit sizes will vary between 761 and 785 square feet, and each unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas. As previously described, the Project will include affordable units, with three units designated for very low-income households earning 30-50 percent of the AM which is currently $84,600 for a four -person household, as determined by the California Department of Housing and Community Development (HCD). Two affordable units would be included in Building A2, and would be 785 square feet in size. The additional affordable unit would be included in Building Al and would be 761 square feet in size. Like the market rate units, each affordable unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas, ensuring a high standard of living for future residents. The Project incorporates a combination of a contemporary/Mediterranean architectural style consistent with many multi -family and mixed -use residential communities currently under construction in Santa Ana and the surrounding region. The overall design, massing, materials, and architectural features are intended to be compatible with, yet distinct from multi -family residences existing and currently under construction in the MEMU. The architectural style is characterized by a combination stucco walls painted in a warm earth tone color, natural stone wainscoting along the building base, decorative louvers, window trims, and exposed rafter tails. Density Bonus As part of the Project, the Applicant is seeking concessions and a waiver under California Density Bonus law, which allow developers proposing five or more residential units to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek up to five incentives/concessions and an unlimited number of City Council 12 — 3 7/15/2025 Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 4 waivers. The incentives/concessions are generally reductions in site development standards or modification of zoning code requirements or architectural design requirements, and waivers are essentially variances from development standards (a site or construction condition). The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers or reductions for affordable or mixed -income developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. For this Project, the developer is not requesting a State density bonus for additional units but will avail themselves of the incentive/concessions and waiver or reductions that are required to be provided by State density bonus law for projects with the requisite affordability. Due to the Project's twenty -percent (20%) affordability rate, the developer can seek three density bonus incentive/concessions and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus Law originally adopted in 1979 to provide additional benefits for projects that include qualifying affordable housing. The purpose of the State Density Bonus Law is to encourage the development and availability of affordable housing. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested incentives, concessions, and waivers. The City has analyzed the Project and has identified several areas of potential impacts; however, the conditions of approval proposed for the Project are intended to address the Project's potential impacts. Table 2 outlines the concessions and waiver requested by the Applicant and approved by the Planning Commission on June 23, 2025. Table 2: Requested Concessions and Waiver Standard Required by MEMU Provided No publicly accessible open space Publicly Accessible Open Ten -percent of the gross site provided. Requires Concession (1 of Space area (115,029 square feet) 3), Cal. Gov't Code Sec. 65915 d 2 C • 90 square feet per unit No private open space provided. Private Open Space (1,350 square feet) Requires Concession (2 of 3), Cal. Gov't Code Sec. 65915 (d)(2)(C) • Residential: 34 spaces Zero spaces provided for residential • Non-residential: 94 units proposed. Parking Requirements spaces 136 parking spaces provided for • Total required: 128 non-residential. spaces City Council 12 — 4 7/15/2025 Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 5 Standard Required by MEMU Provided • Total residential required Requires Concession (3 of 3), Cal. by State Density Bonus: Gov't Code Sec. 65915 (d)(2)(C) 23 s aces • Five -percent of the gross Common open space provided at site area for rate of 1.4-percent of the gross site Common Open Space nonresidential uses area (1,430 square feet) Requires (5,062 square feet) Waiver, Cal. Gov't Code Sec. 65915 e 1 Onsite Parking To accommodate the Project, the Applicant is proposing to reduce the overall onsite parking from 163 to 136 parking stalls, a reduction of 27 spaces. The office building's gross floor area is approximately 53,089 square feet, inclusive of corridors, walkways, stairwells, etc. The useable office floor area is approximately 31,266 square feet, with 16,359 square feet on the first floor and 14,907 square feet on the second floor. Pursuant to the City's off-street parking requirements, the office building requires a total of 94 parking stalls. Moreover, the required residential parking pursuant to the State Density Bonus requirements would be 23 spaces. Therefore, the total required parking for the Project would be 117 parking spaces. The Applicant is proposing a total of 136 surface parking stalls, which would be a surplus of 19 parking stalls. Given the above parking analysis, the Project is not anticipated to have any parking impacts. However, to proactively address any neighborhood parking impacts that could result from the Project, the conditions of approval and terms of the DBA include provisions requiring the following parking management practices, to be incorporated into the Project and which shall apply throughout the life of the Project: Requiring onsite parking permits (such as stickers or hang -tags) for any parking dedicated to the residential units, inclusive of guest parking spaces; Policies for maximum time vehicles may be parked in the surface guest spaces; and Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang - tag, or other identifiers; and vehicles parked longer than any maximum guest parking timeframes allowed. Affordable Housing Opportunity and Creation Ordinance The Project exceeds the affordable housing goal for the rental category of the City's Affordable Housing Opportunity and Creation Ordinance (AHOCO) by 100-percent, by providing three (3) onsite units designated for households earning 30-50 percent of the AMI (very low-income), which is currently set at $84,600 for a four -person household. Two affordable units would be included in Building A2, and would be 785 square feet in size. The additional affordable unit would be included in Building Al and would be 761 square feet in size. Each affordable unit will be fully equipped with a kitchen, bedrooms, City Council 12 — 5 7/15/2025 Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 6 bathrooms, and common living areas, ensuring a high standard of living for future residents. The developer's Inclusionary Housing Plan has been reviewed and approved by the City's Housing Division. Public Notification and Community Outreach As the City Council's approval of this agreement does not constitute a public hearing, no public notification or community outreach is required under applicable state law or local ordinances prior to Council action. However, staff notes that project notifications were posted, published, and mailed in accordance with City and State regulations for the required Planning Commission public hearing. In addition, staff contacted the provided contacts for the Lyon Street and Zoo District Neighborhood Associations to ensure they were aware of the project and Planning Commission public hearing. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines, the proposed Project is exempt from further environmental review under Section 15168 (Program EIR). This exemption applies when a previously certified Program Environmental Impact Report (Program EIR) has adequately analyzed the environmental effects of an activity, and no new significant impacts would result from the proposed Project. If the proposed Project remains within the scope of the Program EIR and does not require a subsequent Environmental Impact Report (EIR), no additional environmental documentation is required. Therefore, a Notice of Exemption, Environmental Review No. 2023-94, will be filed for the Project. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBITS 1. Resolution — Density Bonus Agreement 2. Draft Density Bonus Agreement 3. June 23, 2025 — Planning Commission Staff Report and Exhibits Submitted By: Ali Pezeshkpour, AICP, Executive Director of Planning and Building Agency, and Michael L. Garcia, Executive Director of Community Development Agency Approved By: Alvaro Nunez, City Manager City Council 12 — 6 7/15/2025 RESOLUTION NO. 2025-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN -UNIT MULTI -FAMILY RESIDENTIAL DEVELOPMENT, INCLUDING THREE UNITS PROPOSED AS AFFORDABLE TO VERY LOW- INCOME HOUSEHOLDS, AT THE PROPERTY LOCATED AT 2130 E. FOURTH STREET (APN: 400-091-23) 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. Donald Verleur ("Applicant"), with Olive Crest ("Property Owner"), is requesting approval of Density Bonus Application (DBA) No. 2025-03 to allow the construction of a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI), at the property located at 2130 E. Fourth Street ("Project"). B. The California Density Bonus generally law allows developers to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law also generally allows developers to seek incentives/concessions or waivers of, or reductions in, development standards. C. Section 41-1607 of the Santa Ana Municipal Code (SAMC) requires an application for a deviation (incentives/concessions and/or waivers or reductions) to be approved by the Planning Commission. D. On June 23, 2025, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and, at that time, considered all testimony, written and oral, and approved, based on findings, the application for four (4) deviations (three concessions and one waiver), to be memorialized in Density Bonus Agreement No. 2025-03. E. On July 15, 2025, the City Council of the City of Santa Ana held a regular meeting and considered approval of Density Bonus Agreement No. 2025- 03. F. The City Council hereby approves Density Bonus Agreement No. 2025-03. This Agreement allows for the construction of the proposed Project in City Council 12 — 7 7/15/2025 accordance with the provisions of State Density Bonus Law and SAMC Section 41-1607, as conditioned. Section 2. Pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines, the proposed Project is exempt from further environmental review under Section 15168 (Program EIR). This exemption applies when a previously certified Program Environmental Impact Report (Program EIR) has adequately analyzed the environmental effects of an activity, and no new significant impacts would result from the proposed Project. If the proposed Project remains within the scope of the Program EIR and does not require a subsequent Environmental Impact Report (EIR), no additional environmental documentation is required. Therefore, a Notice of Exemption, Environmental Review No. 2023-94, will be filed for the Project. Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. Section 4. The City Council of the City of Santa Ana, at its regular meeting, hereby approves Density Bonus Agreement No. 2025-03 as contained in Exhibit A, attached hereto and incorporated as though fully set forth herein. This approval is based on the written materials submitted, including: the Request for Planning Commission Action dated June 23, 2025; and the Request for City Council Action dated July 15, 2025, and their respective exhibits. Section 5. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this resolution. ADOPTED this day of 2025. City Council 12 — 8 7/15/2025 Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Melissa M. Crosthwaite Senior Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers City Council 12 — 9 7/15/2025 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, , City Clerk, do hereby Resolution No. 2025-XX to be the original resolution City of Santa Ana on 2025. Date: attest to and certify the attached adopted by the City Council of the City Clerk City of Santa Ana City Council 12 — 10 7/15/2025 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Santa Ana City Clerk 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702 Attention: City Clerk Free Recording pursuant to Government Code 27383 DENSITY BONUS HOUSING AGREEMENT WITH DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 2130 East Fourth Street, Santa Ana, California; APN: 400-091-23 This DENSITY BONUS HOUSING AGREEMENT WITH DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Agreement"), is made and entered into this _ day of , 2025, for reference purposes only, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and Olive Crest, a California nonprofit corporation ("Developer"). City and Developer are sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. Developer is the owner of that certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 2130 East Fourth Street, Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full ("Property"). B. Developer is proposing to develop a residential development consisting of no more than fifteen (15) units, three (3) of which are proposed as very -low income residential rental units on the Property, as more particularly set forth in Density Bonus Application No. DBA-2025-03 ("Project"). C. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density Bonus Law"), set forth a process to provide increased residential densities and incentives, concessions, and waivers to property owners or developers who restrict a portion of their residential development to low income, very -low income, seniors or other qualified households, as specified. These regulations are intended to materially assist the housing industry in providing adequate and affordable housing for all economic segments of the community and to provide a 2130 East Fourth Street Density Bonus Agreement 5539nA n�rn .A City Council 12 —11 7/15/2025 balance of housing opportunities for very -low income, low income, seniors and other qualified households throughout the City. D. The Project is proposing a total number of fifteen (15) residential rental units, including three (3) units for Very -Low Income Tenants, as defined herein, and proposes to utilize the existing parking lot to satisfy the parking requirements of state law. E. The Project complies with the affordability requirements for a housing development as set forth in the State Density Bonus Law and City Density Bonus for Affordable Housing. F. In light of the purpose of the State Density Bonus Law and City Density Bonus for Affordable Housing, and the express provisions of Government Code Sections 65915(d)(1)(2)(C), the City has determined that the Project is eligible for three (3) incentives or concessions, and waivers as prescribed by the State Density Bonus Law. G. This Agreement, and the exhibits attached hereto and incorporated herein by reference, are intended to set forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the density bonus, concession and waivers set forth herein. NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by Health and Safety Code Section 50052.5(h). 1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement, and which shall not exceed the amount of Affordable Rent authorized by California Health and Safety Code Section 50053 and pursuant to implementing regulations published by the California Department of Housing and Community Development, as determined from the Median Income for Orange County, as defined below in Section 1.1.16. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing Utility Allowance Schedule, and shall be updated no less than annually. 1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) 2 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 12 7/15/2025 for the required number/percentage of the total number of units in the Project which are to be rented or available for rent to Eligible Households. The Affordable Rent Schedule shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall be created in accordance with the Orange County, California Primary Metropolitan Statistical Area ("PMSA") as published by the California Department of Housing and Community Development ("HCD"), adjusted for family size, and shall be updated no less than annually. 1.1.4 "Affordable Units(s)" means the three (3) unit(s), which shall each be two - bedroom units. Any change to the number, bedroom size, or distribution of Affordable Units is subject to City Manager approval. 1.1.5 "Agreement" means this Density Bonus Housing Agreement. 1.1.6 "City" means the City of Santa Ana, California 1.1.7 "City Council" means the City Council of the City of Santa Ana. 1.1.8 "City Attorney" means the City Attorney for the City of Santa Ana. 1.1.9 "City Manager" means the City Manager for the City of Santa Ana. 1.1.10 "City's Planning Commission" means the Planning Commission for the City of Santa Ana. 1.1.11 "Density Bonus Application" shall mean the Density Bonus Application No. 2025-03 for the Project. 1.1.12 "Developer" means Olive Crest, a California nonprofit corporation, and its permitted successors and assigns to all or any part of the Property, Project or this Agreement. 1.1.13 "Effective Date" means the date the Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement, pursuant to section 4.1 herein. 1.1.14 "Eligible Household" means a Household whose income does not exceed the "Very -Low Income Tenant" qualifying limit as defined herein. 1.1.15 "Household" means all persons residing in a Unit. 1.1.16 "Median Income" means the Orange County, California area median income, adjusted for family size pursuant to California Health and Safety Code § 50052.5(h), as periodically published by HCD. 1.1.17 "Monthly Rent" means the total of monthly payments for: (a) use and occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 13 7/15/2025 water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, to the extent applicable and charged to tenant; and, (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge. 1.1.18 "Project" means that certain affordable residential development as more particularly described in the Recitals and Section 2 of this Agreement. 1.1.19 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon. 1.1.20 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date. 1.1.21 "Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 5.1 below. 1.1.22 "Unit" means a residential dwelling unit within the Project to be constructed or caused to be constructed by Developer pursuant to this Agreement. 1.1.23 "Unrestricted Units" means the Units within the Project to be constructed or caused to be constructed by Developer to a Household without restriction. 1.1.24 "Very -Low Income Tenant(s)" means a Household whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 1.2.1 Exhibit A — Legal Description of the Property 1.2.2 Exhibit B — Tenant Verification 1.2.3 Exhibit C — Annual Tenant Recertification 1.2.4 Exhibit D — Annual Rental Housing Compliance Report 1.2.5 Exhibit E — Notice of Affordability Restrictions on Transfer of Property 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain, or cause the development, operation and maintenance of, the Property as fifteen (15) unit rental residential community, with three (3) Affordable Units for Eligible Households. 4 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 14 7/15/2025 2.2 Density Bonus. The Project shall have fifteen (15) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is not requesting an increase in density and that this Agreement does not allow or approve an increase in residential density over the allowed density regulations of the City. Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional residential units on the Property under this Agreement. 2.3 Development Concessions, Incentives, and Waivers. As set forth in the City entitlements, Developer petitioned for and is hereby granted the following concessions, incentives, and waivers as part of the approval of Density Bonus Application: 2.3.1 Concession. In accordance with Government Code Section 65915(d)(1), Developer is granted the following concession(s): (a) The Project shall not be subject to the obligation to provide publicly accessible open space, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.5. (b) The obligation to provide private open space, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.6, shall be reduced to zero. (c) Developer is not required to submit a parking study. 2.3.2 Waivers. Provided that the Project complies with all other requirements of this Agreement and the Project Approvals, the City agrees to a partial waiver of the requirement to provide common open space, provided the Project provides a total of 2,191 square feet of common open space, including 761 square feet of common area to include laundry amenities, office, community room, and bathroom facilities; and 1,430 square feet of dedicated outdoor open area to be improved with landscaping and outdoor furnishing, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.6. 2.4 Parking Requirements. Onsite parking shall be provided in compliance with Government Code Section 65915(p) by utilizing the existing parking on the Property for residents of the Project. Developer represents and warrants that the existing parking on the Property comprises of 136 parking spaces and provides adequate levels of parking for the Project, including all required accessible parking for the Project and prospective residents. Provided that at least twenty-three (23) parking spaces are available to residents in the Project from the existing parking, Developer shall not be required to provide any additional parking. 2.5 No Further Concessions, Incentives, or Waivers. Developer acknowledges and agrees that no further concessions, incentives, waivers or parking requirements are requested, and that the terms set forth in Section 2.3 and 2.4 fully satisfies any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus Law, or any other law or regulation to provide any density bonus incentive or to waive any building, zoning, or other requirement in connection with a density bonus. By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City's obligation to waive 5 2130 East Fourth Street Density Bonus Agreement 5539n.—In�rnI.A I City Council 12 — 15 7/15/2025 requirements of or provide development incentives pursuant to the City Density Bonus for Affordable Housing and the Density Bonus Law applicable to the Project. 2.6 Unit Mix. 2.6.1 Unrestricted Units. The Project, for purposes of this Agreement, may have no more than twelve (12) Unrestricted Units, inclusive of one (1) manager's unit, as set forth in sub -paragraph 2.6.3, below, and pursuant to the terms and conditions of this Agreement. Any change to the unit distribution of the Unrestricted Units may affect the comparability of the Affordable Units and is subject to City Manager approval. 2.6.2 Affordable Units. The Project, for purposes of this Agreement, shall have no less than three (3) Affordable Units, for Very -Low Income Tenants, as set forth in sub- paragraph 2.6.3, and pursuant to the terms and conditions of this Agreement. The Affordable Units shall be consistent with all City approvals, comparable in bedroom distribution and amenities to the Unrestricted Units, and shall be located throughout the Project as required under Santa Ana Municipal Code section 41-1602(c)(5). 2.6.3 Unit Mix. 2.7 Minimum Development Standards for Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project. 2.8 Permits and Processing Compliance with Laws. Developer, at its sole cost and expense, or as otherwise set forth in a separate written agreement, shall secure or cause to be 6 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 16 7/15/2025 secured any and all permits that may be required for development of the Project by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, and all necessary financing and property interests, Developer shall carry out and perform the development, operation, and maintenance of the Project or cause the performance of the development, operation, and maintenance of the Project, in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City's sole determination, then City and Developer shall meet and confer to address amendments and revisions to this Agreement as necessary. 2.9 Relocation Prior to Development of Project. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project. 2.10 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. 3. AFFORDABILITY 3.1 Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by Eligible Households for a term of not less than fifty-five (55) years ("Affordability Term"). The Affordability Term shall commence on the date when an Affordable Unit receives all required occupancy permits from the City and expire on the date that is fifty-five (55) years after the date when the Affordable Unit is first made available for occupancy to Eligible Households 7 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 17 7/15/2025 pursuant to this Agreement. The Affordability Term shall be determined for each individual Affordable Unit. 3.2 Memorializing Commencement of Affordability. Developer shall keep or cause to be kept detailed records of the commencement date of the Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordability. 3.3.1 Affordable Rent. Developer covenants that all three (3) Affordable Units in the Project shall at all times during the Affordability Term be rented to, or held vacant and available for immediate occupancy by an Eligible Household, at an Affordable Rent. 3.3.2 Affordable Rent for Very Low Income Tenants. The Affordable Rent for Very Low Income Tenants shall not exceed the limits set forth in California Health and Safety Code Section 50053 and implementing regulations, which provide that the Affordable Rent shall not exceed thirty percent (30%) times fifty percent (50%) of the Median Income, as adjusted for family size appropriate to the unit. 3.3.3 Affordable Rent Schedule. Prior to issuance of a Certificate of Occupancy for the Project, and on each anniversary of the issuance of the initial Certificate of Occupancy for the Project, Developer shall provide to the City the Affordable Rent Schedule, which City shall have not less than thirty (30) days to review and approve or disapprove, which approval shall not be unreasonably withheld. 4. OPERATION OF THE PROJECT BY DEVELOPER 4.1 Payment of Density Bonus Setup Fee. A Density Bonus Setup Fee in the amount of Two Thousand Five Hundred Sixty One Dollars and Seventy -Two Cents ($2,561.72), was paid by the Developer on November 20, 2024, prior to execution of this Agreement. 4.2 Recording of Documents; Priority. 4.2.1 No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and Project for the Term of this Agreement. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.1.A City Council 12 — 18 7/15/2025 Density Bonus Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the Project, except as expressly set forth in this Agreement. 4.2.2 The Agreement shall be recorded against the Property and have priority over those matters of public record, except as approved in writing by the City. For purposes of this paragraph, Developer shall provide the City with a preliminary title report for the Property dated not less than thirty (30) days prior to the execution of this Agreement. Developer agrees and warrants that it will exercise reasonable efforts to obtain the consent or approval to a subordination agreement with any senior lienholders and that, if such consent or approval is not provided, this Agreement and the benefits to Developer and the Project hereunder may be terminated by the City with thirty (30) days' written notice. 4.3 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit to Eligible Households for the Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Affordability Term. 4.4 Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus one person. If an Eligible Household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Developer shall provide written notification informing the household that: it is over -occupancy; has been placed on a waiting list for up to one -hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one -hundred and twenty (120) days, ninety (90) days, sixty (60) days and thirty (30) days if applicable. 4.5 Use of the Property. All uses conducted on the Property by Developer, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the Term of this Agreement be used as a rental housing complex and none of the Affordable Units in the Project, nor shall the Property or any portion thereof, ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project's residents shall be available on an equal, nondiscriminatory basis to residents of all Units at the Project. 4.6 Maintenance. Developer shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project, after providing notice as follows: (i) at least a 24-hour notice to Developer and Tenants of the Affordable Unit which will be inspected, or (ii) at least 48 9 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.1.A City Council 12 — 19 7/15/2025 hours' notice to Developer, which shall promptly give notice to Tenants of the Affordable Unit to be inspected. 4.7 Affordable Rental Lease Agreement. Developer shall prepare and obtain City's approval, which approval shall not be unreasonably withheld, conditioned or delayed, of a rental lease agreement for the Affordable Unit ("Affordable Unit Lease Agreement") for the Affordable Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members of the household who will occupy the Affordable Unit; and 2) state that the Household's right to occupy the Affordable Unit is subject to compliance with the Median Income requirements, adjusted for family size appropriate to the unit, as periodically published by HCD. All Affordable Unit Lease Agreements must be consistent with the terms contained in this Density Bonus Agreement. 4.8 Selection of Tenants. 4.8.1 Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. 4.8.2 Local preference for Santa Ana residents and workers in tenant selection for the Affordable Units shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the Developer shall give preference in leasing the Affordable Units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. 4.8.3 All applicants for Affordable Units will be screened and "lotterized." A waiting list will be created from a lottery generated from the initial pool of rental applications. The waiting list will track applicant name and contact information, lottery number (or designated number after the initial lottery), household income, household size, status of application, and any other information deemed necessary. The waiting list will be maintained as an electronic file and available for audit by the City of Santa Ana in accordance with resident selection procedures as set forth herein. 4.8.4 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein. 4.8.5 The Developer may rent or lease an Affordable Unit(s) to a nonprofit organization or an entity affiliated with a nonprofit organization, provided that the nonprofit organization or entity is required as a condition of that lease (a "Master Lease") to sublease the Affordable Unit to an Eligible Household. The Master Lease shall be provided to the City, which shall have thirty (30) days to review and approve, which approval shall not be unreasonably withheld. Prior to the rental or lease of an Affordable Unit under a Master Lease, Developer shall 10 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 20 7/15/2025 require the lessee thereunder to require each prospective sub -tenant to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the resident(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit under this Agreement. If an Affordable Unit subject to a Master Lease is not rented within thirty (30) days, then the City shall have the right to require termination of the Master Lease or declare a default under this Agreement for failure to fully utilize the Affordable Unit. The Master Lease shall require compliance with this Agreement, and nothing in this paragraph or the Master Lease shall relieve Developer from compliance with the obligations of this Agreement. 4.9 Income Verification and Certification. Developer shall make reasonable efforts to verify or cause to be verified that the income and asset statement provided by an applicant in an income certification is accurate by taking, at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.9.1 Gross Household Income. Gross household income means all income from whatever source from all adult Household members, which is anticipated to be received during the 12-month period following the date of the determination of Gross Household Income. The applicable sources of income are defined in California Code of Regulations Title 25 Housing and Community Development Section 6914. 4.9.2 Annual Recertification. Developer agrees to recertify or cause to be recertified household eligibility annually. Notification of Annual Tenant Recertification shall be sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental Housing Compliance Report ("Annual Compliance Report") shall be sent by Developer to the City in substantially the form attached hereto as Exhibit D for City's review and approval. The Annual Compliance Report shall be due to the City within 30 days of the anniversary of the commencement of the Affordability Term, which is the date that each building receives all required occupancy permits from the City. 4.9.3 Continued Income Qualification and Vacated Affordable Units. If the annual recertification demonstrates that a previously Eligible Household's gross household income exceeds the allowed Median Income for the Affordable Unit, the Developer will be considered in compliance with this agreement so long as one of the following pertinent actions from the following list is taken: (a) The Developer may offer to rent the unit to the previously, but no longer, Eligible Household as an Unrestricted Unit without any limitations on rental rates. In that case, the Developer must then make available for rent to an Eligible Household another unit within the Project that meets the size and location requirements for Affordable Units under this Density 11 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 21 7/15/2025 Bonus Agreement. If there are no vacant units meeting those requirements, then the next available unit within the Project which does meet those requirements must be rented to an Eligible Household. (b) If the no longer Eligible Household either moves to another Unrestricted Unit within the Project or leaves the Project altogether, then the vacated Affordable Unit, or, at Developer's election, any other Unrestricted Unit within the Project which meets the size and location requirements for Affordable Units under this Density Bonus Housing Agreement and has the same number of bedrooms as the vacated unit, shall be rented as an Affordable Unit to an Eligible Household. (c) Developer may proceed to terminate the tenancy and pursue any and all remedies in accordance with law or contract. 4.10 Monitoring and Recordkeeping. Throughout the Term of this Agreement, Developer shall annually complete or cause to be completed and submit to City the Annual Compliance Report. Developer agrees to pay a reasonable fee, as set by City resolution, for the purpose of paying the actual costs associated with the City's obligation to monitor Developer's compliance with the affordability restrictions contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up to three (3) Affordable Units. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project relating to the Affordable Units and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City without a fee from the City. Developer agrees to cooperate with City in making the Property and the records of the Project relating to the Affordable Unit reasonably available for such inspection or audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for no less than five (5) years after creation of each such record, including the five-year period following the expiration of the Term of this Agreement. Developer shall allow the City to conduct annual inspections of the Affordable Unit on the Property after the date of construction completion, with reasonable notice, which shall be at least twenty four (24) hours in advance, unless a shorter time is required in an emergency, to Developer of the Affordable Unit. Developer shall commence to cure or cause the commencement to cure any defects or deficiencies found by the City while conducting such inspections within ten (10) business days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City. 4.11 Notice of Affordability Restrictions on Transfer of Property. In the event the Developer wishes to sell or transfer the Project, during the Term of this Agreement, the City and the Developer shall execute and deposit into escrow, a Notice of Affordability Restrictions on Transfer of the Property, to be executed by the City and Developer in a form substantially similar to Exhibit E, which is attached hereto and must be executed by the parties prior to any transfer of the Property. 4.12 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to 12 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 22 7/15/2025 issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.13 Crime Free Housing. Developer shall work with City staff to formalize a crime free housing policy, procedure, and design plan (the "CFH Plan"), which includes the following provisions: (a) Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain security cameras; (b) Requiring routine unit inspections; (c) Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs, etc.; and (d) Have policies in place to ensure that common use areas such as hallways and trash enclosures are maintained in good condition and repair (e.g., well - lit, kept clean, etc.). Developer shall submit and obtain approval from the City's Planning and Building Agency ("PBA") that the CFH Plan meets the requirements of this Subsection 4.13 prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Developer or its designated property manager. 4.14 Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take the following measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. (a) Requiring onsite parking permits (such as stickers or hang -tags) for any parking in the onsite parking spaces for both residents and guests; (b) Policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and (c) Policies for towing unauthorized vehicles, vehicles parked in unauthorized locations (such as fire lanes), vehicles parking in surface guest parking 13 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 23 7/15/2025 without a sticker, hang -tag, or other identifiers, and vehicles parked longer than any maximum guest parking timeframes allowed. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") including those measures above. The approved PMP shall be adhered to and be enforced by the Project at all times. 4.15 Marketing and Resident Selection Plan. 4.15.1 Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval of a marketing program and resident selection plan for the leasing of the Affordable Units at the Project ("Marketing Program"). The leasing of the Affordable Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City's prior written approval. Upon request, Developer shall provide City with periodic reports with respect to the leasing of the Housing Units. 4.15.2 The Marketing Program shall include, but is not limited to, marketing and community outreach activities, proposed tenant selection criteria, occupancy standards, income requirements, timeline and details for outreach and marketing, data collection, record keeping and monitoring, procedures for complaints, and compliance assessment. Components of the resident selection plan shall include, but are not limited to, the application process, interview procedure, apartment offer and assignment, rejected applications, and wait list management. All requirements set forth herein shall be incorporated in the Marketing Program. 5. TERM OF THIS AGREEMENT 5.1 Term. The term of this Agreement ("Term") shall commence on the Effective Date and shall continue until the expiration of the Affordability Term for all Affordable Units, as set forth in Section 3.1, above. 131111111111111�] , 1I:1�11111I: ►1 11 111► : � ► I► ul► �1:11 �]� 6.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. Notwithstanding the above, should the Developer elect to not proceed with the Project prior to commencement of construction, the Developer shall submit written notice of such 14 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 24 7/15/2025 termination ("Termination Letter") to the City, which Developer, for itself, its successors and assigns, states that it waives, forfeits, and relinquishes any and all benefits under this Agreement. Upon City's receipt of the Termination Letter, the Parties agree to terminate this Agreement, except that the obligations of Section 4.1 and 6.4 shall survive termination. Developer shall, at its sole cost and expense, prepare and record a Termination of Agreement, which City shall review and approve, in the exercise of reasonable discretion. Such termination shall not be considered a default by any Party, but it shall result in a termination of the Agreement as provided for herein. 6.2 City's Remedies. In the event of a Default, the City shall have all rights and remedies available at law, and may seek any or all of the following remedies: 6.2.1 Any individual who sells or rents (including subleasing) an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained. 6.2.2 City may exercise any rights or institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including but not limited to: (a) Actions to revoke, deny or suspend any permits and/or certificate of occupancy; and (b) Actions for injunctive relief or damages. 6.3 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. Notwithstanding anything to the contrary contained in this Agreement, in no event shall either Party be liable for speculative, consequential, punitive or other indirect damages, and each Party waives any right to collect speculative, consequential, punitive or other indirect damages against the other Party. 6.4 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any claims, demands, or causes of action arising from or related to this Agreement, including the approval thereof, except to the extent caused by the active negligence or willful misconduct of Indemnitees. 7. ASSIGNMENT; COVENANTS RUN WITH THE LAND 7.1 Assignment by Developer. 7.1.1 Prohibited Transfers or Assignments. Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or in part, unless the sale, transfer, or assignment complies with this Section 7. If Developer seeks to sell, transfer or assign the Property or Project, or any 15 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 25 7/15/2025 rights and obligations in this Agreement, Developer shall request City's written consent, and City shall respond within thirty (30) days with a written approval or denial, which City may determine in its sole and absolute discretion. If City approves such a request, then prior to any such sale, transfer or assignment, Developer shall pay City's reasonable fees as compensation for the City's review of the request. City's failure to respond to the request within thirty (30) days shall be deemed an approval. 7.1.2 Sale of Property. Developer agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute covenants which run with the land and shall be binding on Developer and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Developer further understands and agrees that the approvals received for this Project have been made on the condition that Developer and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Affordable Units in accordance with the terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of fifty five (55) consecutive years commencing upon the date that the Project is first occupied. 7.1.3 Subsequent Assigningnt. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. 7.1.4 Unpermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 7.2 Covenants Run with the Land. The Property shall be used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the agreement provides a public benefit in furtherance of benefit of such covenants 16 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 26 7/15/2025 touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 8. MISCELLANEOUS 8.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties with respect to the density bonus of the Project, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 8.2 Amendment. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council, or through the City Manager as detailed herein, and signed on behalf of each party. The City Manager shall have the authority to make approvals, issue interpretations, execute documents, waive provisions, and/or enter into amendments of this Agreement on behalf of City that further the intent of this Agreement. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City's review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Property in the Official Records of Orange County, California. 8.3 Notices. 8.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges prepaid and delivery scheduled next -day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party; or (vi) upon transmission thereof (as evidenced by the recipient's reply to such notice or other competent evidence of actual receipt) if transmitted by electronic transmission (email), provided that a copy of such notice is concurrently sent by first-class mail postage prepaid. All notices shall be addressed as follows: If to City: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 17 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 27 7/15/2025 Santa Ana, California 92702 Attention: Housing Manager With a copy to: Office of the City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 If to Developer: Olive Crest 2130 East Fourth Street, Santa Ana, California 92705 Attn: Donald Verleur 8.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 8.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 8.5 Interpretation and Governing Law. This Agreement and any dispute hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 8.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 8.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 8.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 8.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 8.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this 18 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 28 7/15/2025 Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business. 8.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 8.12 Non -Discrimination. In performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex, gender, gender identity, gender expression, marital status, sexual orientation, familial status, source of income, veteran or military status, age, national origin, ancestry, disability or genetic information, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 8.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 8.14 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, pandemics as declared by federal, state, or local emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 8.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 8.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof, and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 19 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 29 7/15/2025 8.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 8.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or to the extent allowed by law, in the federal court district covering the City, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 8.19 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property. 8.20 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and in the satisfaction of the Project and conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 8.21 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. 8.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density 20 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 30 7/15/2025 Bonus for Affordable Housing, and the terms and conditions of this Agreement. For the duration of the Term, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project. 8.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 8.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. {Signatures on following page} 21 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 31 7/15/2025 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement. ATTEST: Jennifer Hall City Clerk APPROVED AS TO FORM: 4L46..R P.1,, r By: Matthew R. Cody Special Counsel for the City RECOMMEND FOR APPROVAL: Michael Garcia Executive Director Community Development Agency CITY OF SANTA ANA Alvaro Nunez City Manager Olive Crest, a Californian nonprofit corporation 6 zo�-;;r By: 4Z1oN►tL8-Lt Z Its: C c v 22 2130 East Fourth Street Density Bonus Agreement 5539-'4.94;-�C4� -1 City Council 12 - 32 7/15/2025 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY APN: 400-091-23 Exhibit A to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 — 33 7/15/2025 EXHIBIT B TENANT VERIFICATION [SEE FOLLOWING PAGES] Exhibit B to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 — 34 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Inclusionary Unit Address: Head of Household (Print Name): Current Address (if different from above): Telephone Number: Home: Email address: Date of Birth: Work: Social Security # or TIN: Household Composition Cell: List All Household Members Living in the Inclusionary Unit Dependent Social Security # Name Sex Age (Y/N) or Taxpayer ID # List additional household members on a separate sheet of paper. Income Verification Form Page 1 Santa Ana, City Council 12 — 35 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Monthly Gross Income List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 1: Earned Income Other Head of Household Household Members Total 1. Gross wages, before payroll deductions and $ $ $ including overtime pay, commissions, fees, tips and bonuses. 2. Net income from self employment, independent $ $ $ contractor work or a business. 3. Social security and any payments from annuities, $ $ $ insurance policies, pension/retirement funds, disability or death benefits received periodically. 4. Payment in lieu of earnings, such as $ $ $ unemployment, disability compensation, worker's compensation and severance pay. 5. Public assistance, welfare payments $ $ $ 6. Alimony, child support, other periodic allowances $ $ $ 7. Regular pay, special pay and allowances of $ $ $ members of the Armed Forces 8. Other $ $ $ Subtotal: Monthly Earned Income $ Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income Income Verification Form Page 2 Santa Ana, City Council 12 — 36 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Monthly Gross Income * List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 2: Investment Income Total Other Adult Household Head of Household Investment Household Members Income 1. Interest paid on Bank and Savings accounts $ $ $ 2. Dividends and other payments from stocks and $ $ $ bonds 3. Income from real property (i.e. rental property) $ $ $ 4. Other (describe) $ $ $ Subtotal: Monthly Investment Income: $ Total Monthly Investment Income x 12 = $ Total Annual Household Investment Income *Note: The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience. Income Verification Form Page 3 Santa Ana, City Council 12 — 37 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Assets ** List the Current Value of All Assets of All Household Members Living in the Inclusionary Unit If the Asset generates income, that income must be specified In Part 2 above Head of Household Other Adult Household Members Total Value of Value Value Assets 1. Bank and Savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property (i.e. rental property) $ $ $ 4. Other (describe) $ $ $ Total Asset Value $ **Note: Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets. Collections of items for hobby, investment or business purposes must be included in household assets. If the total value of household assets exceeds $5,000, the calculation of the household's annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets. Income Verification Form Page 4 Santa Ana, City Council 12 — 38 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM If the total asset value exceeds $5,000, perform the calculations in the following table. If the total asset value is less than $5,000, the amount of investment income to be included in annual household income is $0. Calculation of Investment Income to be Included in Annual Household Income 1. Total Annual Household Investment Income $ 2. Total Asset Value $ x 10% $ The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $ Calculation of the Household's Total Annual Income Total Annual Household Gross Earned Income 1 $ Total Investment Income to be Included in Annual Household Income 1 $ Total Household Income 1 $ Documentation Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from three most recent pay periods Employment verification Three years Income tax returns for Title Holders Social security verification Alimony/child support verification Other (Describe) Bank/Savings account verification Self-employment verification Unemployment verification Welfare verification Disability income verification Income Verification Form Page 5 Santa Ana, City Council 12 — 39 7/15/2025 EXHIBIT "B" AFFIDAVIT This Affidavit is made with the knowledge that it will be relied upon by and the City of Santa Ana to determine maximum income for eligibility to purchase the Inclusionary Unit listed above. (1/we) warrant that all information set forth in this document is true, correct and complete and based upon information (1/we) deem reliable and based upon such investigation as (1/we) deemed necessary. (I/We) acknowledge that (1/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) purchase agreement and will additionally enable the seller to terminate the purchase contract and sell the Inclusionary Unit to another party. (I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an Inclusionary Unit located at Signature Printed Name Executed at Signature Printed Name ,Santa Ana, California. Date Santa Ana, California Date Executed at , Santa Ana, California Affidavit Page 6 Santa Ana, City Council 12 — 40 7/15/2025 EXHIBIT C ANNUAL TENANT RECERTIFICATION [SEE FOLLOWING PAGES] Exhibit C to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 — 41 7/15/2025 Exhibit "C" TENANT INCOME VERIFICATION FORM 2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE CITY OF SANTA ANA Table 1: Annual Household Gross Earned Income 1 List All Sources of Earned Income for all Adult Household Members Living in the Inclusionary Unit Other Adult Head of Household Household Members Total 1. Gross amount, before payroll deductions of $ $ $ wages, salaries, overtime pay, commissions, fees, tips and bonuses 2. Net income from business $ $ $ 3. Social security, annuities, insurance policies, $ $ $ pension/retirement funds, disability or death benefits received periodically 4. Payment in lieu of earnings, such as $ $ $ unemployment, disability compensation, worker's compensation and severance pay 5. Public assistance, welfare payments $ $ $ 6. Alimony, child support, other periodic $ $ $ allowances 7. Regular pay, special pay and allowances of $ $ $ members of the Armed Forces 8. Other $ $ $ Subtotal: Monthly Earned Income $ Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income 1 The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience. Administrative Procedures Manual Rental Residential Development Page 1 June 3, 2025 City Council 12 — 42 7/15/2025 Table 2A: Household Assets Z List the Value of All Assets Owned by all Adult Household Members Living in the Inclusionary Unit Head of Household Other Adult Household Members Total Return @ 10% of Total 1. Bank & savings accounts $ $ $ $ 2. Stocks and bonds $ $ $ $ 3. Real property $ $ $ $ 4. Other $ $ $ $ Table 213: Income Earned Annually from Household Assets List the Actual Annual Return on All Assets Owned by all Adult Household Members Living in the Inclusionary Unit Other Adult Head of Household Household Members Total 1. Bank and savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property $ $ $ 4. Other $ $ $ The return on Household assets to be included in the Gross Income calculation is set at the greater of the two amounts shown on the following page: 2 Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets. Collections of items for hobby, investment or business purposes must be included in household assets. Under California Government Code Section 6914, if the total value of household assets exceeds $5,000, the calculation of the household's annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets. Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Page 2 June 3, 2025 City Council 12 — 43 7/15/2025 Table 2C Annual Asset Income to be Added to Annual Household Gross Earned Income 10% Annual Return Actual Return Return to be Applied 1. Bank and savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property $ $ $ 4. Other $ $ $ Total Annual Return to be Added to Annual Household Gross Earned Income $ The total Gross Household Income is equal to the sum of the following: Table 3: Calculation of the Household's Total Annual Gross Income Annual Household Gross Earned Income (Table 1) $ Annual Asset Income (Table 2C) $ Total Annual Household Gross Income $ Income Documentation Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from two most recent pay periods Employment verification Income tax return Social security verification Alimony/child support verification Other (Describe) Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Bank/Savings account verification Self-employment verification Unemployment verification Welfare verification Disability income verification Page 3 June 3, 2025 City Council 12 — 44 7/15/2025 Exhibit "C" AFFIDAVIT This Affidavit is made with the knowledge that it will be relied upon by the City of Santa Ana, our landlord and the owner of our apartment building, to determine maximum income for eligibility. (1/we) warrant that all information set forth in this document is true, correct and complete and based upon information (1/we) deem reliable and based upon such investigation as (1/we) deemed necessary. (I/We) acknowledge that (1/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) rental agreement with the property owner to rent the unit and will additionally enable the property owner to initiate and pursue all applicable legal and equitable remedies with respect to the unit and to me/us. (I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an Inclusionary Unit located at Ana, California. Signature Printed Name Date Executed at , Santa Ana, California Signature Printed Name Executed at Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Date Santa Ana, California ,Santa Page 1 June 3, 2025 City Council 12 — 45 7/15/2025 EXHIBIT D ANNUAL RENTAL HOUSING COMPLIANCE REPORT [SEE FOLLOWING PAGES] Exhibit D to 2130 East Fourth Street Density Bonus Agreement 5539A.-1n�.1.A � City Council 12 — 46 7/15/2025 ANNUAL RENTAL RESIDENTIAL DEVELOPMENT COMPLIANCE REPORT 2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE CITY OF SANTA ANA Project Name: Project Address: Total Number of Units in the Project: Compliance Report Completed By: Phone Number: Date: Reporting Period: Number of Very Low Income Units: Unit # Household Name Household Size Household Income Number of Bedrooms Calculation of Net Monthly Rent Date First Occupied Date of Last Income Recertification Gross Rent Minus: Net Rent Other Utility Mandatory Allowance Payments AdministratGAtr e�gUrj�ua1: 12 — 47 7/15/2025 Page 1 Rental Residential Development 6/3/2025 VXAI<RIT V FORM OF NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza, 6th Floor Santa Ana, California 92702 Attn: Executive Director This document is exempt from payment of a recording fee pursuant to Government Code Sections 27383 and 6103. NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY This Notice of Affordability Restrictions on Transfer of Property (or "Notice of Affordability Restrictions") is executed and recorded pursuant to Section 65915 of the California Government Code, and affects that certain real property generally located at 2130 East Fourth Street, Santa Ana, California (APN 400-091-023) (hereafter, the "Property") as legally described in Exhibit A hereto ("Property"). The City of Santa Ana, a charter city and municipal corporation of the State of California (referred to hereafter as "City"), and Olive Crest, a California nonprofit corporation ("Developer/Property Owner") have entered into that certain Density Bonus Housing Agreement With Declaration of Covenants, Conditions and Restrictions, dated as of , 2025 ("Density Bonus Housing Agreement"). 1. The Density Bonus Housing Agreement provides for affordability restrictions and restrictions on the transfer of the Property, as more particularly set forth in the Density Bonus Housing Agreement. A copy of the Density Bonus Housing Agreement is on file with City as a public record and is deemed incorporated herein. Reference is made to the Density Bonus Housing Agreement with regard to the complete text of the provisions of such agreement and all defined terms therein, which provides for affordability restrictions and restrictions on the transfer of the Property. Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539nA n�rn .A 1 City Council 12 — 48 7/15/2025 2. For a period commencing upon the date on which the Affordable Unit receives all required occupancy permits from the City and terminating on the fifty- fifth (55th) anniversary thereof, the Property may only be transferred to another eligible, qualified Moderate Income Household at an Affordable Housing Cost; such restrictions are set forth at greater length in the Density Bonus Housing Agreement, which is expected to be recorded substantially concurrently herewith among the Official Records of Orange County, California. 3. Section 4.12 of the Density Bonus Housing Agreement provides as follows: "Notice of Affordability Restrictions on Transfer of Property. In the event of the sale or resale of an Affordable Unit during the Total Affordability Term, the City and the transferor shall execute and deposit into escrow, or record against the Affordable Unit, a Notice of Affordability Restrictions on Transfer of the Property as contained herein (Exhibit E). The sale or transfer of the Property, shall not be effective unless and until the City and the transferee execute the documents necessary to transfer the Density Bonus Agreement obligations from the transferor to the transferee." In the event that Developer/Property Owner desires to Transfer the Property during the Affordability Period, prior to the Transfer the owner shall notify City by delivering a Notice of Intent to Transfer to City, which shall indicate the identity of the proposed Transferee who desires to purchase the Property, whether the purchaser is a Moderate Income Household, and whether the sales price is at an Affordable Housing Cost. In addition to Homebuyer's and the proposed Transferee's delivery of the Notice of Intent to Transfer, the following procedure shall apply: a. Notice to City. Developer/Property Owner shall send the Notice of Intent to Transfer to City at the address set forth in the Density Bonus Housing Agreement. b. Qualification of Proposed Transferee. The proposed Transferee shall provide the City with sufficient information in the form provided by City including without limitation, a certification as to the income and family size of the proposed Transferee, for City to determine if the proposed Transferee is a Moderate Income Household, and the purchase price is at an Affordable Housing Cost. C. Certificates from Parties. Developer/Property Owner and proposed Transferee each shall certify in writing, in a form acceptable to City, that Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 49 7/15/2025 the Transfer shall be closed in accordance with, and only with, the terms of the sales contract and other documents submitted to and approved by City and that all consideration delivered by the proposed Transferee to owner has been fully disclosed to the City. The written certificate shall also include a provision that in the event a Transfer is made in violation of the terms of this Restriction or false or misleading statements are made in any documents or certificate submitted to City for its approval of the Transfer, City shall have the right to file an action at law or in equity to make the parties terminate and/or rescind the sales contract and/or declare the sale void notwithstanding the fact that the Transfer may have closed and become final as between Developer/Property Owner and Transferee. d. Written Consent of City Required Before Transfer. During the Affordability Period, the Property, and any interest therein, shall not be conveyed by any Transfer except with the express written consent of the City, which consent shall be given only if the Transfer is in accordance with the provisions of this Restriction. This provision shall not prohibit the encumbering of title for the sole purpose of securing financing of the purchase price of the Property. e. Notice of Prohibited Transfer. Within twenty (20) days after receiving notification of a proposed Transfer in accordance with Section 3a., the City shall determine and give notice to Developer/Property Owner as to whether the proposed Transfer is a Permitted Transfer or Prohibited Transfer. In the event that the proposed Transfer is a Prohibited Transfer, such notice to Developer/Property Owner shall specify the nature of the Prohibited Transfer. If the violation is not corrected to the satisfaction of the City within ten (10) days after the date of the notice, or within such further time as the City determines is necessary to correct the violation, the City may declare a Default under this Restriction. Upon the declaration of a Default, the City may apply to a court of competent jurisdiction for specific performance of this Restriction, for an injunction prohibiting a proposed sale or Transfer in violation of this Restriction, for a declaration that the Prohibited Transfer is void, or for any such other relief as may be appropriate. f. Delivery of Documents. Upon the close of the proposed Transfer, Developer/Property Owner and Transferee, as applicable, shall provide the City with a copy of the final sales contract, settlement statement, escrow instructions, all certificates required by this Section 3 and any other documents the City may request. 4. The restrictions contained in the Density Bonus Housing Agreement commence upon the date on which the Affordable Unit receives all required Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 50 7/15/2025 occupancy permits from the City and terminate on the fifty-fifth (55th) anniversary thereof. 5. The commonly known addresses for the Property is 2130 East Fourth Street, Santa Ana, CA. 6. The assessor's parcel numbers for the Property is 400-091-23 7. The legal description of the Property is attached hereto as Attachment No. 1 and is incorporated herein by reference. 8. The Density Bonus Housing Agreement, which includes the affordability restrictions referenced above, is expected to be submitted for recordation in the Office of the Orange County Recorder contemporaneously with this Notice of Affordability Restrictions. 9. The Density Bonus Housing Agreement remains in full force and effect and is not amended or altered in any manner whatsoever by this Notice of Affordability Restrictions. 10. Capitalized terms shall have the meaning established under the Density Bonus Housing Agreement (including all Attachments thereto) excepting only to the extent as otherwise expressly provided under this Notice of Affordability Restrictions. 11. Persons having questions regarding this Notice of Affordability Restrictions, the Density Bonus Housing Agreement or the Attachments thereto should contact the City at its offices (20 Civic Center Plaza, Santa Ana, California 92701, or such other address as may be designated by the City from time to time). Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 51 7/15/2025 ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO, City Attorney City Attorney Dated: DEVELOPER/ PROPERTY OWNER: By: Printed Name: [Signature to be acknowledged] THE CITY OF SANTA ANA 0 Executive Director, Community Development Agency Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 — 52 7/15/2025 DENSITY BONUS AGREEMENT NO. 2025-03 FOR THE PROPERTY LOCATED AT 2130 EAST FOURTH STREET LOCATED WITHIN THE VILLAGE CENTER DISTRICT OF THE METRO EAST MIXED USE OVERLAY (MEMU). (CONTINUED FROM JUNE 9, 2025) Project Applicant: Donald Verleur (Applicant) representing Olive Crest (Property Owner). Proposed Project: Request for approval of Density Bonus Agreement No. 2025-03 to construct a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI). As proposed, the project will utilize concessions and a waiver or reduction to deviate from development standards through the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41- 1600 through 41-1607. Environmental Impact: Pursuant to the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15168 (Program EIR) of the CEQA Guidelines. Categorical Exemption Environmental Review No. 2023-94 will be filed for this project. RESOLUTION NO. 2025-XX A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTAANA APPROVING THREE (3) CONCESSIONS AND A WAIVER OR REDUCTION OF DEVELOPMENT STANDARDS PURSUANT TO STATE DENSITY BONUS LAW TO BE MEMORIALIZED IN DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN -UNIT MULTI -FAMILY DEVELOPMENT FOR THE PROPERTY LOCATED AT 2130 EAST FOURTH STREET (APN: 400-091-23) Recommended Action: Adopt a resolution approving concessions and a waiver or reduction in a development standard as memorialized in Density Bonus Agreement No. 2025- 03, as conditioned. City Council 12 — 53 7/15/2025 Planning and Building Agency Item # 1 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Planning Commission Staff Report June 23, 2025 Topic: Density Bonus Agreement No. 2025-03 — Olive Crest at 2130 East Fourth Street RECOMMENDED ACTION Adopt a resolution approving concessions and a waiver or reduction in a development standard as memorialized in Density Bonus Agreement No. 2025-03, as conditioned. EXECUTIVE SUMMARY Donald Verleur ("Applicant"), with Olive Crest ("Property Owner"), is requesting approval of Density Bonus Application (DBA) No. 2025-03 to allow the construction of a fifteen -unit multi- family residential development, including three units proposed as affordable to very low- income households earning less than 30-50 percent of the area median income (AMI), at the property located at 2130 East First Street ("Project"). As proposed, the Project will utilize concessions and a waiver or reduction to deviate from development standards through the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607. Staff recommends approval of the Applicant's request as the Project meets the General Plan goals and policies and will contribute to the City's housing stock through the production of rental housing units. Additionally, the Project contributes to the community's affordable housing stock, aims to provide housing for at -risk young adults, represents a significant reinvestment in an underutilized site, and does not result in adverse environmental impacts or serious public health concerns. DISCUSSION Table 1: Project and Location Information Item Information Project Address and Council Ward 2130 East Fourth Street — Ward 3 Nearest Intersection Fourth Street and Golden Circle Drive General Plan Designation District Center — Medium High (DC-3) Zoning Designation Professional (P); Village Center District within the Metro East Use Overly Zone (MEMU) City Council 12 — 54 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 2 Item Information North Professional Offices East Medical and Professional Offices Surrounding Land Uses South Multifamily Residential West Professional Offices Property Size Gross Area: 2.64 acres 115,029 square feet Net Area: 0.32 acres 13,801 square feet 53,089-square-foot (gross floor area) office building occupied by Existing Site Development Olive Crest offices, and surface parking lot. There's 31,266 square feet of useable office area, including 16,359 square feet on the first floor and 14,907 square feet on the second floor. Use Permissions Multi -Family Residential (permitted under MEMU, as part of SB 330 request) Uses Article XVI.I (Density Bonus); Village Center District Zoning Code Sections Affected within the Metro East Mixed Use Overlay Zone (MEMU); Background and Context The Project's site is currently developed with a two-story, 53,089-square-foot office building and parking lot, both constructed in the early 1970s. Since its development, the office building has been occupied by various professional and medical office uses. More recently, the building has been occupied by mortgage brokers, commercial real estate, financial consultants, law firms, medical offices, and counseling services. Olive Crest is a nonprofit organization founded in 1973 that offers a range of services, including foster care, adoption, counseling, and parent education programs, aiming to strengthen families and provide safe, loving homes for children in need. Between 1973 and 1993, the Olive Crest office was located at the Northpark Plaza, at 1201-1223 E. Seventeen Street. From 1993 through 1995, their offices were located in the City of Anaheim. In 1995, Olive Crest permanently moved their headquarters to 2130 East Fourth Street, Unit 100. In the past year, all previous tenant leases have expired or not been renewed and Olive Crest is the sole occupant of the building. California Senate Bill 330 The Applicant is proposing a "housing development project," defined by Government Code Section 65589.5(h) as "a use consisting of residential units only, mixed use development consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use, and transitional housing or supportive housing." As such, the subject development will be subject to the limitations imposed by California Senate Bill (SB) 330, the Housing Crisis Act of 2019 or the HCA. SB 330 made numerous changes to existing State law and adopted the Housing Crisis Act of 2019. The changes proposed by SB 330 became effective on January 1, 2020, City Council 12 — 55 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 3 establishing a statewide "housing emergency" until January 1, 2025. One of the provisions of the Senate Bill amended Government Code Section 65941.1 with the broad goals of facilitating increased production of new residential units, protecting existing units, and providing for an expedited review and approval process for housing development projects through submittal of a "preliminary application." On January 1, 2022, the HCA was extended until January 1, 2030, with the passage of Senate Bill 8. Among other changes, SB 330 requires the following for applicable housing development projects: New, non-objective development standards established after January 1, 2020, cannot be imposed or enforced. Applicable housing development projects must receive a decision in no more than five (5) public hearings - whether the item is being heard by a Design Review Board, Planning Commission or City Council, and including any appeals (save for those related to a legislative action). Prohibits any moratorium, project or action that would result in a net downzoning, limit the number of permits to be issued, or otherwise reduce housing or limit overall population. As a "housing development project," the application is being submitted pursuant SB 330. The development is required to comply with the objective zoning code standards applicable to the property, but only to the extent that they facilitate the development at the density allowed, 90 dwelling unit per acre (du/ac) per the District Center — Medium High (DC-3) General Plan land use designation. On August 1, 2023, the Applicant submitted an SB 330 Preliminary Application for the proposed Project, which was deemed complete on August 17, 2023. Typically, in order to exercise the option to develop a multi -family residential project under the Metro East Use Overly Zone (MEMU), a project would require a Site Plan Review (SPR) application to be reviewed and approved by the Planning Commission, pursuant to Sections 2.3 and 8.1 of the MEMU. This is typically the requirement given that the underlying zoning designations within the MEMU area are commercial (e.g., Community Commercial "Cl" or Arterial Commercial "C5") or Professional (P), which do not allow residential or mixed -use projects. However, as an SB 330 project, the Applicant can propose to develop per the underlying DC-3 General Plan land use designation, which permits standalone residential and mixed -used projects, without having to rezone the subject property and without being subject to additional entitlements to "activate" the MEMU. As such, the proposed Project is not subject to the SPR requirements outlined in the MEMU. Although not subject to an SPR, the Project has been carefully designed to be consistent with the Village Center (VC) district standards outlined in the MEMU, with exception of the requested concessions and waiver or reduction through the density bonus agreement, which are discussed in subsequent sections in this report. City Council 12 — 56 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 4 Project Description The development will consist of two identical, two-story buildings each 7,976 square feet in size, to be located towards the rear (south) of the existing site. As outlined in Exhibit 4, the Project would be developed with a gross density of 5.68 dwelling units per acre (du/ac) and a net density of 46.87 du/ac, well below the permitted 90 du/ac by the DC-3 land use designation. The units are designed as flats/apartments with Building Al having seven two - bedroom units and an area dedicated as Common Area, to include a community room, office, bathroom, and laundry area. Building A2 would include eight two -bedroom units. The unit sizes will vary between 761 and 785 square feet, and each unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas. As previously described, the Project will include affordable units, with three units designated for very low-income households earning 30-50 percent of the AMI which is currently $84,600 for a four -person household, as determined by the California Department of Housing and Community Development (HCD). Two affordable units would be included in Building A2, and would be 785 square feet in size. The additional affordable unit would be included in Building Al and would be 761 square feet in size. Like the market rate units, each affordable unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas, ensuring a high standard of living for future residents. The Project incorporates a combination of a contemporary/Mediterranean architectural style consistent with many multi -family and mixed -use residential communities currently under construction in Santa Ana and the surrounding region. The overall design, massing, materials, and architectural features are intended to be compatible with, yet distinct from multi -family residences existing and currently under construction in the MEMU. The architectural style is characterized by a combination stucco walls painted in a warm earth tone color, natural stone wainscoting along the building base, decorative louvers, window trims, and exposed rafter tails. Table 2 below details the Project's conformance to the MEMU development standards. Table 2: Development Standards Development Standards MEMO Standard Required/Allowed Provided Use Mixed -use Horizontal mixed -use (multi- family and professional offices) Density 90 du/ac 5.68 du/ac (net) and 46.87 du/ac (gross) Lot Size 30,000 square feet 115,029 (2.67 acres) Floor Area Ratio (FAR) 3.00 FAR 0.38 FAR Building Height Six stories (max.) Two stories Minimum Floor Heights 9-15 Feet 9'-l" ground; 9'-l" upper City Council 12 — 57 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 5 Standard Required/Allowed Provided East side yard: 5 feet (min.) East side yard: 10 feet (min.) Rear: 5 feet (min.) Rear: 10 feet (min.) Setbacks Internal aisle: 3 feet (min.) Internal aisle: 3 feet (min.) Adjacent to parking: 7 feet (min.) Adjacent to parking: 7 feet (min.) Building to building: 6 feet min. Building to building: 10 feet Frontage Type Front Porch, Stoop, Forecourt, Shop Arcade frontage provided. Front, Gallery, or Arcade Publicly Accessible Open 10-percent of the gross site area None provided. — Requires Space 11,503 square feet Concession, Incentive, or Waiver Common: Five -percent of the total development site area (gross area) 1.4 percent of the lot Common Open Space for nonresidential uses (5,062 square (1,430 square feet) — Requires feet) Concession, Incentive, or Waiver) Private Open Space 90 square feet per unit None provided. — Requires 1,350 square feet Concession, Incentive, or Waiver Residential: 2.25 spaces per unit (34 spaces required) Non-residential: 3 spaces/ 1,000 Residential: Zero spaces per unit square feet (94 spaces required) Non-residential: 136 spaces Parking Spaces Total: 128 spaces required Total: 136 State Density Bonus Ratio* Requires Concession, Incentive, or Residential: 23 spaces (1.5 per 2 Waiver bedroom units) * Pursuant to California Government Code Section 65915-65918 Density Bonus Law As part of the Project, the Applicant is seeking concessions allowable by the California Density Bonus law which allow developers proposing five or more residential units to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers, which are essentially variances from development standards that would help the Project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers or reductions for affordable or mixed -income developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. City Council 12 — 58 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 6 For this Project, the developer is not requesting a State density bonus for additional units but will avail themselves of the incentive/concessions and waiver or reductions that are required to be provided by State density bonus law for projects with the requisite affordability. Due to the Project's twenty -percent (20%) affordability rate, the developer can seek three density bonus incentive/concessions and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus Law originally adopted in 1979 to provide additional benefits for projects that include qualifying affordable housing. The purpose of the State Density Bonus Law is to encourage the development and availability of affordable housing. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested incentives, concessions, and waivers. The City has analyzed the Project and has identified several areas of potential impacts; however, the conditions of approval proposed for the Project are intended to address the Project's potential impacts. Table 3: Requested Concessions and Waiver Standard Required by MEMU Provided No publicly accessible open space Publicly Accessible Open Ten -percent of the gross site provided. Requires Concession (1 of Space area (115,029 square feet) 3), Cal. Gov't Code Sec. 65915 d 2 C • 90 square feet per unit No private open space provided. Private Open Space (1,350 square feet); and Requires Concession (2 of 3), Cal. Gov't Code Sec. 65915 (d)(2)(C) Residential: 34 spaces • Non-residential: 94 0 Zero spaces provided for residential spaces units proposed. Parking Requirements Total required: 128 0 136 parking spaces provided for spaces non-residential. • Total residential required Requires Concession (3 of 3), Cal. by State Density Bonus: Gov't Code Sec. 65915 (d)(2)(C) 23 s aces • Five -percent of the gross Common open space provided at site area for rate of 1.4-percent of the gross site Common Open Space nonresidential uses area (1,430 square feet) Requires (5,062 square feet) Waiver, Cal. Gov't Code Sec. 65915 (e) (1) Onsite Parking To accommodate the Project, the Applicant is proposing to reduce the overall onsite parking from 163 to 136 parking stalls, a reduction of 27 spaces. The office building's gross floor area is approximately 53,089 square feet, inclusive of corridors, walkways, stairwells, etc. The useable office floor area is approximately 31,266 square feet, with 16,359 square feet City Council 12 — 59 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 7 on the first floor and 14,907 square feet on the second floor. Pursuant to the City's off-street parking requirements, the office building requires a total of 94 parking stalls. Moreover, the required residential parking pursuant to the State Density Bonus requirements would be 23 spaces. Therefore, the total required parking for the Project would be 117 parking spaces. The Applicant is proposing a total of 136 surface parking stalls, which would be a surplus of 19 parking stalls. Given the above parking analysis, the Project is not anticipated to have any parking impacts. However, to proactively address any neighborhood parking impacts that could result from the Project, the conditions of approval and terms of the DBA include provisions requiring the following parking management practices, to be incorporated into the Project and which shall apply throughout the life of the Project: Requiring onsite parking permits (such as stickers or hang -tags) for any parking dedicated to the residential units, inclusive of guest parking spaces; Policies for maximum time vehicles may be parked in the surface guest spaces; and Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang - tag, or other identifiers; and vehicles parked longer than any maximum guest parking timeframes allowed. Protect Analysis Pursuant to SAMC Section 41-1607, the Planning Commission must review and approve deviations based on specified findings. The Planning Commission's approval of the deviations is based on the following: The proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city. 2. The development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. 3. The deviation is necessary to make it economically feasible for the applicant to utilize a density bonus authorized for the development pursuant to section 41- 1603. City Council 12 — 60 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 8 Table 4: Analysis of the Requested Concessions (3) and Waiver (1) Standard Analysis Section 4.5 (Publicly Accessible Open Space) of the MEMU states that a minimum of ten -percent of the gross site area (115,029 square feet) is required to be dedicated to publicly accessible open space. Instead, the Project provides no accessible open space. Providing the required publicly accessible open space would reduce the total number of units that can be developed, reduce the overall number of surface parking on the site, and/or impact the drive aisle area, compromising the Project's feasibility and safety for residents and emergency responders. Moreover, given the existing office building development location, limited drive aisle width along Fourth Street, and the overall site configuration, providing publicly accessible open space would be physically infeasible. It would require physically altering/reducing the existing office building along the Fourth Street Publicly Accessible frontage to allow for the required plaza, courtyard, or other publicly accessible Open Space open space area. (Incentive/Concession) Therefore, the site cannot accommodate the publicly accessible open space required without making the Project financially infeasible. This would likely lead to a reduced unit count, smaller unit sizes, or a narrower drive aisle, creating a multiplying effect that ultimately decreases the size of the buildings. The units have been carefully designed to balance common areas and bedroom space, and any further reduction could compromise livability for future owners. Moreover, if the Project becomes financially unviable, it could result in the loss of the three affordable units. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park, which is located approximately 4,500 linear feet (0.85 miles) to the southwest of the project site, and Cabrillo Park, which is approximately 2,400 linear feet (0.45 miles) to the northwest of the project site. The close proximity of the City park space reduces the overall impact of the concession for the publicly accessible open sace. Section 4.6 (Private/Common Open Space) of the MEMU indicates that the minimum required private open space is 90 square feet per dwelling unit. As proposed, the Project does not provide any private open space for the units. The most direct approach to meeting the minimum private open space requirement would involve constructing balconies, patios, terraces, or rooftop decks for each unit. This requirement would not only compromise the livability Private Open Space but also reduce the sense of privacy for residents, as the anticipated residents (Incentive/Concession) would include transitional age youth (TAY), who often includes individuals who are aging out of foster care, exiting the juvenile justice system, or experiencing homelessness, mental health challenges, or other vulnerabilities. Additionally, constructing balconies, patios, terraces, or rooftop decks for each unit would be economically infeasible and the strict adherence would lead to the elimination of residential units, which would affect the feasibility to construct the Project. Staff notes that the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles City Council 12 — 61 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 9 Standard Analysis away. The close proximity of the City park space reduces the overall impact of the concession for the private open space requirement. Section 4.8 (Parking and Access) of the MEMU outlines parking requirements for mixed -use developments in the Village Center district of the MEMU. Specifically, as a mixed -use project site the overall development requires 34 parking spaces for the residential component (2.25 spaces per unit) and 94 spaces for the office component (3 spaces per 1,000 square feet), a total of 128 spaces. The total required residential parking pursuant to the State Density Bonus is 23 spaces (1.5 spaces per 2 bedroom unit). Therefore, the total parking required with the State Density Bonus parking requirements would be 117 spaces. The Applicant is proposing a total of 136 surface parking stalls, which would be a surplus of 19 parking stalls. Therefore, the Project is not anticipated to have any parking impacts. Staff notes that the Applicant is requesting a concession from the parking requirements for the residential component, due to the financial constraints and hardships associated with meeting building code requirements for new parking. Parking Requirements The primary concern would be the financial burden associated with complying (Incentive/Concession) with the electric vehicle charging stations requirements. For multi -family dwellings, forty -percent of total parking spaces must be equipped with low - power Level 2 Electric Vehicle (EV) charging receptacles and ten -percent of parking spaces must have Level 2 Electric Vehicle Supply Equipment (EVSE) installed. EVSE refers to the charging infrastructure that delivers electrical energy from the grid to an electric vehicle (EV). In order to meet these EV charging requirements, an upgrade to the existing electrical infrastructure would be required, including the installation of a larger transformer in compliance with Southern California Edison (SCE) standards. However, such an upgrade presents a significant financial challenge. The costs associated with transformer upgrades including design, permitting, utility coordination, and construction, can exceed hundreds of thousands of dollars. Furthermore, the process is often time consuming and subject to extended delays due to SCE's backlog and project review protocols. Given these high costs and logistical barriers, the transformer upgrade necessary to comply with EVSE requirements would be financially infeasible for the Applicant and would lace an undue hardship on the development of the residential project. Section 4.6 (Private/Common Open Space) of the MEMU indicates that a minimum of five -percent of common open space is required for non-residential uses (i.e., office), which would result in a requirement of 5,062 square feet. As proposed, the Project includes common open space at rate of 1.4-percent of Common Open Space the gross site area, which equates to 1,430 square feet. (Waiver) Strict adherence to the common open space requirement would result in a reduction in the number of units that can be provided in the overall Project, affecting the feasibility to construct the Project. In order to provide the required common opens ace and maintain the current proposed unit count, the City Council 12 — 62 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 10 Standard Analysis developer would be required to remove additional surface parking stalls on the site, which would which would create overall parking constraints on the site and would further increase development costs making the Project economically infeasible. To help alleviate the common open space deficiency, the Project proposes a 761-square-foot community area to include a community room, office, bathroom, and laundry area. Moreover, the 1,430 square feet of outdoor open space would be improved with high quality decorative pavers, synthetic turn lawn, moveable furnishings, and landscaping. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles away. The close proximity of the City park space reduces the overall impact of the waiver for the open space requirement. Based on the analysis provided within this report, the proposed development will materially assist in accomplishing the goal of providing additional affordable and market -rate rental housing stock in the city and will consistent with the applicable designation in the general plan land use element. In addition, the proposed deviations are necessary to make the Project economically feasible pursuant to section 41-1603. General Plan Consistency The proposed Project aligns with several goals and policies of the City of Santa Ana's General Plan. Goal LU-1 of the Land Use Element (LU) seeks to provide a land use plan that enhances quality of life while respecting the existing community. By introducing high - quality, service -enriched housing for transitional aged youth (TAY), the Project would improve quality of life for both future residents and the broader community. The development activates an underutilized site adjacent to Olive Crest's Children and Family Resource Center, and introduces a compatible residential use that is consistent in scale and form with the surrounding neighborhood. This supports Policy LU-1.1, which promotes compatible land uses to enhance livability and promote a healthy lifestyle. The Project furthers the City's goal of diversifying the housing stock by providing transitional supportive housing tailored to the unique needs of TAY, a population with limited access to stable housing. This aligns with Policy LU-1.5, which encourages quality infill residential development that includes diverse housing types for all income levels and age groups. By focusing specifically on youth emerging from foster care, homelessness, or other housing -insecure circumstances, the Project offers a deeply needed housing solution that expands the City's capacity to accommodate all residents, regardless of income or background. Additionally, the development promotes inclusive neighborhoods, supporting Policy LU-4.7, which encourages mixed -income developments and housing variety to foster economically diverse communities. City Council 12 — 63 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 11 From a housing policy perspective, the Project is also consistent with key objectives in the Housing Element. Goal HE-2 promotes the development of a diverse range of high - quality housing options to meet the needs of residents across all household types, ages, and income levels. The Project responds to this goal by providing fifteen units in a shared housing configuration, designed specifically for young adults who are experiencing or at risk of homelessness. This development adds to the City's housing diversity and helps fill a critical service gap. In addition, the Project supports Policy HE-2.5, which calls for a variety of housing types, prices, and sizes. The shared living design and supportive services component offer a unique living experience that goes beyond traditional housing models and contributes meaningfully to the diversity of the City's housing inventory. The development leverages partnerships, services, and community -based programming to deliver housing that is both deeply affordable and holistically supportive. Overall, the Project is thoughtfully designed to meet the immediate and long-term needs of a vulnerable population while advancing the City of Santa Ana's goals for inclusive, complete, and livable neighborhoods. It represents a high -quality infill project that adds to the city's housing diversity and contributes to long-term community stability. Affordable Housing Opportunity and Creation Ordinance The Project exceeds the affordable housing goal for the rental category of the City's Affordable Housing Opportunity and Creation Ordinance (AHOCO) by 100-percent, by providing three (3) onsite units designated for households earning 30-50 percent of the AMI (very low-income), which is currently set at $84,600 for a four -person household. Two affordable units would be included in Building A2, and would be 785 square feet in size. The additional affordable unit would be included in Building Al and would be 761 square feet in size. Each affordable unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas, ensuring a high standard of living for future residents. The developer's Inclusionary Housing Plan has been reviewed and approved by the City's Housing Division. Public Notification and Community Outreach Project notifications were posted, published, and mailed in accordance with City and State regulations. Copies of the public notice, including a 1,000-foot notification radius map, and the site posting are provided in Exhibit 9. The site is located within the boundaries of the Zoo District neighborhood and adjacent to the Lyon Street neighborhood. The neighborhood association representatives were contacted to identify any areas of concern due to the proposed application request. At the time this report was printed, no additional issues of concern were raised. City Council 12 — 64 7/15/2025 DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 12 ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines, the proposed Project is exempt from further environmental review under Section 15168 (Program EIR). This exemption applies when a previously certified Program Environmental Impact Report (Program EIR) has adequately analyzed the environmental effects of an activity, and no new significant impacts would result from the proposed Project. If the proposed Project remains within the scope of the Program EIR and does not require a subsequent Environmental Impact Report (EIR), no additional environmental documentation is required. Therefore, a Notice of Exemption, Environmental Review No. 2023-94, will be filed for the Project. EXHIBITS 1. Resolution 2. Vicinity Zoning and Aerial View 3. Site Photos 4. Site Plan 5. Floor Plans 6. Elevations 7. Conceptual Landscape Plan 8. Draft Density Bonus Agreement 9. Copy of Public Notice Submitted By: Pedro Gomez, AICP, Principal Planner Approved By: Ali Pezeshkpour, AICP, Acting Executive Director, Planning and Building Agency City Council 12 — 65 7/15/2025 RESOLUTION NO. 2025-XX A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING THREE (3) CONCESSIONS AND A WAIVER OR REDUCTION OF A DEVELOPMENT STANDARD PURSUANT TO STATE DENSITY BONUS LAW TO BE MEMORIALIZED IN DENSITY BONUS AGREEMENT NO. 2025-03 TO ALLOW A FIFTEEN - UNIT MULTI -FAMILY DEVELOPMENT FOR THE PROPERTY LOCATED AT 2130 EAST FOURTH STREET (APN: 400-091-23) BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Donald Verleur ("Applicant"), with Olive Crest ("Property Owner"), is requesting approval of Density Bonus Application (DBA) No. 2025-03 to allow the construction of a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI), at the property located at 2130 East First Street ("Project"). B. California Senate Bill 330, the Housing Crisis Act of 2019 (HCA), amending the Permit Streamlining Act and the Housing Accountability Act, became effective on January 1, 2020, and established a statewide "housing emergency" until January 1, 2025. C. On January 1, 2022, the HCA was extended until January 1, 2030, with the passage of Senate Bill 8. D. The proposed development is being submitted as a Senate Bill No. 330 (SB 330) application. In consultation with City Staff, the Applicant has selected the Village Center district zoning designation within the Metro East Use Overly Zone (MEMU) as the proposed zoning for the Project. E. As an SB 330 project, the Project is not subject to the Site Plan Review requirements pursuant to Sections 2.3 and 8.1 of the MEMU. The Project will be developed pursuant to the underlying District Center -Medium High (DC-3) General Plan land use designation. F. The MEMU was adopted in 2007 to encourage mixed -use residential and commercial development. The overlay district was later expanded in 2018. The regulating plan, which establishes land uses and development Resolution No. 2025-XX City Council 12 — 66 7/1 2 f 13 standards, allows a variety of housing projects, including multi -family and mixed -use residential communities, as well as live/work units. G. The proposed Project conforms to a majority of the development standards of the Village Center district of the MEMU with the exception of publicly accessible open space, private/common open space, building frontage, and parking requirements. The Applicant is seeking concessions or incentives, and a waiver or reduction in development standards pursuant to Section 65915 of the California Government Code. H. The California Density Bonus law allows developers to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek incentives/concessions or waivers or reduction of development standards. The Applicant's request has been evaluated by the City's Development Review Committee ("DRC") through Development Project No. 2023-32. Through this review, the DRC has considered the subject site, proposed development, and the Applicant's request for concessions, incentives, and waiver or reduction in a development standard. J. On June 23, 2025, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral. K. Section 41-1607 of the Santa Ana Municipal Code (SAMC) requires that deviations (incentives/concessions and/or waivers or reductions) be approved by the Planning Commission. L. The Planning Commission determined that the following findings, which must be established in order to grant a deviation pursuant to SAMC Section 41-1607 have been established for Density Bonus Agreement No. 2025-03 to allow construction of the proposed Project: 1. That the proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city. The proposed Project will provide fifteen rental housing units, including three units designated for very low-income households earning between 30-50 percent of the Area Median Income (AMI). This affordability commitment exceeds the goals of the City's Affordable Housing Opportunity and Creation Ordinance (AHOCO) by 100-percent. Moreover, the Project will serve transitional aged youth (TAY), a vulnerable population that includes individuals aging out of foster care, Resolution No. 2025-XX City Council 12 — 67 7/1 gFRif 13 exiting the juvenile justice system, or experiencing homelessness. By expanding the City's rental housing stock for deeply affordable housing the Project will contribute to the City's efforts to provide economically inclusive, balanced communities and will help address a critical service gap identified in the General Plan Housing Element. Moreover, by introducing affordable housing the Project contributes to an economically balanced community, ensuring that individuals and families across different income levels and demographics have access to quality housing. Lastly, its strategic location within an area rich in employment opportunities, commercial developments, and existing market -rate housing further enhances its role in fostering a well-rounded, sustainable, and thriving urban environment. 2. That the development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. The Project is located within the District Center — Medium High (DC-3) General Plan designation and the Professional (P) zone within the Metro East Mixed Use (MEMU) Overlay Zone. While the base zoning is oriented toward professional and office uses, the MEMU overlay and the City's compliance with State Senate Bill 330 allow for residential development consistent with the DC-3 land use designation. The DC-3 designation is intended to support urban, mixed - use, and employment centers that are well connected to public transportation and provide opportunities for new urban - scale development. It encourages a mix of uses, including medium to urban density housing types (e.g., condominiums, apartments, and townhomes), professional and multilevel corporate offices, as well as retail, cultural, and recreational amenities. Both horizontal and vertical mixed -use configurations are permitted, supporting integrated urban neighborhoods. The Project is consistent with the DC-3 designation as it introduces a fifteen -unit multi -family residential development, including three units designated for very low-income households, on a site currently occupied by professional offices. The development represents a horizontal mixed -use configuration, with residential units integrated alongside the existing Olive Crest office facilities. Resolution No. 2025-XX City Council 12 — 68 7/1 f 13 The Project maintains compatibility with surrounding uses, including nearby medical and professional offices, as well as multifamily residential to the south, while promoting transit accessibility and walkability. Moreover, the Project's scale, design, and mix of uses advance the goals of the DC-3 designation by supporting infill housing, expanding residential opportunities in an employment -rich area, and contributing to a vibrant, urban activity center. The proposed density, at 46.87 du/ac is well within the 90 du/ac maximum allowed under the DC-3 designation, further reinforcing consistency with the General Plan. 3. That the deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603. The proposed Project requires three deviations through incentives/concessions: publicly accessible open space, private open space, and parking requirements; as well as one deviation from a waiver in the common open space requirements. The four deviations are described as follows: Publicly Accessible Open Space (Incentive/Concession) Section 4.5 (Publicly Accessible Open Space) of the MEMU states that a minimum of ten -percent of the gross site area (115,029 square feet) is required to be dedicated to publicly accessible open space. Instead, the Project provides no accessible open space. Providing the required publicly accessible open space would reduce the total number of units that can be developed, reduce the overall number of surface parking on the site, and/or impact the drive aisle area, compromising the Project's feasibility and safety for residents and emergency responders. Moreover, given the existing office building development location, limited drive aisle width along Fourth Street, and the overall site configuration, providing publicly accessible open space would be physically infeasible. It would require physically altering/reducing the existing office building along the Fourth Street frontage to allow for the required plaza, courtyard, or other publicly accessible open space area. Therefore, the site cannot accommodate the publicly accessible open space required without making the Project financially infeasible. This would likely lead to a reduced unit Resolution No. 2025-XX City Council 12 — 69 7/1 MffRf 13 count, smaller unit sizes, or a narrower drive aisle, creating a ripple effect that ultimately decreases the size of the buildings. The units have been carefully designed to balance common areas and bedroom space, and any further reduction could compromise livability for future owners. Moreover, if the Project becomes financially unviable, it could result in the loss of the three affordable units. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park, which is located approximately 4,500 linear feet (0.85 miles) to the southwest of the project site, and Cabrillo Park, which is approximately 2,400 linear feet (0.45 miles) to the northwest of the project site. The close proximity of the City park space reduces the overall impact of the concession for the publicly accessible open space. Private Open Space (Incentive/Concession) Section 4.6 (Private/Common Open Space) of the MEMU indicates that the minimum required private open space is 90 square feet per dwelling unit. As proposed, the Project does not provide any private open space for the units. The most direct approach to meeting the minimum private open space requirement would involve constructing balconies, patios, terraces, or rooftop decks for each unit. This requirement would not only compromise the livability but also reduce the sense of privacy for residents, as the anticipated residents would include transitional age youth (TAY), who often includes individuals who are aging out of foster care, exiting the juvenile justice system, or experiencing homelessness, mental health challenges, or other vulnerabilities. Additionally, constructing balconies, patios, terraces, or rooftop decks for each unit would be economically infeasible and the strict adherence would lead to the elimination of residential units, which would affect the feasibility to construct the Project. Staff notes that the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles away. The close proximity of the City park space reduces the overall impact of the concession for the private open space requirement. Resolution No. 2025-XX rl t 13 City Council 12 — 70 7/1 Parking Requirements (Incentive/Concession) Section 4.8 (Parking and Access) of the MEMU outlines parking requirements for mixed -use developments in the Village Center district of the MEMU. Specifically, as a mixed - use project site the overall development requires 34 parking spaces for the residential component (2.25 spaces per unit) and 94 spaces for the office component (3 spaces per 1,000 square feet), a total of 128 spaces. The total required residential parking pursuant to the State Density Bonus is 23 spaces (1.5 spaces per 2 bedroom unit). Therefore, the total parking required with the State Density Bonus parking requirements would be 117 spaces. The Applicant is proposing a total of 136 surface parking stalls, which would be a surplus of 19 parking stalls. Therefore, the Project is not anticipated to have any parking impacts. Staff notes that the Applicant is requesting a concession from the parking requirements for the residential component, due to the financial constraints and hardships associated with meeting building code requirements for new parking. The primary concern would be the financial burden associated with complying with the electric vehicle charging stations requirements. For multi -family dwellings, forty -percent of total parking spaces must be equipped with low -power Level 2 Electric Vehicle (EV) charging receptacles and ten -percent of parking spaces must have Level 2 Electric Vehicle Supply Equipment (EVSE) installed. EVSE refers to the charging infrastructure that delivers electrical energy from the grid to an electric vehicle (EV). In order to meet these EV charging requirements, an upgrade to the existing electrical infrastructure would be required, including the installation of a larger transformer in compliance with Southern California Edison (SCE) standards. However, such an upgrade presents a significant financial challenge. The costs associated with transformer upgrades including design, permitting, utility coordination, and construction, can exceed hundreds of thousands of dollars. Furthermore, the process is often time consuming and subject to extended delays due to SCE's backlog and project review protocols. Given these high costs and logistical barriers, the transformer upgrade necessary to comply with EVSE requirements would be financially infeasible for the Applicant and would place an undue hardship on the development of the residential project. Resolution No. 2025-XX 13 City Council 12 — 71 7/1 f Common Open Space (Waiver) Section 4.6 (Private/Common Open Space) of the MEMU indicates that a minimum of five -percent of common open space is required for non-residential uses (i.e., office), which would result in a requirement of 5,062 square feet. As proposed, the Project includes common open space at rate of 1.4-percent of the gross site area, which equates to 1,430 square feet. Strict adherence to the common open space requirement would result in a reduction in the number of units that can be provided in the overall Project, affecting the feasibility to construct the Project. In order to provide the required common open space and maintain the current proposed unit count, the developer would be required to remove additional surface parking stalls on the site, which would which would create overall parking constraints on the site and would further increase development costs making the Project economically infeasible. To help alleviate the common open space deficiency, the Project proposes a 761-square-foot community area to include a community room, office, bathroom, and laundry area. Moreover, the 1,430 square feet of outdoor open space would be improved with high quality decorative pavers, synthetic turn lawn, moveable furnishings, and landscaping. Lastly, the overall site design and proposed amenities took into account the proximity of the City of Santa Ana Zoo/Prentice Park and Cabrillo Park, which are located approximately 0.85-miles and 0.45-miles away. The close proximity of the City park space reduces the overall impact of the waiver for the open space requirement. Section 2. Pursuant to the California Environmental Quality Act (CEQA) and CEQA Guidelines, the proposed Project is exempt from further environmental review under Section 15168 (Program EIR). This exemption applies when a previously certified Program Environmental Impact Report (Program EIR) has adequately analyzed the environmental effects of an activity, and no new significant impacts would result from the proposed Project. If the proposed Project remains within the scope of the Program EIR and does not require a subsequent Environmental Impact Report (EIR), no additional environmental documentation is required. Therefore, a Notice of Exemption, Environmental Review No. 2023-94, will be filed for the Project. Section 3, The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute Resolution No. 2025-XX City Council 12 — 72 7/1 f 13 resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively "Actions"), brought against the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City's defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action. Section 4. The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves that certain concessions and those waivers or reductions of development standards (deviations), as described in this Resolution and in the City's Staff Report and as memorialized in Density Bonus Agreement No. 2025-03 in Exhibit A attached hereto and incorporated as though fully set forth herein and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission Action dated June 23, 2025, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 23rd day of June 2025, by the following vote: AYES: Commissioners: NOES: Commissioners: ABSENT: Commissioners: ABSTENTIONS: Commissioners: Jennifer Oliva Chairperson Resolution No. 2025-XX City Council 12 — 73 7/1 MzTf 13 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Melissa M. Crosthwaite Senior Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, GEMA ZAPIEN, Acting Recording Secretary, do hereby attest to and certify the attached Resolution No. 2025-XX to be the original resolution adopted by the Planning Commission of the City of Santa Ana on June 23, 2025. Date: Gema Zapien Acting Recording Secretary City of Santa Ana Resolution No. 2025-XX City Council 12 — 74 7/1 f 13 EXHIBIT A Conditions for Approval for Density Bonus Agreement Application No. 2025-03 The incentives/concessions and waiver or reduction of a development standard (deviations) as memorialized in Density Bonus Agreement Application No. 2025-03 are approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The Applicant must comply with each and every condition listed below prior to exercising the rights conferred by this Resolution. The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. 1. All proposed site improvements must conform to the Development Project (DP) approval of DP No. 2023-32 and the plans presented to the Planning Commission on the date of public hearing and project approval. 2. Any proposed amendment to the DP No. 2023-32, including modifications to approved materials, finishes, architecture, site plan, landscaping, unit count, mix, and square footages must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the Development Project Review must be amended. 3. The project shall comply with all applicable mitigation measures as identified by the Mitigation Monitoring and Reporting Program of the 2007 Environmental Impact Report (EIR) and 2018 Subsequent EIR (SCH No. 2006031041). 4. Exterior building and exterior parking structure materials, finishes and colors for the Project shall comply with the approved materials board submitted for the Project and as approved by the Planning and Building Agency. Any changes to the materials, finishes and colors shall be approved by the Planning and Building Agency. All trash enclosures and similar ancillary structures shall match the texture, material and color of the primary building. 5. Walls and Fencing. a. The Applicant is responsible for coordination with any adjacent property owners to avoid double -walls or gaps between walls/fencing where possible. b. Climbing vines shall be planted at regularly -spaced intervals along all exposed walls and wrought -iron fencing to deter graffiti. All solid walls shall be finished with anti -graffiti coating. Resolution No. 2025-XX Page 10 of 13 City Council 12 — 75 7/15/2025 6. All mechanical equipment shall be screened from view from public and courtyard areas. 7. The following parking management practices shall be incorporated and shall apply through the life of the Project: a. Requiring onsite parking permits (such as stickers or hang -tags) for any parking dedicated to the residential units, inclusive of guest parking spaces; b. Policies for maximum time vehicles may be parked in the surface guest parking spaces; and c. Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang -tag, or other identifiers; and vehicles parked longer than any maximum guest parking timeframes allowed. 8. Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval. The plan shall include construction hours, staging areas, parking and site security/screening during project construction. 9. A final detailed amenity plan must be reviewed and approved prior to issuance of any building permits. The plan shall include details on the hardscape design, lighting concepts and outdoor furniture for amenity, plaza, or courtyard areas as well as an installation plan. The exact specifications for these items are subject to the review and approval by the Planning Division. 10. Before submitting a landscape review application, the Applicant shall meet with Planning Division staff to evaluate the proposed plant species, sizes, quantities, and placement of trees, shrubs, and groundcover to ensure they maximize onsite landscaping in compliance with established landscape standards. The final landscape plan shall include a diverse selection of shade - producing canopy trees from the City's approved street tree list, ensuring the maximum possible number is incorporated. 11. Prior to installation of landscaping, the Applicant shall submit photos and specifications of all trees to be installed on the Project site for review and approval by the Planning Division. Specifications shall include, at a minimum, the species, box size (24 inches minimum), brown trunk height (10-foot minimum), and name and location of the supplier. 12. After Project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans. Resolution No. 2025-XX Page 11 of 13 City Council 12 — 76 7/15/2025 13. Subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney, to ensure that the property and all improvements located thereupon are properly maintained, Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a property management agreement. The agreement shall be recorded against the property by the City and shall be in a form reasonably satisfactory to the City Attorney. The executed agreement must be submitted to the Planning Division by the Applicant within 90 days of the approval of this Resolution. The agreement shall contain covenants, conditions and restrictions relating to the following: a. Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); b. Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including, but not limited to, hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses); c. Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; d. Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including, but not limited to, controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); e. If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms. f. The agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective Resolution No. 2025-XX Page 12 of 13 City Council 12 — 77 7/15/2025 assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the agreement. g. The agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City. h. The execution and recordation of the agreement shall be a condition precedent to issuance of building permits. Resolution No. 2025-XX Page 13 of 13 City Council 12 — 78 7/15/2025 5/14/25, 9:29 AM DBA-2025-03 - Olive Crest 2130 E. Fourth Street � R1 R1 R1 ,D�9�,— - - is a R1 -. r{= of l� I•pJ P P F F I - -Santa Ana Boundary 0 P Zoning Zonedesc General Agricultural Community Commercial Community Commercial -Museum District General Commercial ■ Planned Shopping Center L __ Arterial Commercial Commercial Residential I hi _ ■ South Main Street Commercial District Government Center Light Industrial P e Heavy Industrial F w Open Space Land Metro East Overlay Zone FS ITE M Professional Single -Family Residence M Two -Family Residence Multiple -Family Residence yy Suburban Apartment ■Residential -Estate C5 C1 Specific Development No- 1 Specific Development No. 11 Specific Development No. 12 - Specific Development No. 13 Specific Development No. 15 Specific Development No- 16 _ l Specific Development No- 17 I --- — - — Specific Development No. 18 Specific Development No. 19-. Specific Development No. 2 C Specific Development No- 20 Specific Development No- 21 Specific Development No. 25 Al' Specific Development No. 26* F7 Specific Development No. 27 C2 E Specific Development No. 31 Specific Development No- 32 i} Specific Development No 34' Specific Development No-11 Speck Development No. 36 t Specific Development No. 38 Specific Development No- 39 Specific Development No-4 x Speck Development No. 40 Specific Development No. 41 Specific Development No. 42 ; Specific Development No-43 Specific Development No. 44 Specific Development No.46 Specific Development No. 48 � Specific Development No. 49 Zoning 0 ZONECLASS �.. 55 C2 ro Exhibit 2 - Vicinity Zoning and Aerial View s°r ar-U 1WIc_30M�e { MID. sign �Rw � MW 111 UUMS" '1suam11n5 A City Council 12 - 79 n qn?r: ninifAl Man 7rTI Lrt/26215 htc racarvari https://apps.spatialstream.com/landvision/production/CurrentBuild/Html/printpreview.html l II JiLVVLL:J �c - lob., i� 4-4 f"".r< � �1■r h� ° ,� .... . r._.— i I �I r. d •� � � f Ir �ny. �:t �4��`a.�., Ir r _ s W ,mx �t r�-.. . _�t'�•�.ii 'ems, "� x, �. ' � �� ?L' :y �}� C a� j'I �� ,'r� Lj y . w p Yt L � IOlanu — =® U SITE INFORMATION ADDRESS: 2150 & 2160 E.4TH STREET PARCEL NO.: 400-091-23 SITE AREA: 115, 029 SF 12.64 AC AREA OF IMPROVEMENT: 13, 801 SF 1032 AC CITY: SANTA ANA COUNTY: COUNTY OF ORANGE EXISTING ZONING: PROFESSIONAL; METRO EAST MIXED USE EXISTING GENERAL PLAN: OVERLAY ZONE ("MEMU") DISTRIC CENTER - MEDIUM HIGH FIRE CODE: CALIFORNIA FIRE CODE CONSTRUCTION TYPE / FIRE RATING: V-A OCCUPANCY TYPE: R2 FIRE SPRINKLER TYPE: NFPA 13R City Council SITE PLAN SUMMARY PROPOSED UNITS: 15 UNITS (including 3 VeryLow Income Units (20%) GROSS/ NET DENSITY: 5.68 DU/GROSS AC 146.87 DU/NET AC UNITS (NET SIZES) UNIT A-1 LEVEL 1 6-UNITS 761 SF 2 BED / 1 RATH UNIT A-1 LEVEL 1 1-UNITS (VERY LOW INCOME) 761 SF 2 BED / 1 BATH UNIT A-1 LEVEL 2 6-UNITS 785 SF 2 BED / 1 BATH UNIT A-1 LEVEL 2 2-UNITS (VERY LOW INCOME) 71B5 SF 2 BED / 1 BATH TOTAL 15-UNITS 11,607 SF BUILDING FLOOR AREA GROSS PER BUILDING TOTAL 2 BUILDINGS 7,830 SF 15,660 SF V V ININV IV HKLH JUMINHK Y (NET SIZE) LEVEL 1 761 SF (LAUNDRY, OFFICE, BATH, KITCHEN & TV AREA) JOB NO. MR23005B SUBMITTAL PATE u1ST PUN CHECK SUBMITTAL 0&'2MU4 I'il I - m RENSION DATE I° I I s 5 `o CLIENT: - OLIVE CHEST S Strang Famllles, Safe Kids I I Y I � m crvl I E B I o J I 6 Z =O W o� 00 o w U)o W � O pp Z r^ e (! rn m W LL — ofa of U Nm -U=a oz W GNU a w W Q U =a rz > LjQ W as F > wa �Y ® - O C) a J M z NORTH N V) O N U) MEMU SUMMARY SETBACKS: ADJACENT TO ALL OTHER USES: 10 FT PROVIDED PARKING: RESIDENTIAL PARKING: 0 PROVIDED - DEVELOPMENT WAIVER REQUESTED OFFICE PARKING (FOR REFERENCE): REQUIRED STALLS: 117(311,000 SF(MEMU)) I PROVIDED STALLS: 136(INCL. 6 ADA) BICYCLE PARKING: 4 SPACES PROVIDED OPEN SPACE: PUBLIC OPEN SPACE: 1,430 SF PROVIDED- DEVELOPMENT CONCESSION REQUESTED PRIVATE OPEN SPACE: DEVELOPMENT WAIVER REQUESTED c yp v� g m so i/ 3 RCRv Y V DESIGN 970 W. 190TH ST., STE 250, TORRANCE CA 90M 0: 318217SW 9! BSBDESIGN COM c SD SITE PLAN 7/15/2025 7ST P.C. SUBMITTAL 08/20/2024 EGRESS AND OCCUPANCY LEGEND STNREGRESs WIOm PER(I%NULI) MAX. OCC SERVED BY STAIR (ON level) 20 EGRESS WIDTH FACTOR 11W5.3.1) =09 s MIN. RED. GTNR CLEAR WIDTH GO x 0.3) =6' MIN, PROVIDED STAIR CLEAR WIDTH =M' MINIMUMCORI's"XIDTH( TABIE1B U3) y OCCUPAM LOAD LESSTHAN 50 RM MINIMUM REWIRED WIDTH= 36' 3 MINIMUM PROPOSED WIDTH =3P a[P- A IAGRM scG RE61DENiV1 R 39885E NO 12C EI-11111 PER(1IIIIII1) WoLOCCSEWEDBYSTNRDMSIeael) 10 EGRESS WIDTH FACTOR(1005.3.1) MIN. REQSTNRCLEARWIGm01111) MM =03 u =1Y MIN. PROVIDEDBTAIRCLEARWIDTH MIN. PROVIDED CLEAR DOOR WIDTH: =M' MINIMUM CORM W R W Mm ( TABLE 10M.3) OCCUPAM LGM LESSTHAN 50 w MINIMUM NEWIREOWIOTH=36' MINIMUM PROPOSED WIDTH=3d' EXIT TRAVEL DISTANCE( TABLE 10113) OCCUPANCY R WITH SPRINKLER SYSTEM MAXMUM NLOWEC TRAVEL DISTANCE = 250' MAX. PROMDEDTRAVELOISTANCE=121' 0 0 L.11 are IAGRAM IMF, - mill 111�i1 ili' Ease ■ IE®i!a 8� ®l 80111 ELEVATION-BLDG. 12-FSD ANALYIBIB Y EAST ELEVATION -BLDG. A2- FSD ANALYISIB BUILDING CODE ANALYSIS GOVERNING CODES 2022 CALIFORNIA BUILDING CODE(CBC) 2022MIFOM IA ELECTRICAL CODE (CEC) 2022 CALIFORNIA MECHANICAL CODE(CMC) 2022 CALIFORNIA PLUMBING CODE (W C) 2022 C N- FORN IA FIRE CODE (W C) 2U22 CALIFORNIA GREEN BUILDING COX (NEC) 2022 CALIFORNIA ENERGY CODE ICED) FUNDING SOURCE & ACCESSIBILITY REQUIREMENTS THIS PROJECT IS 100% PRIVATELY FUNDED I PRNAIELYOWNED OCCUPANCY R-2', RESIDENTIAL UNITS TYPE OF CONSTRUCTION BIDG'A1 &A2': VA-FULLYSPWNKLEDN I3) BUILDINGS 'AAA FULLY SPRINKLERED INFPA 13) AUTOMATICFIRESPANKLER9 SHALL BE NFPA I3AUTONATIC FIRE SPRINKLER SYSTEM IN COMPLIANCE WI SECTION (9033.1.1). QUICK RESPONSE SPRINKLERS SHALL BE INSTALLED IN ACCORDANCE WI SECTION 9033.1IN ALL DWELLING UNITS. MAX ALLOWABLE HEIGHT CECTABLE504a R2 BUILDING HEIGHT ALLOWED(CBC TABLE SO4.3):10 FEET, 4 STORIES -WITHOUTAREAINCREASE PROPOSED'.2 STORIES ­ TOP OF RIDGE, R-2, TYPE VA ALLOWED'. TO FEET' COMPLIES MAX ALLOWABLE STORIES CBCTABLE_ PROPOSED'. R 2, TYPEW-2 STORIES, -1 TOP OF RIDGE ALLOWED '.4 ETCi I - COMPLIES 'FOR GROUP R-2 BUILDINGS OF TYPE VA CONSTRUCTION EQUIPPED THROUGHOUT WIm AN APPROVED AUTOMATIC SPRINKLER SYSTEM IN ACCORDANCE WITH SECTION 903.3.1.1. MAX ALLOWABLE AREA cECTABLE PROPOSED: R2, TYPE VA ALLOWABLE FOR SINGLE OCCUPANCY, 2 STORY BUILDING (506.2.1)=15,sag COMPLES 'BUILDINGS TWO OR MORESTORIES ABOVE GRAGE PLANE EQUIPPED THROUGHOUT WITH AN NROMATIC SPRINKLER SYSTEM INSTALLED IN ACCORDANCE WITH SECTION 903.3.1.1. SOCIL inolaamoarxv.2abrvbuikli— TM1eMInNaEleareaNeacM1sWryNasingMawparcyb HIN,hill LQdMeiminetl in acmb wth Egaallm SI: Aa=INs WSrIN] » AAt a=AIION'ableareal a=TebuleralM�aEle area Mclo1 N$, $1]R wSM value, as appllceble in ewoNanuxTA iebleSte .2. NS=iaWMr Mloxade area ladain aaarUancewHA cable W621pra npnspnntlereD bulltling regar&less of xfiMSlFebuiMlaA isspnnklwen). If,=ArcefadwincreettdueM6wiMAelperceMlas wlcula@i In acwtlancevnM Sedlon 5083. -.11Ner Nan by Lh.EFI,I, Lard Roaupancies, Aiglvise buildings, and olAerappliceNona IHM1 in Seclioa1.R1 Meb bYNaOIAcepAE,HLM Fire MereM1el, ae,,,h,bw,ri,g, snesaborepaba Maaa nEm 1.IIMree. For Group A,,x, I,LanORF.Mrhss, Ai I nbell4lags IIb NAerapMlwllpm IlMeb in Section111 re9alal�bylFSOMceM1M1e SMte FAe MersAel, eNuel numbarof builnirgaMnes ebosre gad plena nol to enaetl Nm. Noinnlvi4ual slary sM1alleraeAlM1e ellwwblaaree(Pa)azAeMrmkwtl by EqueAon S2 udip Ue valueof3e=1. ®MM�� City Council 12 — 82 AV, =136,000-(12,00)-0)) =3S000 SF COMPLIES ------- ,W=' FIRST LEVEL: 7,976 SF< 36,000 SF=COMPLIES SECONG LEVEL: 7,916 SF< MIND EF=COMPLIES JOB NO. MR230056 PROJECT LOCATION n SUBMITTAL DATE APN:400091-23 C ISTPIANCHECKSUBMITTAL O8I W024 PROJECT ADDRESS'. 2130 E 4TH STREET SANTAANA CA 92705 ° 3 LEGAL DESCRIPTION: P BK42 PG43 PAR 1 PARCEL MAP42J3PAR 1 AND PORPAR 1 OF PARCEL m REMSION DATE PROJECT DESCRIPTION f THE PROJECT CONSISTS OF 15 UNITS OF SUPPORTIVE MULTIFAMILY HOUSING CONSISTING OF ONE EIGHTUNO AND ONE SEVEN UNIT TWO STORY BUILDINGS TO BE CONSTRUCTED ON THE CLIENT'S SITE IN THE CITY OF SANTAANA, G THE SDE CONSISTS OF AN EXISTING PARKNG LOT THAT SERVES THE ADMINISTRATIVE OFFICES OF THE COMPANY. A TOTAL OF 15 APARTMENTS WILL BE BUILT ON THE SIZE. 5 BUILDING-Al&AT:2STORYn5-UNHS) 1. BUILDING I: 2 STOW -T UNITS 2. BUILDING 2: 2-STORY-8 UNITS PROJECT SUMMARY AND ZONING INFORMATION e D CLIENT: ZONE: OVERLAY ZONE('MEMUl DISTRICT CENTER -MEDIUM HIGH LOTSIZE: 115,Ga S.F(2S4ACRES) ^ C9LIVE CUES 1'T AREA OF IMPROVEMENT: 13,801 ELF K.32 ACRES) FLCORAREA'. RESIDEMIAL: 3,AMEF.s2=7,9T6SF19LCG. S 5[YOOJ FdmIIIBS, Safe Kids GENS IlY'. 15 UNIT512 M ACRES = EGA UNITS PER ACRE (GROSS) 15 UN RS1092ACRE5=46.81UNITSPERACRE(NET) FLOOR AREA RATIO AllOWEDTOTALFUNRAREARATIO: WA u (F.A.RL PROVIDED TOTAL FLOOR AREA I LOT AREA 15,8925E-(421,0515F)= 43,6435E 1115,0295F=C38 FAR MAXIMUM BUILDING HEIGHT: MENU WEMAY: L STORIES ISAMCNEMU CVERLAW N-2PROPWED LOTCOVERAGE: WA 38'F0R43.903SFPRWIDEO IS - E BUILDING SETBAC(S: REWIRED: PROVIDED SAMC(MEWZONE) MIN, MAX. MIN, MA%. BLOG. TO STREET & PARKING ADJACENT TO PUBLIC ST ROW 10' WA WA - ADJAGENT TOALLEY ORINTERN ABLE 3' 1. WA PDJACENTTO PARKNG T 11` WA CLEARZONE 25' WA WA n J Q BUIIDINGTO PROPERTYLINE ADJACENT TORES. USES F 1ST&2N0 FLOOR 15' WA WA A 3W FUR &ABOVE N050' WA WA AOJ.TO ALL OTHER USES O ALL FLOORS I la' W BUILOINGTOBUILGINGLL UPTO ]RDFLOOR 6' 1tl I Q 4TH FLOOR AND MOVE 15' WA WA - _� W a y �/) 0 3 W OPEN SPACE/COMMON/ PRIVATE SUMMARY o N 00 WEN SPACE. OVERLAY) pOF UNITS S.F. RED. S L (S1MC-MEMU ? /(/n/% Q N 0 PRNATE I COMMON OPEN SPACE - NSF.IGO 15 1,150SF. %A/ Oi LL =a r DO PUBLICLYACCESSIBLE COMMON WEN&PACE-10%OFTOTAL LOTPAEA 11503S.F. a W 0m TOTAL OPEN SPACE REQUIRED: 12,8518E c U ik Q PRWATE I COMMON OPEN SPACE PROVIDED .1 F 1AWSF 1145 SF PER UNIT m U Q mow/ Q TOTAL OPEN SPACE PROVIDED: USFIO%OPTDOLLOTAREA W Ly 0 LL Q U F Z (PUBLICLYACCESSIDLE) (CONCESSION REQUESTED) \ U Q LU Q O Z / W Lo J h Q N (� Q W PARKING SUMMARY Lv LIMIWNGREWIRED &AMC. MEW MAAY] PARNINGTYRE'. OFFICE EXISTING OFFICE PARKING: 163317LLSISACCESSIBLE n PROPOSED OFFICE PARKING', 1MSTALLSI8ACCESSIBLE (3 STALLS PER 1,000 SF) _ FIRE RESISTANCE (TYPE VA) CECTABLEGN p BEM2INGSWALLS EXTERIOR 1HOOF INTERIOR: HOUR 3 9 NOxaEARING wALLSBPNmnONS (EXTEMOR)TABLE103.5 `A S B 5­10 1HOUR X130 D OR DESIGN NONBEPIUNG ­1 0NSUNTERIOR) "OUR FLOORCONSTRUCTION 1HOUR 910 W. HCTH a ST., STE 250, TORRANCE 0: 31021T.88155 CA 90M ROW CONSTRUCTION 1HOUR C BSBOESIGN COM is Pr je; Infor matlon 7/15/2025 ' Aozo IST P.C. SUBMITTAL 08/20/2024 n �x B a- v v v Level 1 'laundry partial(BLDG All UNIT FINISH NOTES I LEGEND ro �.o' x°o n o xM wx ' v�xruoccuRs�XArxwosuXExERooxxsroxumwurrxlsxwlmuRrtlx3 c reR�aii�e-.1 1xxxe3 awR SDRFA«IDXFXF45 W IE Mwroe.nv—i� _ E A sxus nEur IN' x wllsx x 'N_' , iion niouwaa --.1 xsx1-1 INII UNIT PLAN GENERAL NOTES: sscncx]x,I.s.asAEarm T. 11 s� 1119Nwmxrzup Rrvm s, 1E uvHOWrtHAXunXMsaE�INoFANstU �c n e _ xER�. rnRwxvuoxov3[xa¢. wRv3 AwR=DN� nxwwc cuAuxsE LEGEND \RRd oralux3.�olmmElom.Rvw,slERExosvaaaxxr.vESlrvrxeleuXm3 wwieoiraarosoiRrrzi lx ioo`ccwwuwl-I IN LNI p 0Ni ® sMD�DXF,F�ro�FucTRru ® o.--oo,xoxoWOEcs,Ecroaso.00 R x srtors,R�ras 0 IElwcuwr- RI sEE REc . o E��,���;,ax��xxxxlrmD�E�F�DE.�DxE w1x>,1IoroN­, «RxWxwxRcx FOR FlRE Ra G 0 Am0 5©E BHE-.x FELTNAT[xrroRrewirtmcuL.__.-'xxaaxcv COMPOSITE BUILDING PLAN NOTES COMPOSITE BUILDING PLAN LEGEND Is « Dx ,lwx EH mDSD EP cE�« xFM aETwxr w xx Wri �° uas:,"xi`sEviw'vrow°as:ap�aF°Ew+°BM a`�xcxro�+sx ' `rlsc�iiei+ xE a`co �:Gi"osnsen'ox"w' neucoxcsueosocaoxslxucosowzwrtx oxa,ces,Rucwoxwxexsxseu�xso.oxwcsssro " !. .1-1�xF 11NIETw.E i o. o°� o uw Dx u w cwx.xvx«enolonaM�x.,E zo1 «�nxxx cOxs l roxx xwlslIIINITx,Exom, Z t� woRIF x,.xN. aE w mx..xxxx xxma vx la,l E sW« . x«ss s �ITM Xoxxo X,xXE,x,xEr� �H lx �txs tw E«r w xx x o «Rmal.xEl�axxm.x .w rtxxxR.,x x . xxxlx x W as i" o Em a;r`o _N"R" Awao.EDxoxam>AaxlReWh {{rvrvnn11ee11� tsxMUE «moo.,«x ww IP«�wxsxm © E sn'oxFdOFLwn ^ RaEeT �' Fix,YxEALELDIP.ANDwO NNNUsTINI I.R.U.II.— wsAEsox3EureASGGEwnvs w RXw,'c,aDuwEnTO-ETwoAL xus II N.TRgvR.—E rxwI m T accEss�xExsoaEsoscE Te CsxER I�nRcceDEwlxc«curuncowuo,MrEcolsluacecmE canwzE.aw.nw 1.1.1a.GB.c. sEcnw,x1D-QE.xxcroNs,HRaix. rtlNxice Wrslws .x,En.,x,m�xsEmax�ozr,,xsLwxcsxEccxE mdlrwtxARDEDxAWaysx ,xnT,xExswluscxocwcsuEosrncssxcsEolxc,msI eE,wax�ecocx�xx svwom�xowcE,xomcwwxulwxwTH,xEXEsxsxl�«owac�xovxvxrswuE M[1aiNw]%Wx^a.IP�sIOTxFAMwuEHIcuVA0.WVIRULLIpT&'sort3RF­NIN «s lµx EHAxcXE xartsv]o1=REaPrEssl coMMNxICP,Iw ® A'Lc. ,cEEI wxx= owcs.sw,s�wssxu.sEluu.Ixa,sDlx LEDIazEOESIwxxSwllEE cunxx¢wm,cac EEcmx,ws.,. «EDIsmlwnoxx,wsronuRrtlEeEL s. mrswssH'u%N,FFINNI FnFswv sw.xTFDATeLTxxs.xxsxeusF cTxn""x.muEi.Eroicareav`wuxv°OINIFco"mss, o"ii IN`." `w uuMxn,axoExolu� —T ms EsvERc¢C,op.3.3sxuLwm.PTl«uLxELVIIIUrtxrllEnEM 110. a EMFRcexcvWmN%E'x eFVR«noe3ATmx,xRuxonDSDFFmoscxveDFDDxwvArs Eoaeu1.11EREDE1m I.veMoulHu�oxeeur.rec Dx.x.tMR.cacrvowmsysnM sxrLVRwDEwwEREORAlNaslm.nvRsxx Rwux ex.]. xmu.¢o NIT xnnncxoc93ortlswrtPE.wE]xcuuv 11411awtxcBlLnvrGluXEuxxsuiocauuoxMGs. cac ii6FlGusENs.uWDi,sflcx¢sm3.3 romsmRsc,Imrc,wvaixoai! wsn x 11e. EN 11Euss 2%xu REcmxl NwTeEmovomoxmrHII—Enu 1-11 D.xs v.,ss sEE: _...__.. _..._._. +O— ]' �- roxws xocEssTxw znxowmoxE,wxa 0.H1u R xsoxroR�tvE�iry =T.1Hrvw`irsl �. xRwosros.Tssca.mllsux,nrssxrzXoscossoasxmMEx,EXas s. xlERxwvuwwlEnscxssxwaEu soxovacsDwDsx.usE xslwEox ,]. vRowEEreErsME«Eo.MEExs.TODnvo,mun caumawx wR DroRsvFRcscrxxEsxororolucxwDE xEEvasxnuxorEvcEm,r<�xcmcrnaox I.RElal.ITHI.Hx.wraTMREEHoNxalE,AN`IM E1.1—U.'11. emirs 1R1 TxNE..xoEmxcuw—I __........ >- EORnss wxxooas.�oma«:..a:,m��s DM,mo .e. omm:I.aMmx:w .w. ww,cewDxTxEuwur.mxxExs.sxucmxsxxcxw�ERn.mwxur iExw,EDF.MrEDxEEiw.cDMavwDxTxFcxa�w9aaDODww.eswxcFxFDDxwwTsx mwmxn�XsovXsxsxlsssscsxsxux7 . ,O * ERm,HVEI T...NUFFRracl x Eaau«zrcuoEl I-DxFINa. .. .._....N. X11- owE,w,EEVEE]. xoDxExEw,ED]D..w MNEA.- sc-IT 0TI.-F sEcmx,o xs wHExmErxcEcrWXEm _�NEEs .x xE xxmrD!«ro�Wsr x, 11 TME.�s EDXEEx«xDx xEm o���iI w OINAL-11 xERrtxowrxs u«wxr x M rrR3M rxswucwxrusoRMusrxxvErcDOXrsv«eAxxsxs]* xFenxccsc FOR®c„<AccFxssxxvrfxFRxxom O «DXRwExE ��xFwxZ. �E �3 ;— o xxREx xwTroRwex x wxc«WR 7/15/ 5 W�x sP F ER roE.,xE.� s uuxxx,xx EFvusxwxmsFxassxexwxwm a .Fw N..RF F.xros., DD NxNxEDDXw wh� xD�xxmAxDxW�xs xxEDm�sEMs c«�. wnxroEoEsecaa x w FE HA F xD�� �c FDH�D�DMCE� wrt= DmMMoxM� EE��=« N ...D,INMM0N revert Xxxx®aooR F.svwDxo,xFFxst.RAmvFxoDDDFvraRxo ETAuwxcuux b. Ho.nT ...stI—FeRMIN—IIE, , ,DrtucEESNrtv.xEM,s�DEle o w FEm�x x� �mDwwwM�Fx� EEF �x�xc. we,A.:,� 0 xrurtcoul ax o wlulEss E.wmnsnsraosecicDRcwxTSEEumnlw 1 JOB NO. MR23005B p SUBMITTAL DATE Zu 1ST PUN CHECK SUBMITTAL 0M2MU4 b n RENSION DATE e S S `o CLIENT: OLIVE CHEST 5 Strang Families, Safe Kids e E Q = c � F Z LL 0 LLI o (n O 3 W O N N 3 LLL Z o r 04 LL x W FQ Nm of U LU W LL¢ U =z i Uja W Fa w oZ > � J �J MZ N U) O N rn o J� �g n s° e s R[1�R v Y V DESIGN 8 97O W. 19M ST., STE 250, TORRANCE CA III 0: 310.211.8885 BEBOESIGN WIA c BUILDING LEVEL 1 PLAN slEar— A1O2 IST P.C. SUBMITTAL 08/20/2024 B 9- UNIT FINISH NOTES I LEGEND NNMTHs. me..IMUNEaiss�c;"v"�M-Iros' o�vsu`�INNE, UEE�•"cxenmRmM ry]xEuo wxs�x"rwaosuxrxexoonxc m xumwmtNwlwlmuartrxc E. T<ec„Rwslm�x-MEN 1—al RwR IIII-E --I IN I-- NRvwl,xxx. I _ vRDDssxuE vxmn[wsroucwsluxr rwlsxFgrvawm«iw ciiwin[ouwa�[nlie lrmmswro[pxw ,. FwFwwxx�sx,xN,NwNaRxresxm__...__.__..._..._.__.-._.-._.-.-..-.-.. c «wx NDDMm,NRDxcNNNREr.Men,—INNDxx�� FORwomoxuINIT—N---- :..___,.__,.___,.__,.___,.__,._�� FIRE RATED ASSEMBLY LEGEND :� ,NRRATEwE,TEx�DRwA„ ED1RxExAxw-11I AEEEMN,.R„TANE.1—1-NNINEEARNENE.AxD sEE 1-11 .....� 1NNzwrtuusswsuEs ,NR RSTEn coRRxoxe IRaowceLxcusxxuEsl E�RTITIox DR w «Wn D sEEDET.IL zxwxODEroxw�. TYP. CORRIDOR SOFFIT LIGHTING LAYOUT I EUNIT PLAN GENERAL NOTES: UNIT .11 UMEUrTONu,InNSROIFID ON 11 s� xvs 9xwzoxrzup UNUNN, MN _ R— s, wN uwvEDrvxxnxxnRMs0.Ex,w [t,v maEu:rnuc n e INI— wNwMD AwR 1`7 nxwwscluuNEE LEGEND 7M 11ILxs.aoi111111MRv11—MINE1A%mwr.rERlFnxaeuRm3 IIl wNLUIa- 10111 ulx11 nuwlui[oN v�wn w(10 Ni nNIMNED— ® IN--- NN0 oEonEcroxm.m.seen«. I- 0 [ cElwEUUNT-LRE eEExEmRIw IpoRov[xwo.sER[cm¢u o , M N.EU xx 111-RE ena.11..xx, wN, ,Exxw1--sa-N®,—MEN—ANREaLI - LEVEL 2PLAN -BLDG.A2 I FOR 18 IRE RanxG wFORMAnOx TLDG. Al SIMILAR) 1—Ax116A812 o ro� � Nxwxxx roE «T TR xTD ........ EE A .EEREP xx',EE NDIN Nww�E . MEu, roxrtwvrt,ocuA.__.-'xxaaxAv COMPOSITE BUILDING PLAN NOTES COMPOSITE BUILDING PLAN LEGEND W vi, uasi �;�F swR"o"row°a: : ap�aF°E.w°Bn, ac�xc Nro�+EN ` `cleui,«,rZ Er—,m]: xi a,`co �:G'wiou,on':°W suwxcr rEosocaloxslxucosowawnN m,EnoxsxocnoxwNExExEeu�xeomN,ccEssroMINIMUM cwx.xvx«cnororENn�x.,E IN rx AccEws�xEEANxwcETAus zo1TrE UNLTUMMU E s x.LxMss s �ITM xoxxo o, Ero,NE,N o,s,Lo «a lx .N M xx«.xµx «RroNr.xEaoxxmroEI Wx�occxN.,x x r w as iti o EE�o �E`o aaoTM� MwENowEo.,«x w �IP«LwxM.11 o° ;owl, ff NT ff �c. , ow Nwx «x«cx«nwREox�x xro asA R xo ro»Ew.,x xw w �oxN�ro vE o xxoWxxo�N axNExr µ�,h Ms„N«rM xarrE,Nw,LM sr Tc Ccxm IlnwcccDEEurxc.«curuncowuomnrEcolsruacEcmE,xnrmER.ILeExoccxcEUEDsvncEExcEEolxc,msr NccE5S1&Ex EcvuE canwNE.aNwnw.w9,Ex,x,m�xsEmax,ow.,,xsrwxcsxEcvxE eErwEExRee UD xlxc svwoN��xowcEa.Dr,vcc«wxurwxwnxTMENE.wEx,�.EDwE«�xovxvxrEwuE ®,ccIN_ cEwcx= owcaE.vrslwssxu.sEINUNIIu,EDIx RWuuDRRGB.c. rr.71D-2ENBxcroxX.-.N. 'INN ice Wrslvx mWr«stxAll tNrUa x � M[1arNw]%Wx �^avIP�DIorxFAMwuEx¢uVA0.WVIRu„IpT&'scrtDIIINUN IEs1µDNEMxcX 1-1111—ERECREEssl­coMMIN1111Ex IE6lazENEElwxo wNlEE cunMx¢wnx c.Nc sEcmx,ws.,. «EDIsmlevnDxvuxs0.ovuMrtlEeELR �s FSvuc¢C,op.3.3sxuLwmNATI«uLVELVIIIUrtxrI1EEVEM cf 10. xmusE3 UT xAnAcxoc93ortlsw,Evwx]xcuuv 1141,awt MDelLrtrtAP]REuxlrsuocwuoxMGs. cacii6FlG3RENa.z1ANDi,BflDx¢nma.3 x3,65,xwznxowmox[,wHa Aeouwia;EDxroN,tvE�,ryrtorarvw`irsl N %r ,%NH,u%Nrarr—wmEswv,w.xTEDATe "`MNwD"I"" ,z EMexr,ExcvW�mxcsiw.RPxmnoe3>rme�xww�DnMSDrrmosciueceomwrnvs ro ms mR«rIw rc,wva, woaiTN�`.xszxw`n i°xa"x.muEi.EroiusiavRu°"wrvc°0Yw'°wEasv mArw%` owrn MDMxA,marxorua roasD,DxcENEDE-11.veMDReTMaxDxewn.«xox.x.EMvmanvowmsysnM MVEEI,ww� I—ElEssmw]x xurcDRErn«a+<sTse—tEDoxmrxsDEsorAu uwwEoaunNucussee. _...__.. _..._._.O sxu]ENDVDEEDwENEDRArxaErExMxims,.0 wxx ay.]. ], ..RSPERcxcrNRrsNOlnrorAccxwDE xrEvxsNwurvorEmEm,r<.xcNrcrRaoR , `oN"°" �. xlEwosroE.TERc« orrEnEx,ArEsxrERoscoRM.� r aMEx,ERaR E. xrERxwvuww,EDscxssxwueEus,Eoxour�ED,wDSNwusE xsrwEox ,]. vRDmEENExME«EDAMEENE.rDDnEo,mun caumawu wR IEVE,cNAxcE xTHRxHOE"LNa R EHoNnN H, ANmETNsr,rl""N"IcE.11TEE ex,rssRexaxss,Axosm.wuww]Essv __........ ......__... O wRRooxs.,omx�..a:,m��x DM,mo n. omm:I.aMnM� .w.>rw N1E1.TNENMN"Ac«NERs.mNu1=MNocwo,Exn.mwwav eDonaxA, eEoxREMExrssEECExEauxo,Em c `oRAx Acx«EEAxE.Ar,aE,].-_IRI--D2-.w MN.Trww«®s>TrD TI.-E �Ex.x,EDE.wrEDxEE�w.cDMavwDNTNECNAENNSAxDEDwNEwNCENEDDNExwTEx ........ O -Exm,w A.A,wEAExEwRNracl DEw,cuoETUEs.wD worse RNu,NEENDNCNE.,EN xx�E.xxE�cxT.DwEN,w'cEEEDRxxD>Tlr..sTSD xmxx,o aI.wxexmEFA_Ar- a Eaau ... Nw-1. wENsmrcxoT,EarixxaE ,rMM,REs w,M. FoRnooraxA, eEou rFR3M rxswucwEFUEoewusrxAwFRooRrEVEEEnxEEFs]* xEeErxccsc FOR®c„AAccEwxxvrFxEw.xmEs +O— F.M ,x TMEM s ECR,xxDDN .Ema� o ail,, xTEaRxmR,xs sNu««--N— xDDRwExs — wREwmx Troxw�«x wx «xN rorox EE E ERN�E.,NEN�. ...DNuctssExw�xEMEND. o x .xxmwE E5EV DTREERTMx xFDDT ATTMEw«xMM�xE�f" .DaxwREDUREM EE�RO= s ]1 EAFxNI-1EEENAMx.EANDND.-ITED1.—Mc,� — wR=NDmMMDxM s E� SEEaarAmxDw 0 7/15/ 5 o w«LMETNN Rx mDwxwM�E �x�E EEwxxRIxM. xDTNE".1'-01D�xxmu�DxWoxs�NxEDmxE,ME «�. � T�,..INstL _N�K�E,ENDDDDEE�xDETNw��UN , EDR.oaal w�NERUEM-E,EE xw,D�T «E �DE x o JOB NO. MR23005B p SUBMITTAL DATE Zu IST I CHECK SUBMITTAL 0M2012024 b n RENSION DATE e S S `o CLIENT: OLIVE CHEST 5 Strang Families, Safe Kids E. E Q = c � F Z ILL c (n O LIJ N N 3 LLL Z O rr^ I� LL 0 Is04 W Q x LLI F� Nm of U LLI a W LL¢ U =z i Uj a LU F a w OZ � J �J MZ N UJ O N to c yp v� g n s° e s a BSB DESIGN 8 97O W. 19M ST., STE 250, TORRANCE CA 90502 0: 310.217.8885 BSBOESIGN COM c LDI BUING LEVEL 2 PLAN A1O3 IST P.C. SUBMITTAL 08/20/2024 LONGITUDINAL BLDG SECTION B nA \ / 10 LON GIT UOINAL SLOG SECTION 1 V BUILDING CROSS SECTION 2 B EAST BUILDING ELEVATION U SOUTH BUILDING ELEVATION U WEST BUILDING ELEVATION 2 ELEVATION& BUILDING SECTIONS NOTES 's A E � n WttiPlMeinvumxeopmuv¢tx.r.vWuxu'Nn. eu[xvsmrwxoThxoAMeXnttrvWtwuppxxeroaev.wxxpvr+nw P YnM ceteaamaxemxp.w ; wxXaoronavEWmlNWurmYq wimuwfF { rypgWnn�t xinnm+iNwEwuai,�wMfpei aMF9te�1 XX!lNIEpM e a a ni emxMXOXp XR.xx.rMiurcx xxxueuexnna p mppxpu'iFRMxEOMEtnYa�WAmxurvtoxartetvNNwt wvaWavpHxxmbiAMAVAYAYP�.HIX.S n a.ulUrcwYUHxx�.x.axY¢xrv.xWnrMWr.XuocxR.n.•n. .Ix+nwxrw�.oNnvNaxwpooexxmxarvwMx.iuxx P s¢r w IINNNe RSnYanme[ewFurmmWx � fxm.xxxnianmu'RYAXORXRb, �BVWxM�� u�xxwxE Xul[vtocYxllmlCulewnoYfBFN8X6PoWRIAPw PifAxe E p�qv 'roIARXeiWnxMpegxrN.M aw6XETVWARIN.NwinxArtN ix MN¢eOxYNIWfiMpxleRF%.ro.vxaVIXp.MmNlxuxWEK'v wmLWYmMW.1'WMespeeNMlYuauVtWm WNNWx fl vW�en xwM.wxmxm. - ueaTMXxcMFAwxawa.c�M � roviniNcw.onX°�Mc�MM 8 uoxm'rovnNwx a`viOgM°BFuxmMMWr�xwMfxax ¢ rmmmlaamwwcM®.anpcov�ommmomurvorccMao � °iwh,iicu°iwaanXiaxx��ivioxiuimw u xxxnxexenanxr.e.xe ep rm%oFincwwoWKNMKttIr%AIE xiNxxoNx,&tn xmSVx�leF�iXEYwxA�xMlA�umf FIiFpHtxNMFn:Wesm prNOAµa xXl,pxttA�XoruIX,Ert_1 zm p ro+Y m�xgm 'aura rIxxxx¢xnn MTAEUHP1eW rlMEwxxmMN46xar 1.¢xxlme MHLYgMlgxevtFFu, .mxewnmxrm.miMrxevpnYtWMwruRMpwMs E wenuuiii�n�vMwrviWxuo narxWu oxsxwfW�Mn�xxoN�oXruifm e xrt wApmaxirA��iiexRiialinn xrcaimr�its� oaemuVO`u" e.xvtxxr AmxYwmreNrM4 x<t.¢mnxc�oAAaoXe.nrvEwxMIKIII_ITAuwevuxaxuengeY i M xa�wY^ix wAxnuax.xnmw.arorunvermMm¢uI,ZZ ,gMxMNM m<eNMMnXerM.+rM., i i YIWMWEAE�.NrG o�umEuonaEvnn xxrmarx¢ewlsE Xmo % x�awH.txE elxwxNu „­�eexnw J MAEm,�nFW,�w®i EXTRIORELEVATION KEYNOTES F1 E RgRCEMEN WTER-sWToaSaFsmEi0Mn F1 EMRICRCEME PLNITER•SWSI®DARNCI�VE F3 STACNECSTpJE�ELDDryWD-CfIxPEL WILL F4 CWSS'A'APNALTSHINCRERDOF�CAF M3510NBRIMN F5 NYLLMNW'✓+s F6 W1ND0.M1PoMPNNTT00.lATCH FL Fi LRI4TTCLCSETDWR6-PNNTTCMATCHFI FlI c4&EVENT• NTiOMATCHF3 1 DECORA'SVH.—M.-PNNTMMATClI F2 KEY PLAN to x 0 uB W,, mWoo5S Mug UTE i6T PLNI CHEL%SIgMITTPI 0&nm J Q 2 F Z o 0 U. LU W 0 W 0 N N LL Q O ¢ N L o VI1!' W FQ (n NN OfV # Q 7Q mti > Wa W a< H > WQ vOiZ J MZ n a i BSB L DESIGN � emw.lemHST..:srE�ivaroaRs�F�4x�x ea�nEslsNsar, i EXTERIOR ELEVATIONS& u 6ECTIONS �y m Ah/xA 5 75T P.C.SUBMITTAL 08120,2024 REAR ELEVATION to 7v- --STCNERA�,--. �� is :o :Na FRONT ELEVATION oUVECHES-7 - REED HVAL rp u 12-86 Bill "01111 HOT WATER HEATER CLOSET SIDE 2 ELEVATION _ J SIDE ELEVATION BUILDING ELEVATIONS B 7/15/2025S I S N MODULAR N WETLAND � � f • �[ • . ne I • �� i per Civil Engineer w} l } } — wr _w_ ,1 Lr✓ �yv may✓ �_r ...� EXISTING TREE to REMAIN, TYP. S. 1 [—EXISTING TREE to be • PARKING LOT J REMOVED } PASSIVE COMMON O EN SPACE .REF. patio with decorative pavers, synthetic \\ > SCORED CONCRETE turf lawn and moveable furnishings f_ _ Zy-G PAVING � �— l� ..... . B' HT, TUBULAR STEEL SECURITY FENCING - see wall & fence plan PARKING LOT TRASH ENCLOSURE see detail D, sheet L.2 NEW 2-STORY BUILDING EXISTING �— i PARKING n STRUCTURE ® t f Il NEW2-STORY BUILDING 6' HT. TUBULAR STEEL FENCING MEDIUM SHRUBS, TYP. ---� t see wall & fence plan • see plant legend 3 I 7'EXISTING MASONRY WALL to REMAIN see wall & fence plan EXISTING LJLJ I PARKING LOT a: t I 12-87 CONCEPNAL TREE SCHEDULE BBTAHOAt RIME caAfaONNAME MxF WMwLS NOIE9 °Ma euro .Swell HMI Drv-x Sxen HD OkAa MNm In F... Venxr CONCEPTUAL SHRUB SCHEDULE R-PTY WTANCII NAME DJABSJN NOW9QE WLPoLS E. 1^^.e, �ly�j liguslrvmlk tl'um decry Pawl sgel. Ipw Ott 6 RAasperum5ilw9lwan' 9iIwl Blwen RAwpwum 5ge1, Metllrem MEdWMSNRues DM A NUUN igA law MN w,pb Rage ,gab law 6 RN lid MRm I—,. Igy, lmv O w HeawNy BartyeP 114. LW Gee LIMA Elle DNROQ11w 5ge4 Inx' PyupR,umtldl PaE GOEBMIPNmponm spy. AytleRRA WaMnrcplalrvRwea Cwd0.wmary 1SM. Is, 6AWL-UB.ONOUNDDOVERa MVE9 g re Mue Reaie ,qy, Ep. FFx PwMa O--Eg tW, MRtle,e,R H ollsn9t HuminR,Rn LRryef HRmwrypon CNpM Rr'— tyy, Lax 1,BSSa1. nano Raryana a Imo, Lew NM ed-I. G.'- SgM. UNA MOWIMWETIAND cwe«aPaa sN,D�.wseasx 1sy. IAx' Sat muMeneng9rlgeRe peers ,gu Lax NRF N-119 lealal 1, I-MRMNI NNF deAA. SVMM1dloiu,l GENERAL PLANTING NOTES W CF—SONRNB D EVERGREEN VERTICAL auTE MAr+agTEseleel ANocEMR.rmTH THEwuowwG CRRERIA PLANTING at WINDOW '2' RMOOTTNN==T EAdnpH wBlDE wn°ulAR INTHT'SHIT TREES R6 OF HARDSCAPE LOCATIONS, TYP. ao aANmrGwLATCE—ENTAPraHws 7—HeRETH—AHIMPER l URl)ff URw1RW4MNOMNTNATFFHA A5iDNOTIMPMEF—NG NNCT10-1 A PWRINOVATHINBTtlPMWAiwii 7METAPE NUBEANIPPPOPMATE8P[CIES Funs ADAPTED TO wEra>AY WNIRnoNs, E F.EP.GRSEN SO—FAANRN. 6HNL 6E.-D-NEE NT—FO A.AND UT— MRB1E FROM PVRIIC AND COMMON SPACE. S A M IRRIMA11UN 01Jlcla RVIC0 WC1 R6ATIONSVRTEMWILLBEEEdO OMHWATEAWNS TIONMDINC WUAWE WIIHPFPLICA6LE MUNICIPAL COOS AND STATE MANDATE UW ANDLOMPLVWITHTHE FE� 1-11TERIA T— ARIUVAIROMATLAND LONIRdLEDBYAEYMOTWREHMRON AE BASED COA'iaoSEFAROA HNry SENSING °` EENT MRE 2 W16HRU%6HNIEEIRRGA MMANWAMPINGg REINST MAO ALLCON5IANTPF¢" .'WAIEA MNNONEpHNG TO— AUMCIPALRECiIuiroHR, 1. VANMUPPEVEN}ION MFA6UPE661NLLBEIN6TALL£D TE A9NIMI]FUNEIINOCOOF s ME eTMNR US E CRT TOTAL WATER E IETVA4 ALLOWED FOR THE VNDSCAPf 6HNLNOT IX[E DO Whi RE MNED MINTTFAALLDWANOE R%.I A I,0G71 OFI RN MATEN&WI ODNFS BASED ON THE WATER NEEDS AND LOOMTSHOE DIERWTIONC OMNEACH yONE. i. ABDMEGROUNDIRR�4ilON E N ENAPADDA PDEWgTELY 9CPEfNm WXENMNBIE FWTAf TIC PMBIKPNDOOMMON CPEN fiP�, SMALL SHRUBS & OPEN SPACE TABLE GROUNDCOVER,TYP. • see plant legend TOTAL USEABLE OPEN 9PAOE,RES.G. 15 DU) =.T50.T. PEO'ARED 1166B.F, AAOMDED 1-K COMMON OPEN SPACE 11.1.1N I DO-19-6.E ISO RED I1,. E. PROM XISTING MASONRY WALL to REMAIN ACTME OREN$ PACE '. SW6.F. MIN REOMPRED10.F. PROMDEn see wall & fence plan DNRA Ern NRP E NBfiF.Ifi° -'B o RED,G6.F. nDMDED CONCEPTUAL LANDSCAPE PLAN - LA July 30, 2024 PARKII EXISTING PARKING STRUCTURE n 6 HT. TUBE STEEL FENCE PEDESTRIAN ENTRY GATE C EXISTING MASONRY WALL (TO REMAIN) ecue. we r.nmu■ Spltt f—CMU %d WeII,T�WIor Mehl roof r Ep�cfng Wood reAera I Dory well � end beams SIDE ELEVATION FRONT ELEVATION n TRASH ENCLOSURE u uuE. va•= ia• FIRE ACCESS PATH OF TRAVEL WALL & FENCE PLAN - L.2 an a Ana, C3�p�traet 12 - 88 July 30, 2024 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Santa Ana Clerk of the Council 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council Free Recording pursuant to Government Code 27383 DENSITY BONUS HOUSING AGREEMENT WITH DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 2130 East Fourth Street, Santa Ana, California; APN: 400-091-23 This DENSITY BONUS HOUSING AGREEMENT WITH DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Agreement"), is made and entered into this _ day of , 2025, for reference purposes only, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and Olive Crest, a California nonprofit corporation ("Developer"). City and Developer are sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. Developer is the owner of that certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 2130 East Fourth Street, Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full ("Property"). B. Developer is proposing to develop a residential development consisting of no more than fifteen (15) units, three (3) of which are proposed as very -low income residential rental units on the Property, as more particularly set forth in Density Bonus Application No. DBA-2025-03 ("Project"). C. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density Bonus Law"), set forth a process to provide increased residential densities and incentives, concessions, and waivers to property owners or developers who restrict a portion of their residential development to low income, very -low income, seniors or other qualified households, as specified. These regulations are intended to materially assist the housing industry in providing adequate and affordable housing for all economic segments of the community and to provide a 2130 East Fourth Street Density Bonus Agreement 5539nA n�rn .A City Council 12 — 89 7/15/2025 balance of housing opportunities for very -low income, low income, seniors and other qualified households throughout the City. D. The Project is proposing a total number of fifteen (15) residential rental units, including three (3) units for Very -Low Income Tenants, as defined herein, and proposes to utilize the existing parking lot to satisfy the parking requirements of state law. E. The Project complies with the affordability requirements for a housing development as set forth in the State Density Bonus Law and City Density Bonus for Affordable Housing. F. In light of the purpose of the State Density Bonus Law and City Density Bonus for Affordable Housing, and the express provisions of Government Code Sections 65915(d)(1)(2)(C), the City has determined that the Project is eligible for three (3) incentives or concessions, and waivers as prescribed by the State Density Bonus Law. G. This Agreement, and the exhibits attached hereto and incorporated herein by reference, are intended to set forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the density bonus, concession and waivers set forth herein. NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by Health and Safety Code Section 50052.5(h). 1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement, and which shall not exceed the amount of Affordable Rent authorized by California Health and Safety Code Section 50053 and pursuant to implementing regulations published by the California Department of Housing and Community Development, as determined from the Median Income for Orange County, as defined below in Section 1.1.16. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing Utility Allowance Schedule, and shall be updated no less than annually. 1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) 2 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 90 7/15/2025 for the required number/percentage of the total number of units in the Project which are to be rented or available for rent to Eligible Households. The Affordable Rent Schedule shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall be created in accordance with the Orange County, California Primary Metropolitan Statistical Area ("PMSA") as published by the California Department of Housing and Community Development ("HCD"), adjusted for family size, and shall be updated no less than annually. 1.1.4 "Affordable Units(s)" means the three (3) unit(s), which shall each be two - bedroom units. Any change to the number, bedroom size, or distribution of Affordable Units is subject to City Manager approval. 1.1.5 "Agreement" means this Density Bonus Housing Agreement. 1.1.6 "City" means the City of Santa Ana, California 1.1.7 "City Council" means the City Council of the City of Santa Ana. 1.1.8 "City Attorney" means the City Attorney for the City of Santa Ana. 1.1.9 "City Manager" means the City Manager for the City of Santa Ana. 1.1.10 "City's Planning Commission" means the Planning Commission for the City of Santa Ana. 1.1.11 "Density Bonus Application" shall mean the Density Bonus Application No. 2025-03 for the Project. 1.1.12 "Developer" means Olive Crest, a California nonprofit corporation, and its permitted successors and assigns to all or any part of the Property, Project or this Agreement. 1.1.13 "Effective Date" means the date the Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement, pursuant to section 4.1 herein. 1.1.14 "Eligible Household" means a Household whose income does not exceed the "Very -Low Income Tenant" qualifying limit as defined herein. 1.1.15 "Household" means all persons residing in a Unit. 1.1.16 "Median Income" means the Orange County, California area median income, adjusted for family size pursuant to California Health and Safety Code § 50052.5(h), as periodically published by HCD. 1.1.17 "Monthly Rent" means the total of monthly payments for: (a) use and occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 91 7/15/2025 water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, to the extent applicable and charged to tenant; and, (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge. 1.1.18 "Project" means that certain affordable residential development as more particularly described in the Recitals and Section 2 of this Agreement. 1.1.19 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon. 1.1.20 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date. 1.1.21 "Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 5.1 below. 1.1.22 "Unit" means a residential dwelling unit within the Project to be constructed or caused to be constructed by Developer pursuant to this Agreement. 1.1.23 "Unrestricted Units" means the Units within the Project to be constructed or caused to be constructed by Developer to a Household without restriction. 1.1.24 "Very -Low Income Tenant(s)" means a Household whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 1.2.1 Exhibit A — Legal Description of the Property 1.2.2 Exhibit B — Tenant Verification 1.2.3 Exhibit C — Annual Tenant Recertification 1.2.4 Exhibit D — Annual Rental Housing Compliance Report 1.2.5 Exhibit E — Notice of Affordability Restrictions on Transfer of Property 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain, or cause the development, operation and maintenance of, the Property as fifteen (15) unit rental residential community, with three (3) Affordable Units for Eligible Households. 4 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 92 7/15/2025 2.2 Density Bonus. The Project shall have fifteen (15) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is not requesting an increase in density and that this Agreement does not allow or approve an increase in residential density over the allowed density regulations of the City. Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional residential units on the Property under this Agreement. 2.3 Development Concessions, Incentives, and Waivers. As set forth in the City entitlements, Developer petitioned for and is hereby granted the following concessions, incentives, and waivers as part of the approval of Density Bonus Application: 2.3.1 Concession. In accordance with Government Code Section 65915(d)(1), Developer is granted the following concession(s): (a) The Project shall not be subject to the obligation to provide publicly accessible open space, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.5. (b) The obligation to provide private open space, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.6, shall be reduced to zero. (c) Developer is not required to submit a parking study. 2.3.2 Waivers. Provided that the Project complies with all other requirements of this Agreement and the Project Approvals, the City agrees to a partial waiver of the requirement to provide common open space, provided the Project provides a total of 2,191 square feet of common open space, including 761 square feet of common area to include laundry amenities, office, community room, and bathroom facilities; and 1,430 square feet of dedicated outdoor open area to be improved with landscaping and outdoor furnishing, as set forth in the Metro East Mixed Use Overlay Zone, Table 2, Section 4.6. 2.4 Parking Requirements. Onsite parking shall be provided in compliance with Government Code Section 65915(p) by utilizing the existing parking on the Property for residents of the Project. Developer represents and warrants that the existing parking on the Property comprises of 136 parking spaces and provides adequate levels of parking for the Project, including all required accessible parking for the Project and prospective residents. Provided that at least twenty-three (23) parking spaces are available to residents in the Project from the existing parking, Developer shall not be required to provide any additional parking. 2.5 No Further Concessions, Incentives, or Waivers. Developer acknowledges and agrees that no further concessions, incentives, waivers or parking requirements are requested, and that the terms set forth in Section 2.3 and 2.4 fully satisfies any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus Law, or any other law or regulation to provide any density bonus incentive or to waive any building, zoning, or other requirement in connection with a density bonus. By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City's obligation to waive 5 2130 East Fourth Street Density Bonus Agreement 5539n.—In�rnI.A I City Council 12 — 93 7/15/2025 requirements of or provide development incentives pursuant to the City Density Bonus for Affordable Housing and the Density Bonus Law applicable to the Project. 2.6 Unit Mix. 2.6.1 Unrestricted Units. The Project, for purposes of this Agreement, may have no more than twelve (12) Unrestricted Units, inclusive of one (1) manager's unit, as set forth in sub -paragraph 2.6.3, below, and pursuant to the terms and conditions of this Agreement. Any change to the unit distribution of the Unrestricted Units may affect the comparability of the Affordable Units and is subject to City Manager approval. 2.6.2 Affordable Units. The Project, for purposes of this Agreement, shall have no less than three (3) Affordable Units, for Very -Low Income Tenants, as set forth in sub- paragraph 2.6.3, and pursuant to the terms and conditions of this Agreement. The Affordable Units shall be consistent with all City approvals, comparable in bedroom distribution and amenities to the Unrestricted Units, and shall be located throughout the Project as required under Santa Ana Municipal Code section 41-1602(c)(5). 2.6.3 Unit Mix. 2.7 Minimum Development Standards for Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project. 2.8 Permits and Processing Compliance with Laws. Developer, at its sole cost and expense, or as otherwise set forth in a separate written agreement, shall secure or cause to be 6 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 94 7/15/2025 secured any and all permits that may be required for development of the Project by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, and all necessary financing and property interests, Developer shall carry out and perform the development, operation, and maintenance of the Project or cause the performance of the development, operation, and maintenance of the Project, in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City's sole determination, then City and Developer shall meet and confer to address amendments and revisions to this Agreement as necessary. 2.9 Relocation Prior to Development of Project. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project. 2.10 Mechanic's Liens; Indemnification. Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. 3. AFFORDABILITY 3.1 Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by Eligible Households for a term of not less than fifty-five (55) years ("Affordability Term"). The Affordability Term shall commence on the date when an Affordable Unit receives all required occupancy permits from the City and expire on the date that is fifty-five (55) years after the date when the Affordable Unit is first made available for occupancy to Eligible Households 7 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 95 7/15/2025 pursuant to this Agreement. The Affordability Term shall be determined for each individual Affordable Unit. 3.2 Memorializing Commencement of Affordability. Developer shall keep or cause to be kept detailed records of the commencement date of the Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordability. 3.3.1 Affordable Rent. Developer covenants that all three (3) Affordable Units in the Project shall at all times during the Affordability Term be rented to, or held vacant and available for immediate occupancy by an Eligible Household, at an Affordable Rent. 3.3.2 Affordable Rent for Very Low Income Tenants. The Affordable Rent for Very Low Income Tenants shall not exceed the limits set forth in California Health and Safety Code Section 50053 and implementing regulations, which provide that the Affordable Rent shall not exceed thirty percent (30%) times fifty percent (50%) of the Median Income, as adjusted for family size appropriate to the unit. 3.3.3 Affordable Rent Schedule. Prior to issuance of a Certificate of Occupancy for the Project, and on each anniversary of the issuance of the initial Certificate of Occupancy for the Project, Developer shall provide to the City the Affordable Rent Schedule, which City shall have not less than thirty (30) days to review and approve or disapprove, which approval shall not be unreasonably withheld. 4. OPERATION OF THE PROJECT BY DEVELOPER 4.1 Payment of Density Bonus Setup Fee. A Density Bonus Setup Fee in the amount of Two Thousand Five Hundred Sixty One Dollars and Seventy -Two Cents ($2,561.72), was paid by the Developer on November 20, 2024, prior to execution of this Agreement. 4.2 Recording of Documents; Priority. 4.2.1 No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and Project for the Term of this Agreement. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.1.A City Council 12 — 96 7/15/2025 Density Bonus Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the Project, except as expressly set forth in this Agreement. 4.2.2 The Agreement shall be recorded against the Property and have priority over those matters of public record, except as approved in writing by the City. For purposes of this paragraph, Developer shall provide the City with a preliminary title report for the Property dated not less than thirty (30) days prior to the execution of this Agreement. Developer agrees and warrants that it will exercise reasonable efforts to obtain the consent or approval to a subordination agreement with any senior lienholders and that, if such consent or approval is not provided, this Agreement and the benefits to Developer and the Project hereunder may be terminated by the City with thirty (30) days' written notice. 4.3 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit to Eligible Households for the Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Affordability Term. 4.4 Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus one person. If an Eligible Household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Developer shall provide written notification informing the household that: it is over -occupancy; has been placed on a waiting list for up to one -hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one -hundred and twenty (120) days, ninety (90) days, sixty (60) days and thirty (30) days if applicable. 4.5 Use of the Property. All uses conducted on the Property by Developer, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the Term of this Agreement be used as a rental housing complex and none of the Affordable Units in the Project, nor shall the Property or any portion thereof, ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project's residents shall be available on an equal, nondiscriminatory basis to residents of all Units at the Project. 4.6 Maintenance. Developer shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project, after providing notice as follows: (i) at least a 24-hour notice to Developer and Tenants of the Affordable Unit which will be inspected, or (ii) at least 48 9 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.1.A City Council 12 — 97 7/15/2025 hours' notice to Developer, which shall promptly give notice to Tenants of the Affordable Unit to be inspected. 4.7 Affordable Rental Lease Agreement. Developer shall prepare and obtain City's approval, which approval shall not be unreasonably withheld, conditioned or delayed, of a rental lease agreement for the Affordable Unit ("Affordable Unit Lease Agreement") for the Affordable Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members of the household who will occupy the Affordable Unit; and 2) state that the Household's right to occupy the Affordable Unit is subject to compliance with the Median Income requirements, adjusted for family size appropriate to the unit, as periodically published by HCD. All Affordable Unit Lease Agreements must be consistent with the terms contained in this Density Bonus Agreement. 4.8 Selection of Tenants. 4.8.1 Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. 4.8.2 Local preference for Santa Ana residents and workers in tenant selection for the Affordable Units shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the Developer shall give preference in leasing the Affordable Units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. 4.8.3 All applicants for Affordable Units will be screened and "lotterized." A waiting list will be created from a lottery generated from the initial pool of rental applications. The waiting list will track applicant name and contact information, lottery number (or designated number after the initial lottery), household income, household size, status of application, and any other information deemed necessary. The waiting list will be maintained as an electronic file and available for audit by the City of Santa Ana in accordance with resident selection procedures as set forth herein. 4.8.4 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein. 4.8.5 The Developer may rent or lease an Affordable Unit(s) to a nonprofit organization or an entity affiliated with a nonprofit organization, provided that the nonprofit organization or entity is required as a condition of that lease (a "Master Lease") to sublease the Affordable Unit to an Eligible Household. The Master Lease shall be provided to the City, which shall have thirty (30) days to review and approve, which approval shall not be unreasonably withheld. Prior to the rental or lease of an Affordable Unit under a Master Lease, Developer shall 10 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 98 7/15/2025 require the lessee thereunder to require each prospective sub -tenant to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the resident(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit under this Agreement. If an Affordable Unit subject to a Master Lease is not rented within thirty (30) days, then the City shall have the right to require termination of the Master Lease or declare a default under this Agreement for failure to fully utilize the Affordable Unit. The Master Lease shall require compliance with this Agreement, and nothing in this paragraph or the Master Lease shall relieve Developer from compliance with the obligations of this Agreement. 4.9 Income Verification and Certification. Developer shall make reasonable efforts to verify or cause to be verified that the income and asset statement provided by an applicant in an income certification is accurate by taking, at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.9.1 Gross Household Income. Gross household income means all income from whatever source from all adult Household members, which is anticipated to be received during the 12-month period following the date of the determination of Gross Household Income. The applicable sources of income are defined in California Code of Regulations Title 25 Housing and Community Development Section 6914. 4.9.2 Annual Recertification. Developer agrees to recertify or cause to be recertified household eligibility annually. Notification of Annual Tenant Recertification shall be sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental Housing Compliance Report ("Annual Compliance Report") shall be sent by Developer to the City in substantially the form attached hereto as Exhibit D for City's review and approval. The Annual Compliance Report shall be due to the City within 30 days of the anniversary of the commencement of the Affordability Term, which is the date that each building receives all required occupancy permits from the City. 4.9.3 Continued Income Qualification and Vacated Affordable Units. If the annual recertification demonstrates that a previously Eligible Household's gross household income exceeds the allowed Median Income for the Affordable Unit, the Developer will be considered in compliance with this agreement so long as one of the following pertinent actions from the following list is taken: (a) The Developer may offer to rent the unit to the previously, but no longer, Eligible Household as an Unrestricted Unit without any limitations on rental rates. In that case, the Developer must then make available for rent to an Eligible Household another unit within the Project that meets the size and location requirements for Affordable Units under this Density 11 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 99 7/15/2025 Bonus Agreement. If there are no vacant units meeting those requirements, then the next available unit within the Project which does meet those requirements must be rented to an Eligible Household. (b) If the no longer Eligible Household either moves to another Unrestricted Unit within the Project or leaves the Project altogether, then the vacated Affordable Unit, or, at Developer's election, any other Unrestricted Unit within the Project which meets the size and location requirements for Affordable Units under this Density Bonus Housing Agreement and has the same number of bedrooms as the vacated unit, shall be rented as an Affordable Unit to an Eligible Household. (c) Developer may proceed to terminate the tenancy and pursue any and all remedies in accordance with law or contract. 4.10 Monitoring and Recordkeeping. Throughout the Term of this Agreement, Developer shall annually complete or cause to be completed and submit to City the Annual Compliance Report. Developer agrees to pay a reasonable fee, as set by City resolution, for the purpose of paying the actual costs associated with the City's obligation to monitor Developer's compliance with the affordability restrictions contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up to three (3) Affordable Units. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project relating to the Affordable Units and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City without a fee from the City. Developer agrees to cooperate with City in making the Property and the records of the Project relating to the Affordable Unit reasonably available for such inspection or audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for no less than five (5) years after creation of each such record, including the five-year period following the expiration of the Term of this Agreement. Developer shall allow the City to conduct annual inspections of the Affordable Unit on the Property after the date of construction completion, with reasonable notice, which shall be at least twenty four (24) hours in advance, unless a shorter time is required in an emergency, to Developer of the Affordable Unit. Developer shall commence to cure or cause the commencement to cure any defects or deficiencies found by the City while conducting such inspections within ten (10) business days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City. 4.11 Notice of Affordability Restrictions on Transfer of Property. In the event the Developer wishes to sell or transfer the Project, during the Term of this Agreement, the City and the Developer shall execute and deposit into escrow, a Notice of Affordability Restrictions on Transfer of the Property, to be executed by the City and Developer in a form substantially similar to Exhibit E, which is attached hereto and must be executed by the parties prior to any transfer of the Property. 4.12 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to 12 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 100 7/15/2025 issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.13 Crime Free Housing. Developer shall work with City staff to formalize a crime free housing policy, procedure, and design plan (the "CFH Plan"), which includes the following provisions: (a) Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain security cameras; (b) Requiring routine unit inspections; (c) Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs, etc.; and (d) Have policies in place to ensure that common use areas such as hallways and trash enclosures are maintained in good condition and repair (e.g., well - lit, kept clean, etc.). Developer shall submit and obtain approval from the City's Planning and Building Agency ("PBA") that the CFH Plan meets the requirements of this Subsection 4.13 prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Developer or its designated property manager. 4.14 Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take the following measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. (a) Requiring onsite parking permits (such as stickers or hang -tags) for any parking in the onsite parking spaces for both residents and guests; (b) Policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and (c) Policies for towing unauthorized vehicles, vehicles parked in unauthorized locations (such as fire lanes), vehicles parking in surface guest parking 13 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 101 7/15/2025 without a sticker, hang -tag, or other identifiers, and vehicles parked longer than any maximum guest parking timeframes allowed. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") including those measures above. The approved PMP shall be adhered to and be enforced by the Project at all times. 4.15 Marketing and Resident Selection Plan. 4.15.1 Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval of a marketing program and resident selection plan for the leasing of the Affordable Units at the Project ("Marketing Program"). The leasing of the Affordable Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City's prior written approval. Upon request, Developer shall provide City with periodic reports with respect to the leasing of the Housing Units. 4.15.2 The Marketing Program shall include, but is not limited to, marketing and community outreach activities, proposed tenant selection criteria, occupancy standards, income requirements, timeline and details for outreach and marketing, data collection, record keeping and monitoring, procedures for complaints, and compliance assessment. Components of the resident selection plan shall include, but are not limited to, the application process, interview procedure, apartment offer and assignment, rejected applications, and wait list management. All requirements set forth herein shall be incorporated in the Marketing Program. 5. TERM OF THIS AGREEMENT 5.1 Term. The term of this Agreement ("Term") shall commence on the Effective Date and shall continue until the expiration of the Affordability Term for all Affordable Units, as set forth in Section 3.1, above. 131111111111111�] , 1I:1�11111I: ►1 11 111► : � ► I► ul► �1:11 �]� 6.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. Notwithstanding the above, should the Developer elect to not proceed with the Project prior to commencement of construction, the Developer shall submit written notice of such 14 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 102 7/15/2025 termination ("Termination Letter") to the City, which Developer, for itself, its successors and assigns, states that it waives, forfeits, and relinquishes any and all benefits under this Agreement. Upon City's receipt of the Termination Letter, the Parties agree to terminate this Agreement, except that the obligations of Section 4.1 and 6.4 shall survive termination. Developer shall, at its sole cost and expense, prepare and record a Termination of Agreement, which City shall review and approve, in the exercise of reasonable discretion. Such termination shall not be considered a default by any Party, but it shall result in a termination of the Agreement as provided for herein. 6.2 City's Remedies. In the event of a Default, the City shall have all rights and remedies available at law, and may seek any or all of the following remedies: 6.2.1 Any individual who sells or rents (including subleasing) an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained. 6.2.2 City may exercise any rights or institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including but not limited to: (a) Actions to revoke, deny or suspend any permits and/or certificate of occupancy; and (b) Actions for injunctive relief or damages. 6.3 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. Notwithstanding anything to the contrary contained in this Agreement, in no event shall either Party be liable for speculative, consequential, punitive or other indirect damages, and each Party waives any right to collect speculative, consequential, punitive or other indirect damages against the other Party. 6.4 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any claims, demands, or causes of action arising from or related to this Agreement, including the approval thereof, except to the extent caused by the active negligence or willful misconduct of Indemnitees. 7. ASSIGNMENT; COVENANTS RUN WITH THE LAND 7.1 Assignment by Developer. 7.1.1 Prohibited Transfers or Assignments. Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or in part, unless the sale, transfer, or assignment complies with this Section 7. If Developer seeks to sell, transfer or assign the Property or Project, or any 15 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 103 7/15/2025 rights and obligations in this Agreement, Developer shall request City's written consent, and City shall respond within thirty (30) days with a written approval or denial, which City may determine in its sole and absolute discretion. If City approves such a request, then prior to any such sale, transfer or assignment, Developer shall pay City's reasonable fees as compensation for the City's review of the request. City's failure to respond to the request within thirty (30) days shall be deemed an approval. 7.1.2 Sale of Property. Developer agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute covenants which run with the land and shall be binding on Developer and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Developer further understands and agrees that the approvals received for this Project have been made on the condition that Developer and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Affordable Units in accordance with the terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of fifty five (55) consecutive years commencing upon the date that the Project is first occupied. 7.1.3 Subsequent Assigningnt. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. 7.1.4 Unpermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 7.2 Covenants Run with the Land. The Property shall be used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the agreement provides a public benefit in furtherance of benefit of such covenants 16 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 104 7/15/2025 touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 8. MISCELLANEOUS 8.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties with respect to the density bonus of the Project, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 8.2 Amendment. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council, or through the City Manager as detailed herein, and signed on behalf of each party. The City Manager shall have the authority to make approvals, issue interpretations, execute documents, waive provisions, and/or enter into amendments of this Agreement on behalf of City that further the intent of this Agreement. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City's review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Property in the Official Records of Orange County, California. 8.3 Notices. 8.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges prepaid and delivery scheduled next -day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party; or (vi) upon transmission thereof (as evidenced by the recipient's reply to such notice or other competent evidence of actual receipt) if transmitted by electronic transmission (email), provided that a copy of such notice is concurrently sent by first-class mail postage prepaid. All notices shall be addressed as follows: If to City: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 17 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 105 7/15/2025 Santa Ana, California 92702 Attention: Housing Manager With a copy to: Office of the City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 If to Developer: Olive Crest 2130 East Fourth Street, Santa Ana, California 92705 Attn: Donald Verleur 8.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 8.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 8.5 Interpretation and Governing Law. This Agreement and any dispute hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 8.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 8.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 8.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 8.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 8.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this 18 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 106 7/15/2025 Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business. 8.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 8.12 Non -Discrimination. In performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex, gender, gender identity, gender expression, marital status, sexual orientation, familial status, source of income, veteran or military status, age, national origin, ancestry, disability or genetic information, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 8.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 8.14 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, pandemics as declared by federal, state, or local emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 8.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 8.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof, and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 19 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 107 7/15/2025 8.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 8.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or to the extent allowed by law, in the federal court district covering the City, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 8.19 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property. 8.20 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and in the satisfaction of the Project and conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 8.21 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. 8.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density 20 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 108 7/15/2025 Bonus for Affordable Housing, and the terms and conditions of this Agreement. For the duration of the Term, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project. 8.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 8.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. {Signatures on following page} 21 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 109 7/15/2025 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement. ATTEST: Jennifer Hall City Clerk APPROVED AS TO FORM: 4L46..R P.1,, r By: Matthew R. Cody Special Counsel for the City RECOMMEND FOR APPROVAL: Michael Garcia Executive Director Community Development Agency CITY OF SANTA ANA Alvaro Nunez City Manager Olive Crest, a Californian nonprofit corporation 6 zo�-;;r By: 4Z1oN►tL8-kfZ Its: C c v 22 2130 East Fourth Street Density Bonus Agreement 5539-'4.94;-�C4� -1 City Council 12 -110 7/15/2025 EXHIBIT A LEGALDESCRIPTION OF THE PROPERTY APN: 400-091-23 PARCEL A; PARCEL 1, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 42, PAGE 43 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, TOGETHER WITH THAT PORTION OF PARCEL 1, AS PER MAP RECORDED IN BOOK 41, PAGE 8 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, LYING EASTERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE SOUTHWEST CORNER OF SAID PARCEL I OF 161AP RECORDED IN BOOK 41, PAGE 8 OF PARCEL MAPS; THENCE NORTH 89" 36'54'EAST ALONG THE SOUTH LINE OF SAID LAST MENTIONED PARCEL 1, ZD2.21 FEET TO THE TRUE POINT OF BEGINNING, THENCE NORTH 00" 15' 00* WEST 210 FEET TO A POINT ON A NORTHERLY LINE OF SAID LAST MENTIONED PARCEL I DISTANT THEREON NORTH 89" 36'54" EAST 72.21 FEET FROM THE SOUTHERLY TERMINUS OF THAT PORTION OF THE EASTERLY LINE OF SAID LOT LIKE 14AVING A COURSE OF NORTH 00" 1 600'WEST AND HAVING A LENGTH OF 335 FEET. SAID LAND IS DESCRIBED AND SHOWN AS PARCEL 2 IN THAT CERTAIN APPLICATION FOR LOT LINE ADJUSTMENT NO. 94-6 RECORDED MARCH 31, 190 AS INSTRUMENT NO. 95-137DD7 OF OFFICIAL RECORDS. EXCEPT ALL OIL- GAS., MINERALS AND OTHER HYDROCARBON SUBSTANCES, LYING BELOW A DEPTH OF 50D FEET FROM THE SURFACE OF SAID LAND, BUT WITHOUT THE RIGHT OF ENTRY UPON ANY PORTION OF THE SURFACE ABOVE DEPTH OF 5D0 FEET, TO TAKE, 161ARKET, MINE, EXPLORE OR DRILL FOR SAME, AS RESERVED IN THE DEED FROM FRED RUSSELL LEWIS RECORDED JANUARY IS, 1970 IN BOOK 9191, PAGE 366 OF OFFICIAL RECORDS. PARCELB: AN EASEMENT FOR ALLEY PURPOSES TO BE USED IN COMMON WITH OTHERS OVER THOSE PORTIONS OF PARCELS 1. 2 AND 3 AS SHOWN ON A MAP FILED IN BOOK 27, PAGE 22 OF PARCEL MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS. BEGINNING AT THE SOUTHWEST CORNER OF THE SAID PARCEL 3, THENCE ALONG THE WESTERLY LINE OF SAID PARCELS 3 AND 1, NORTH 0" IS OW WEST 54537 FEET TO THE NORTHERLY LINE OF THE SOUTH 10.00 FEET OF SAID PARCEL 1; THENCE ALONG SAID NORTHERLY LINE AND THE EASTERLY PROLONGATION THEREOF, NORTH 89' 36'54' EAST 457.55 FEET; THENCE NORTH 44'40'20'EAST 14.16 FEET TO A LINE PARALLEL WITH AND DISTANT WESTERLY 20.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE EASTERLY LINE OF SAID PARCEL 2; THENCE ALONG SAID PARALLEL LINE, NORTH 0" IT 13"WEST 305.00 FEET, THENCE NORTH 4W 19' 36" WEST 14.13 FEET TO THE SOUTHERLY LINE OF FOURTH STREET, AS SHOWN ON SAID PARCEL MAP; THENCE ALONG SAID SOUTHERLY LINE, NORTH 89'313 54" EAST 30.00 FEET TO THE EASTERLY LINE OF SAID PARCEL 2; THENCE ALONG SAID EASTERLY LINE, SOUTH Or 1& 13" EAST 345-00 FEET, THENCE SOUTH 89' 36' 54' WEST 457M FEET TO A LINE PARALLEL WITH AND DISTANT 20.00 FEET, MEASURED .AT RIGHT ANGLES. FROM THE WESTERLY LINE OF SAID PARCEL 3; THENCE ALONG SAID LAST MENTIONED PARALLEL LINE, SOUTH 0' 1 5'2D' EAST 625.77 FEET TO THE SOUTHERLY LINE OF SAID PARCEL I THENCE ALONG THE SOUTHERLY LINE THEREOF, SOUTH 89- 30' 49- WEST 20.00 FEET TO THE POINT OF BEGINNING. EXCEPT THOSE PORTIONS THEREOF INCLUDED WITHIN PARCEL A ABOVE DESCRIBED. APN' 400-091-23 Exhibit A to 2130 East Fourth Street Density Bonus Agreement 55394.00 101 \43 846773.1 City Council 12-111 7/15/2025 EXHIBIT B TENANT VERIFICATION [SEE FOLLOWING PAGES] Exhibit B to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 —112 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Inclusionary Unit Address: Head of Household (Print Name): Current Address (if different from above): Telephone Number: Home: Email address: Date of Birth: Work: Social Security # or TIN: Household Composition Cell: List All Household Members Living in the Inclusionary Unit Dependent Social Security # Name Sex Age (Y/N) or Taxpayer ID # List additional household members on a separate sheet of paper. Income Verification Form Page 1 Santa Ana, City Council 12 —113 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Monthly Gross Income List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 1: Earned Income Other Head of Household Household Members Total 1. Gross wages, before payroll deductions and $ $ $ including overtime pay, commissions, fees, tips and bonuses. 2. Net income from self employment, independent $ $ $ contractor work or a business. 3. Social security and any payments from annuities, $ $ $ insurance policies, pension/retirement funds, disability or death benefits received periodically. 4. Payment in lieu of earnings, such as $ $ $ unemployment, disability compensation, worker's compensation and severance pay. 5. Public assistance, welfare payments $ $ $ 6. Alimony, child support, other periodic allowances $ $ $ 7. Regular pay, special pay and allowances of $ $ $ members of the Armed Forces 8. Other $ $ $ Subtotal: Monthly Earned Income $ Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income Income Verification Form Page 2 Santa Ana, City Council 12 —114 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Monthly Gross Income * List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 2: Investment Income Total Other Adult Household Head of Household Investment Household Members Income 1. Interest paid on Bank and Savings accounts $ $ $ 2. Dividends and other payments from stocks and $ $ $ bonds 3. Income from real property (i.e. rental property) $ $ $ 4. Other (describe) $ $ $ Subtotal: Monthly Investment Income: $ Total Monthly Investment Income x 12 = $ Total Annual Household Investment Income *Note: The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience. Income Verification Form Page 3 Santa Ana, City Council 12 —115 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM Assets ** List the Current Value of All Assets of All Household Members Living in the Inclusionary Unit If the Asset generates income, that income must be specified In Part 2 above Head of Household Other Adult Household Members Total Value of Value Value Assets 1. Bank and Savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property (i.e. rental property) $ $ $ 4. Other (describe) $ $ $ Total Asset Value $ **Note: Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets. Collections of items for hobby, investment or business purposes must be included in household assets. If the total value of household assets exceeds $5,000, the calculation of the household's annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets. Income Verification Form Page 4 Santa Ana, City Council 12 —116 7/15/2025 EXHIBIT "B" INCOME VERIFICATION FORM If the total asset value exceeds $5,000, perform the calculations in the following table. If the total asset value is less than $5,000, the amount of investment income to be included in annual household income is $0. Calculation of Investment Income to be Included in Annual Household Income 1. Total Annual Household Investment Income $ 2. Total Asset Value $ x 10% $ The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $ Calculation of the Household's Total Annual Income Total Annual Household Gross Earned Income 1 $ Total Investment Income to be Included in Annual Household Income 1 $ Total Household Income 1 $ Documentation Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from three most recent pay periods Employment verification Three years Income tax returns for Title Holders Social security verification Alimony/child support verification Other (Describe) Bank/Savings account verification Self-employment verification Unemployment verification Welfare verification Disability income verification Income Verification Form Page 5 Santa Ana, City Council 12 —117 7/15/2025 EXHIBIT "B" AFFIDAVIT This Affidavit is made with the knowledge that it will be relied upon by and the City of Santa Ana to determine maximum income for eligibility to purchase the Inclusionary Unit listed above. (1/we) warrant that all information set forth in this document is true, correct and complete and based upon information (1/we) deem reliable and based upon such investigation as (1/we) deemed necessary. (I/We) acknowledge that (1/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) purchase agreement and will additionally enable the seller to terminate the purchase contract and sell the Inclusionary Unit to another party. (I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an Inclusionary Unit located at Signature Printed Name Executed at Signature Printed Name ,Santa Ana, California. Date Santa Ana, California Date Executed at , Santa Ana, California Affidavit Page 6 Santa Ana, City Council 12 —118 7/15/2025 EXHIBIT C ANNUAL TENANT RECERTIFICATION [SEE FOLLOWING PAGES] Exhibit C to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 —119 7/15/2025 Exhibit "C" TENANT INCOME VERIFICATION FORM 2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE CITY OF SANTA ANA Table 1: Annual Household Gross Earned Income 1 List All Sources of Earned Income for all Adult Household Members Living in the Inclusionary Unit Other Adult Head of Household Household Members Total 1. Gross amount, before payroll deductions of $ $ $ wages, salaries, overtime pay, commissions, fees, tips and bonuses 2. Net income from business $ $ $ 3. Social security, annuities, insurance policies, $ $ $ pension/retirement funds, disability or death benefits received periodically 4. Payment in lieu of earnings, such as $ $ $ unemployment, disability compensation, worker's compensation and severance pay 5. Public assistance, welfare payments $ $ $ 6. Alimony, child support, other periodic $ $ $ allowances 7. Regular pay, special pay and allowances of $ $ $ members of the Armed Forces 8. Other $ $ $ Subtotal: Monthly Earned Income $ Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income 1 The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience. Administrative Procedures Manual Rental Residential Development Page 1 June 3, 2025 City Council 12 — 120 7/15/2025 Table 2A: Household Assets Z List the Value of All Assets Owned by all Adult Household Members Living in the Inclusionary Unit Head of Household Other Adult Household Members Total Return @ 10% of Total 1. Bank & savings accounts $ $ $ $ 2. Stocks and bonds $ $ $ $ 3. Real property $ $ $ $ 4. Other $ $ $ $ Table 213: Income Earned Annually from Household Assets List the Actual Annual Return on All Assets Owned by all Adult Household Members Living in the Inclusionary Unit Other Adult Head of Household Household Members Total 1. Bank and savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property $ $ $ 4. Other $ $ $ The return on Household assets to be included in the Gross Income calculation is set at the greater of the two amounts shown on the following page: 2 Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets. Collections of items for hobby, investment or business purposes must be included in household assets. Under California Government Code Section 6914, if the total value of household assets exceeds $5,000, the calculation of the household's annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets. Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Page 2 June 3, 2025 City Council 12 — 121 7/15/2025 Table 2C Annual Asset Income to be Added to Annual Household Gross Earned Income 10% Annual Return Actual Return Return to be Applied 1. Bank and savings accounts $ $ $ 2. Stocks and bonds $ $ $ 3. Real property $ $ $ 4. Other $ $ $ Total Annual Return to be Added to Annual Household Gross Earned Income $ The total Gross Household Income is equal to the sum of the following: Table 3: Calculation of the Household's Total Annual Gross Income Annual Household Gross Earned Income (Table 1) $ Annual Asset Income (Table 2C) $ Total Annual Household Gross Income $ Income Documentation Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from two most recent pay periods Employment verification Income tax return Social security verification Alimony/child support verification Other (Describe) Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Bank/Savings account verification Self-employment verification Unemployment verification Welfare verification Disability income verification Page 3 June 3, 2025 City Council 12 — 122 7/15/2025 Exhibit "C" AFFIDAVIT This Affidavit is made with the knowledge that it will be relied upon by the City of Santa Ana, our landlord and the owner of our apartment building, to determine maximum income for eligibility. (1/we) warrant that all information set forth in this document is true, correct and complete and based upon information (1/we) deem reliable and based upon such investigation as (1/we) deemed necessary. (I/We) acknowledge that (1/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) rental agreement with the property owner to rent the unit and will additionally enable the property owner to initiate and pursue all applicable legal and equitable remedies with respect to the unit and to me/us. (I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an Inclusionary Unit located at Ana, California. Signature Printed Name Date Executed at , Santa Ana, California Signature Printed Name Executed at Tenant Income Verification Form Administrative Procedures Manual: Rental Housing Development Date Santa Ana, California ,Santa Page 1 June 3, 2025 City Council 12 — 123 7/15/2025 EXHIBIT D ANNUAL RENTAL HOUSING COMPLIANCE REPORT [SEE FOLLOWING PAGES] Exhibit D to 2130 East Fourth Street Density Bonus Agreement 5539A.-1n�.1.A � City Council 12 — 124 7/15/2025 ANNUAL RENTAL RESIDENTIAL DEVELOPMENT COMPLIANCE REPORT 2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE CITY OF SANTA ANA Project Name: Project Address: Total Number of Units in the Project: Compliance Report Completed By: Phone Number: Date: Reporting Period: Number of Very Low Income Units: Unit # Household Name Household Size Household Income Number of Bedrooms Calculation of Net Monthly Rent Date First Occupied Date of Last Income Recertification Gross Rent Minus: Net Rent Other Utility Mandatory Allowance Payments AdministratGjtpCe cIgUrMj ua1: 12 - 125 7/15/2025 Page 1 Rental Residential Development 6/3/2025 VXAI<RIT V FORM OF NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: City of Santa Ana 20 Civic Center Plaza, 6th Floor Santa Ana, California 92702 Attn: Executive Director This document is exempt from payment of a recording fee pursuant to Government Code Sections 27383 and 6103. NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY This Notice of Affordability Restrictions on Transfer of Property (or "Notice of Affordability Restrictions") is executed and recorded pursuant to Section 65915 of the California Government Code, and affects that certain real property generally located at 2130 East Fourth Street, Santa Ana, California (APN 400-091-023) (hereafter, the "Property") as legally described in Exhibit A hereto ("Property"). The City of Santa Ana, a charter city and municipal corporation of the State of California (referred to hereafter as "City"), and Olive Crest, a California nonprofit corporation ("Developer/Property Owner") have entered into that certain Density Bonus Housing Agreement With Declaration of Covenants, Conditions and Restrictions, dated as of , 2025 ("Density Bonus Housing Agreement"). 1. The Density Bonus Housing Agreement provides for affordability restrictions and restrictions on the transfer of the Property, as more particularly set forth in the Density Bonus Housing Agreement. A copy of the Density Bonus Housing Agreement is on file with City as a public record and is deemed incorporated herein. Reference is made to the Density Bonus Housing Agreement with regard to the complete text of the provisions of such agreement and all defined terms therein, which provides for affordability restrictions and restrictions on the transfer of the Property. Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539nA n�rn .A 1 City Council 12 — 126 7/15/2025 2. For a period commencing upon the date on which the Affordable Unit receives all required occupancy permits from the City and terminating on the fifty- fifth (55th) anniversary thereof, the Property may only be transferred to another eligible, qualified Moderate Income Household at an Affordable Housing Cost; such restrictions are set forth at greater length in the Density Bonus Housing Agreement, which is expected to be recorded substantially concurrently herewith among the Official Records of Orange County, California. 3. Section 4.12 of the Density Bonus Housing Agreement provides as follows: "Notice of Affordability Restrictions on Transfer of Property. In the event of the sale or resale of an Affordable Unit during the Total Affordability Term, the City and the transferor shall execute and deposit into escrow, or record against the Affordable Unit, a Notice of Affordability Restrictions on Transfer of the Property as contained herein (Exhibit E). The sale or transfer of the Property, shall not be effective unless and until the City and the transferee execute the documents necessary to transfer the Density Bonus Agreement obligations from the transferor to the transferee." In the event that Developer/Property Owner desires to Transfer the Property during the Affordability Period, prior to the Transfer the owner shall notify City by delivering a Notice of Intent to Transfer to City, which shall indicate the identity of the proposed Transferee who desires to purchase the Property, whether the purchaser is a Moderate Income Household, and whether the sales price is at an Affordable Housing Cost. In addition to Homebuyer's and the proposed Transferee's delivery of the Notice of Intent to Transfer, the following procedure shall apply: a. Notice to City. Developer/Property Owner shall send the Notice of Intent to Transfer to City at the address set forth in the Density Bonus Housing Agreement. b. Qualification of Proposed Transferee. The proposed Transferee shall provide the City with sufficient information in the form provided by City including without limitation, a certification as to the income and family size of the proposed Transferee, for City to determine if the proposed Transferee is a Moderate Income Household, and the purchase price is at an Affordable Housing Cost. C. Certificates from Parties. Developer/Property Owner and proposed Transferee each shall certify in writing, in a form acceptable to City, that Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539A. AA A \,A -A City Council 12 — 127 7/15/2025 the Transfer shall be closed in accordance with, and only with, the terms of the sales contract and other documents submitted to and approved by City and that all consideration delivered by the proposed Transferee to owner has been fully disclosed to the City. The written certificate shall also include a provision that in the event a Transfer is made in violation of the terms of this Restriction or false or misleading statements are made in any documents or certificate submitted to City for its approval of the Transfer, City shall have the right to file an action at law or in equity to make the parties terminate and/or rescind the sales contract and/or declare the sale void notwithstanding the fact that the Transfer may have closed and become final as between Developer/Property Owner and Transferee. d. Written Consent of City Required Before Transfer. During the Affordability Period, the Property, and any interest therein, shall not be conveyed by any Transfer except with the express written consent of the City, which consent shall be given only if the Transfer is in accordance with the provisions of this Restriction. This provision shall not prohibit the encumbering of title for the sole purpose of securing financing of the purchase price of the Property. e. Notice of Prohibited Transfer. Within twenty (20) days after receiving notification of a proposed Transfer in accordance with Section 3a., the City shall determine and give notice to Developer/Property Owner as to whether the proposed Transfer is a Permitted Transfer or Prohibited Transfer. In the event that the proposed Transfer is a Prohibited Transfer, such notice to Developer/Property Owner shall specify the nature of the Prohibited Transfer. If the violation is not corrected to the satisfaction of the City within ten (10) days after the date of the notice, or within such further time as the City determines is necessary to correct the violation, the City may declare a Default under this Restriction. Upon the declaration of a Default, the City may apply to a court of competent jurisdiction for specific performance of this Restriction, for an injunction prohibiting a proposed sale or Transfer in violation of this Restriction, for a declaration that the Prohibited Transfer is void, or for any such other relief as may be appropriate. f. Delivery of Documents. Upon the close of the proposed Transfer, Developer/Property Owner and Transferee, as applicable, shall provide the City with a copy of the final sales contract, settlement statement, escrow instructions, all certificates required by this Section 3 and any other documents the City may request. 4. The restrictions contained in the Density Bonus Housing Agreement commence upon the date on which the Affordable Unit receives all required Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539nAnin '.-A City Council 12 — 128 7/15/2025 occupancy permits from the City and terminate on the fifty-fifth (55th) anniversary thereof. 5. The commonly known addresses for the Property is 2130 East Fourth Street, Santa Ana, CA. 6. The assessor's parcel numbers for the Property is 400-091-23 7. The legal description of the Property is attached hereto as Attachment No. 1 and is incorporated herein by reference. 8. The Density Bonus Housing Agreement, which includes the affordability restrictions referenced above, is expected to be submitted for recordation in the Office of the Orange County Recorder contemporaneously with this Notice of Affordability Restrictions. 9. The Density Bonus Housing Agreement remains in full force and effect and is not amended or altered in any manner whatsoever by this Notice of Affordability Restrictions. 10. Capitalized terms shall have the meaning established under the Density Bonus Housing Agreement (including all Attachments thereto) excepting only to the extent as otherwise expressly provided under this Notice of Affordability Restrictions. 11. Persons having questions regarding this Notice of Affordability Restrictions, the Density Bonus Housing Agreement or the Attachments thereto should contact the City at its offices (20 Civic Center Plaza, Santa Ana, California 92701, or such other address as may be designated by the City from time to time). Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539A. AAI n�A—An ­, City Council 12 — 129 7/15/2025 ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO, City Attorney City Attorney Dated: DEVELOPER/ PROPERTY OWNER: By: Printed Name: [Signature to be acknowledged] THE CITY OF SANTA ANA 0 Executive Director, Community Development Agency Exhibit E to 2130 East Fourth Street Density Bonus Agreement 5539n nni n�A—A--j City Council 12 — 130 7/15/2025 ORANGE COUNTY REPORTER — SINCE 1921 — 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841 GEMA ZAPIEN CITY OF SANTA ANA/PLANNING & BUILDING AGEN 20 CIVIC CENTER PLAZA 2ND FLR SANTA ANA, CA - 92702 PROOF OF PUBLICATION (2015.5 C.C.P.) State of California ) County of ORANGE )SS Notice Type: GPN - GOVT PUBLIC NOTICE Ad Description: 2130 E 4th St I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the city of SANTA ANA, county of ORANGE, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of ORANGE, State of California, under date 06/20/1922, Case No. 13421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 05/30/2025 Executed on:05/30/2025 At Los Angeles, California I certify (or declare) under penalty of perjury that the foregoing is true and correct. iuiiiuuiuuuuuuwuuuuuui�uuu Email This space for filing stamp only OR#: 3932029 NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA PLANNING COMMISSION The City of Santa Ana encourages the public to participate in the decision - making process. We encourage you to contact us prior to the Public Hearing if you have any questions. Planning Commission Action: The Planning Commission will hold a Public Hearing to receive public testimony and will take action on the item described below. Decision on this matter will be final unless appealed pursuant to Article V of Chapter 41 of the Santa Ana Municipal Code within 10 calendar days of the decision by any interested party or group. Project Location: 2130 East Fourth Street, located within the Professional (P) zone and within the Village Center District of the Metro East Mixed Use Overlay (MEMU). Project Applicant: Donald Verleur (Applicant) representing Olive Crest (Property Owner). Proposed Project: Request for approval of Density Bonus Agreement No. 2025-03 to construct a fifteen -unit multi -family residential development, including three units proposed as affordable to very low- income households earning less than 30- 50 percent of the area median income (AMI). As proposed, the project will utilize concessions and a waiver or reduction to deviate from development standards through the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41- 1600 through 41-1607. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15168 (Program EIR) of the CEQA Guidelines. Categorical Exemption ER No. 2023-94 will be filed for this project. Meeting Details: This matter will be heard on Monday, June 09, 2025, at 5:30 p.m. in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/planning- a n d- b u i l d i n g-m a et i n g-p a rti ci p a t i o n /. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments@santa-ana.org (reference the Agenda Item # in the subject line) or by mail to Gema Zapien, Acting Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at https://santa- ana.primegov.com/public/portal. Who To Contact For Questions: Should you have any project questions, please contact case planner Pedro Gomez with the Planning Division by phone at (714) 12 - 131 667-2790 or by email at PGomez@santa- ana.com. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas en espafiol, favor de Ilamar a Gema Zapien (714) 667-2732. Neu can lien lac bang tieing Viet, xin dien thoai cho Kristie Ha (714) 667- 2206. 5/30/25 OR-3932029# 7/15/2025 CITY OF SANTA ANA -L' Planning and Building Agency 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.org/pba NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA PLANNING COMMISSION The City of Santa Ana encourages the public to participate in the decision -making process. This notice is being sent to those who live or own property within 1000 feet of the project site or who have expressed an interest in the proposed action. We encourage you to contact us prior to the Public Hearing if you have any questions. Planning Commission Action: The Planning Commission will hold a Public Hearing to receive public testimony and will take action on the item described below. Decision on this matter will be final unless appealed pursuant to Article V of Chapter 41 of the Santa Ana Municipal Code within 10 calendar days of the decision by any interested party or group. Project Location: 2130 East Fourth Street, located within the Professional (P) zone and within the Village Center District of the Metro East Mixed Use Overlay (MEMU). Project Applicant: Donald Verleur (Applicant) representing Olive Crest (Property Owner). Proposed Project: Request for approval of Density Bonus Agreement No. 2025-03 to construct a fifteen - unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI). As proposed, the project will utilize concessions and a waiver or reduction to deviate from development standards through the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15168 (Program EIR) of the CEQA Guidelines. Categorical Exemption ER No. 2023-94 will be filed for this project. Meeting Details: This matter will be heard on Monday, June 09, 2025, at 5:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/planning-and-building-meeting-participation/. Written Comments: If you are unable to participate in the meeting, you may send written comments by e- mail to PBAeComments(@santa-ana.org (reference the Agenda Item # in the subject line) or by mail to Gema Zapien, Acting Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at https://santa-ana.primegov.com/public/portal. City Council 12 — 132 7/15/2025 Who To Contact For Questions: Should you have any Project questions, please contact Case Planner, Pedro Gomez, with the Planning Division by phone at (714) 667-2790 or by email at PGomez(@santa- ana.orq. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. Si tiene preguntas en espanol, favor de Ilamar a Gema Zapien (714) 667-2732. Neu can lien lac bang tieng Viet, An dien thoai cho Kristie Ha (714) 667-2206. 1000' RADIUS NOTIFICATION MAP 2130 E Fourth Street 1,000 Sq. Ft. Buffer Map City Council 12 — 133 7/15/2025 NOTICE OF PUBLIC HEARING BEFORE THE SANTA ANA PLANNING COMMISSION The City of Santa Ana encourages the public to participate in the decision -making process. This notice is being sent to those who live or own property within 1000 feet of the project site or who have expressed an interest in the proposed action. We encourage you to contact us prior to the Public Hearing if you have any questions. Planning Commission Action: The Planning Commission will hold a Public Hearing to receive public testimony and will take action on the item described below. Decision on this matter will be final unless appealed pursuant to Article V of Chapter 41 of the Santa Ana Municipal Code within 10 calendar days of the decision by any interested party or group. Proiect Location: 2130 East Fourth Street, located within the Professional (P) zone and within the Village Center District of the Metro East Mixed Use Overlay (MEMU). Proiect Applicant: Donald Verleur (Applicant) representing Olive Crest (Property Owner). Proposed Project: Request for approval of Density Bonus Agreement No. 2025-03 to construct a fifteen -unit multi -family residential development, including three units proposed as affordable to very low-income households earning less than 30-50 percent of the area median income (AMI). As proposed, the project will utilize concessions and a waiver or reduction to deviate from development standards through the density bonus agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607. Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review pursuant to Section 15168 (Program EIR) of the CEQA Guidelines. Categorical Exemption ER No. 2023-94 will be filed for this project. Meeting Details: This matter will be heard on Monday, June 09, 2025, at 5:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/r)lanning-and-building-meetin - participation/. Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to PBAeComments(@santa-ana.org(reference the Agenda Item # in the subject line) or by mail to Gema Zapien, Acting Recording Secretary, City of Santa Ana, 20 Civic Center Plaza — M20, Santa Ana, CA 92701. Deadline to submit written comments is 3:30 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record. Where To Get More Information: Additional details regarding the roposed action(s), including the full text ot at https //sant, ana primpgov com/publi /portt on the City website 72 hours prior to the public hearing Who To Contact For Questions: Should you have any Project questions, please contact Case Planner, Pedro Gomez, with the Planning Division by phone at (714) 667-2790 or by email at PGomez(a)santa-ana.orq. Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission or City Council of the City of Santa Ana at, or prior to, the public hearing. 1 1 Si tiene preguntas en espanol, favor de Ilamar a Gema Zapien (714) 667-2732. Neu can lien lac bang tieng Viet, xin dien thoai cho Kristie Ha (714) 667-2206. �i — d� • I ,1 is - , .T, . ' . . . . . . . . . . . . . . . . . . . . . MAYOR Valerie Amezcua MAYOR PRO TEM Benjamin Vazquez COUNICILMEMBERS Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Benjamin Vazquez Thai Viet Phan CITY OF SANTA ANA CITY CLERK'S OFFICE 20 Civic Center Plaza • P.O. Box 1988 Santa Ana, California 92702 www.santa-ana.oro NOTICE OF CONTINUANCE PUBLIC HEARING BEFORE THE PLANNING COMMISSION SANTA ANA, CALIFORNIA CITY MANAGER Alvaro Nufiez CITY ATTORNEY Sonia R. Carvalho CITY CLERK Jennifer L. Hall PURSUANT TO GOVERNMENT CODE § 54955.1, notice is hereby given that the Planning Commission of the City of Santa Ana continued the public hearing noticed for June 09, 2025 to J u n e 2 3, 2 0 2 5 t o consider adoption of a Density Bonus Agreement No.2025-03. The matter will be considered on Monday, June 23, 2025, at 5:30 P.M., in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, California. Members of the public may attend this meeting in -person or join via Zoom. For the most up to date information on how to participate in this meeting, please visit https://www.santa-ana.ora/agendas-and-minutes/. Si tiene preguntas en espanol, favor de Ilamar a Gema Zapien (714) 667-2732. Neu can lien lac bang tieng Viet, An dien thoai cho Kristie Ha (714) 667-2206. Please contact the Planning and Building Agency at (714) 667-2700 with any questions. Gema Zapien Acting Planning Commission Secretary SANTA ANA CITY COUNCIL Valerie Amezcua G' It a �eq�iq Iz Thai Viet Phan Jessie Lopez 1 2 — 1 36 Phil Became Johnathan IZ�a�T&2025 David Penaloza Mayor a PP rd 2 Ward 1 Ward 3 Ward 4 Wray Ward 6 vamezcua(a)santaana.orp bvaZQuez(a.Santa-ana.ora tohan(dsanta-ana.ora iessielonez(a'santa-ana.ora obacerra(asantaana.ora irvanhernandez(asanta-ana.orc doenaloza(asanta-ana.ora Zapien, Gema From: Sent: Gomez, Pedro Monday, June 23, 2025 2:41 PM To: Zapien, Gema Subject: FW: public comment re item 1 for 6/23/25 Planning Commission meeting Attachments: Santa Ana - 2130 East Fourth Street - HAA Letter.pdf FYI — it's because the email was wrong. Thank you. From: Guevara, Jerry <jguevara@santa-ana.org> Sent: Monday, June 23, 2025 1:43 PM To: Gomez, Pedro <PGomez@santa-ana.org> Subject: FW: public comment re item 1 for 6/23/25 Planning Commission meeting Pedro, Fyi Jerry C. Guevara, AICP Senior Planner, Planning Division City of Santa Ana I Planning and Building Agency (M-20) 20 Civic Center Plaza I P.O. Box 1988 1Santa Ana, CA 92702 " (714) 647-54811 JGuevara@santa-ana.org The mySantaAna mobile app puts the power of the Santa Ana city government in the palm of your hand! The free app allows residents to quickly and easily report issues to the City, access City services, and find news and events. Download the App: Click here to report an issue directly from the City website. From: James Lloyd dames@calhdf.org> Sent: Monday, June 23, 2025 1:35 PM To: PBAecomments@santaana.org Cc: Carvalho, Sonia R. <SCarvalho@santa-ana.org>; !City Clerk <CityClerk@santa-ana.org>; Planning <Plannine@santa- ana.org>; Nunez, Alvaro <ANunez@santa-ana.org> Subject: public comment re item 1 for 6/23/25 Planning Commission meeting Attention: This email originated from outside of City of Santa Ana. Use caution when opening attachments or links. Dear Santa Ana Planning Commission, The California Housing Defense Fund ("CaIHDF") submits the attached public comment re item 1 for 6/23/25 Planning Commission meeting, the proposed 15-unit housing development project at 2130 East Fourth Street, which includes three very low-income units. City Council 12 — 137 7/15/2025 Sincerely, James M. Lloyd Director of Planning and Investigations California Housing Defense Fund lames@calhdf.org CaIHDF is grant & donation funded Donate today - https://calhdf.org/donate/ City Council 12 — 138 7/15/2025 UDF Jun 23, 2025 City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 Re: Proposed Housing Development Project at 2130 East Fourth Street By email: PBAecommentsesantaana.org CC: scarvalhocasanta-ana.org; cityclerk(asanta-ana.org; Planning(asanta-ana.org; ANunez@santa-ana.org Dear Santa Ana Planning Commission, The California Housing Defense Fund ("Ca1HDF") submits this letter to remind the City of its obligation to abide by all relevant state housing laws when evaluating the proposed 15-unit housing development project at 2130 East Fourth Street, which includes three very low-income units. These laws include the Housing Accountability Act CHAR" ), the Density Bonus Law ("DBL"), and California Environmental Quality Act ("CEQA') guidelines. The HAA provides the project legal protections. It requires approval of zoning and general plan compliant housing development projects unless findings can be made regarding specific, objective, written health and safety hazards. (Gov. Code, § 65589.5, subds. (d), (j).) The HAA also bars cities from imposing conditions on the approval of such projects that would reduce the project's density (id. at subd. (j)) or render the project infeasible (id. at subd. (d)) unless, again, such written findings are made. As a development with at least two-thirds of its area devoted to residential uses, the project falls within the HAAs ambit, and it complies with local zoning code and the City's general plan. The City must therefore approve the project unless it makes written findings regarding health and safety as mentioned above - which it cannot do since the preponderance of the evidence in the record does not support such findings. (Ibid.) Increased density, concessions, and waivers that a project is entitled to under the DBL (Gov. Code, § 65915) do not render the project noncompliant with the zoning code or general plan, for purposes of the HAA. (Gov. Code, § 65589.5, subd. (j)(3).) Furthermore, if the City rejects the project or impairs its feasibility, it must conduct "a thorough analysis of the economic, social, and environmental effects of the action:' (Id. at subd. M.) 360 Grand Ave #323, Oakland 94610 %VN~1eQlhdf arm City Council 12 - 139 7/15/2025 Ca1HDF also writes to emphasize that the DBL offers the proposed development certain protections. The City must respect these protections. In addition to granting the increase in residential units allowed by the DBL, the City must not deny the project the proposed waivers and concessions with respect to public open space, private open space, parking study, and common open space. If the City were to deny the requested waivers, Government Code section 65915, subdivision (e)(1) requires findings that the waivers would have a specific, adverse impact upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. If the City were to deny the requested requested concessions, Government Code section 65915, subdivision (d)(1) requires findings that the concessions would not result in identifiable and actual cost reductions, that the concessions would have a specific, adverse impact on public health or safety, or that the concessions are contrary to state or federal law. The City, if it makes any such findings, bears the burden of proof. (Gov. Code, § 65915, subd. (d)(4).) Of note, the DBL specifically allows for a reduction in required accessory parking in addition to the allowable waivers and concessions. (Id. at subd. (p).) Additionally, the California Court of Appeal has ruled that when an applicant has requested one or more waivers and/or concessions pursuant to the DBL, the City "may not apply any development standard that would physically preclude construction of that project as designed, even if the building includes `amenities' beyond the bare minimum of building components" (Bankers Hill 150 a City of San Diego (2022) 74 Ca1.App.5th 755, 775.) Finally, the project is exempt from state environmental review pursuant to CEQA Guidelines section 15168 (Program EIR). Caselaw from the California Court of Appeal affirms that local governments err, and may be sued, when they improperly refuse to grant a project a CEQA exemption or streamlined CEQA review to which it is entitled. (Hilltop Group, Inc. v. County of San Diego (2024) 99 Ca1.App.5th 890, 911.) As you are well aware, California remains in the throes of a statewide crisis -level housing shortage. New housing such as this is a public benefit: it will provide badly needed affordable housing; it will bring new customers to local businesses; it will expand the city's tax base; and it will reduce displacement of existing residents by reducing competition for existing housing. Ca1HDF therefore strongly urges the City to approve the project, consistent with its obligations under state law. Ca1HDF is a 501(c)(3) non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households. You may learn more about Ca1HDF at www.calhdf.org. City Council 12 — 140 7/15/2025 Sincerely, Dylan Casey Ca1HDF Executive Director pb-� VL�- W James M. Lloyd CalHDF Director of Planning and Investigations City Council 12 — 141 7/15/2025 City Manager's Office www.santa-ana.org/cm Item # 13 or City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Resolution Supporting Assembly Bill 1303 — Lifeline Program: Customer Data Privacy AGENDA TITLE Resolution Supporting Assembly Bill 1303 — Lifeline Program: Customer Data Privacy RECOMMENDED ACTION Adopt a Resolution supporting Assembly Bill 1303, which strengthens privacy protections for applicants and subscribers of the California Lifeline Program by prohibiting the unauthorized disclosure of sensitive customer data and eliminating unnecessary documentation requirements that create barriers for vulnerable and immigrant communities. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING ASSEMBLY BILL 1303 — LIFELINE PROGRAM: CUSTOMER DATA PRIVACY BY ASSEMBLYMEMBER AVELINO VALENCIA GOVERNMENT CODE 484308 APPLIES: No DISCUSSION The California Lifeline Program provides essential, discounted phone services to low- income Californians, helping them maintain communication with healthcare providers, employers, emergency services, and loved ones. In Santa Ana, where many residents are from immigrant and underserved communities, access to secure telecommunications is crucial for public safety and equity. Assembly Bill 1303, authored by Assemblymember Avelino Valencia, reinforces privacy protections by prohibiting the California Public Utilities Commission, service providers, and third -party administrators from sharing subscriber data with government agencies, including immigration authorities, unless compelled by a court -issued California warrant or subpoena. Additionally, the bill ensures that a Social Security number (SSN) is not a City Council 13 — 1 7/15/2025 Resolution Supporting Assembly Bill 1303 — Lifeline Program: Customer Data Privacy July 15, 2025 Page 2 required condition for Lifeline participation, eliminating an unnecessary barrier for undocumented residents. AB 1303 affirms California's values of inclusion and digital equity while addressing concerns that prevent eligible individuals from applying to the program. The bill is supported by The Utility Reform Network (TURN) and aligns with the City's efforts to protect the rights and privacy of its most vulnerable populations. 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 No. 2025-XXX Supporting Assembly Bill 1303 — Lifeline Program: Customer Data Privacy Submitted By: Sylvia Vazquez, Deputy City Manager Approved By: Alvaro Nunez, City Manager City Council 13 — 2 7/15/2025 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING ASSEMBLY BILL 1303 — LIFELINE PROGRAM: CUSTOMER DATA PRIVACY BY ASSEMBLYMEMBER AVELINO VALENCIA WHEREAS, the California Lifeline Program is a vital public service that provides discounted home and mobile telephone services to eligible low-income residents, helping them maintain essential communications with employers, healthcare providers, schools, emergency services, and family; and WHEREAS, residents of the City of Santa Ana, including immigrant, working- class, and mixed -status families, rely heavily on affordable and secure access to telecommunications services to stay connected and safe; and WHEREAS, Assembly Bill 1303, authored by Assembly member Avelino Valencia, strengthens privacy protections for applicants and subscribers of the California Lifeline Program by prohibiting the disclosure of sensitive personal data to any agency of a local government, a state government or the federal government or to any immigration authority, as defined in Section 7284.4 of the Government Code, without a court -ordered subpoena or judicial warrant from a judge of a court of the state; and WHEREAS, AB 1303 also ensures that applicants are not required to provide a Social Security number (SSN) as a condition of eligibility or continued participation in the Lifeline Program, removing a key barrier for undocumented individuals who otherwise qualify for the program's benefits; and WHEREAS, the City of Santa Ana has consistently championed policies that promote equity, inclusion, privacy, and public safety for all residents, regardless of immigration status, and recognizes the importance of reducing barriers to essential services for vulnerable communities; and WHEREAS, organizations such as The Utility Reform Network (TURN) support this measure as part of broader efforts to ensure utility affordability and safeguard consumer data from misuse or government overreach. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: the City of Santa Ana hereby supports Assembly Bill 1303 (Valencia), which enhances data privacy protections for applicants and subscribers of the California Lifeline Program and ensures equitable access to telecommunications services for all eligible Californians, including immigrants and underserved populations. Resolution No. 2025-XXX Page 1 of 2 City Council 13 — 3 7/15/2025 Section 2: this Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this day of , 2025. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: -iO-uuta.. � . Laura A. Rossini Chief Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers Councilmembers Councilmembers Councilmembers Valerie Amezcua Mayor I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2025-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: City Clerk City of Santa Ana Resolution No. 2025-XXX Page 2 of 2 City Council 13 — 4 7/15/2025 City Manager's Office www.santa-ana.org/cm Item # 14 or City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Resolution Supporting Senate Bills 627 and 805, and H.R. 4176 — the No Secret Police Act AGENDA TITLE Resolution Supporting Senate Bill 627 (Wiener, Arreguin, Perez), Senate Bill 805 (Perez), and H.R. 4176 (Correa) — the No Secret Police Act RECOMMENDED ACTION Adopt a Resolution supporting Senate Bill 627, Senate Bill 805, and H.R. 4176, the No Secret Police Act, to promote law enforcement transparency and accountability by requiring officers to display visible identification and limiting the use of face coverings that obscure identity, except under narrowly defined safety circumstances. RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING CALIFORNIA SENATE BILLS 627 (WIENER, PEREZ, ARREGUIN), AND 805 (PEREZ, WIENER) AND H.R. 4176 (CORREA), TO PROMOTE LAW ENFORCEMENT TRANSPARENCY AND ACCOUNTABILITY GOVERNMENT CODE §84308 APPLIES: No DISCUSSION Recent events in Santa Ana and across the country have involved law enforcement officers, including federal immigration agents, operating while masked and unidentified during public interactions, such as peaceful protests and immigration -related actions. These practices have caused confusion, fear, and mistrust among residents, particularly those in immigrant and mixed -status communities. Concerns have also been raised regarding impersonation, overreach, and lack of accountability. Senate Bill 627, introduced by Senators Scott Wiener and Jesse Arreguin, would prohibit California law enforcement officers from wearing face coverings that obscure their identities during public interactions, with exceptions made for medical, City Council 14 — 1 7/15/2025 Resolution Supporting Senate Bills 627 and 805, and H.R. 4176 — the No Secret Police Act July 15, 2025 Page 2 environmental, or tactical safety reasons. It also requires visible identification and agency markings on uniforms. Senate Bill 805, authored by Senator Aisha Wahab Perez, would require officers to clearly display their name or badge number while on duty and prevent individuals from impersonating law enforcement, addressing growing incidents of abuse and fear in immigrant communities. At the federal level, H.R. 4176 — the No Secret Police Act, introduced by Congressman Lou Correa and other members of Congress, would prohibit federal officers, particularly from the Department of Homeland Security and Immigration and Customs Enforcement (ICE), from conducting public operations while masked or lacking agency identification. The bill was introduced following community outcry over masked ICE agents operating without accountability in cities like Santa Ana. These three legislative measures respond to urgent calls for transparency, accountability, and the protection of constitutional rights. They align with the City of Santa Ana's values of inclusivity, public safety, and civil liberties. The City Council's support for these bills affirms its commitment to a community where residents can feel safe and secure in public spaces, free from intimidation or surveillance by unidentified officers. 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 No. 2025-XXX Supporting Senate Bill 627, Senate Bill 805, and House Resolution 4176 — the No Secret Police Act Submitted By: Sylvia Vazquez, Deputy City Manager Approved By: Alvaro Nunez, City Manager City Council 14 — 2 7/15/2025 RESOLUTION NO. 2025-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING CALIFORNIA SENATE BILLS 627 (WIENER, PEREZ, ARREGUIN) AND 805 (PEREZ, WIENER) AND H.R. 4176 (CORREA), TO PROMOTE LAW ENFORCEMENT TRANSPARENCY AND ACCOUNTABILITY WHEREAS, the City of Santa Ana is committed to fostering public trust, transparency, and accountability in law enforcement, particularly during public interactions, immigration enforcement actions, and peaceful assemblies; and WHEREAS, numerous recent incidents have involved unidentified and masked officers operating in Santa Ana, raising concerns about officer impersonation, lack of accountability, and the chilling effect on civic participation, especially among immigrant communities; and WHEREAS, California Senate Bill 627 (Wiener, Perez, Arreguin) would prohibit law enforcement officers from wearing any mask or personal disguise while interacting with the public in the performance of their duties, except under narrowly defined circumstances and with an exemption for undercover officers; and WHEREAS, California Senate Bill 805 (Perez, Wiener) would require personnel of a law enforcement agency operating in California to visibly display identification that includes either a name or badge number to the public when performing their duties with exceptions for undercover officers and allows an employee of a law enforcement agency to request an alleged law enforcement employee present identification when there is probable cause of reasonable suspicion of a crime, including, but not limited to, impersonating a peace officer, or when there is a legitimate safety concern. SB 805 will address widespread concerns about public confusion and abuse; and WHEREAS, at the federal level, H.R. 4176 (Correa), the No Secret Police Act, would require law enforcement officers and agents of the U.S. Department of Homeland Security engaged in border security or immigration enforcement to provide an individual detained or arrested with an identification of the agency of the U.S. Department of Homeland Security that employs such officer or agent and display or wear the official insignia or uniform of such officer or agent in a manner this is visible to individuals other than the officer or agent. This legislation also prohibits the officer or agent from wearing a face covering or any other item that conceals their face. This legislation responds to the increasing use of masked, unmarked agents in communities like Santa Ana and reinforces constitutional protections; and WHEREAS, these legislative proposals are in line with the public accountability provisions in the 2021 National Defense Authorization Act; and Resolution No. 2025-XXX Page 1 of 3 City Council 14 — 3 7/15/2025 WHEREAS, adopting these standards in Santa Ana supports the community's right to safely engage in constitutionally protected activities without intimidation and ensures that all law enforcement officers operating in the city are clearly identified and accountable for their actions. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: the City of Santa Ana hereby supports California Senate Bills 627 (Wiener, Perez, Arreguin) and 805 (Perez, Wiener) to promote visible identification and accountability for law enforcement officers in California, and also supports H.R. 4176, the No Secret Police Act of 2025, introduced by Congressman Lou Correa, to prohibit the use of masked, unidentified federal agents during detention or arrest of an individual in connection with border security or immigration enforcement functions. Section 2: this Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: L'Ap- �, . R � Laura A. Rossini Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution No. 2025-XXX Page 2 of 3 City Council 14 — 4 7/15/2025 CERTIFICATION OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2025-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: City Clerk City of Santa Ana Resolution No. 2025-XXX Page 3 of 3 City Council 14 — 5 7/15/2025 City Manager's Office www.santa-ana.org/cm Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Police Oversight Commission Ordinance Amendment AGENDA TITLE Ordinance Amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to Align with State Law, Enhance Transparency, and Improve Operational Efficiency and Best Practices in Law Enforcement Accountability RECOMMENDED ACTION Conduct a first reading of an ordinance amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission to align with state law, enhance transparency, and improve operational efficiency and best practices in law enforcement accountability. ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 2-660-2-669 OF CHAPTER 2 (ADMINISTRATION), ARTICLE IV, DIVISION 16 OF THE SANTA ANA MUNICIPAL CODE ESTABLISHING A POLICE OVERSIGHT COMMISSION DISCUSSION City Council established the Police Oversight Commission to serve as an independent body that reviews and analyzes critical issues related to policing practices. As the Commission has become operational, the City has identified areas within the ordinance that require changes to strengthen the Commission's structure, comply with state legal requirements, and support a more effective and transparent oversight process. The proposed amendments are the result of a thorough review and collaboration among City staff from the City Manager's Office, City Attorney's Office, Police Department, and Police Oversight Ad Hoc Committee members comprised of Mayor Amezcua, Mayor Pro Tern Vazquez, and Councilmember Bacerra. Background On November 15, 2022, the City Council adopted an ordinance establishing a Police Oversight Commission. The purpose of the Police Oversight Commission is to enhance transparency, increase accountability of and public confidence in the Santa Ana Police Department (SAPD), and provide for an Independent Oversight Director to provide the Chief of Police, City Manager, and City Council independent investigations of, analysis, City Council 15-1 7/15/2025 Ordinance Amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission. July 1, 2025 Page 2 and recommendations on police practices, police misconduct, officer involved shootings, and other serious uses of force. July 18, 2023 The City Council received an informational report providing an update on the implementation of the Commission, including the status of Commissioner appointments, the ongoing recruitment process for the Independent Oversight Director, and the anticipated timeline for convening the Commission's inaugural meeting. October 6, 2023 The six appointed members of the Police Oversight Commission held their first official meeting, marking the operational launch of the Commission. Since that time, the Commission has met regularly and its members have completed the training requirements as outlined in the Ordinance. April 4, 2025 Implementation of the existing ordinance revealed a conflict with the Public Safety Officers Procedural Bill of Rights Act (California Government Code Sections 3300-3313), prompting the need for a comprehensive review. In response, the Police Oversight Ad Hoc Committee convened to evaluate the ordinance and recommend appropriate amendments to ensure legal compliance and effective oversight. The proposed ordinance amendments address the following key areas: Alignment with State Law: Recommended language changes were made to ensure the Ordinance complies with state laws regarding police transparency, personnel records, confidentiality, and civilian oversight. Exhibit 2 provides the relevant federal and state laws, including provisions from the Government Code 3300-3313, Penal Codes 832.5, 832.7, 832.8, and Evidence Code 1040-1047, which are referenced in the ordinance. Clarification of Roles and Responsibilities: Recommended language updates clarify the distinct roles and responsibilities of the Police Oversight Commission, City staff, and the Santa Ana Police Department's Internal Affairs Division. These changes are intended to prevent duplication of efforts and promote consistent procedures in compliance with state law. Santa Ana operates under a City Manager form of government, as established by the City Charter. The original language of the ordinance granted the Independent Police Oversight Director authority that conflicted with the City Manager's administrative oversight responsibilities and has been revised. The amended language now affirms the City Council 15 — 2 7/15/2025 Ordinance Amending Article IV to Chapter 2 of the Santa Ana Municipal Code Police Oversight Commission. July 1, 2025 Page 3 Oversight Director's advisory and independent role, while maintaining alignment with the City Manager's executive authority as defined by the Charter. Complaint Review Process: Language has been revised to define the scope of the Commission's authority in reviewing complaints, particularly in cases involving ongoing investigations, confidentiality protections, or legal restrictions, in compliance with state law. Training and Orientation Requirements: The amendments include expanded classroom and hands-on training for commissioners covering key areas of police operations, such as Patrol, Investigations, K9, SWAT, Training, Communications, and other core functions. This change was recommended by the Ad Hoc Committee, which identified a need to ensure that commissioners have a solid understanding of SAPD practices in order to effectively provide the necessary oversight of police policies and provide educated recommendations with an improved understanding. Confidentiality Provisions: Enhancements to the confidentiality section are included to safeguard sensitive information while maintaining the Commission's transparency objectives within legal limits, in adherence with state law parameters, and Public Safety Officers Procedural Bill of Rights Act, further enhancing the City's capabilities to sustain any possible legal challenges. Next Steps If the first reading of the ordinance is approved, the ordinance will return for a second reading and adoption at the July 15, 2025 City Council meeting. If approved, the ordinance will become effective 30 days thereafter. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Ordinance (redline for first reading) 2. Government Code 3300-3313, Penal Codes 832.5, 832.7, 832.8, and Evidence Code 1040-1047 Submitted By: Sylvia Vazquez, Deputy City Manager Approved By: Alvaro Nunez, City Manager City Council 15 — 3 7/15/2025 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 2-660-2-669 OF CHAPTER 2 (ADMINISTRATION), ARTICLE IV, DIVISION 16 OF THE SANTAANA MUNICIPAL CODE ESTABLISHING A POLICE OVERSIGHT COMMISSION THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On November 15, 2022, the City Council adopted an Ordinance establishing a Police Oversight Commission. The purpose of the Police Oversight Commission is to enhance transparency, increase accountability of and public confidence in the Santa Ana Police Department and provide for an Independent Oversight Director to provide the Chief of Police, City Manager, and City Council independent investigations of, analysis and recommendations on police practices, police misconduct, officer involved shootings, and other serious uses of force. B. On October 6, 2023, the six appointed members of the Police Oversight Commission held their first official meeting, marking the operational launch of the Commission. Since that time, the Commission has met regularly and its members have completed the training requirements as outlined in the Ordinance. C. The subsequent implementation of the existing ordinance revealed operational and procedural challenges prompting the need for a comprehensive review of the Ordinance. In response, the Police Oversight Ad Hoc Committee convened to evaluate the current Ordinance and consider amendments. D. The proposed amendments reflect collaboration from the Ad Hoc Committee, legal counsel, City staff, and personnel from the Santa Ana Police Department. E. The objective of these amendments to the existing Police Oversight Commission Ordinance is to enhance transparency and consistency of the Ordinance, strengthen the Commission's operational effectiveness and ensure full compliance with applicable state laws. Section 2. The City Council finds and determines that this ordinance is not subject to the California Environmental Quality Act (CEQA). Pursuant to CEQA and Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will Ordinance No. NS-XXX Pages 1 of 14 City Council 15 — 4 7/15/2025 have a significant effect on the environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines. Section 3. The Santa Ana City Council hereby amends Sections 2-660-2-669 of Chapter2, Article IV, Division 16 of the Santa Ana Municipal Code as follows (new language is underlined and deleted language is stricken): Sec. 2-660. Establishment and purpose. There is hereby established a Police Oversight Commission (hereinafter referred to as the "Commission"). The purpose of the Commission shall be to improve transparency, increase the accountability of and public confidence in the Santa Ana Police Department and to provide for an lnrdepena Police Oversight Director. The purpose of the Commission is to act through the'RdependenfPolice Oversight Director., independent of the police department, to provide the Chief of Poke -,City Council, and City Manager, and Cif„ Council independent inyesti` ationsg review of, analysis, and recommendations on police practices, police misconduct, officer -involved shootings, and other serious uses of force. Sec. 2-661. Police oversight commission membership and term. The Commission shall consist of seven (7) members to be appointed by the GE) in^il from the resideRtS of the ^ity.City Council, who meet the qualifications set forth in Section 2-662 of this ordinance. The ^if%coU,GlCity Council shall strive to appoint members who are fair and impartial, and who represent diverse social, economic, and atcommunity interests. The ^if%GeURGICity Council shall consider the career and life experiences of Commission applicants and appoint those who are representative of the diversity of the Santa Ana community and whose knowledge and experiences will most benefit the Commission's ability to carry out its duties and responsibilities and build trust with the community. The City Council will strive to appoint appfi£-antsCommissioners with knowledge and/or experience in the fields of human resources practices, management, policy development, auditing, law, investigations, social services, civil rights, and civil liberties. The City Clerk of the C„i innil shall prepare lion forms requiring appl+cantsprospective members to provide information demonstrating that they meet qualification requirements set forth in Section 2-662. Sec. 2-662. Qualifications of commissioners. (a) All members of the Commission shall reside in the City of Santa Ana. (b) Elected or appointed officers and employees serving the City shall not be eligible for appointment to the Commission. (c) Retired peace officers or peace officers who have separated from public service shall not be eligible for appointment to the Commission unless at least five (5) years has passed from the date of their separation from the governmental entity with which they were previously employed. Only one former or retired peace officer, who is appointed first in time, may serve on the Commission at any given time. "Peace Ordinance No. NS-XXX Page 2 of 14 City Council 15 — 5 7/15/2025 officer" as used herein shall have the same meaning and definition as set forth in Gali#erria Penal Code seot'ORSection 830 et seq. (d) Practicing attorneys who handle, or are members of firms or entities that currently handle, criminal or civil matters involving the Santa Ana Police Department are ineligible to serve on the Commission. (-e) The appointment, removal, vacancies and term of Commissioners shall comply with SAMC 2-326. Sec. 2-663. Commissioner confidentiality and training. (a) Prior to attending their first Commission meeting, each Commissioner shall take an oath and execute a confidentiality agreement stating t#at-they will not divulge or disseminate confidential information, including identities of witnesses and contents of confidential testimony and documents, either during their term of office or thereafter to ensure that confidential personnel information and other information subject to state law protections is not released or shared. Failure to comply with the terms of the confidentiality agreement shall result in removal from the Commission and/or other legal consequences in a Commissioner's individual capacity, including but not limited to criminal and/or civil penalties. Removal of a Commissioner shall comply with SAMC Section 2-326. (b) No later than ninety (90) days after appointment, each member shall: J1.1 Receive training in relevant subject matters, including, but not limited to, the Police Department's operations, policies, practices, procedures related to the following: ir,+or^a' aInternal Affairs investigations; authorized uses of force, including the use of deadly force, control devices, and techniques; uses of conducted energy device; handcuffing and restraints; detention and arrest of persons; search and seizure of persons and property; the department's established focus of de-escalation tactics, vehicle pursuits, and the duties, responsibilities, procedures, and requirements associated with all ranks and assignments facilitated by the 'RdepeRdeR+Police Oversight Director. 2. All training hu;i Training should be predernonaRtly obtained from iRdep8RdeR+Santa Ana Police Department personnel, third -party bodies or institutions that have experience with iRte al affairs ^flnternal Affairs investigations within police departments and civilian review investigations and audits. 3.Q Attend training sessions sponsored by the National Association for Civilian Oversight of Law Enforcement or similar entities, or through presentations provided on topics including, at a minimum, constitutional rights and civil liberties, fundamentals of procedure, evidence, and due process, procedural rights and confidentialities afforded to police officers by California law (including, but not limited to, Government Code Section 3300 et seq., Penal Code Sections 832.7 and 832.8, and Evidence Code Sections 1040-1043), state use of force standards, police union contracts, labor rights, in -person implicit bias training, and best practices for conducting investigations. Ordinance No. NS-XXX Pages :3 of 14 City Council 15 — 6 7/15/2025 (3) Participate in a ride -along with the Santa Ana Police Department. The Chief of Police shall facilitate a ride -along consisting of a minimum of 8 hours of field - based patrol operations. Current Commissioners shall participate in this ride - along within 90-days from the effective date of this ordinance. �(c) Members of the Commission are required to attend and complete at minimum the following Santa Ana Police Academy Program courses: Communications, Patrol Operations, Santa Ana Jail, Crime Scene Investigations, Investigations/Internal Affairs, Air Support/Traffic Stops/Motor Officers/Directed Patrol, Use of Force, Homicide/Gangs/SWAT, within 18 months of appointment and/or the first available offering of the Program. Current Commissioners shall participate in this Community Academy within 18 months from the effective date of this ordinance. These classes are subject to change at the discretion of the City Manager. (d) Failure to comply with subsections (b) and (c) shall result in the member's removal from the Commission by the appointing Council Member. Sec. 2-664. Meetings. The Commission shall held its first meeting when there are a suffinient numhermeet the second Thursday of a-ppeiRted each month with a majority of Commissioners to constitute a quorum. At SUGh meeting, the Commission shall fix starting at 5pm at a location designated by the time and plane of regularly snhedi iled meetings whinh droll net meet less than enne eaoh men+"City Manager. The City Manager or their designee shall attend all regular and special meetings of the Commission and provide regular staff support to the Commission. The Police Chief or their designee shall also attend such meetings as requested by the Commission. �-If a Commissioner wishes to propose an item for placement on a future Meeting Agenda, the Commissioner shall prepare a written memorandum describing the proposed item and, after consulting with the Police Oversight Director and the City Manager, submit it to the City Manager. The memorandum shall be included for consideration at a regular meeting as a Commissioner requested item. The Commission may, by a majority vote of its members present, direct that the proposed item be added to the agenda for a future meeting. The City Manager or their designee also has the discretion for olacina items on the Meetina Aaenda. Sec. 2-665. Powers and duties of the police oversight cornmissionPolice Oversight Commission. To effectuate its purpose, the Commission shall: (a) Review, evaluate and make recommendations to the Chief of PGline and City CGURGilManager regarding the Police Department's policies, practices, and procedures, .develop programs and strategies to promete positive poline_ nemml unity relations, ld anmake appropriate renommenldatiens to the Citi Manager aped the City Ce„nGil._ Within thirty (30) days after receiving such recommendations, the City Manager or designee shall submit a response to the Commission. if the C�iSSiOR is dissatisfied wT;Tthe responsethe Ordinance No. NS-XXX Pane 4 of 14 City Council 15 — 7 7/15/2025 (`nmmiSSOen may submit its re GGmmendatieno tG the Git y Geunnil The City Manager may extend for an additional thirty (30) days the time s ep riod in which they are required to submit their responses to the Commission by giving the Commission written notice of such extension. (b) Receive, hear, and review mOSGE)nd Gt nE)mnlaints, teFt nlaimo er laws it& (1) Tort Claims; (2) Lawsuits; (3) Complaints made against on duty Santa Ana Police Officers which allege SaRta Ana PGlino OffiGeFs have engaged in the following nendUGt• {only when the Internal Affairs Investigation is completed and the complaint alleges: (i) officer -involved shootings -discharge of a firearm at a person by a Santa Ana peace officer that results in death; (2) OR-GUdeaths-, {3-)—ii uses of force that result in great bodily injury of a person; (4�—A) Complaints made against Santa Ana Police Officers only when the Internal Affairs Investigation is completed with sustained findings for the following conduct: (i) prejudice or discrimination involving a protected class; {� ii dishonesty; {6�— iii sexual assault; q-�—iv unlawful arrest or unlawful search; {8-)—Lyhunreasonable or excessive force; {9) --or LViLfailure to intervene against another officer using force that is clearly unreasonable/excessive;-er_ {40(c) Receive, hear, and review the following two categories: (1) In -custody deaths; (2) unlawful activities/conduct that interferes with First Amendment assemblies. (c)All GOMplaints tea(d) Allegations of misconduct not specifically enumerated in subparagraphs (b) and (c) shall not be heard or reviewed by the Commission m,�e, but shall be forwarded to the Chief of Police or designee within five (5) days of receipt by the Commission. (e) Review complaints submitted in writing on forms supplied by the Department eel the Commission, or submitted to the online portal. Anonymous complaints will be accepted. However, anonymity may limit the ability to thoroughly investigate and address the complaint. The Will Ret be a thE)riZe to retroaGto ely „eRdu -+Commission's authority to review previously completed investigations Of GOMplain+ will comply with Penal Code Sections 832.5, 832.7 and 8328 Ordinance No. NS-XXX Papa 5 of 14 City Council 15 — 8 7/15/2025 (1) A copy of each complaint, tort „lain-, andler la,n,c„it that alleges misconduct as set forth in sectienSection 2-665(b`, regardless- of where er hew i+ is filer, er and c submitted to the Commission, shall immediately be forwarded to the members of the Commission, the'ndenenden+Police Oversight Director, the City Manager, and the Chief of Police. (2) No complaint shall be accepted, or reviewed, or in„estilva+eiJ by the Commission or the'ndenenden+Police Oversight Director if it is not filed/submitted within one (1) year after the alleged misconduct by a Santa Ana Police Officer. (3) All Commission discussions with the'ndenenden+Police Oversight Director concerning alleged misconduct by any Santa Ana Police Officer shall be held in closed session. At least ten (10) days' orb„onne written netine of the date of the mooting in which a spenifin officer will he diSGUssed in Glesed session shall be provided to the GOMplainant and the named p0liGe OffiGe and their legal GGunsel if known to the Commission and shall be deemed confidential. (df) Receive and discuss reports from the'ndenenrlentPolice Oversight Director on afl-incidents involving the following tomes of alleged misconduct by Santa Ana Police Officers: only when the complaint alleges: (1)er Officer -involved shootings -discharge of a firearm at a person by a Santa Ana peace officer that results in death; (2) in_ni +edy deaths; (3) uses Uses of force that result in great bodily injury of a person;. {4 —(3) Complaints made against Santa Ana Police Officers only when the Internal Affairs Investigation is completed with sustained findings for the following conduct: (i) prejudice or discrimination involving a protected class; { ii dishonesty; {6�—iii sexual assault; {7�--iv unlawful arrest or unlawful search; {&)—Lv�unreasonable or excessive force; {�or vi failure to intervene against another officer using force that is clearly unreasonable/excessive. 408 (4) In -custody deaths and unlawful activities/conduct that interferes with First Amendment assemblies. (eg) Direct the'RdeneRdentPolice Oversight Director to ,ndenenrden+lei review -and 0evest+gate, analyze and make recommendations regarding citizen complaints, tort claims, or lawsuits alleging the types of police misconduct as -identified in sect+enSection 2-665(b) and (c), unless there is pending Internal Affairs investigation at which time the Commission mav, in Closed Session, review those misconduct complaints Ordinance No. NS-XXX Page Q of 14 City Council 15 — 9 7/15/2025 when the Internal Affairs investigation is completed pursuant to Santa Ana City Charter Section 1100 subject to the restrictions set forth in Government Code Section 3300 et seq., California- Penal Code Sections 832.5, 832.7 and 832.8, Evidence Code Sections 1043 through 1046, the Santa Ana Charter and Municipal Code, the MOU that applies to the impacted member, and Santa Ana Police Department's policies and procedures. (f) The independent h) Authorize the Police Oversight Director shall review and iRvestigate timely filed/submitted cemplaints as soon as possible. Pursuan to Santa Ana City Charter audit completed Internal Affairs files involving misconduct for the categories outlined in Section 1100 the City Gei mail hereby authorizes the independent Oversight Dire^+nr to subpoena wi+nessec 0 administer oaths and Gompel the pFodUGtion of evidGRGe for their independent 0nyes+iga+inn At the eon^li isien of the investigation, rdthe Inepenrden+ 2-665 b and (c). The Police Oversight Director shall submit aaudit findings to the City Manaaer within thirtv (30) days who will then provide it to the Commission within thirty (30) days. (i) Advise the Mayor, City Council, City Manager and Police Chief on community relation issues involving the Police Department. (i) Prepare and submit an annual report with findings -to the City Council concerning the Commission's activities, and recommendations, orals„ avid in writing, (` to the nmmissinn 11 ■ r r Make idis^iplinary resnrnmenidations to the Dnli}^id n Chief av/er the Gity Manager, heR a GempIoin icGORduct has bee�ustaiRed /\ against a Santa na Dnli^�n TQfTfi^nr s ihin^+ +n the rnc+ri^+innc Set far+h in Geyernmen+ Cede SeEtiOR 3300 et seqCalif a . The annual report shall align with Penal Code Sections 832.5, 832.7 and 832.8, Ey0d enGe Geide Sertinns 1043 three igh 1046 e (cthe Como Ana harter avid M �ni Cede, the MQ I that applies to the impactedd member uncr-rvi-arrr , crr�. �crn�rnpuccca--rrrcn-rvcr andthe PeliGe Department S pollGies and procedures. si ibidiyosien does net hew er preyirde the i'nmmisslon er the lndepeRdent Oversight Direnter the ai therity to impese aRy dis^iplipe nn aRy member of the Dnli^e Department All ldis^ipline i itimatehi imposerd en aRy pease effi^er and must comply with all federal, state and local laws, including, but not limited to, Government Code Section 3303, et seq., Penal Code Sections 832.5, 832.7 and 832.8, Evidence Code Sections 1043 through 1046, Chapter 9, Article V of the Santa Ana Municipal Code, the MOU that applies to the impacted member, Ordinance No. NS-XXX Page 7 of 14 City Council 15 — 10 7/15/2025 I In �. 11 . . 11 _ _ • . . A 1 _ ■and review poliGies to eRSUre best praGtiGes are (h) Advise the Mayor, , City Manager PeliGe Chief on Gemmunit relations issues invelving the PoliGe ■ - ReviewMemerandym ef UnderstandiRg(MQLJ) between the Gity and the Santa . PoInGe QffnGersAssoGi-ation or the City and the SantaAna P0IiGe Managementprovidesuggestiens ManagerconGerning negotiatiens to the City 'GondUGt meetingsiG _ _ the GeMmunity on the purpose of the shall ; •include, following: LaThe number of Internal Affairs investigation reviews conducted during the annual reporting period and data summarizing the nature of the alleged or actual underlying conduct; The number of ^^n"iu"fie Internal Affairs investigation reviews conducted during the reporting period, and, of those 0 RyestigatieRsreviews, the number that took more than six (6) months to conclude and data summarizing the nature of the alleged or actual underlying conduct; aThe number of Internal Affairs investigations pending as of the end of the reporting period and data summarizing the nature of the alleged or actual underlying conduct; H SWIM = MUM Ordinance No. NS-XXX Page R of 14 City Council 15 —11 7/15/2025 The ni mbar of dicninlinar" recommendations issued to the Police Chief and City Manager, as well as the number of renemmenrdations annepterd and aThe reports or recommendations submitted to the Gity GeunGi , Police Chief, and City Manager concerning Commission regulations, legislation, or budgetary allocation and Police department policies, procedures, GUStOMS, erderc nollenti„e bargaining agreements, pregrams, and training, as well as the appropriate party's response to such reports or recommendations. IN 110 Iran Wle . go._Im .. ... .. -. ■_ .. {mLk) References to Santa Ana Police Department's policies and procedures in this Division shall mean all current policies and procedures in place that apply to administrative/internal affairs in„ec+ina+inner Administrative/Internal Affairs Investigations. Those policies and procedures shall not be amended in any way that may conflict with this article, unless otherwise required by law. Sec. 2-666. Appointment and role of an oversight dire(; (a)— The City Council does hereby authorize the appointment o dim Indenenrlen+ Police Oversight Director,, pursuant to Ci*�artter Sec 1 100 and in arror.danno I.fith this Section 1100. (a) The City Manager shall appoint the IndepeRdentPolice Oversight Director.. subject to confirmation by the City Council. The IndependentPolice Oversight Director n4ayshall be engaged through a professional services agreement er may he hirer) as an exempt at will Gity employee who ,e,illand shall serve at the will and pleasure of the City GeunGil and will he of ihient to remorol h" moinrit" vote of the City, (poi inGil. Manager. (b) IR add.tiOR te regular staff support provided te the e Independent(b) The Police Oversight Director shall assist the Commission in performing its duties and exercising its powers. ■ Ordinance No. NS-XXX Page 9 of 14 City Council 15 — 12 7/15/2025 (2) in GUstedy deaths; that f a norsen• (3) uses resulted ea (4 ) dii/+o��SaFim�ation involving a prnteEtedGQYr (5) dishonocfir .ruur� (6) sexual assault; (7) i inlawf it arrestor unlawful sea Gh (8) URreasenahr�u�;e erexGesOrGe; failure to intervene ferGe that is Glear4y Forst Amendment (9) against another offiGer using un,rea C�hbrle/e Vfiess1\/ ; e that iRterferes (10) unlawf-1 aGtivities/GendUGt with assemblies-. 1 tGFt 1 alleging the type of misGonduGt set forth On section 2 665(b), the independent Oversight Dirontnr shall also have the independent a ithnrity to noriedinall request and review E;itizen complaints and nuse of n reports or other pertinent dOG imonts maintained by, or available to, the Chief of Dnlino to determine whether death or great bedily injury was Gaused by direGt police antien Alp inyestigatiop (c) The Police Oversight Director shall review and refer to the Chief of Police or its designee timely filed/submitted complaints for the Chief of Police to review and initiate an Internal Affairs investigation. In the event there is a pending Internal Affairs Investigation of police misconduct for the categories outlined in Section 2-665(b) and (c), the Internal Affairs investigation shall take priority pursuant to Government Code Section 3304(d)(1) [within one year of the public agency's discovery by a person authorized to initiate an investigation of the allegation of an act, omission, or other misconduct.] Prior to the final determination by the Chief of Police, the Internal Affairs investigation shall be forwarded to the Police Oversight Director for review, analysis and recommendation to the Commission. Within 45 calendar days from the receipt and at the conclusion of the review by the Commission, the Police Oversight Director shall submit a report with the Commission's recommendations to the Chief of Police. The Chief of Police shall make best efforts to wait for recommendation() from the Commission prior to rendering a final decision, unless doing so would compromise the statute of limitations as set forth in Government Code 3304(d). (d) No review of completed Internal Affairs Investigations shall be commenced on any incidents that occurred prior to the effective date of the Ordinance enacting this Division. Any review of historical data or incidents must comply with all federal, state and local laws, including, but not limited to, Government Code Section 3303, et seq., Penal Code Sections 832.5, 832.7 and 832.8, Evidence Code Sections 1043 through 1046, Chapter 9, Article V of the Santa Ana Municipal Code, the MOU that applies to the impacted member and Santa Ana Police Department's policies and procedures. Ordinance No. NS-XXX Paga in of 14 City Council 15 — 13 7/15/2025 (de) The IndenendentPolice Oversight Director shall conduct all audits and reviews in a fair, objective, impartial, and ethical manner, and shall comply with the Public Safety Officers Procedural Bill of Rights (Government Code Section 3300, et seq.) in in+en,iewing neline offiners The lndenenden+Police Oversight Director shall prepare a written report of each reviewed investigation that Will noes+i+„+e the publiG renor4 and may discuss confidential or privileged information with the Commission in a properly notice closed session. The report shall comply with the provisions of Penal Code Sections 832.5, 832.7 and 832.8 and Evidence Code Sections 1043 through 1046. After review by the Commission, the -public reEerdrecords of the nvestogatmeninvestigations for the categories of specified conduct outlined in Section 2-665(b) and (c) shall be posted on the puble website for the Commission w0thin +hir-ty (tin) days. All diSGIeSUres Disclosures of investigations Gond LiGted reviewed by the lndenenrlen+Police Oversight Director shall comply with Galiferr+ia Penal Code Sections 832.5, 832.7 and 832.8 and Gafi#eFia Evidence Code Sections 1043 through 1046, as amended from time to time. The indenendentPolice Oversight Director may discuss finconclusions with the Commission and/or the public in strict compliance with Galifernma Penal Code Sections 832.5, 832.7 and 832.8 and Cafifernia Government Code Sections 3300, et seq. (e) The Gity MaRager er their designee shall assist with advertising the pesitien e engage the Independent Oversight Dire he City GeunGil shall review all qualifyiRg appliGatiORs and se!eGt RE) mere than three (3) app"GaRtS to interview fe The reIe of O ersigh_t of ireGtGr. The GGMMOSc.sie�naII�ppeeFmittity to The IndeneRde�n"+Oversight Diren+er shell he a therized by the Gity GOUnnil Un`Jer Charter SeGtiOR 1 100 to report direGtly W the City COUR f� Sec. 2-667. Budget and support for commission and oversight director. The City Manager shall make a recommendation to the GitGOURGICity Council, as part of the annual City budget, to fund the Commission and any additional labor, consulting, equipment, training, or materials necessary for the Commission and the Indenen/Jen+Police Oversight Director to carry out the duties and exercise the powers set forth in this Division. Sec. 2-668 Access to police department records, data and reports. To effectuate meaningful oversight and accountability, the Commission and the Indenenrleri+Police Oversight Director shall have ^emnle+e and nremn+ access to all relevant police department records, information, and data, including, but not limited to, audio and video recordings, photographs, police reports, dispatch logs, and other records related to the URderlYing inniden+categories of oversight as set forth in Section 2-665(b) and (c), to assist the Commission and the Indenenden+Police Oversight Director in effectively discharging their respective duties, subject to all federal, state and local laws including ` Ry and all res+rin+ions set fer+h in the Santa Ana GhaFter, M ininipal Godebut not limited to, Government Code Section 3303, et seg., Penal Code Sections Ordinance No. NS-XXX Panp 11 of 14 City Council 15 — 14 7/15/2025 832.5, 832.7 and 832.8, Evidence Code Sections 1043 through 1046, Chapter 9, Article V of the Santa Ana Municipal Code, the MOU that applies to the impacted member, Santa Ana Police Department's policies and procedures, and the Public Safety Officers Procedural Bill of Rights (Government Code Section 3300, et seq.). The Police Department shall designate staff who will timely receive and process requests for records made by the Commission and/or the'RdeneRden+Police Oversight Director. To increase transparency, all data including, but not limited to, stop, detention, arrest, and use of force data, innli irding C?aGial and Identity Profiling Ant ("C?IDA") data and report- that are legally disclosed to the Department of Justice and/or any other federal or state law enforcement agency, shall, at the time of disclosure of that data, be concurrently provided to the Commission and the'ndenenden+Police Oversight Director_. Any information that is confidential and prohibited from disclosure shall be redacted. Sec. 2-669. Rules and records-. T#e-for Conducting Commission shall, in ^^nsultati^„Business. The City Manager will consult with the 'Rdenenden+Police Oversight Director and the Gity Manager to develop rules for the transanti^n of b isiness ^f the -conducting Commission, whinh rules shall amens ether thiRgS innli irde the manner of Galling and heerrvc and st vr--e—mmittees. Sand subGecvmrmittees may he fryrmed o �nirerL�� various tOPOGS Wi+his the SGE)ne�^f p0liGce—aGtiVit�T business. The ^ity GOURGMICity Manager shall adopt the rules for the transantien of business of the Commission. The Commission shall also keep renerrls ^fmaintain its resolutions, rules, transactions, motions, orders finr Okjs and recommendations and determinatiens. EXGent except for those items made confidential by GafiferRia-Penal Code Sections 832.5, 832.7 and 832.8, Evidence Code Sections 1043-1046 or by any other applicable privileges under the law, the reGerds. The resolutions, rules, transactions, motions, and recommendations of the Commission shall be open to the public. Commission reports shall be posted on the City's website and open to public inspection, except that Any information remained therein that is confidential and prohibited from disclosure URder anY ether applicable shall be redacted. Sec. 2-670. Severability. Should any provision of this division, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this division or Chapter or the application of this Division or Chapter to any other person or circumstance and, to that end, the provisions hereof are severable. Secs. 2-671-2-699 Reserved. Section 4. 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 Ordinance No. NS-XXX Paga 12 of 14 City Council 15 - 15 7/15/2025 it would have adopted this ordinance and each 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. Section 5. This ordinance shall become effective thirty (30) days after its adoption. Section 6. The Clerk of the Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law. ADOPTED this day of 12025. APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: Jonathan T. Martine Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Valeria Amezcua Mayor Councilmembers: Councilmembers: Councilmembers: Councilmembers: Ordinance No. NS-XXX Panp 13 of 14 City Council 15 — 16 7/15/2025 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, , City Clerk, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: City Clerk City of Santa Ana Ordinance No. NS-XXX Pane 14 of 14 City Council 15 — 17 7/15/2025 STATE OF CALIFORIVIA EXHIBIT 2 LCOUNS L AUTHENTICATED COUNSEL BUREAU ELECTRONIC LEGAL MATERIAL State of California GOVERNMENT CODE Section 3300 3300. This chapter is known and maybe cited as the Public Safety Officers Procedural Bill of Rights Act. (Added by Stats. 1976, Ch. 465.) Government Code - GOV TITLE 1. GENERAL [ 100 - 7931.000] ( Title 1 enacted by Stats. 1943, Ch. 134. ) DIVISION 4. PUBLIC OFFICERS AND EMPLOYEES [1000 - 3599.84] ( Division 4 enacted by Stats. 1943, Ch. 134. ) CHAPTER 9.7. Public Safety Officers [3300 - 3313] ( Chapter 9.7 added by Stats. 1976, Ch. 465. ) 3300. This chapter is known and may be cited as the Public Safety Officers Procedural Bill of Rights Act. (Added by Stats. 1976, Ch. 465.) 3301. For purposes of this chapter, the term public safety officer means all peace officers specified in Sections 830.1, 830.2, 830.3, 830.31, 830.32, 830.33, except subdivision (e), 830.34, 830.35, except subdivision (c), 830.36, 830.37, 830.38, 830.4, and 830.5 of the Penal Code. The Legislature hereby finds and declares that the rights and protections provided to peace officers under this chapter constitute a matter of statewide concern. The Legislature further finds and declares that effective law enforcement depends upon the maintenance of stable employer -employee relations, between public safety employees and their employers. In order to assure that stable relations are continued throughout the state and to further assure that effective services are provided to all people of the state, it is necessary that this chapter be applicable to all public safety officers, as defined in this section, wherever situated within the State of California. (Amended by Stats. 1990, Ch. 675, Sec. 1.) 3302. (a) Except as otherwise provided by law, or whenever on duty or in uniform, no public safety officer shall be prohibited from engaging, or be coerced or required to engage, in political activity. (b) No public safety officer shall be prohibited from seeking election to, or serving as a member of, the governing board of a school district. (Amended by Stats. 1978, Ch. 1173.) 3303. When any public safety officer is under investigation and subjected to interrogation by his or her commanding officer, or any other member of the employing public safety department, that could lead to punitive action, the interrogation shall be conducted under the following conditions. For the purpose of this chapter, punitive action means any action that may lead to dismissal, demotion, suspension, reduction in salary, written reprimand, or transfer for purposes of punishment. (a) The interrogation shall be conducted at a reasonable hour, preferably at a time when the public safety officer is on duty, or during the normal waking hours for the public safety officer, unless the seriousness of the investigation requires otherwise. If the interrogation does occur during off -duty time of the public safety officer being interrogated, the public safety officer shall be compensated for any off -duty time in accordance with regular department procedures, and the public safety officer shall not be i y $�nciMr any Wolly, 15 — 18 7/15/2025 (b) The public safety officer under investigation shall e informed prior to the interrogation of the rank, name, and command of the officer in charge of the interrogation, the interrogating officers, and all other persons to be present during the interrogation. All questions directed to the public safety officer under interrogation shall be asked by and through no more than two interrogators at one time. (c) The public safety officer under investigation shall be informed of the nature of the investigation prior to any interrogation. (d) The interrogating session shall be for a reasonable period taking into consideration gravity and complexity of the issue being investigated. The person under interrogation shall be allowed to attend to his or her own personal physical necessities. (e) The public safety officer under interrogation shall not be subjected to offensive language or threatened with punitive action, except that an officer refusing to respond to questions or submit to interrogations shall be informed that failure to answer questions directly related to the investigation or interrogation may result in punitive action. No promise of reward shall be made as an inducement to answering any question. The employer shall not cause the public safety officer under interrogation to be subjected to visits by the press or news media without his or her express consent nor shall his or her home address or photograph be given to the press or news media without his or her express consent. (f) No statement made during interrogation by a public safety officer under duress, coercion, or threat of punitive action shall be admissible in any subsequent civil proceeding. This subdivision is subject to the following qualifications: (1) This subdivision shall not limit the use of statements made by a public safety officer when the employing public safety department is seeking civil sanctions against any public safety officer, including disciplinary action brought under Section 19572. (2) This subdivision shall not prevent the admissibility of statements made by the public safety officer under interrogation in any civil action, including administrative actions, brought by that public safety officer, or that officer's exclusive representative, arising out of a disciplinary action. (3) This subdivision shall not prevent statements made by a public safety officer under interrogation from being used to impeach the testimony of that officer after an in camera review to determine whether the statements serve to impeach the testimony of the officer. (4) This subdivision shall not otherwise prevent the admissibility of statements made by a public safety officer under interrogation if that officer subsequently is deceased. (g) The complete interrogation of a public safety officer may be recorded. If a tape recording is made of the interrogation, the public safety officer shall have access to the tape if any further proceedings are contemplated or prior to any further interrogation at a subsequent time. The public safety officer shall be entitled to a transcribed copy of any notes made by a stenographer or to any reports or complaints made by investigators or other persons, except those which are deemed by the investigating agency to be confidential. No notes or reports that are deemed to be confidential may be entered in the officer's personnel file. The public safety officer being interrogated shall have the right to bring his or her own recording device and record any and all aspects of the interrogation. (h) If prior to or during the interrogation of a public safety officer it is deemed that he or she may be charged with a criminal offense, he or she shall be immediately informed of his or her constitutional rights. (i) Upon the filing of a formal written statement of charges, or whenever an interrogation focuses on matters that are likely to result in punitive action against any public safety officer, that officer, at his or her request, shall have the right to be represented by a representative of his or her choice who may be present at all times during the interrogation. The representative shall not be a person subject to the same investigation. The representative shall not be required to disclose, nor be subject to any punitive action for refusing to disclose, any information received from the officer under investigation for noncriminal matters. This section shall not apply to any interrogation of a public safety officer in the normal course of duty, counseling, instruction, or informal verbal admonishment by, or other routine or unplanned contact with, a supervisor or any other public safety officer, nor shall this section apply to an investigation concerned solely and directly with alleged criminal activities. (j) No public safety officer shall be loaned or temporarily reassigned to a location or duty assignment if a sworn member of his or her department would not normally be sent to that location or would not normally be given that duty assignment under similar circumstances. ( aaeaded b�, Stats J 994, Ch L2591 Scc J 1:f1'ective Janua&�• 1, 1 W15 ) City Council 15 — 19 7/15/2025 3304. (a) No public safety officer shall be subjected to punitive action, or denied promotion, or be threatened with any such treatment, because of the lawful exercise of the rights granted under this chapter, or the exercise of any rights under any existing administrative grievance procedure. Nothing in this section shall preclude a head of an agency from ordering a public safety officer to cooperate with other agencies involved in criminal investigations. If an officer fails to comply with such an order, the agency may officially charge him or her with insubordination. (b) No punitive action, nor denial of promotion on grounds other than merit, shall be undertaken by any public agency against any public safety officer who has successfully completed the probationary period that may be required by his or her employing agency without providing the public safety officer with an opportunity for administrative appeal. (c) No chief of police may be removed by a public agency, or appointing authority, without providing the chief of police with written notice and the reason or reasons therefor and an opportunity for administrative appeal. For purposes of this subdivision, the removal of a chief of police by a public agency or appointing authority, for the purpose of implementing the goals or policies, or both, of the public agency or appointing authority, for reasons including, but not limited to, incompatibility of management styles or as a result of a change in administration, shall be sufficient to constitute "reason or reasons." Nothing in this subdivision shall be construed to create a property interest, where one does not exist by rule or law, in the job of Chief of Police. (d) (1) Except as provided in this subdivision and subdivision (g), no punitive action, nor denial of promotion on grounds other than merit, shall be undertaken for any act, omission, or other allegation of misconduct if the investigation of the allegation is not completed within one year of the public agency's discovery by a person authorized to initiate an investigation of the allegation of an act, omission, or other misconduct. This one-year limitation period shall apply only if the act, omission, or other misconduct occurred on or after January 1, 1998. In the event that the public agency determines that discipline may be taken, it shall complete its investigation and notify the public safety officer of its proposed discipline by a Letter of Intent or Notice of Adverse Action articulating the discipline that year, except as provided in paragraph (2). The public agency shall not be required to impose the discipline within that one-year period. (2) (A) If the act, omission, or other allegation of misconduct is also the subject of a criminal investigation or criminal prosecution, the time during which the criminal investigation or criminal prosecution is pending shall toll the one-year time period. (B) If the public safety officer waives the one-year time period in writing, the time period shall be tolled for the period of time specified in the written waiver. (C) If the investigation is a multijurisdictional investigation that requires a reasonable extension for coordination of the involved agencies. (D) If the investigation involves more than one employee and requires a reasonable extension. (E) If the investigation involves an employee who is incapacitated or otherwise unavailable. (F) If the investigation involves a matter in civil litigation where the public safety officer is named as a party defendant, the one-year time period shall be tolled while that civil action is pending. (G) If the investigation involves a matter in criminal litigation where the complainant is a criminal defendant, the one-year time period shall be tolled during the period of that defendant's criminal investigation and prosecution. (H) If the investigation involves an allegation of workers' compensation fraud on the part of the public safety officer. (e) Where a predisciplinary response or grievance procedure is required or utilized, the time for this response or procedure shall not be governed or limited by this chapter. (f) If, after investigation and any predisciplinary response or procedure, the public agency decides to i to in ire, including the date that the discipliA5WH12ra imposed, within 30 da�14424k5ision, except if the public safety officer is unavailable for discipline. (g) Notwithstanding the one-year time period specified in subdivision (d), an investigation may be reopened against a public safety officer if both of the following circumstances exist: (1) Significant new evidence has been discovered that is likely to affect the outcome of the investigation. (2) One of the following conditions exist: (A) The evidence could not reasonably have been discovered in the normal course of investigation without resorting to extraordinary measures by the agency. (B) The evidence resulted from the public safety officer's predisciplinary response or procedure. (h) For those members listed in subdivision (a) of Section 830.2 of the Penal Code, the 30-day time period provided for in subdivision (f) shall not commence with the service of a preliminary notice of adverse action, should the public agency elect to provide the public safety officer with such a notice. (Amended by Stats. 2009, Ch. 494, Sec. 1. (AB 955) Effective January 1, 2010.) 3304.5. An administrative appeal instituted by a public safety officer under this chapter shall be conducted in conformance with rules and procedures adopted by the local public agency. (Added by Stats. 1998, Ch. 263, Sec. 1. Effective January 1, 1999.) 3305. No public safety officer shall have any comment adverse to his interest entered in his personnel file, or any other file used for any personnel purposes by his employer, without the public safety officer having first read and signed the instrument containing the adverse comment indicating he is aware of such comment, except that such entry may be made if after reading such instrument the public safety officer refuses to sign it. Should a public safety officer refuse to sign, that fact shall be noted on that document, and signed or initialed by such officer. (Added by Stats. 1976, Ch. 465.) 3305.5. (a) A punitive action, or denial of promotion on grounds other than merit, shall not be undertaken by any public agency against any public safety officer solely because that officer's name has been placed on a Brady list, or that the officer's name may otherwise be subject to disclosure pursuant to Brady v. Maryland (1963) 373 U.S. 83. (b) This section shall not prohibit a public agency from taking punitive action, denying promotion on grounds other than merit, or taking other personnel action against a public safety officer based on the underlying acts or omissions for which that officer's name was placed on a Brady list, or may otherwise be subject to disclosure pursuant to Brady v. Maryland (1963) 373 U.S. 83, if the actions taken by the public agency otherwise conform to this chapter and to the rules and procedures adopted by the local agency. (c) Evidence that a public safety officer's name has been placed on a Brady list, or may otherwise be subject to disclosure pursuant to Brady v. Maryland (1963) 373 U.S. 83, shall not be introduced for any purpose in any administrative appeal of a punitive action, except as provided in subdivision (d). (d) Evidence that a public safety officer's name was placed on a Brady list may only be introduced if, during the administrative appeal of a punitive action against an officer, the underlying act or omission for which that officer's name was placed on a Brady list is proven and the officer is found to be subject to some form of punitive action. If the hearing officer or other administrative appeal tribunal finds or determines that a public safety officer has committed the underlying acts or omissions that will result in a punitive action, denial of a promotion on grounds other than merit, or any other adverse personnel action, and evidence exists that a public safety officer's name has been placed on a Brady list, or may otherwise be subject to disclosure pursuant to Brady v. Maryland (1963) 373 U.S. 83, then the evidence shall be introduced for the sole purpose of determining the type or level of punitive action to be imposed. (e) For purposes of this section, "Brady list" means any system, index, list, or other record containing the names of peace officers whose personnel files are likely to contain evidence of dishonesty or bias, which is maintained by a prosecutorial agency or office in accordance with the holding in Brady v. Marvland (1963) 373 U.S. 83. (A&A)A qDUQfjl 2013, Ch. 779, Sec. 1. (SB 313) Effecfive ?a%uary 1, 2014.) 7/15/2025 3306. A public safety officer shall have 30 days within which to file a written response to any adverse comment entered in his personnel file. Such written response shall be attached to, and shall accompany, the adverse comment. (Added by Stats. 1976, Ch. 465.) 3306.5. (a) Every employer shall, at reasonable times and at reasonable intervals, upon the request of a public safety officer, during usual business hours, with no loss of compensation to the officer, permit that officer to inspect personnel files that are used or have been used to determine that officer's qualifications for employment, promotion, additional compensation, or termination or other disciplinary action. (b) Each employer shall keep each public safety officer's personnel file or a true and correct copy thereof , and shall make the file or copy thereof available within a reasonable period of time after a request therefor by the officer. (c) If, after examination of the officer's personnel file, the officer believes that any portion of the material is mistakenly or unlawfully placed in the file, the officer may request, in writing, that the mistaken or unlawful portion be corrected or deleted. Any request made pursuant to this subdivision shall include a statement by the officer describing the corrections or deletions from the personnel file requested and the reasons supporting those corrections or deletions. A statement submitted pursuant to this subdivision shall become part of the personnel file of the officer. (d) Within 30 calendar days of receipt of a request made pursuant to subdivision (c), the employer shall either grant the officer's request or notify the officer of the decision to refuse to grant the request. If the employer refuses to grant the request, in whole or in part, the employer shall state in writing the reasons for refusing the request, and that written statement shall become part of the personnel file of the officer. (Added by Stats. 2000, Ch. 209, Sec. 1. Effective January 1, 2001.) 3307. (a) No public safety officer shall be compelled to submit to a lie detector test against his or her will. No disciplinary action or other recrimination shall be taken against a public safety officer refusing to submit to a lie detector test, nor shall any comment be entered anywhere in the investigator's notes or anywhere else that the public safety officer refused to take, or did not take, a lie detector test, nor shall any testimony or evidence be admissible at a subsequent hearing, trial, or proceeding, judicial or administrative, to the effect that the public safety officer refused to take, or was subjected to, a lie detector test. (b) For the purpose of this section, "lie detector" means a polygraph, deceptograph, voice stress analyzer, psychological stress evaluator, or any other similar device, whether mechanical or electrical, that is used, or the results of which are used, for the purpose of rendering a diagnostic opinion regarding the honesty or dishonesty of an individual. (Amended by Stats. 1998, Ch. 112, Sec. 1. Effective January 1, 1999.) 3307.5. (a) No public safety officer shall be required as a condition of employment by his or her employing public safety department or other public agency to consent to the use of his or her photograph or identity as a public safety officer on the Internet for any purpose if that officer reasonably believes that the disclosure may result in a threat, harassment, intimidation, or harm to that officer or his or her family. (b) Based upon his or her reasonable belief that the disclosure of his or her photograph or identity as a public safety officer on the Internet as described in subdivision (a) may result in a threat, harassment, intimidation, or harm, the officer may notify the department or other public agency to cease and desist from that disclosure. After the notification to cease and desist, the officer, a district attorney, or a United States Attorney may seek an injunction prohibiting any official or unofficial use by the department or other public agency on the Internet of his or her photograph or identity as a public safety officer. The court may impose a civil penalty in an amount not to exceed five hundred dollars ($500) per day commencing two working days after the date of receipt of the notification to cease and desist. (Added by Stats. 1999, Ch. 338, Sec. 1. Effective January 1, 2000.) 3308. No public safety officer shall be required or requested for purposes of job assignment or other personnel action to disclose any item of his property, income, assets, source of income, debts or personal or domestic expenditures (including those of any member of his family or household) unless such information is obtained or required under state law or proper legal procedure, tends to indicate a cot41;Gt Quite-est 4i4t , , aGt W the -PVr -Ir1,;,-rr;-;a1 dwies a x* fQ&4he--- etnrp*iQpwpdJy to ascertain the desirability of assigli5it U public safety officer to-U1&2ii02&d unit in which there is a strong possibility that bribes or other improper inducements may be offered. (Added by Stats. 1976, Ch. 465.) 3309. No public safety officer shall have his locker, or other space for storage that may be assigned to him searched except in his presence, or with his consent, or unless a valid search warrant has been obtained or where he has been notified that a search will be conducted. This section shall apply only to lockers or other space for storage that are owned or leased by the employing agency. (Added by Stats. 1976, Ch. 465.) 3309.5. (a) It shall be unlawful for any public safety department to deny or refuse to any public safety officer the rights and protections guaranteed to him or her by this chapter. (b) Nothing in subdivision (h) of Section 11181 shall be construed to affect the rights and protections afforded to state public safety officers under this chapter or under Section 832.5 of the Penal Code. (c) The superior court shall have initial jurisdiction over any proceeding brought by any public safety officer against any public safety department for alleged violations of this chapter. (d) (1) In any case where the superior court finds that a public safety department has violated any of the provisions of this chapter, the court shall render appropriate injunctive or other extraordinary relief to remedy the violation and to prevent future violations of a like or similar nature, including, but not limited to, the granting of a temporary restraining order, preliminary injunction, or permanent injunction prohibiting the public safety department from taking any punitive action against the public safety officer. (2) If the court finds that a bad faith or frivolous action or a filing for an improper purpose has been brought pursuant to this chapter, the court may order sanctions against the party filing the action, the party's attorney, or both, pursuant to Sections 128.6 and 128.7 of the Code of Civil Procedure. Those sanctions may include, but not be limited to, reasonable expenses, including attorney's fees, incurred by a public safety department as the court deems appropriate. Nothing in this paragraph is intended to subject actions or filings under this section to rules or standards that are different from those applicable to other civil actions or filings subject to Section 128.6 or 128.7 of the Code of Civil Procedure. (e) In addition to the extraordinary relief afforded by this chapter, upon a finding by a superior court that a public safety department, its employees, agents, or assigns, with respect to acts taken within the scope of employment, maliciously violated any provision of this chapter with the intent to injure the public safety officer, the public safety department shall, for each and every violation, be liable for a civil penalty not to exceed twenty-five thousand dollars ($25,000) to be awarded to the public safety officer whose right or protection was denied and for reasonable attorney's fees as may be determined by the court. If the court so finds, and there is sufficient evidence to establish actual damages suffered by the officer whose right or protection was denied, the public safety department shall also be liable for the amount of the actual damages. Notwithstanding these provisions, a public safety department may not be required to indemnify a contractor for the contractor's liability pursuant to this subdivision if there is, within the contract between the public safety department and the contractor, a "hold harmless" or similar provision that protects the public safety department from liability for the actions of the contractor. An individual shall not be liable for any act for which a public safety department is liable under this section. (Amended by Stats. 2005, Ch. 22, Sec. 70. Effective January 1, 2006.) 3310. Any public agency which has adopted, through action of its governing body or its official designee, any procedure which at a minimum provides to peace officers the same rights or protections as provided pursuant to this chapter shall not be subject to this chapter with regard to such a procedure. (Added by Stats. 1976, Ch. 465.) 3311. Nothing in this chapter shall in any way be construed to limit the use of any public safety agency or any public safety officer in the fulfilling of mutual aid agreements with other jurisdictions or agencies, nor shall this chapter be construed in any way to limit any jurisdictional or interagency cooperation under any circumstances where such activity is deemed necessary or desirable by the jurisdictions or the agencies involved. (Amended by Stats. 1977, Ch. 579.) 3312. Notwithstanding any other provision of law, the employer of a public safety officer may not take any punitive action against an officer for wearing a pin or displaying any other item containing the Ai"qD(RMCffnless the employer gives the officer vfvSttQn2t3otice that includes all ofIVT5fVI"ng: (a) A statement that the officer's pin or other item violates an existing rule, regulation, policy, or local agency agreement or contract regarding the wearing of a pin, or the displaying of any other item, containing the American flag. (b) A citation to the specific rule, regulation, policy, or local agency agreement or contract that the pin or other item violates. (c) A statement that the officer may file an appeal against the employer challenging the alleged violation pursuant to applicable grievance or appeal procedures adopted by the department or public agency that otherwise comply with existing law. (Added by Stats. 2002, Ch. 170, Sec. 2. Effective January 1, 2003.) 3313. In the 2005-06 fiscal year, the Commission on State Mandates shall review its statement of decision regarding the Peace Officer Procedural Bill of Rights test claim and make any modifications necessary to this decision to clarify whether the subject legislation imposed a mandate consistent with the California Supreme Court Decision in San Diego Unified School Dist. v. Commission on State Mandates (2004) 33 Ca1.4th 859 and other applicable court decisions. If the Commission on State Mandates revises its statement of decision regarding the Peace Officer Procedural Bill of Rights test claim, the revised decision shall apply to local government Peace Officer Procedural Bill of Rights activities occurring after the date the revised decision is adopted. (Added by Stats. 2005, Ch. 72, Sec. 6. Effective July 19, 2005.) City Council 15 — 24 7/15/2025 State of California PENAL CODE Section 832.5 832.5. (a) (1) Each department or agency in this state that employs peace officers shall establish a procedure to investigate complaints by members of the public against the personnel of these departments or agencies, and shall make a written description of the procedure available to the public. (2) Each department or agency that employs custodial officers, as defined in Section 831.5, may establish a procedure to investigate complaints by members of the public against those custodial officers employed by these departments or agencies, provided, however, that any procedure so established shall comply with the provisions of this section and with the provisions of Section 832.7. (b) Complaints and any reports or findings relating to these complaints, including all complaints and any reports currently in the possession of the department or agency, shall be retained for a period of no less than 5 years for records where there was not a sustained finding of misconduct and for not less than 15 years where there was a sustained finding of misconduct. A record shall not be destroyed while a request related to that record is being processed or any process or litigation to determine whether the record is subject to release is ongoing. All complaints retained pursuant to this subdivision may be maintained either in the peace or custodial officer's general personnel file or in a separate file designated by the department or agency as provided by department or agency policy, in accordance with all applicable requirements of law. However, prior to any official determination regarding promotion, transfer, or disciplinary action by an officer's employing department or agency, the complaints described by subdivision (c) shall be removed from the officer's general personnel file and placed in a separate file designated by the department or agency, in accordance with all applicable requirements of law. (c) Complaints by members of the public that are determined by the peace or custodial officer's employing agency to be frivolous, as defined in Section 128.5 of the Code of Civil Procedure, or unfounded or exonerated, or any portion of a complaint that is determined to be frivolous, unfounded, or exonerated, shall not be maintained in that officer's general personnel file. However, these complaints shall be retained in other, separate files that shall be deemed personnel records for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and Section 1043 of the Evidence Code. (1) Management of the peace or custodial officer's employing agency shall have access to the files described in this subdivision. (2) Management of the peace or custodial officer's employing agency shall not use the complaints contained in these separate files for punitive or promotional City Council 15 — 25 7/15/2025 purposes except as permitted by subdivision (f) of Section 3304 of the Government Code. (3) Management of the peace or custodial officer's employing agency may identify any officer who is subject to the complaints maintained in these files which require counseling or additional training. However, if a complaint is removed from the officer's personnel file, any reference in the personnel file to the complaint or to a separate file shall be deleted. (d) As used in this section, the following definitions apply: (1) "General personnel file" means the file maintained by the agency containing the primary records specific to each peace or custodial officer's employment, including evaluations, assignments, status changes, and imposed discipline. (2) "Unfounded" means that the investigation clearly established that the allegation is not true. (3) "Exonerated" means that the investigation clearly established that the actions of the peace or custodial officer that formed the basis for the complaint are not violations of law or department policy. (Amended by Stats. 2022, Ch. 28, Sec. 125. (SB 1380) Effective January 1, 2023.) City Council 15 — 26 7/15/2025 State of California PENAL CODE Section 832.7 832.7. (a) Except as provided in subdivision (b), the personnel records of peace officers and custodial officers and records maintained by a state or local agency pursuant to Section 832.5, or information obtained from these records, are confidential and shall not be disclosed in any criminal or civil proceeding except by discovery pursuant to Sections 1043 and 1046 of the Evidence Code. This section does not apply to investigations or proceedings concerning the conduct of peace officers or custodial officers, or an agency or department that employs those officers, conducted by a grand jury, a district attorney's office, the Attorney General's office, or the Commission on Peace Officer Standards and Training. (b) (1) Notwithstanding subdivision (a), Section 7923.600 of the Government Code, or any other law, the following peace officer or custodial officer personnel records and records maintained by a state or local agency shall not be confidential and shall be made available for public inspection pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code): (A) A record relating to the report, investigation, or findings of any of the following: (i) An incident involving the discharge of a firearm at a person by a peace officer or custodial officer. (ii) An incident involving the use of force against a person by a peace officer or custodial officer that resulted in death or in great bodily injury. (iii) A sustained finding involving a complaint that alleges unreasonable or excessive force. (iv) A sustained finding that an officer failed to intervene against another officer using force that is clearly unreasonable or excessive. (B) (i) Any record relating to an incident in which a sustained finding was made by any law enforcement agency or oversight agency that a peace officer or custodial officer engaged in sexual assault involving a member of the public. (ii) As used in this subparagraph, "sexual assault" means the commission or attempted initiation of a sexual act with a member of the public by means of force, threat, coercion, extortion, offer of leniency or other official favor, or under the color of authority. For purposes of this definition, the propositioning for or commission of any sexual act while on duty is considered a sexual assault. (iii) As used in this subparagraph, "member of the public" means any person not employed by the officer's employing agency and includes any participant in a cadet, explorer, or other youth program affiliated with the agency. City Council 15 — 27 7/15/2025 (C) Any record relating to an incident in which a sustained finding was made by any law enforcement agency or oversight agency involving dishonesty by a peace officer or custodial officer directly relating to the reporting, investigation, or prosecution of a crime, or directly relating to the reporting of, or investigation of misconduct by, another peace officer or custodial officer, including, but not limited to, any false statements, filing false reports, destruction, falsifying, or concealing of evidence, or perjury. (D) Any record relating to an incident in which a sustained finding was made by any law enforcement agency or oversight agency that a peace officer or custodial officer engaged in conduct including, but not limited to, verbal statements, writings, online posts, recordings, and gestures, involving prejudice or discrimination against a person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. (E) Any record relating to an incident in which a sustained finding was made by any law enforcement agency or oversight agency that the peace officer made an unlawful arrest or conducted an unlawful search. (2) Records that are subject to disclosure under clause (iii) or (iv) of subparagraph (A) of paragraph (1), or under subparagraph (D) or (E) of paragraph (1), relating to an incident that occurs before January 1, 2022, shall not be subject to the time limitations in paragraph (11) until January 1, 2023. (3) Records that shall be released pursuant to this subdivision include all investigative reports; photographic, audio, and video evidence; transcripts or recordings of interviews; autopsy reports; all materials compiled and presented for review to the district attorney or to any person or body charged with determining whether to file criminal charges against an officer in connection with an incident, whether the officer's action was consistent with law and agency policy for purposes of discipline or administrative action, or what discipline to impose or corrective action to take; documents setting forth findings or recommended findings; and copies of disciplinary records relating to the incident, including any letters of intent to impose discipline, any documents reflecting modifications of discipline due to the Skelly or grievance process, and letters indicating final imposition of discipline or other documentation reflecting implementation of corrective action. Records that shall be released pursuant to this subdivision also include records relating to an incident specified in paragraph (1) in which the peace officer or custodial officer resigned before the law enforcement agency or oversight agency concluded its investigation into the alleged incident. (4) A record from a separate and prior investigation or assessment of a separate incident shall not be released unless it is independently subject to disclosure pursuant to this subdivision. (5) If an investigation or incident involves multiple officers, information about allegations of misconduct by, or the analysis or disposition of an investigation of, an officer shall not be released pursuant to subparagraph (B), (C), (D), or (E) of paragraph (1), unless it relates to a sustained finding regarding that officer that is itself subject City Council 15 — 28 7/15/2025 to disclosure pursuant to this section. However, factual information about that action of an officer during an incident, or the statements of an officer about an incident, shall be released if they are relevant to a finding against another officer that is subject to release pursuant to subparagraph (B), (C), (D), or (E) of paragraph (1). (6) An agency shall redact a record disclosed pursuant to this section only for any of the following purposes: (A) To remove personal data or information, such as a home address, telephone number, or identities of family members, other than the names and work -related information of peace and custodial officers. (B) To preserve the anonymity of whistleblowers, complainants, victims, and witnesses. (C) To protect confidential medical, financial, or other information of which disclosure is specifically prohibited by federal law or would cause an unwarranted invasion of personal privacy that clearly outweighs the strong public interest in records about possible misconduct and use of force by peace officers and custodial officers. (D) Where there is a specific, articulable, and particularized reason to believe that disclosure of the record would pose a significant danger to the physical safety of the peace officer, custodial officer, or another person. (7) Notwithstanding paragraph (6), an agency may redact a record disclosed pursuant to this section, including personal identifying information, where, on the facts of the particular case, the public interest served by not disclosing the information clearly outweighs the public interest served by disclosure of the information. (8) An agency may withhold a record of an incident described in paragraph (1) that is the subject of an active criminal or administrative investigation, in accordance with any of the following: (A) (i) During an active criminal investigation, disclosure may be delayed for up to 60 days from the date the misconduct or use of force occurred or until the district attorney determines whether to file criminal charges related to the misconduct or use of force, whichever occurs sooner. If an agency delays disclosure pursuant to this clause, the agency shall provide, in writing, the specific basis for the agency's determination that the interest in delaying disclosure clearly outweighs the public interest in disclosure. This writing shall include the estimated date for disclosure of the withheld information. (ii) After 60 days from the misconduct or use of force, the agency may continue to delay the disclosure of records or information if the disclosure could reasonably be expected to interfere with a criminal enforcement proceeding against an officer who engaged in misconduct or used the force. If an agency delays disclosure pursuant to this clause, the agency shall, at 180-day intervals as necessary, provide, in writing, the specific basis for the agency's determination that disclosure could reasonably be expected to interfere with a criminal enforcement proceeding. The writing shall include the estimated date for the disclosure of the withheld information. Information withheld by the agency shall be disclosed when the specific basis for withholding is resolved, when the investigation or proceeding is no longer active, or by no later than 18 months after the date of the incident, whichever occurs sooner. City Council 15 — 29 7/15/2025 (iii) After 60 days from the misconduct or use of force, the agency may continue to delay the disclosure of records or information if the disclosure could reasonably be expected to interfere with a criminal enforcement proceeding against someone other than the officer who engaged in the misconduct or used the force. If an agency delays disclosure under this clause, the agency shall, at 180-day intervals, provide, in writing, the specific basis why disclosure could reasonably be expected to interfere with a criminal enforcement proceeding, and shall provide an estimated date for the disclosure of the withheld information. Information withheld by the agency shall be disclosed when the specific basis for withholding is resolved, when the investigation or proceeding is no longer active, or by no later than 18 months after the date of the incident, whichever occurs sooner, unless extraordinary circumstances warrant continued delay due to the ongoing criminal investigation or proceeding. In that case, the agency must show by clear and convincing evidence that the interest in preventing prejudice to the active and ongoing criminal investigation or proceeding outweighs the public interest in prompt disclosure of records about misconduct or use of force by peace officers and custodial officers. The agency shall release all information subject to disclosure that does not cause substantial prejudice, including any documents that have otherwise become available. (iv) In an action to compel disclosure brought pursuant to Section 7923.000 of the Government Code, an agency may justify delay by filing an application to seal the basis for withholding, in accordance with Rule 2.550 of the California Rules of Court, or any successor rule, if disclosure of the written basis itself would impact a privilege or compromise a pending investigation. (B) If criminal charges are filed related to the incident in which misconduct occurred or force was used, the agency may delay the disclosure of records or information until a verdict on those charges is returned at trial or, if a plea of guilty or no contest is entered, the time to withdraw the plea pursuant to Section 1018. (C) During an administrative investigation into an incident described in paragraph (1), the agency may delay the disclosure of records or information until the investigating agency determines whether the misconduct or use of force violated a law or agency policy, but no longer than 180 days after the date of the employing agency's discovery of the misconduct or use of force, or allegation of misconduct or use of force, by a person authorized to initiate an investigation. (9) A record of a complaint, or the investigations, findings, or dispositions of that complaint, shall not be released pursuant to this section if the complaint is frivolous, as defined in Section 128.5 of the Code of Civil Procedure, or if the complaint is unfounded. (10) The cost of copies of records subject to disclosure pursuant to this subdivision that are made available upon the payment of fees covering direct costs of duplication pursuant to subdivision (a) of Section 7922.530 of the Government Code shall not include the costs of searching for, editing, or redacting the records. (11) Except to the extent temporary withholding for a longer period is permitted pursuant to paragraph (8), records subject to disclosure under this subdivision shall City Council 15 — 30 7/15/2025 be provided at the earliest possible time and no later than 45 days from the date of a request for their disclosure. (12) (A) For purposes of releasing records pursuant to this subdivision, the lawyer -client privilege does not prohibit the disclosure of either of the following: (i) Factual information provided by the public entity to its attorney or factual information discovered in any investigation conducted by, or on behalf of, the public entity's attorney. (ii) Billing records related to the work done by the attorney so long as the records do not relate to active and ongoing litigation and do not disclose information for the purpose of legal consultation between the public entity and its attorney. (B) This paragraph does not prohibit the public entity from asserting that a record or information within the record is exempted or prohibited from disclosure pursuant to any other federal or state law. (13) Notwithstanding subdivision (a) or any other law, an agency that formerly employed a peace officer or custodial officer may, without receiving a request for disclosure, disclose to the public the termination for cause of that officer by that agency for any disclosable incident, including those described in subparagraphs (A) to (E), inclusive, of paragraph (1). Any such disclosure shall be at the discretion of the agency and shall not include any information otherwise prohibited from disclosure. This paragraph is declaratory of existing law. (c) Notwithstanding subdivisions (a) and (b), a department or agency shall release to the complaining party a copy of the complaining party's own statements at the time the complaint is filed. (d) Notwithstanding subdivisions (a) and (b), a department or agency that employs peace or custodial officers may disseminate data regarding the number, type, or disposition of complaints (sustained, not sustained, exonerated, or unfounded) made against its officers if that information is in a form which does not identify the individuals involved. (e) Notwithstanding subdivisions (a) and (b), a department or agency that employs peace or custodial officers may release factual information concerning a disciplinary investigation if the officer who is the subject of the disciplinary investigation, or the officer's agent or representative, publicly makes a statement they know to be false concerning the investigation or the imposition of disciplinary action. Information may not be disclosed by the peace or custodial officer's employer unless the false statement was published by an established medium of communication, such as television, radio, or a newspaper. Disclosure of factual information by the employing agency pursuant to this subdivision is limited to facts contained in the officer's personnel file concerning the disciplinary investigation or imposition of disciplinary action that specifically refute the false statements made public by the peace or custodial officer or their agent or representative. (f) (1) The department or agency shall provide written notification to the complaining parry of the disposition of the complaint within 30 days of the disposition. City Council 15 — 31 7/15/2025 (2) The notification described in this subdivision is not conclusive or binding or admissible as evidence in any separate or subsequent action or proceeding brought before an arbitrator, court, or judge of this state or the United States. (g) This section does not affect the discovery or disclosure of information contained in a peace or custodial officer's personnel file pursuant to Section 1043 of the Evidence Code. (h) This section does not supersede or affect the criminal discovery process outlined in Chapter 10 (commencing with Section 1054) of Title 6 of Part 2, or the admissibility of personnel records pursuant to subdivision (a), which codifies the court decision in Pitchess v. Superior Court (1974) 11 Cal. 3d 531. (i) Nothing in this chapter is intended to limit the public's right of access as provided for in Long Beach Police Officers Association v. City of Long Beach (2014) 59 Cal.4th 59. (Amended by Stats. 2024, Ch. 3, Sec. 1. (SB 400) Effective January 1, 2025.) City Council 15 — 32 7/15/2025 State of California PENAL CODE Section 832.8 832.8. As used in Section 832.7, the following words or phrases have the following meanings: (a) "Personnel records" means any file maintained under that individual's name by his or her employing agency and containing records relating to any of the following: (1) Personal data, including marital status, family members, educational and employment history, home addresses, or similar information. (2) Medical history. (3) Election of employee benefits. (4) Employee advancement, appraisal, or discipline. (5) Complaints, or investigations of complaints, concerning an event or transaction in which he or she participated, or which he or she perceived, and pertaining to the manner in which he or she performed his or her duties. (6) Any other information the disclosure of which would constitute an unwarranted invasion of personal privacy. (b) "Sustained" means a final determination by an investigating agency, commission, board, hearing officer, or arbitrator, as applicable, following an investigation and opportunity for an administrative appeal pursuant to Sections 3304 and 3304.5 of the Government Code, that the actions of the peace officer or custodial officer were found to violate law or department policy. (c) "Unfounded" means that an investigation clearly establishes that the allegation is not true. (Amended by Stats. 2018, Ch. 988, Sec. 3. (SB 1421) Effective January 1, 2019.) City Council 15 — 33 7/15/2025 STATE OF CALIFORNIA Lf AU COUNSEL THENTICATED BUREAU ELECTRONIC LEGAL MATERIAL State of California EVIDENCE CODE Section 1040-1047 Evidence Code - EVID DIVISION 8. PRIVILEGES [900 - 1070] ( Division 8 enacted by Stats. 1965, Ch. 299.) CHAPTER 4. Particular Privileges [930 - 1063] ( Chapter 4 enacted by Stats. 1965, Ch. 299. ) ARTICLE 9. Official Information and Identity of Informer [1040 - 1047] ( Article 9 enacted by Stats. 1965, Ch. 299. ) 1040. (a) As used in this section, "official information" means information acquired in confidence by a public employee in the course of his or her duty and not open, or officially disclosed, to the public prior to the time the claim of privilege is made. (b) A public entity has a privilege to refuse to disclose official information, and to prevent another from disclosing official information, if the privilege is claimed by a person authorized by the public entity to do so and either of the following apply: (1) Disclosure is forbidden by an act of the Congress of the United States or a statute of this state. (2) Disclosure of the information is against the public interest because there is a necessity for preserving the confidentiality of the information that outweighs the necessity for disclosure in the interest of justice; but no privilege may be claimed under this paragraph if any person authorized to do so has consented that the information be disclosed in the proceeding. In determining whether disclosure of the information is against the public interest, the interest of the public entity as a party in the outcome of the proceeding may not be considered. (c) Notwithstanding any other law, the Employment Development Department shall disclose to law enforcement agencies, in accordance with subdivision (i) of Section 1095 of the Unemployment Insurance Code, information in its possession relating to any person if an arrest warrant has been issued for the person for commission of a felony. (Amended by Stats. 2015, Ch. 20, Sec. 1. (SB 79) Effective June 24, 2015.) 1041. (a) Except as provided in this section, a public entity has a privilege to refuse to disclose the identity of a person who has furnished information as provided in subdivision (b) purporting to disclose a violation of a law of the United States or of this state or of a public entity in this state, and to prevent another from dis zed by d9i.54R Ightity to do so and either of the lfo*ing apply: 7/15/2025 STATE OF CALIFORNIA Lf AU COUNSEL THENTICATED BUREAU ELECTRONIC LEGAL MATERIAL (1) Disclosure is forbidden by an act of the Congress of the United States or a statute of this state. (2) Disclosure of the identity of the informer is against the public interest because the necessity for preserving the confidentiality of his or her identity outweighs the necessity for disclosure in the interest of justice. The privilege shall not be claimed under this paragraph if a person authorized to do so has consented that the identity of the informer be disclosed in the proceeding. In determining whether disclosure of the identity of the informer is against the public interest, the interest of the public entity as a party in the outcome of the proceeding shall not be considered. (b) The privilege described in this section applies only if the information is furnished in confidence by the informer to any of the following: (1) A law enforcement officer. (2) A representative of an administrative agency charged with the administration or enforcement of the law alleged to be violated. (3) Any person for the purpose of transmittal to a person listed in paragraph (1) or (2). As used in this paragraph, "person" includes a volunteer or employee of a crime stopper organization. (c) The privilege described in this section shall not be construed to prevent the informer from disclosing his or her identity. (d) As used in this section, "crime stopper organization" means a private, nonprofit organization that accepts and expends donations used to reward persons who report to the organization information concerning alleged criminal activity, and forwards the information to the appropriate law enforcement agency. (Amended by Stats. 2013, Ch. 19, Sec. 1. (AB 1250) Effective January 1, 2014.) 1042. (a) Except where disclosure is forbidden by an act of the Congress of the United States, if a claim of privilege under this article by the state or a public entity in this state is sustained in a criminal proceeding, the presiding officer shall make such order or finding of fact adverse to the public entity bringing the proceeding as is required by law upon any issue in the proceeding to which the privileged information is material. (b) Notwithstanding subdivision (a), where a search is made pursuant to a warrant valid on its face, the public entity bringing a criminal proceeding is not required to reveal to the defendant official information or the identity of an informer in order to establish the legality of the search or the admissibility of any evidence obtained as a result of it. (c) Notwithstanding subdivision (a), in any preliminary hearing, criminal trial, or other criminal proceeding, any otherwise admissible evidence of information communicated to a peace officer by a confidential informant, who is not a material witness to the guilt or innocence of the accused of the offense charged, is ad:r,;s;r414 o o44 44P ;gg„o �� ,o,��,,,�.� tO M@v��44 909+ OV. 9041011t requ%NC-%PFiihe name or identity of the Ab-fAnt be disclosed ifWIP/�Qe or STATE OF CALIFORNIA Lf AU COUNSEL THENTICATED BUREAU ELECTRONIC LEGAL MATERIAL magistrate is satisfied, based upon evidence produced in open court, out of the presence of the jury, that such information was received from a reliable informant and in his discretion does not require such disclosure. (d) When, in any such criminal proceeding, a party demands disclosure of the identity of the informant on the ground the informant is a material witness on the issue of guilt, the court shall conduct a hearing at which all parties may present evidence on the issue of disclosure. Such hearing shall be conducted outside the presence of the jury, if any. During the hearing, if the privilege provided for in Section 1041 is claimed by a person authorized to do so or if a person who is authorized to claim such privilege refuses to answer any question on the ground that the answer would tend to disclose the identity of the informant, the prosecuting attorney may request that the court hold an in camera hearing. If such a request is made, the court shall hold such a hearing outside the presence of the defendant and his counsel. At the in camera hearing, the prosecution may offer evidence which would tend to disclose or which discloses the identity of the informant to aid the court in its determination whether there is a reasonable possibility that nondisclosure might deprive the defendant of a fair trial. A reporter shall be present at the in camera hearing. Any transcription of the proceedings at the in camera hearing, as well as any physical evidence presented at the hearing, shall be ordered sealed by the court, and only a court may have access to its contents. The court shall not order disclosure, nor strike the testimony of the witness who invokes the privilege, nor dismiss the criminal proceeding, if the party offering the witness refuses to disclose the identity of the informant, unless, based upon the evidence presented at the hearing held in the presence of the defendant and his counsel and the evidence presented at the in camera hearing, the court concludes that there is a reasonable possibility that nondisclosure might deprive the defendant of a fair trial. (Amended by Stats. 1969, Ch. 1412.) 1043. (a) In any case in which discovery or disclosure is sought of peace or custodial officer personnel records or records maintained pursuant to Section 832.5 of the Penal Code or information from those records, the party seeking the discovery or disclosure shall file a written motion with the appropriate court or administrative body upon written notice to the governmental agency that has custody and control of the records, as follows: (1) In a civil action, the written notice shall be given at the times prescribed by subdivision (b) of Section 1005 of the Code of Civil Procedure. (2) In a criminal action, the written notice shall be served and filed at least 10 court days before the hearing. All papers opposing a motion so noticed shall be filed with the court at least five court days, and all reply papers at least two court days, before the hearing. Proof of service of the notice shall be filed no later than five court days before the hearing. (b) The motion shall include all of the following: (1) Identification of the proceeding in which discovery or disclosure is sought, the pa ,, g Qd s,,, or.dig0 gQ@paRGo or. ,.,,g rords are 9tYg19P'U ifs governmental agency that hIP cAody and control o7ltli�RQZ-�rds, STATE OF CALIFORNIA Lf AU COUNSEL THENTICATED BUREAU ELECTRONIC LEGAL MATERIAL and the time and place at which the motion for discovery or disclosure shall be heard. (2) A description of the type of records or information sought. (3) Affidavits showing good cause for the discovery or disclosure sought, setting forth the materiality thereof to the subject matter involved in the pending litigation and stating upon reasonable belief that the governmental agency identified has the records or information from the records. (c) Upon receipt of a notice served pursuant to subdivision (a), the governmental agency shall immediately notify the individual whose records are sought. (d) No hearing upon a motion for discovery or disclosure shall be held without full compliance with the notice provisions of this section except upon a showing by the moving party of good cause for noncompliance, or upon a waiver of the hearing by the governmental agency identified as having the records. (Amended by Stats. 2019, Ch. 585, Sec. 2. (AB 1600) Effective January 1, 2020.) 1044. Nothing in this article shall be construed to affect the right of access to records of medical or psychological history where such access would otherwise be available under Section 996 or 1016. (Added by Stats. 1978, Ch. 630.) 1045. (a) This article does not affect the right of access to records of complaints, or investigations of complaints, or discipline imposed as a result of those investigations, concerning an event or transaction in which the peace officer or custodial officer, as defined in Section 831.5 of the Penal Code, participated, or which the officer perceived, and pertaining to the manner in which the officer performed the officer's duties, provided that information is relevant to the subject matter involved in the pending litigation. (b) In determining relevance, the court shall examine the information in chambers in conformity with Section 915, and shall exclude from disclosure both of the following: (1) In any criminal proceeding the conclusions of any officer investigating a complaint filed pursuant to Section 832.5 of the Penal Code. (2) Facts sought to be disclosed that are so remote as to make disclosure of little or no practical benefit. (c) In determining relevance where the issue in litigation concerns the policies or pattern of conduct of the employing agency, the court shall consider whether the information sought may be obtained from other records maintained by the employing agency in the regular course of agency business which would not necessitate the disclosure of individual personnel records. (d) Upon motion seasonably made by the governmental agency which has custody or c„r4+ro1- w,f the raaor-dc. to ba ov,m;v,o,a or. b-, +4o ,-.GQ - *4-4-osso ron„r, s amr-o s „Qht, and cause showing the necessity Me eR, the court may maN159g2grder STATE OF CALIFORNIA Lf AU COUNSEL THENTICATED BUREAU ELECTRONIC LEGAL MATERIAL which justice requires to protect the officer or agency from unnecessary annoyance, embarrassment or oppression. (e) The court shall, in any case or proceeding permitting the disclosure or discovery of any peace or custodial officer records requested pursuant to Section 1043, order that the records disclosed or discovered may not be used for any purpose other than a court proceeding pursuant to applicable law. (Amended by Stats. 2021, Ch. 402, Sec. 1. (SB 16) Effective January 1, 2022.) 1046. In any case, otherwise authorized by law, in which the party seeking disclosure is alleging excessive force by a peace officer or custodial officer, as defined in Section 831.5 of the Penal Code, in connection with the arrest of that party, or for conduct alleged to have occurred within a jail facility, the motion shall include a copy of the police report setting forth the circumstances under which the party was stopped and arrested, or a copy of the crime report setting forth the circumstances under which the conduct is alleged to have occurred within a jail facility. (Amended by Stats. 2002, Ch. 391, Sec. 3. Effective January 1, 2003.) 1047. (a) Records of peace officers or custodial officers, as defined in Section 831.5 of the Penal Code, including supervisorial officers, who either were not present during the arrest or had no contact with the party seeking disclosure from the time of the arrest until the time of booking, or who were not present at the time the conduct at issue is alleged to have occurred within a jail facility, shall not be subject to disclosure. (b) Notwithstanding subdivision (a), if a supervisorial officer whose records are being sought had direct oversight of a peace officer or a custodial officer, as defined in Section 831.5 of the Penal Code and issued command directives or had command influence over the circumstances at issue, the supervisorial officer's records shall be subject to disclosure pursuant to Section 1045 if the peace officer or custodial officer under supervision was present during the arrest, had contact with the party seeking disclosure from the time of the arrest until the time of booking, or was present at the time the conduct at issue is alleged to have occurred within a jail facility. (Amended by Stats. 2019, Ch. 585, Sec. 3. (AB 1600) Effective January 1, 2020.) City Council 15 — 38 7/15/2025 DRAFT Minutes of the Special Meeting of the Housing Authority Santa Ana, California March 18, 2025 CALL TO ORDER MINUTES: Chair Amezcua called the Special Housing Authority Meeting to order at 11:11 P.M. ATTENDANCE Authority Members Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez David Penaloza Thai Viet Phan Vice Chair Benjamin Vazquez Chair Valerie Amezcua City Manager City Attorney Recording Secretary ROLL CALL Alvaro Nunez Sonia R. Carvalho Jennifer L. Hall MINUTES: Secretary Jennifer L. Hall conducted Roll Call. Chair Amezcua, Vice Chair Vazquez, and Authority Members Bacerra, Hernandez, Lopez, and Phan were present. Authority Member Penaloza was absent. ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA MINUTES: None. HOUSING AUTHORITY 1 March 18, 2025 City Council 2-1 7/15/2025 PUBLIC COMMENTS — Members of the public may address Housing Authority on items on the Housing Authority agenda. MINUTES: None. CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 through 2. MINUTES: At 11:12 P.M., the Consent Calendar was considered. MOTION: Authority Member Hernandez moved to approve staff recommendations on the following Consent Calendar Items: 1 through 2, seconded by Chair Amezcua. The motion carried, 5-0-2, by the following roll call vote: AYES: AUTHORITY MEMBER BACERRA, AUTHORITY MEMBER HERNANDEZ, AUTHORITY MEMBER PHAN, VICE CHAIR VAZQUEZ, CHAIR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: AUTHORITY MEMBER LOPEZ, AUTHORITY MEMBER PENALOZA Status: 5 — 0 — 2 - Pass 1. Excused Absences Department(s): City Clerk's Office Recommended Action: Excuse the absent members. 2. Minutes from the Special Meeting of December 17, 2024 Department(s): City Clerk's Office Recommended Action: Approve minutes. **END OF CONSENT CALENDAR** HOUSING AUTHORITY 2 March 18, 2025 City Council 2-2 7/15/2025 PUBLIC HEARING 3. Public Hearing — Approve the Housing Authority Fiscal Years 2025-2030 5-Year Plan and Fiscal Year 2025-2026 Annual Plan Published in the Orange County Register, La Opinion, and Nguoi Viet on January 31, 2025. Department(s): Community Development Agency Recommended Action: 1. Conduct a public hearing in consideration of the approval and submission of the Housing Authority 5-Year Plan and Annual Plan to the U.S. Department of Housing and Urban Development. 2. Adopt a resolution approving the Housing Authority 5-Year Plan and Annual Plan and authorize the Executive Director of the Housing Authority to submit the 5- Year Plan and Annual Plan to the U.S. Department of Housing and Urban Development. RESOLUTION NO. 2025-001 entitled A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA APPROVING THE SUBMISSSION OF THE FIVE YEAR PLAN FOR FISCAL YEARS 2025-2030 AND SUBMISSION OF THE ANNUAL PLAN FOR FISCAL YEAR 2025-2026 MINUTES: Chair Amezcua opened the public hearing at 11:13 P.M. and, there being no public comments, closed the public hearing at 11:13 P.M. MOTION: Authority Member Hernandez moved to approve the recommended actions for Public Hearing Item No. 3, seconded by Chair Amezcua. The motion carried, 6-0-1, by the following roll call vote: AYES: AUTHORITY MEMBER BACERRA, AUTHORITY MEMBER HERNANDEZ, AUTHORITY MEMBER, LOPEZ, AUTHORITY MEMBER PHAN, VICE CHAIR VAZQUEZ, CHAIR AMEZCUA NOES: NONE ABSTAIN: NONE ABSENT: AUTHORITY MEMBER PENALOZA Status: 6 — 0 — 1 - Pass HOUSING AUTHORITY MEMBER COMMENTS MINUTES: None. HOUSING AUTHORITY 3 March 18, 2025 City Council 2-3 7/15/2025 ADJOURNMENT — Adjourn the Housing Authority meeting. MINUTES: ChairAmezcua adjourned the Housing Authority Meeting at 11:14 P.M. Respectfully submitted: Jennifer L. Hall, CMC Secretary HOUSING AUTHORITY 4 March 18, 2025 City Council 2-4 7/15/2025 Community Development Agency .; www.santa-ana.org/cd Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Agreement with Orrick, Herrington & Sutcliffe LLP for Bond Counsel Services AGENDA TITLE Agreement with Orrick, Herrington & Sutcliffe LLP for On -Call Bond Counsel Services for the Housing Authority RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute a three-year agreement with two, one-year renewal options with Orrick, Herrington & Sutcliffe LLP to provide on -call bond counsel services for a term beginning July 15, 2025 through July 14, 2028, for an amount not -to -exceed $150,000 for the entire Agreement (inclusive of renewal options). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION On April 16, 2025, the Housing Authority issued a Request for Proposals (RFP # 25- 066A) soliciting applications from highly qualified and experienced law firms to provide on -call bond counsel services on all debt issues, bond issuances, maintenance, and dissolution, and specialized legal counsel related to affordable housing finance, tax opinions, and additional legal services related to various questions that may arise from time -to -time on programs, debt or borrowing matters, and general statutory or constitutional law (Exhibit 1). The RFP was posted on the City's website and PlanetBids, and letters announcing the RFP were e-mailed to six individual firms. Responses to the RFP were accepted until May 6, 2025. The Housing Authority received four (4) proposals prior to the submission deadline, although one (1) was deemed non -responsive. A Proposal Review Committee consisting of staff from the Housing Authority, Community Development Agency, and City Attorney's Office met on June 5, 2025 to review and rank each proposal based on the following criteria as stated in the RFP: Experience of Key Personnel (20 points); Experience/Past Performance/References (30 points); Proposer Qualifications (30 points); and Billing Rates (20 points). Below are the average scores for the three (3) responsive proposals received: City Council 3-1 7/15/2025 Agreement with July 15, 2025 Page 2 Orrick, Herrington & Sutcliffe LLP for Bond Counsel Services Firm Average Score Orrick, Herrington & Sutcliffe LLP 94 Hawkins Delafield & Wood LLP 92 Best Best & Krieger 84 Based on the evaluation criteria, staff recommends the City Council approve an agreement with Orrick, Herrington & Sutcliffe LLP ("Orrick") to provide on -call bond counsel services for the Housing Authority (Exhibit 2). The Housing Authority has worked with Orrick since 1992 with four (4) prior agreements providing similar bond counsel legal services. The most recent agreement with Orrick expired on May 31, 2025 and allowed Housing Authority staff to work with Orrick for specific legal questions for bonds that had been issued by the Housing Authority in the past. Orrick has been ranked the No. 1 bond counsel firm in the country for the last 25 years and is the leading practice in California and in the country for financing multifamily housing with tax-exempt bonds. Orrick's proposal demonstrated exceptional qualifications, service offerings, and competitive pricing. Their national and California market leadership, comprehensive on -call services, highly qualified personnel, and strong references set them apart from other respondents. This on -call agreement with Orrick will allow the Housing Authority and the City to be prepared when a developer is interested in using bond financing for an affordable housing project and for the maintenance of the City's existing bond financing contracts. FISCAL IMPACT Funding is available in the FY 25-26 under the Housing Authority Contract Services — Professional account (no. 14018760-62300). Subsequent funding and the renewal options, if exercised, will be budgeted in future fiscal years for expenditure as shown in the table below: Fiscal Accounting Unit — Fund Description Accounting Unit, Amount Year Account # Account Description Contract (3-Year Term) FY 25-26 14018760-62300 Housing Authority — Contract Services — $30,000 Voucher Admin Professional FY 26-27 14018760-62300 Housing Authority — Contract Services — $30,000 Voucher Admin Professional FY 27-28 14018760-62300 Housing Authority — Contract Services — $30,000 Voucher Admin Professional Optional Two, 1-Year Extensions FY 28-29 14018760-62300 Housing Authority — Contract Services — $30,000 Voucher Admin Professional FY 29-30 14018760-62300 Housing Authority — Contract Services — $30,000 Voucher Admin Professional Total Contract Amount $150,000 City Council 3-2 7/15/2025 Agreement with Orrick, Herrington & Sutcliffe LLP for Bond Counsel Services July 15, 2025 Page 3 EXHIBIT(S) 1. RFP for On -Call Bond Counsel Services for the Housing Authority 2. Agreement with Orrick, Herrington & Sutcliffe LLP Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager City Council 3-3 7/15/2025 EXHIBIT 1 REQUEST FOR PROPOSALS NO. 25-066A FOR BOND COUNSEL SERVICES FOR AFFORDABLE HOUSING CITY OF SANTA ANA KEY RFP DATES: The schedule below is tentative and subject to change at the discretion of City, with appropriate notice to prospective Proposers. Issue Date: Wednesday, April 16, 2025 Deadline for Questions: Tuesday, April 22, 2025, 4:00 P.M. Proposal Due Date: Tuesday, May 6, 2025, 4:00 P.M. City Council 7/15/2025 (9) TABLE OF CONTENTS EXHIBIT 1 I. CITY BACKGROUND.................................................................................................................. 3 II. OVERVIEW OF PROJECT..........................................................................................................3 III. TERM OF AGREEMENT............................................................................................................. 3 IV. MINIMUM QUALIFICATIONS......................................................................................................3 V. RESPONSE TO RFP.................................................................................................................. 4 VI. CERTIFICATIONS (ATTACHMENTS).........................................................................................8 VII. REFERENCES............................................................................................................................9 VIII. MINIMUM SCOPE AND LIMIT OF INSURANCE......................................................................... 9 IX. SELECTION PROCEDURES & CRITERIA................................................................................. 9 X. WITHDRAWALS........................................................................................................................11 XI. GENERAL TERMS AND CONDITIONS.................................................................................... 11 XII. AWARD OF AGREEMENT........................................................................................................ 16 X111. IMPLEMENTATION................................................................................................................... 16 EXHIBITS Exhibits provided herein for Proposers'reference only. EXHIBIT I — SCOPE OF SERVICES EXHIBIT II — SAMPLE AGREEMENT EXHIBIT III — FEDERAL REGULATIONS ATTACHMENTS A PROPOSER'S CERTIFICATION, PROPOSAL ITEM PRICING B REFERENCES C PROPOSER'S STATEMENT D NON -COLLUSION AFFIDAVIT E NON -LOBBYING CERTIFICATION F NON-DISCRIMINATION CERTIFICATION G SAM.GOV UEI VERIFICATION H CERTIFICATE REGARDING DEBARMENT, SUSPENSION, INEGIBILITY AND VOLUNTARY EXCLUSION City Council 3-5 7/15/2025 (9) I. CITY BACKGROUND EXHIBIT 1 The Housing Authority of the City of Santa Ana (SAHA) is a medium-sized Public Housing Authority located in Santa Ana, California and is funded by the U.S. Department of Housing and Urban Development (HUD). SAHA has 19 full-time employees and manages over 3,142 Housing Choice Vouchers (Section 8). SAHA provides rental assistance in the form of Housing Choice Vouchers (HCV) Project Based Vouchers, Mainstream Vouchers, Foster Youth to Independence Vouchers, and Veterans Affairs Supportive Housing vouchers. These vouchers enable Housing Authority participants to rent from property owners in the private market. The Authority's funding is fully dependent on HUD. HUD's funding is dependent on annual appropriations from Congress. For more information, please visit https://www.santa-ana.org/departments/housing-authority/ II. OVERVIEW OF PROJECT The Housing Authority of the City of Santa Ana Housing Authority (SAHA) is seeking proposals from highly qualified, and experienced law firms (Proposers) to provide on -call bond counsel services. See EXHIBIT I for complete Scope of Services. The term "Vendor'; "Proposer'; "Consultant", "Firm'; and "Contractor" shall refer to any legal entity or entities submitting a proposal in response to this Request for Proposals (RFP). III. TERM OF AGREEMENT The anticipated term of the agreement is for an initial period of three (3) years. The Housing Authority/City of Santa Ana (the "City") may, at its discretion, extend the agreement with the same or more limited scope of required services for two (2) additional one (1) year periods, upon mutual agreement, contingent upon City Council approval, or City Manager or City Attorney authorization, as appropriate. The total term of the awarded agreement shall not exceed five (5) years. Usage is not guaranteed. Execution of an agreement between the City of Santa Ana and successful firm(s) and/or individual(s) does not guarantee work throughout the duration of the contract period. Numerous factors will be evaluated by SAHA in its delivery of project and assignments, including technical expertise required. IV. MINIMUM QUALIFICATIONS In addition to meeting all other requirements of this RFP, all responding Proposers shall certify and furnish verifiable evidence that their law firm and personnel, at a minimum, meet the following qualifications: 1) The attorney(s) who will be primarily responsible for providing the legal services requested by this RFP on behalf of Proposer: (i) must be licensed to practice law in the State of California; and (ii) must agree to primarily perform the legal services requested in California. 2) Proposer has provided similar or same services to at least five (5) municipalities within the last five (5) years. 3) Proposer has experience as bond counsel on bond issuance for affordable housing development within the last five (5) years. City Council 3-6 7/15/2025 (9) V. RESPONSE TO RFP EXHIBIT 1 A. SUBMITTAL INSTRUCTIONS It is the responsibility of the Proposer to ensure that any proposals submitted have been uploaded to PlanetBids prior to the RFP due date and time. Proposals, including all required sections and forms, shall be submitted electronically via the City's Bid Management System, PlanetBids. No other form of submittal will be accepted. PlanetBids will not accept late proposals and no exceptions shall be made. Proposers will receive an e-bid confirmation number with a time stamp from PlanetBids indicating that their proposal was submitted successfully. The Santa Ana Housing Authority (SAHA) will only receive and consider those proposals that were transmitted successfully. Submit proposal online at: https://vendors.planetbids.com/portal/20137/portal-home. Proposer shall be solely responsible for informing itself with respect to the proper utilization of the bid management system, for ensuring the capability of their computer system to upload the required documents, and for the stability of their internet service. Failure of the Proposer to successfully submit an electronic proposal shall be at the Proposer's sole risk and no relief will be given for late and/or improperly submitted proposals. Proposers experiencing any technical difficulties with the bid submission process may contact PlanetBids at (818) 992- 1771. Questions of an operational nature may be directed to the City's assigned Buyer. Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of assistance, or assurance that any given problem will be resolved by the bid submission deadline. Proposals shall NOT be sent via telegraphic, electronic, or facsimile means. All notifications, updates and addenda will be posted online on PlanetBids at https:Hvendors.planetbids.com/portal/20137/portal-home. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive proposal. B. COMMUNICATION / CONTACT WITH CITY STAFF Unless otherwise authorized herein, Proposers who are considering submitting a proposal in response to this RFP, or who submit a proposal in response to this RFP, are only to communicate with the assigned Buyer(s), and no other City staff about this RFP from the date this RFP is issued until a proposal is awarded. The City will provide all official communication concerning this RFP in writing via the City's Bid Management System, PlanetBids. The City will not be responsible for or bound by any oral communication or any other information or contact that occurs outside the official communication process specified herein, unless confirmed in writing by the designated Buyer(s). C. REQUEST FOR INFORMATION OR CLARIFICATION / QUESTIONS Questions regarding this RFP shall be submitted via PlanetBids. Responses to all questions will be posted on PlanetBids no later than the date and time shown at the schedule of key RFP dates on the cover page of this RFP. All prospective Proposers are advised to visit PlanetBids on a regular basis as responses may be posted earlier than the date above (if applicable). No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this RFP. City Council 3-7 7/15/2025 (9)EXHIBIT 1 Significant interpretations or clarifications and responses to questions received by the deadline will be addressed via addenda to this RFP, which will be released and posted on PlanetBids under the "Addenda/Emails" tab. General process questions may be directed to the following: Jacques Lam Buyer Email: jlam@santa-ana.org D. EXCEPTIONS Requests submitted for City's consideration of proposed terms and conditions, including modifications to the City's RFP and/or Agreement terms and conditions must be submitted by the deadline for questions. Such requests should include an attachment in Word or PDF format on formal company letterhead that shows the requested modifications. Should the Proposer be considered for award recommendation and progress into the negotiations phase, the requests for exceptions or modifications to the City's terms and conditions will be discussed at that time. The City will not accept any requests after the deadline for questions and reserves the right to reject or strike any requests for exceptions or additional terms and conditions related to Agreement, RFP, and insurance and indemnification terms and conditions. E. ADDENDA Any changes in RFP from the date of release to date of submittal will result in an addendum or amendment. Notification of such addendum or amendment shall be posted on City's PlanetBids system, https://www.planetbids.com/portal/portal.cfm?CompanVID=20137. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. F. UNDERSTANDING PROPOSAL It is the responsibility of each Proposer to inquire about any criteria, condition, term, provision, or requirement of the RFP that the Proposer does not understand. Responses to inquiries, if they significantly change or clarify the RFP requirements or any aspect of the procurement process, will be forwarded by addenda to all Proposers. The City will not be bound by any oral responses to inquiries. By submitting proposals, Proposers assert that they have fully read the RFP and any addenda issued by the City, the proposed Agreement and any other Agreement Documents, and affirm that the terms and conditions stated therein are fully understood and are acceptable to the Proposer. Each Proposer accepts the terms and conditions of the Agreement Documents and indicates their ability and willingness to perform the requested services under such terms and conditions. Any exceptions to the terms and conditions set forth in the Agreement Document shall be submitted to the City by the deadline to submit requests for information or clarification/questions set forth herein. G. PROPOSAL CONTENTS Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Colored displays, promotional materials, photographs etc., are not necessary or desired. Emphasis should be concentrated on conformance to RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content. Digital dividers and clear organization of content and material are encouraged. All project proposals must contain the following minimum submission requirements: City Council 3-8 7/15/2025 (9) EXHIBIT 1 Statement of Qualifications (SOQ) SOQ must include a Table of Contents and be limited to a maximum of 20 pages (excluding SAHA's required Certifications listed in Section VI below; Proposal Cover Letter, section dividers, table of contents, front/back cover pages). The page limitation includes all appendices, attachments, and supplemental information. Additionally, the SOQ shall contain responses to the minimum proposer qualifications included in Section IV — Minimum Qualifications of the RFP, a general overview of the proposer's qualifications, specifically to affordable housing, and shall include, but not be limited to the following information: a. Cover Letter Proposals shall include a letter signed by a principal or authorized representative who can make legally binding commitments for the entity. Include type of business entity. Cover Letter shall not exceed one page. Cover letter must be addressed to the following City Project Manager: Nikesha Hazel, Housing Authority Analyst Housing Authority of the City of Santa Ana 20 Civic Center Plaza, M-27 Santa Ana, CA 92701 Services Provided A description of proposed services to be provided and how they meet the needs of the City as described in Exhibit I — Scope of Services. c. Agreement Statement Proposal shall include a statement outlining your concurrence or reference to concerns previously submitted with any and all provisions as contained in EXHIBIT II — Sample Agreement of this RFP (if any). d. Firm and Team Experience Proposal shall include a profile of the firm's experience including the following: A general description of the firm, including the number of years providing bond counsel services, and size and number of employees working directly with the City on this agreement. Distinguishing characteristics, skills, and areas of strength. iii. Firm's nearest address serving the City of Santa Ana and headquarters address. iv. Name and contact information of the supervising Project Manager/Principal Agent, to be assigned to the agreement. The Project Manager/Principal Agent shall be the primary contact person to represent your firm and will be the person to conduct the presentation, if invited to an interview. Resumes for all key staff proposed describing relevant experience. e. Proposed Work Plan Proposal shall include a statement demonstrating the firm's understanding of the City Council 3-9 7/15/2025 (9) EXHIBIT 1 Scope of Services. Additionally, proposed work plan shall include Proposers': i. Anticipated approach to performing services as specified herein; ii. Suggestions or special concerns the evaluation committee should take into consideration (if any); iii. Description of deliverables and implementation plan. Proposer shall submit a general description of the deliverables, implementation plan, and timeline. f. References: Attachment B — References shall be submitted for similar projects performed for state and/or similar local government clients. 2. Cost Proposal All Proposers are required to submit a fixed rate fee and budget with their Cost Proposal. Pricing instructions should be clearly defined to ensure fees proposed can be compared and evaluated. Cost Proposal must include a payment schedule if applicable. City reserves the right to negotiate compensation and/or payment schedule prior to award of any resulting agreement. If providing hourly rate sheets, Proposer shall not include rate ranges or averages. The City shall not provide reimbursement for travel -related expenses, mileage, parking, lodging, meals, incidental fees, insurance, freight/shipping and handling/delivery, and any other business expenses, supplies and materials related to providing services as specified herein. Additional costs will not be considered and will not be reimbursed by the City, therefore, such costs must be absorbed in Proposer's cost proposal fee structure. Any language related to travel reimbursement shall be stricken from the document by the City and if not stricken, shall be deemed invalid. Proposals shall be valid for a minimum of one hundred eighty (180) days following Proposal deadline. The cost for developing the Proposal is the sole responsibility of the Proposer. All Proposals submitted become property of the City. Pricing shall remain firm for the entire initial Agreement term. Thereafter, any proposed pricing adjustment for follow-on renewal periods shall be submitted to the City Representative in writing at least ninety (90) days prior to the new Agreement term. The City reserves the right to accept, reject, or negotiate any proposed pricing adjustment not to exceed the Bureau of Labor Statistics Consumer Price Index (CPI) data as follows: Los Angeles -Long Beach -Anaheim, CA; All Urban Consumers; Not Seasonally Adjusted; annualized change comparing the most recent month's reported data to the same month of the prior year. (This information may be found on the U.S. Department of Labor's website at www.bls.gov.) 3. Additional Questions a. Briefly describe the firm's practice in public finance and related areas of law, particularly with regards to housing finance, and give a brief history of the firm. b. Describe your firm's capabilities and experience with municipal bond related tax matters. If your firm does not have in-house municipal bond related tax expertise, City Council 3 — 10 7/15/2025 (9)EXHIBIT 1 describe how you would help the Housing Authority receive municipal bond related tax advice. c. Describe your firm's experience with and approach to applicable federal securities laws and regulations. d. Describe the knowledge and experience of the attorneys that would be assigned to the Housing Authority's transaction(s), particularly the individual(s) who would be the Housing Authority's primary contact(s). e. Describe your firm's and assigned personnel's ability to evaluate legal issues, prepare documents, and complete other tasks of a bond transaction in a timely manner. f. Identify and briefly describe comparable financings in which the firm has served as bond counsel or other counsel during the past five years. If you have noted unique, complex, or challenging issues in connection with the proposed financing, indicate how the experience and expertise of your firm will be utilized to complete the necessary legal work. g. Name five issuers represented by the firm, describe the nature of the representation, and for each issuer list the e-mail address, telephone number, and title of an official who may be contacted as a reference. h. Provide a case study that demonstrates your firm's ability to problem -solve on behalf of an issuer. Describe any existing or potential conflict of interest arising from your relationships with or representation of other parties that should be considered by the SAHA, and provide to the SAHA sufficient facts, legal implications, and possible effects in order for the SAHA to appreciate the significance of each potential conflict and grant an appropriate waiver, if necessary. Describe and state the conclusion reached of any disciplinary action, administrative proceeding, malpractice claim or other like proceedings against your firm or any of its lawyers, whether current or pending, as well as any such action, proceeding or claim occurring during the past five (5) years. k. Provide your firm's proposed bond counsel contract. VI. CERTIFICATIONS (ATTACHMENTS) In addition to the SOQ, Cost Proposal, and Narrative/Technical Proposal, the following forms, included in this RFP, shall be signed and included as part of the proposal submittal package: • Attachment A: Proposer's Certification and Proposal Item Pricing • Attachment B: References • Attachment C: Proposer's Statement • Attachment D: Non -Collusion Affidavit • Attachment E: Non -Lobbying Certification • Attachment F: Non -Discrimination Certification • Attachment G: Sam.gov UEI Verification • Attachment H: Certification Regarding Debarment, Suspension, Inegibility and Voluntary Exclusion City Council 3 —11 7/15/2025 (9) EXHIBIT 1 The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed as nonresponsive and will be rejected. The City of Santa Ana reserves the right to reject any or all proposals submitted and no representation is made hereby that any commitment will be awarded pursuant to this RFP or otherwise. PLEASE NOTE: • All forms above must be signed by a representative of the Firm that is legally authorized to contractually bind the Proposer. • City will not waive notarization requirement when applicable on any of the required attachments. VII. REFERENCES Contractor shall provide three (3) references from other similar public agencies for which services similar to those specified in this RFP have been performed, including contact names and telephone numbers. Use ATTACHMENT B — References. The respondent grants permission for the City to contact any individuals listed as references. City may disqualify a Proposer if. - References fail to substantiate Proposer's description of services and deliverables provided; or • References fail to support that Proposer has a continuing pattern of providing capable, productive, and skilled personnel, or • City is unable to reach the point of contact with reasonable effort. It is the Proposer's responsibility to inform the point of contact(s) of normal City working hours. VIII. MINIMUM SCOPE AND LIMIT OF INSURANCE See Exhibit 11 — Sample Agreement IX. SELECTION PROCEDURES & CRITERIA A. The City will establish a proposal review committee. The review committee will evaluate proposals based on the response to the RFP, which includes adherence to outlined directions and format, and the City evaluation criteria set forth below. B. Proposers will be ranked by the review committee based on the following criteria: CATEGORY POINTS Experience/Past Performance/References Consideration will be given based upon the law firm's experience in acting as bond counsel for municipalities to include work with housing authorities. 30 Proposer shall include three (3) external client references from clients who received similar services to those proposed for this solicitation. City Council 3 — 12 7/15/2025 (9) EXHIBIT 1 Personnel Proposer shall submit resumes of all primary attorneys who will be performing services under the contract. Proposer should demonstrate that all key 20 personnel have been successfully involved with projects of similar scope and magnitude. Proposer Qualifications This category will evaluate the proposer's ability to take upon itself the responsibilities set forth in the Scope of Work and produce the required outcome in a timely manner. Consideration will be given for the overall quality of the proposal, including a demonstrated understanding of the purpose, scope and objective of the services to be performed. It is the intention of the City to award a contract to the Proposer who furnishes satisfactory evidence 30 that the Proposer has the requisite experience and ability to enable the Proposer to complete the work successfully and properly, and to complete services in a timely manner. To determine the degree of responsibility to be credited to the Proposer, the City will weigh the evidence that the Proposer has performed satisfactorily other contracts of like nature, magnitude and comparable difficulty and comparable rates of progress. Billing Rates • Reasonableness of Rates 20 TOTAL POSSIBLE SCORE 100 Before interviews — if held Interviews • The City reserves the right to conduct interviews with the highest -rated firm(s). In the event the City does perform an interview process, the 20 following is the maximum number of additive points that may be applied to the proposal score. C. Rankings: A final score will be calculated for each submitted proposal and used to rank Proposers. Based upon the foregoing criteria, all proposals shall be ranked by score. Only those proposals receiving a score above 70 will be considered for award. The City of Santa Ana reserves the right to award the Agreement to any proposer(s) with a score above 70. The review committee will evaluate proposers based on their response to the RFP and SAHA evaluation criteria set forth above. D. Interviews: The review committee may invite the Proposers to interview. If invited to interview, Proposers must be prepared to include key personnel in the interview and/or presentation. The City reserves the right to seek additional information from any or all Proposers invited to present proposals. A final score will be calculated for each submitted proposal and used to rank Proposers. City reserves the right to begin negotiations and enter into an Agreement without holding interviews, or further discussions. E. Selection: The City is under no obligation to accept any proposal and reserves the right to negotiate with respondents as to fees and terms. The City may reject proposals at its sole discretion. If proposal fails to satisfy any requirements outlined in this RFP, it may be considered non -responsive and may be rejected. The City shall not be obligated to accept the lowest priced proposals, but will make awards in the best interests of the City after all factors have been evaluated. The review committee City Council 3 — 13 7/15/2025 (9)EXHIBIT 1 will recommend the qualified Proposers to the City Council or City Manager for award of Agreement, as appropriate. X. WITHDRAWALS Proposers are responsible for verifying all prices and information before submitting a proposal. Prior to the proposal due date, the Proposer or Proposer's representative may withdraw the proposal by providing written notice of the proposal withdrawal to the City. Verbal or telephonic withdrawals are not permissible. XI. GENERAL TERMS AND CONDITIONS A. AMERICANS WITH DISABILITIES ACT The awarded Contractor hereby certifies that it will comply, as applicable, with the Americans with Disabilities Act of 1990 ("ADA"), 42 USC §§ 12101 et seq., and its implementing regulations, including Subtitle A, Title II of the ADA. Contractor will not discriminate against persons with disabilities nor against persons due to their relationship to or association with a person with a disability. Any Agreement entered into by the awarded Contractor (or any subcontract thereof), relating to this RFP, shall be subject to the provisions of this paragraph. B. CITY BUSINESS LICENSE The selected Proposer must obtain a City of Santa Ana Business License prior to the execution of an Agreement and must provide a copy to the Buyer assigned to this RFP. The awarded party shall maintain a current business license throughout the term of the resulting Agreement. The procedure to obtain a City of Santa Ana Business License is available by contacting the Finance and Management Services Agency, Business Tax Office at (714) 647- 5447 or on the City's website: www.santa-ana.org C. CITY RIGHT TO REJECT The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any agreement will be awarded pursuant to this RFP or otherwise. The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any minor inconsistency, informality or technical defect in the proposal. D. CONFLICT OF INTEREST Contractor shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the best interests of the City. This obligation shall apply to the Contractor; the Contractor's employees, agents, and Subcontractors associated with accomplishing work and services hereunder. The Contractor's efforts shall include, but not be limited to, establishing precautions to prevent its employees, agents, and Subcontractors from providing or offering gifts, entertainment, payments, loans or other considerations which could be deemed to influence or appear to influence City staff or elected officers from acting in the best interests of the City. Each Proposer must disclose any existing or potential conflict of interest relative to the performance of the contractual services resulting from this RFP. Any such relationship that might be perceived or represented as a conflict should be disclosed. The City reserves the right to disqualify any Proposer on the grounds of actual or apparent conflict of interest. No person, firm, or subsidiary thereof who has been awarded this Agreement may be awarded an Agreement for the provision of services, the delivery of supplies, or the provision City Council 3 — 14 7/15/2025 (9)EXHIBIT 1 of any other related action which is required, suggested, or otherwise deemed appropriate as an end product of this Agreement. Therefore, Contractor is precluded from contracting for any work recommended as a result of this Agreement. E. CONTRACTOR'S EXPENSE Pre -Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to entering into a formal Agreement. Costs of developing a response to this RFP, are entirely the responsibility of the Proposer, and shall not be reimbursed in any manner by the City. Pre -contractual expenses are not to be included in the cost proposal. Pre -contractual expenses include, but are not limited to, preparation of the proposal, submission of the proposal and additional information, attendance at pre -proposal conference, negotiating any matter related to this RFP with City, and/or any other expenses incurred by the Proposer prior to the date of award and execution, if any, of the Agreement. Other Expenses: The Contractor will be responsible for all costs related to photo copying, telephone communications, fax communications, overhead, travel, and parking while on City sites during the performance of work and services under this Agreement. F. CONTRACTOR'S PROJECT MANAGER/KEY PERSONNEL Except as formally approved by the City, the key personnel identified in Contractor's proposal shall be the individuals who will actually complete the work. Changes in staffing must be reported in writing and approved by the City. The City shall have the right to require the removal and replacement of the Contractor's Project Manager and key personnel under the awarded Agreement. The City shall notify the Contractor in writing of such action. The City is not required to provide any reason, rationale, or additional factual information if it elects to request any specific key personnel be removed from performing services under the awarded Agreement. The City shall review and approve the appointment of the replacement for the Contractor's personnel. Said approval shall not be unreasonably withheld. Standards of Conduct: Contractor's personnel shall be courteous and maintain good working relationships with all stakeholders, state or outside agencies, community members, other team members and staff within the City. G. COST PROPOSAL The awarded Contractor agrees to provide the purchased services at the costs, rates, and fees as set forth in their Cost Proposal in response to this RFP. No other costs, rates or fees shall be payable to the awarded Subcontractor for implementation of their proposal. H. DATA RETENTION Contractor shall be responsible for retaining data, records, and documentation for the preparation of required items. These materials shall be made available to and as requested by City. All materials, documents, data or information obtained from the City Data files or any City medium furnished to Contractor in the performance of an awarded Agreement will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Contractor after completion or termination of this Agreement without the express written consent of the City. All materials, documents, data or information, including copies, must be returned to the City at the end of the Agreement. All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall City Council 3 — 15 7/15/2025 (9)EXHIBIT 1 become property of the City. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act. I. DRUG -FREE WORKPLACE The awarded Contractor certifies compliance with Government Code Section 8355 in matters relating to providing a drug -free workplace. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both, and the Contractor may be ineligible for award of any future City Agreements. J. EXAMINATION Proposer represents that it has thoroughly examined and become familiar with the services and responsibilities required by this RFP and that it is capable of effectively and efficiently performing quality work to achieve the City's objectives. Any attachments referenced herein or any interpretations, clarifications or amendments subsequently posted in relation to this RFP are fully incorporated. Any irregularities or lack of clarity in the RFP should be brought to the designated City Contact/Project Manager's attention as soon as possible so that corrective addenda may be furnished to prospective Proposers. Proposals which appear unrealistic in the terms of technical commitments, lack of technical competence, or are indicative of failure to comprehend the complexity and risk of this Agreement, may be rejected. K. EXECUTION OF AGREEMENT Upon successful negotiations, the City and the selected Proposer will enter into an Agreement similar to that as shown in EXHIBIT II — Sample Agreement of this RFP. If a Proposer is unwilling or unable to execute an Agreement within thirty (30) days after being notified of selection under this RFP or approval by City Council, whichever comes later, the City reserves the right to disqualify them without any further obligation L. FEDERAL GRANT CONTRACT PROVISIONS Proposer must agree to the federal contract provisions outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR Part 200.326. These provisions will become part of the agreement resulting from this bid. M. FISCAL NONFUNDING CLAUSE In the event sufficient budgeted funds are not available for a new fiscal period, the City shall retain the right to notify the provider of such occurrence in writing at least thirty (30) days before the end of the current fiscal period and terminate the Agreement on the last day of the current fiscal period without penalty or expense to the City. The City's fiscal period is July 1 It through June 30tn N. INDEPENDENT CONTRACTOR Contractor is considered an independent Contractor and neither Contractor, its employees, nor anyone working under Contractor will be considered an agent or an employee of City. Neither Contractor, its employees, nor anyone working under Contractor, will qualify for workers' compensation or other fringe benefits of any kind through City. O. JOINT OFFERS/SUBCONSULTANTS Where two or more Proposers desire to submit a single proposal in response to this RFP, they should do so on a prime sub -consultant basis. The City intends to contract with a single City Council 3 — 16 7/15/2025 (9) EXHIBIT 1 firm, also known as the prime, and not with multiple firms doing business as a joint venture. Should the use of sub -consultants be offered, the Proposer shall provide the same assurances of competence for the sub -consultant plus the demonstrated ability to manage and supervise the subcontracted work. Sub -consultants shall not be allowed to further subcontract with others for work under the Agreement. The provisions of the Agreement shall apply to all sub -consultants in the same manner as the Proposer. The proposer is responsible for all the actions taken by their sub -contractor. The City reserves the right to reject, replace and approve any and all Subcontractors. All Subcontractor(s) shall be identified in the response to the RFP and the City reserves the right to reject any proposed Subcontractor(s). Subcontractors shall be the responsibility of the prime Contractor and the City shall assume no liability of such Subcontractors. P. LITIGATION STATUS Each Proposer must include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation or investigation pending which involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to comply with the terms of this provision will disqualify any proposal. The City reserves the right to reject any proposal based upon the Proposer's prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures. Q. NEGOTIATIONS The City reserves the right to negotiate final Agreement terms with any Proposer selected. The Agreement between the parties will consist of the RFP together with any modifications thereto, and the awarded Contractor's proposal, together with any modifications and clarifications thereto that are submitted at the request of the City during the evaluation and negotiation process. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: the final executed Agreement, the RFP, any modifications and clarifications to the awarded Contractor's proposal, and the awarded Contractor's proposal. Specific exceptions to this general rule may be noted in the final executed Agreement. Negotiations shall be confidential and not subject to disclosure to competing Contractors unless and until an agreement is reached. If contract negotiations cannot be concluded successfully, the City reserves the right to negotiate a contract with another Contractor or withdraw the RFP. R. NON -PAYMENTS Note that payments will NOT be made for any unsatisfactory work until corrected. In the event of nonpayment of undisputed sums by the City, Contractor shall give the City thirty (30) working days to cure the alleged breach. S. OWNERSHIP OF DOCUMENTS The City has permanent ownership of all directly connected and derivative materials produced under this Agreement by the Contractor. All documents, reports and other incidental or derivative work or materials furnished hereunder shall become and remains the sole property of the City and may be used by the City as it may require without additional cost to the City. Contractor shall provide the City copies of documents upon its request at any time. None of the documents, reports and other incidental or derivative work or furnished materials shall be used by the Contractor without the express written consent of the City. City Council 3 — 17 7/15/2025 (9)EXHIBIT 1 T. PARKING The City will not provide free parking and/or reimbursement for the cost of parking while providing services and conducting business with the City. U. PROFESSIONAL STANDARDS Contractor staff shall be courteous to the public and City staff utilizing facilities where Contractor is performing work, but shall be responsive only to the requests of the City's Project Manager or designee. Contractor staff shall direct all inquiries to Project Manager or designee. Contractor acknowledges that City locations consist of public -use facilities and recognizes the obligation to ensure Contractor personnel and agents maintain the highest level of professional standards in attire, decorum, and interaction with the public and City personnel. V. PROJECT MANAGER The selected Proposer will assume responsibility for all services in its proposal. The selected Proposer shall identify a sole point of contact, Project Manager, with the greatest knowledge in regard to the required service operations and contractual matters, including payment of any and all charges resulting from the Agreement. W. PROPOSAL VALIDITY Services, pricing, and warranties indicated in a Proposer's Proposal must be valid for a period of 180 days at minimum after the submission of the Proposal. X. PUBLIC AGENCIES Other public agencies, as defined by California Government Code Section 6500, may choose to use the terms of this Agreement, subject to Contractor's acceptance. The City is not liable or responsible for any obligations related to a subsequent Agreement between Contractor and another public agency. Y. PUBLIC RECORDS Proposals will become public record after the award of an Agreement unless the proposal or specific parts of the proposal can be shown to be exempt by law. Each Proposer may clearly label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees to indemnify and defend the City for honoring such a designation. The failure to so label any information that is released by the City shall constitute a complete waiver of any and all claims for damages caused by any release of the information. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act. Z. SUBCONTRACTORS Proposals in response to this RFP must identify any Subcontractors, and outline the contractual relationship between the Awarded Subcontractor and each Subcontractor. An official of each proposed Subcontractor must sign, and include as part of the proposal submitted by the Prime Contractor, a statement to the effect that the Subcontractor has read and will agree to abide by the awarded Contractor's obligations. Any Subcontractor proposed after award of Agreement must be approved by the City before commencement of work. SAHA will look solely to the awarded Contractor for the performance of all contractual obligations which may result from an award based on this RFP, and the awarded Contractor shall not be relieved for the non-performance of any or all Subcontractors. City Council 3 — 18 7/15/2025 (9) XII. AWARD OF AGREEMENT EXHIBIT 1 Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful negotiation of final Agreement terms. A. EXECUTION OF AGREEMENT A sample, standard agreement is included as EXHIBIT II Sample Agreement of this RFP. "Proposer" will hereinafter be referred to as "Consultant" or "Contractor" in standard agreement. The term of the agreement will begin after the agreement is fully executed, and all required bonds, insurance documents and contents of the payment information packet have been received and approved. XIII. IMPLEMENTATION A. KICK-OFF MEETINGS The successful proposer will be required to meet with City staff prior to commencement of services or at any time as required by the City, to discuss and agree on operational issues including transition of services and scheduling. City Council 3 — 19 7/15/2025 (9) EXHIBIT I SCOPE OF SERVICES EXHIBIT 1 Bond Counsel Services for Affordable Housing A law firm who is awarded a contract from responding to this RFP will have a scope of work that is reflective of what is described here and in their RFP proposal, agreed upon and finalized with the Housing Authority of the City of Santa Ana. The Housing Authority of the City of Santa Ana (SAHA) is seeking proposals from highly qualified and experienced law firms (Proposers) to provide on -call bond counsel to assist with the normal duties associated with providing bond counsel services on all debt issues, bond issuances, maintenance, and dissolution, and specialized legal counsel related to affordable housing finance, tax opinions, and additional legal services related to various questions that may arise from time -to -time on programs, debt or borrowing matters, and general statutory or constitution law. Specifically, the selected firm shall: 1) Serve as the Housing Authority's legal counsel in the formation and issuance of debt. 2) Provide legal advice and consultation relating to tax matters associated with the financing. 3) Provide legal opinion with respect to the authorization and issuance of the debt obligations and whether the interest paid is tax-exempt under federal and/or State laws and regulations. 4) Draft and review legal documentation including all required resolutions, financing documents, closing documents and transcripts and coordinate the authorization and execution of those documents. 5) Provide ongoing legal services in matters relating to interpretation of applicable regulations, legislation or pending litigation. 6) Participate in conference calls or meetings, as requested, relating to the issuance of bonds or notes. 7) Provide ongoing information to Housing Authority and City staff regarding the activity and legal status of the financing. 8) Perform due diligence regarding the Housing Authority/City and the financing. 9) Prepare all legal documents for the authorization, issuance and sale of debt by the Housing Authority, including resolutions, closing documents and internal Housing Authority/City agreements as needed. 10) Provide legal advice relating to federal and state tax matters associated with the financing structure. 11) Participate as a member of and in meetings with the financing team which will also include the financial advisor, underwriter, and Housing Authority/City staff. 12) Assist in negotiations with bond insurers as needed. 13) Assist the Housing Authority in making presentations to rating agencies as needed. 14) Provide continuing legal advice, as needed, concerning any legal or tax -related issues after the sale of the bonds. 15) Assist in the legal review of annual continuing disclosure. 16) Provide regular reports to the Housing Authority Executive Director, Housing Authority General Counsel, City Attorney, City Manager, and/or Community Development Director. City Council 3 — 20 7/15/2025 (9) EXHIBIT II SAMPLE AGREEMENT CONSULTANT -AGREEMENT CITY OF SANTA ANA EXHIBIT 1 THIS AGREEMENT is made and entered into on this day of , 20_ by and between , ("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 City desires to retain a Consultant having special skill and knowledge in the field of: B. Consultant represents that Consultant is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: SCOPE OF SERVICES Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $xxxxxx. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on "the date first written above" for a three (3)-year term with the option for the City to grant up to two 1 - ear renewals, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer - employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; City Council 3 — 21 7/15/2025 (9) EXHIBIT 1 however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City 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 Consultant under this Agreement ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City 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 Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Consultant. MINIMUM SCOPE AND LIMIT OF INSURANCE 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. 2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), with limits no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile liability insurance, City will accept evidence of personal automobile insurance. 3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident, policy or employee, for bodily injury or disease. Coverage is not required if Consultant has no employees and signs request to waive such insurance. 4. Professional Liability (Errors and Omissions): with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 aggregate. If Consultant maintains broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1. City, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Consultant's CGL, Professional Liability, and Automobile Liability policies, with respect to any liability arising out of work or operations performed by or on behalf of the Instructor City Council 3 — 22 7/15/2025 (9) EXHIBIT 1 including materials, parts, equipment, and personnel furnished in connection with such work or operations. 2. Consultant's Insurance company(ies) agrees to waive all rights of subrogation against City, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Consultant under this Agreement. 3. For any claims related to this contract, Consultant's insurance coverage shall be primary and any insurance maintained by City, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 4. A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non -renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: (Name of Department Staff Responsible for Agreement), Address of Department Responsible for Agreement, M-XX, Santa Ana, CA 92701. The name and location of the project must be included in the Description of Operations section of each certificate. Self -Insured Retentions Self -insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to City. Verification of Coverage Consultant shall furnish City 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 before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (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 negligent operations of the Contractor, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this 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 arising from this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any City Council 3 — 23 7/15/2025 (9) EXHIBIT 1 action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this 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. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, 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 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant 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 under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT City Council 3 — 24 7/15/2025 (9) EXHIBIT 1 This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. 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 Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or 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 Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this 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 writing so specifies. 17. JURISDICTION -VENUE This 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 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 this Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term of this 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 of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 19. NOTICE City Council 3 — 25 7/15/2025 (9) EXHIBIT 1 Any notice, tender, demand, delivery, or other communication pursuant to this 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 communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Executive Director, ------- Agency City of Santa Ana 20 Civic Center Plaza (M-xx) P.O. Box 1988 Santa Ana, California 92702 Fax: To Contractor: First & Last Name Title Consultant Firm Name Address City, State, Zip Fax: A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, 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 time frames, weekends, federal, state, County or City holidays shall be excluded. 20. MISCELLANEOUS PROVISIONS 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 Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. The Agreement is the final and complete agreement and any prior or contemporaneous agreements for similar services between the parties is superseded by this Agreement. This shall not apply where the Parties are currently engaged and Consultant is providing services not contemplated by this Agreement. C. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. City Council 3 — 26 7/15/2025 (9) ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Assistant City Attorney RECOMMENDED FOR APPROVAL: Executive Director [INSERT] Agency CITY OF SANTA ANA Alvaro Nunez City Manager CONSULTANT: (name) (title) SAMPLE ONLY EXHIBIT 1 City Council 3 — 27 7/15/2025 (9) EXHIBIT III FEDERAL REGULATIONS EXHIBIT 1 Federal Regulations — Recipient must comply with the government cost principles, uniform administrative requirements and audit requirements for federal grant program housed within Title 2, Part 200 of the Code of Federal Regulations. b. Debarment and Suspension — As required by Executive Orders 12549 and 12689, and 2 CFR §200.212 and codified in 2 CFR Part 200, Recipient must provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. C. Audit Records - With respect to all matters covered by this agreement all records shall be made available for audit and inspection by CITY, the grant agency and/or their duly authorized representatives for a period of three (3) years from the date of submission of the final expenditure report by the City of Santa Ana. For a period of three years after final delivery hereunder or until all claims related to this Agreement are finally settled, whichever is later, Recipient shall preserve and maintain all documents, papers and records relevant to the services provided in accordance with this Agreement, including the Attachments hereto. For the same time period, Recipient shall make said documents, papers and records available to City and the agency from which City received grant funds or their duly authorized representative(s), for examination, copying, or mechanical reproduction on or off the premises of Recipient, upon request during usual working hours. d. Reports - Recipient shall provide to City all records and information requested by City for inclusion in quarterly reports and such other reports or records as City may be required to provide to the agency from which City received grant funds or other persons or agencies. e. Section 504 of the Rehabilitation Act of 1973 (Handicapped) - All recipients of federal funds must comply with Section 504 of the Rehabilitation Act of 1973 (The Act). Therefore, the federal funds recipient pursuant to the requirements of The Act hereby gives assurance that no otherwise qualified handicapped person shall, solely by reason of handicap be excluded from the participation in, be denied the benefits of or be subject to discrimination, including discrimination in employment, in any program or activity that receives or benefits from federal financial assistance. The Recipient agrees it will ensure that requirements of The Act shall be included in the agreements with and be binding on all of its contractors, subcontractors, assignees or successors. f. Americans with Disabilities Act of 1990 - (ADA) Recipient must comply with all requirements of the Americans with Disabilities Act of 1990 (ADA), as applicable. g. Political Activity - None of the funds, materials, property, or services provided directly or indirectly under this agreement shall be used for any partisan political activity, or to further the election or defeat of any candidate for public office, or otherwise in violation of the provisions of the "Hatch Act". h. No Lobbying - Recipient will comply with all applicable lobbying prohibitions and laws, including those found in the Byrd Anti -Lobbying Amendment (31 U.S.C. 1352, et seq.), and agrees that none of the funds provided under this award may be expended by the Recipient to pay any person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any federal action concerning the award or renewal of any federal contract, grant, loan, or cooperative agreement. City Council 3 — 28 7/15/2025 (9) EXHIBIT 1 i. Non -Discrimination and Equal Opportunity - Recipient will comply, and all its contractors (or subrecipients) will comply, with Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1964, as amended; Subtitle A, Title II of the Americans with Disabilities Act (ADA) (1990); Title IX of the Education Amendments of 1972; the Age Discrimination Act of 1975, as amended; Drug Abuse Office and Treatment Act of 1972, as amended; Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970, as amended; Section 523 and 527 of the Public Health Service Act of 1912, as amended; Title VIII of the Civil Rights Act of 1968, as amended; Department of Justice Non -Discrimination Regulations, 28 CFR Part 42, Subparts C, D, E, and G; and Department of Justice regulations on disability discrimination, 28 CFR Part 35 and 39. In the event a Federal or State court, Federal or State administrative agency, or the Recipient makes a finding of discrimination after a due process hearing on the grounds of race, color, religion, national origin, sex, or disability against a recipient of funds, the Recipient will forward a copy of the findings to CITY which will, in turn, submit the findings to the Office of Civil Rights, Office of Justice Programs, U.S. Department of Justice. If applicable, recipient will comply with the equal opportunity clause in 41 C.F.R. 60-1.4(b) in accordance with Executive Order 11246 as amended by Executive Order No. 11375. j. Equal Employment Opportunity - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of the Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR chapter 60), as applicable. k. Public Contracts Code - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of the California Public Contract Code Section 10295.3, as applicable. I. Copeland Anti -Kickback Act - Recipient will comply, and all its contractors and subcontractors (or subrecipients) shall comply, with all requirements of the Copeland "Anti -Kickback" Act (30 U.S.C. 3145) as supplemented in Department of Labor regulations (29 CFR Part 3), as applicable. (1) Contractor — Contractors shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into this contract. (2) Subcontracts — Contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses. (3) Breach —A breach of the contract clauses above may be grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12. M. Davis -Bacon Act - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of the Davis -Bacon Act (40 U.S.C. 3141-3144 and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5), as applicable. Contractors are required to pay wages to laborers and mechanics at a rate no less than the prevailing wages specified in a wage determination made by the Secretary of Labor. City Council 3-29 7/15/2025 (9)EXHIBIT 1 Additionally, contractors are required to pay wages not less than once a week. n. Work Hours and Safety - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3702 and 3704) as supplemented by Department of Labor regulations (29 CFR Part 5), as applicable. o. Clean Air Act - Recipient will comply, and all its contractors (or subrecipients) will comply, with all applicable standards, orders or requirements issued under the Clean Air Act (42 U.S.C. 7401-7671q), and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as applicable. P. Energy and Conservation - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of the Energy Policy and Conservation Act (42 U.S.C. 6201), as applicable. q. Waste Disposal - Recipient will comply, and all its contractors (or subrecipients) will comply, with all requirements of Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, as applicable. r. Patent Rights - Recipient agrees that the Department of Homeland Security shall have the authority to seek patent rights for any process, product, invention or discovery developed and paid for with funding through this Agreement based on the requirements of 37 CFR§ 401 and any other implementing regulations, as applicable. S. Copyright - Recipient may copyright any books, publications or other copyrightable materials developed in the course of or under this Agreement. However, the federal awarding agency, State Administrative Agency (SAA) and City reserve a royalty -free, non-exclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for federal government, SAA and/or City purpose: (1) the copyright in any work developed through this Agreement; and (2) any rights of copyright to which the subcontractor purchases ownership with support through this grant. The Federal government's, SAA's and City's rights identified above must be conveyed to the publisher and the language of the publisher's release form must ensure the preservation of these rights. t. Telecommunications (2 CFR 200.216) - Recipient will comply with FEMA Policy 405-143- 1, Prohibitions on Expending FEMA Award Funds on Covered Telecommunication Equipment or Services (Interim), which prohibits grant recipients and subrecipients from obligating or expending loan or grant funds to procure or obtain, extend or renew a contract to procure or obtain, or to enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is: (1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). City Council 3 — 30 7/15/2025 (9)EXHIBIT 1 (2) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities). (3) Telecommunications or video surveillance services provided by such entities or using such equipment. (4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. U. Domestic preferences for procurements (2 CFR 200.322) - Recipient agrees that as appropriate and to the extent consistent with law, it will, to the greatest extent practicable under a Federal award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). This requirement must be included in all subawards including all contracts and purchase orders for work or products under this award. For purposes of this provision: "produced in the United States" means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; and "manufactured products" means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer -based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber. V. Equal Employment in Construction Contracts - Pursuant to Equal Employment Opportunity requirements of 41 C.F.R. 60-1.4(b) in accordance with Executive Order 11246 as amended by Executive Order No. 11375, as to any construction contract thereunder, if applicable, during the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. City Council 3 — 31 7/15/2025 (9) EXHIBIT 1 (3) The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. (4) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (5) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (7) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance. FOR PROPOSERS' REFERENCE ONLY City Council 3 — 32 7/15/2025 (9) ATTACHMENT A PROPOSER'S CERTIFICATION, PROPOSAL PRICING EXHIBIT 1 Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Exhibit 1) and am qualified to provide services being requested as specified herein. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the City for clarification prior to the submission of my proposal. PROPOSER'S STATEMENT: I have read, understood and agree to the terms and conditions on all pages of the Request for Proposals. Upon request, I will transfer and deliver goods or services to the City in accordance with said terms and conditions. LEGAL NAME OF COMPANY PHONE AND FAX NUMBERS BUSINESS ADDRESS PRINTED NAME OF AUTHORIZED AGENT TITLE SIGNATURE OF AUTHORIZED AGENT DATE E-MAIL ADDRESS FEDERAL ID NUMBER (IF APPLICABLE) CONTRACTOR LICENSE NUMBER (IFAPPLICABLE) CITY OF SANTA ANA BUSINESS LICENSE NUMBER (PLEASE PROVIDE IF AVAILABLE, BUT NOT REQUIRED UNTIL AND IF AN AWARD IS MADE TO PROPOSER.) THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 33 7/15/2025 (9) ATTACHMENT B REFERENCES EXHIBIT 1 List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included in the scope of the proposal specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. REFERENCE Customer Name: Contact Individual: Address: Phone Number: EMAIL: Contract Amount: Year: Description of supplies, equipment, or services provided: REFERENCE Customer Name: Address: Contact Individual: Phone Number: . EMAIL: Contract Amount: Year: Description of supplies, equipment, or services provided: REFERENCE Customer Name: Address: Contact Individual: Phone Number: . EMAIL: Contract Amount: Year: Description of supplies, equipment, or services provided: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 34 7/15/2025 (9) ATTACHMENT C PROPOSER'S STATEMENT EXHIBIT 1 Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service properly addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish City all required bonds and certificate of liability insurance within ten (10) days (excluding Saturdays, Sundays and City's legal holidays), or the funds, check, draft, or proposer's bond substituted in lieu thereof accompanying this proposal shall become the property of the City and shall be considered as payment of damages due to the delay and other causes suffered by City because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City is difficult to ascertain; otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the specifications, the certification of nondiscrimination by contractors, and the required insurance certificates are to be incorporated by reference into this agreement and are made specifically as part of this RFP. Firm Signed and Printed Name: Title Date THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 35 7/15/2025 (9) EXHIBIT 1 ATTACHMENT D NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) To the CITY OF SANTA ANA In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the proposer declares that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from bidding; that the proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the proposer or any proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the proposal are true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham proposal. Note: The above non -collusion affidavit is part of the proposal. Signing this proposal on the signature portion thereof shall also constitute signature of this non -collusion affidavit. Proposers are cautioned that making a false certification may subject the certifier to criminal prosecution. Signed State of , County of Subscribed and sworn to (or affirmed) before me on this day of , 20 , by , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Public Signature Notary Public Seal THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 36 7/15/2025 (9) ATTACHMENT E NON -LOBBYING CERTIFICATION EXHIBIT 1 The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its instructions. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify and disclose accordingly. Signed: Title: Firm: Date: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 37 7/15/2025 (9) ATTACHMENT F NON-DISCRIMINATION CERTIFICATION EXHIBIT 1 The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows: The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of the Consultant, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Consultant shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Consultant's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Consultant shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. In the event of the Consultant's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Consultant may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. 2. The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract City Council 3 — 38 7/15/2025 (9) EXHIBIT 1 or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Consultant becomes involved in, or is threatened with, litigation with a subconsultant or vendor as a result of such direction by the administering agency, the Consultant may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any consultant of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: Title: Firm: Date: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 39 7/15/2025 (9) ATTACHMENT G SAM.GOV UEI VERIFICATION EXHIBIT 1 On April 4, 2022, the federal government stopped using the DUNS Number to uniquely identify entities. Now, entities doing business with the federal government use the Unique Entity ID created in SAM.gov. They no longer have to go to a third -party website to obtain their identifier. This transition allows the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. This RFP includes federal funding, and as such, the proposer must provide verification of their SAM.gov UEI and registration status. Please attach your entity's registration from SAM.gov, including UEI and active registration status. Proposer's UEI: SAM.gov Registration Expiration Date: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. City Council 3 — 40 7/15/2025 ATTACHMENT H EXHIBIT 1 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, as amended, Nonprocurement Debarment and Suspension, 2 CFR Part 2998, Subpart C, Responsibilities of Participants Regarding Transactions. The regulations were published as Part VII of the May 26, 1988, Federal Register (Pages 19160-19211), and as subsequently amended in 81 Federal Register 25585. (Before completing certification, read instructions which are an integral part of certification) 1. Pursuant to 2 CFR 180.335, the prospective primary participant, (i.e. grantee) certifies to the best of its knowledge and belief, that it and its principals: a. Are not presently excluded or disqualified; b. Have not been convicted within the preceding three years of any of the offenses listed in 2 CFR 180.800(a) or had a civil judgment rendered against them for one of those offenses within that time period. c. Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State or local) with commission of any of the offenses listed in 2 CFR 180.800(a); and d. Have not had one or more public transactions (Federal, State or local) terminated within the preceding three years for cause or default. 2. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Consultant Name and Title of Official Authorized to Certify On Behalf of the Consultant Date City Council 3 — 41 7/15/2025 ATTACHMENT H �XNNIIRR��TT CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY F LU510N INSTRUCTION FOR CERTIFICATION 1. By signing and submitting this proposal, the prospective recipient of Federal assistance funds is providing the certification as set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective recipient of Federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. 3. The prospective recipient of Federal assistance funds shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of Federal assistance funds learns that its certification was erroneous whom submitted or has become erroneous by reason of changed circumstances. 4. The terms "covered transaction", "debarment", "suspension", "disqualified," "ineligible", "lower tier covered transaction", "participant", "person", "primary covered transaction", "principal", "proposal", and "voluntarily excluded", as used in this cause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective recipient of Federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, disqualified, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL. 6. The prospective recipient of Federal assistance funds agrees by submitting this proposal, that it will include the clause title "Certification Regarding Debarment, Suspension, Ineligible, or voluntarily excluded from the covered transaction" unless it knows that the certification is erroneous. 7. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 8. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntary excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment. City Council 3 — 42 7/15/2025 EXHIBIT 2 CONSULTANT AGREEMENT BETWEEN HOUSING AUTHORITY OF THE CITY OF SANTA ANA AND ORRICK, HERRINGTON & SUTCLIFFE, LLP THIS AGREEMENT is made and entered into this 15�' day of July, 2025, by and between Orrick, Herrington & Sutcliffe LLP, a California limited liability partnership (hereinafter "Consultant"), and the HOUSING AUTHORITY OF THE CITY OF SANTA ANA, a public body, corporate and politic (hereinafter "Authority"). RECITALS A. On April 16, 2025, the Authority issued Request for Proposals #25-066A seeking on -call bond counsel services to assist with the normal duties associated with providing bond counsel services on all debt issues, bond issuances, maintenance, and dissolution, and specialized legal counsel related to affordable housing financing, refinancing, tax opinions, and additional legal services related to various questions that may arise from time -to -time on programs, debt or borrowing matters, and general statutory or constitutional law. B. Consultant represents that it is able and willing to provide such services to the Authority. Consultant's responsive proposal to RFP #25-066A is incorporated herein by reference. C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES On an on -call basis, and at the Authority's sole discretion, Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated herein, and as further set forth in Consultant's Proposal - Exhibit B, attached hereto and incorporated herein. 2. COMPENSATION a. Authority agrees to compensate Consultant pursuant to Consultant's Fee Schedule - Exhibit C, attached hereto and incorporated herein. The total sum to be expended during the term of this Agreement shall not exceed One Hundred Fifty Thousand Dollars ($150,000.00). Page 1 of 8 City Council 3 — 43 7/15/2025 EXHIBIT 2 b. Payment by Authority shall be made within forty-five (45) days following receipt and acceptance of an invoice and a detailed time log of work performed. The time log shall individuate the service hours performed by date, deliverable and the name of the individual performed the services. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by Authority. Authority and Consultant agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. Consultant agrees to execute the City's standard ACH Vendor Payment Authorization and provide required documentation. 3. TERM This Agreement shall commence on the date first written above ("Effective Date"), and terminate after three (3) years. The term of this Agreement may be extended by a period of two (2), one (1) year extensions, exercisable upon a writing executed by the Authority Executive Director and Authority General Counsel. This Agreement may be terminated by the Authority pursuant to section 12 herein. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the Authority. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the Authority to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to its employees and shall be responsible for all applicable withholding taxes. 5. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to Authority. Total cost of such insurance shall be borne by Consultant. Minimum Scope and Limit of Insurance. • Commercial General Liability (CGL): Insurance Services Office Form CG 00 01covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. Page 2 of 8 City Council 3 — 44 7/15/2025 EXHIBIT 2 • Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), with limits no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile liability insurance, Authority will accept evidence of personal automobile insurance. • Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident, policy or employee, for bodily injury or disease. Coverage is not required if Consultant has no employees and signs request to waive such insurance. • Professional Liability Insurance: with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 aggregate. • If Consultant maintains broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, Authority requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Authority. Other Insurance Provisions. The above required insurance policies are to contain or be endorsed to contain the following provisions: • Authority, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Consultant's CGL, Professional Liability, and Automobile Liability policies, with respect to any liability arising out of work or operations performed by or on behalf of the Instructor including materials, parts, equipment, and personnel furnished in connection with such work or operations. • Consultant's Insurance company(ies) agrees to waive all rights of subrogation against Authority, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Consultant under this Agreement. • For any claims related to this contract, Consultant's insurance coverage shall be primary and any insurance maintained by Authority, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. • A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. • Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to Authority. Ten (10) days prior written notice shall be provided to Authority for policy cancellation or non -renewal due to non-payment of premium. • Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: (Name of Department Staff Responsible for Agreement), Address of Department Responsible for Agreement, M-XX, Santa Ana, CA 92701. The name Page 3 of 8 City Council 3 — 45 7/15/2025 EXHIBIT 2 and location of the project must be included in the Description of Operations section of each certificate. Self -Insured Retentions. Self -insured retentions must be declared to and approved by the Authority. The Authority may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to Authority. Verification of Coverage. Consultant shall furnish Authority 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 before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them. Authority reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances. Authority reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 6. INDEMNIFICATION Consultant agrees to indemnify and hold Authority harmless from and against any and all third -party claims, suits and actions, and all associated damages, settlements, losses, liabilities, costs, and expenses, including without limitation reasonable attorneys' fees, to the extent finally determined to have resulted from Consultant's negligent performance of the services set forth in this Agreement. Notwithstanding the foregoing, nothing herein shall (i) serve to expand Consultant's scope of professional responsibilities as set forth in the laws and canons of ethics, (ii) extend any statute of limitations governing any claim arising from Consultant's acts or omissions, or (iii) waive any claims or defenses that Consultant may have against the Authority or any other party. 7. CONFIDENTIALITY If Consultant received from the Authority information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this 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. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Page 4 of 8 City Council 3 — 46 7/15/2025 EXHIBIT 2 Confidential information disclosed to either parry by any subsidiary and/or agent of the other party is covered by this 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 Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant and disclosed without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the Authority. 8. CONFLICT OF INTEREST CLAUSE a. Consultant 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 under this Agreement. b. No immediate family members of either the Mayor, City Council Member, or any appointed City Official, including appointed board and commission members, as defined under the City's Municipal Code, whose position with the City shall award or influence the award of this Agreement, or any competing contract or amendment thereof, shall be employed in any capacity by the Consultant or have any other direct or indirect financial benefit or interest in this Agreement. c. The section also prohibits the awarding of any agreement, contract, grant, or any amendment to those awards, to any former full-time employee for one-year from date of employee separation except for any Ca1PERS retiree as authorized by City Council resolution. d. The Consultant must comply with all conflict of interest laws, ordinances, and regulations now in effect or hereafter to be enacted during the term of this Agreement. The Consultant warrants that it is not now aware of any facts which conflict with the prohibitions defined above. If the Consultant hereafter becomes aware of any facts that might reasonably be expected to create a conflict of interest, it must immediately make full written disclosure of such facts to the City. Full written disclosure must include, but is not limited to, identification of all persons implicated and a complete description of all relevant circumstances. Failure to comply with the provisions of this paragraph will be a material breach of this Agreement. e. Consultant covenants that none of its directors, officers, employees, or agents shall participate in selecting or administrating any subcontract supported (in whole or in part) by City funds stemming from the Agreement where the awarding of the subcontract has any direct or indirect financial benefit or interest to any individual, as defined in subsections (b) and (c) above. 9. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or Page 5 of 8 City Council 3 — 47 7/15/2025 EXHIBIT 2 mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in the manner provided in this Section, to the following persons: To Authority: City Clerk City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702-1988 Facsimile (714) 647-6956 Copies to: and Housing Division Manager Housing Authority of the City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 Santa Ana, California 92701 Facsimile (714) 667-2225 City Attorney City of Santa Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 Santa Ana, California 92702-1988 Facsimile (714) 647-6515 To Consultant: Justin Cooper Partner Orrick, Herrington & Sutcliffe LLP 405 Howard Street San Francisco, CA 94105 Facsimile: (415) 773-5759 Email: jcooper&orrick.com A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by facsimile, 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 time frames, weekends, federal, state, County or City holidays shall be excluded. 10. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the Authority and Consultant regarding the subject matter herein, and supersedes any and all other agreements, Page 6 of 8 City Council 3 — 48 7/15/2025 EXHIBIT 2 oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail and will serve to fully supersede existing Agreement. This Agreement may not be modified except by written instrument signed by the Authority and by an authorized representative of Consultant. 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 or conditions hereof, shall not bind or obligate Consultant nor the Authority. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 11. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the Authority and any such assignment, transfer, delegation or subcontract without the Authority's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the Authority's ability to have any of the services which are the subject to this Agreement performed by Authority personnel or by other consultants retained by Authority. 12. TERMINATION This Agreement may be terminated by the Authority with or without cause upon thirty (30) days written notice of termination to the Consultant. In such event, Consultant shall be entitled to receive and Authority shall pay Consultant, compensation for all services rendered prior to the effective date of termination. 13. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, relation, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities or any activities under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 14. JURISDICTION - VENUE This 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 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 this Agreement. Page 7 of 8 City Council 3 — 49 7/15/2025 EXHIBIT 2 15. PROFESSIONAL LICENSES Consultant shall, throughout the term of this 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 of the United Sates, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the Authority immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 16. MISCELLANEOUS PROVISIONS Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify Authority fully, including reasonable costs and attorney's fees, for any injuries or damages to Authority in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: JENNIFER L HALL City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: JONATHAN T. MAR EZ Assistant City Attorney RECOMMENDED FOR APPROVAL: -2ft&4" MIKE GARCIA Authority Executive Director HOUSING AUTHORITY OF THE CITY OF SANTA ANA ALVARO NUNEZ City Manager CONSULTANT By: OUSTIN COOPER Partner Orrick, Herrington & Sutcliffe LLP Page 8 of 8 City Council 3 — 50 7/15/2025 EXHIBIT 2 EXHIBIT A SCOPE OF SERVICES City Council 3 — 51 7/15/2025 (9) CITY OF SANTA ANA EXHIBIT I SCOPE OF SERVICES EXHIBIT 2 Bond Counsel Services for Affordable Housing A law firm who is awarded a contract from responding to this RFP will have a scope of work that is reflective of what is described here and in their RFP proposal, agreed upon and finalized with the Housing Authority of the City of Santa Ana. The Housing Authority of the City of Santa Ana (SAHA) is seeking proposals from highly qualified and experienced law firms (Proposers) to provide on -call bond counsel to assist with the normal duties associated with providing bond counsel services on all debt issues, bond issuances, maintenance, and dissolution, and specialized legal counsel related to affordable housing finance, tax opinions, and additional legal services related to various questions that may arise from time -to -time on programs, debt or borrowing matters, and general statutory or constitution law. Specifically, the selected firm shall: 1) Serve as the Housing Authority's legal counsel in the formation and issuance of debt. 2) Provide legal advice and consultation relating to tax matters associated with the financing. 3) Provide legal opinion with respect to the authorization and issuance of the debt obligations and whether the interest paid is tax-exempt under federal and/or State laws and regulations. 4) Draft and review legal documentation including all required resolutions, financing documents, closing documents and transcripts and coordinate the authorization and execution of those documents. 5) Provide ongoing legal services in matters relating to interpretation of applicable regulations, legislation or pending litigation. 6) Participate in conference calls or meetings, as requested, relating to the issuance of bonds or notes. 7) Provide ongoing information to Housing Authority and City staff regarding the activity and legal status of the financing. 8) Perform due diligence regarding the Housing Authority/City and the financing. 9) Prepare all legal documents for the authorization, issuance and sale of debt by the Housing Authority, including resolutions, closing documents and internal Housing Authority/City agreements as needed. 10) Provide legal advice relating to federal and state tax matters associated with the financing structure. 11) Participate as a member of and in meetings with the financing team which will also include the financial advisor, underwriter, and Housing Authority/City staff. 12) Assist in negotiations with bond insurers as needed. 13) Assist the Housing Authority in making presentations to rating agencies as needed. 14) Provide continuing legal advice, as needed, concerning any legal or tax -related issues after the sale of the bonds. 15) Assist in the legal review of annual continuing disclosure. 16) Provide regular reports to the Housing Authority Executive Director, Housing Authority General Counsel, City Attorney, City Manager, and/or Community Development Director. city oQlytrAwncll RFP No. 25-b3m 52 7/15QQ215 of 39 EXHIBIT 2 EXHIBIT B CONSULTANT'S PROPOSAL City Council 3 — 53 7/15/2025 a. Cover Letter May 6, 2025 Via PlanetBids.com Nikesha Hazel, Housing Authority Analyst Housing Authority of the City of Santa Ana 20 Civic Center Plaza, M-27 Santa Ana, CA 92701 �XjIIBIT 2 �G orric Orrick, Herrington & Sutcliffe LLP 405 Howard Street San Francisco, CA 94105-2669 400 Capitol Mall, Suite 3000 Sacramento, CA 95814-4497 Re: Proposal to Provide Bond Counsel for Affordable Housing to the City of Santa Ana Housing Authority (RFP NO. 25-066A) Dear Ms. Hazel, Thank you for inviting Orrick, Herrington & Sutcliffe LLP to submit the attached proposal to provide bond counsel services for affordable housing to the City of Santa Ana Housing Authority ("SAHA" or the "Authority"). It has been our privilege to serve as bond counsel to the City of Santa Ana (the "City") on several prior occasions, most recently for the issuance of the Successor Agency Tax Allocation Refunding Bonds, Series 2018A and 2018B. It is our goal to continue and further our relationship with the City and SAHA by serving as your bond counsel in connection with affordable housing. As requested, we have enclosed pertinent information about our firm, including our unique qualifications to represent SAHA, an overview of our bond counsel experience for housing programs, three references, and resumes of the key bond counsel team members who would serve SAHA. Justin Cooper will continue to serve as the Authority's primary point of contact and team lead and is committed to providing SAHA with the attention and resources required to ensure SAHA's goals are accomplished in a timely and efficient manner. Our firm has been ranked the No. 1 bond counsel firm in the country for the last 25 years (meaning that we have represented more issuers on more financings than any other law firm in the country during that time period), but more importantly, we earn the respect and loyalty of our clients one deal at a time with hard work, great service and prompt responsiveness. We are also the leading practice in California and in the country for financing multifamily housing with tax-exempt bonds, regularly representing over 20 separate state and local housing issuers in seven states, plus the District of Columbia, and closing more than 100 housing bond transactions annually over several recent years. Since 2000, we have served as bond or underwriter's counsel for more than 2,500 housing finance transactions totaling more than $115 billion. We believe Orrick distinguishes itself not only by providing legal expertise of the highest caliber, but also by achieving timely, efficient and collaborative results. We thank you for the opportunity to provide the Authority with a team of sophisticated, knowledgeable and experienced housing finance lawyers to serve the Authority's bond counsel needs. I look forward to discussing further the Authority's plans and Orrick's qualifications. Please call me if you have any questions or require any further information. My work phone number is (415) 773-5908, my mobile phone number is (415) 706-0060, and my email address is icooper(a)orrick.com. Sincerely, Justin Cooper Partner Orrick, Herrington & Sutcliffe LLP ORRICK, I-&*&ObI M6[rCLIFFE LLP 3 — 54 7/15/2025 EXHIBIT 2 REQUEST FOR PROPOSALS FOR BOND COUNSEL FOR AFFORDABLE HOUSING Minimum Qualifications Additionally, the SOQ shall contain responses to the minimum proposer qualifications included in Section IV — Minimum Qualifications of the RFP. IV. MINIMUM QUALIFICATIONS In addition to meeting all other requirements of this RFP, all responding Proposers shall certify and furnish verifiable evidence that their law firm and personnel, at a minimum, meet the following qualifications: 1) The attorney(s) who will be primarily responsible for providing the legal services requested by this RFP on behalf of Proposer: (i) must be licensed to practice law in the State of California; and (ii) must agree to primarily perform the legal services requested in California. Justin Cooper, Marc Bauer, and Lauren Herrera, who will be primarily responsible for providing bond counsel services to SAHA, are all licensed to practice law in the State of California. All three of them are located in California and agree to primarily perform the legal services requested in California. We would be happy to supply copies of their California bar cards if requested. 2) Proposer has provided similar or same services to at least five (5) municipalities within the last five (5) years. Confirmed. Please see Exhibit B for our list of all tax-exempt multifamily bond issues where we served as bond or disclosure counsel since January 1, 2020. 3) Proposer has experience as bond counsel on bond issuance for affordable housing development within the last five (5) years. Confirmed. Please see Exhibit B for our list of all tax-exempt multifamily bond issues where we served as bond or disclosure counsel since January 1, 2020. b. Services Provided A description of proposed services to be provided and how they meet the needs of the City as described in Exhibit I — Scope of Services. Our nationally ranked Bond Counsel public finance team is dedicated to meeting the goals and fulfilling the functions identified in the Authority's Scope of Work with precision and expertise. We will use a phased, team - based approach to manage the work, including the following steps: 1. Consultation with representatives of the Authority, the Authority's financial advisors and underwriters, the providers of any backup security, their respective counsel, consultants and others concerning the timing, terms, and structure of the financing, including analysis of the advantages and disadvantages of each available financing technique and consideration of California law, federal tax law, federal securities law, and general public finance law. This work includes regular consultation with the Authority Finance Team and updates on changes in law and practice. 2. Preparation and/or review of legal proceedings for the authorization, sale, and issuance of the bonds, including preparation and/or review of the necessary resolutions, indenture, continuing disclosure agreement, notice of sale and other necessary documents for the issuance of the bonds; preparation of the proceedings for the sale of the bonds; preparation of other proceedings and documents (including closing papers) incidental to or in connection with the issuance of the bonds; and coordination of the closing. 3. Reviewing the official statement prepared for the offering and sale of the bonds with a view to ensuring that the description of the legal documents contained therein is accurate. 4. Rendering of the final legal opinion on the validity of the bonds and the tax-exempt status of interest thereon, and such other legal opinions as may be appropriate in connection with delivery of the bonds. 5. Such other legal services as may be incidental to the foregoing. 6. Following the completion of the contemplated financing and the expiration of our contract, we would, in accordance with our usual practice, handle routine inquiries and consultation regarding the financing without charge. The experience of the Orrick team of attorneys enables them to address all aspects of any municipal housing bond financing that the Authority may be called to consider. If any further expertise is required, Orrick's full complement of lawyers with expertise in such areas as environmental law, litigation, real estate, and securities ORRICK, I-rF.l#*&0UMQiI[rCLIFFE LLP 3 — 55 7/15/2025 sOQ p.1 EXHIBIT 2 REQUEST FOR PROPOSALS FOR BOND COUNSEL FOR AFFORDABLE HOUSING laws are available to increase the speed, accuracy, and the innovative quality of our delivery of legal services to the Authority. Orrick has developed numerous innovative techniques, such as multi -modal variable rate demand bonds, swaps, and various credit support mechanisms, and has drafted tax legislation providing the legal basis for greater flexibility in an issuer's financing options. The Authority will receive, in all respects, top -priority attention from the attorneys assigned to the Project. Our team -based, phased approach mitigates unexpected schedule conflicts and ensures adequate coverage of important milestones in the financing by skilled, knowledgeable, and competent members of the team who are familiar with all aspects of the transaction. Furthermore, we envision a collaborative effort with the Authority and the other professionals involved in the Project. To that end, we anticipate regular calls or video conference calls with members of the Authority team and other professionals at each step and frequent check -ins with members of the Authority team as we progress through the Project. We believe that the depth of experience Orrick would bring, including the specific experience of the team members, previous experience with the Authority, as well as the unmatched resources of the firm, will ensure that the firm is always well -prepared to answer any and all questions and confer with the Authority's team on strategy, structure, and documentation throughout the course of the scope of work. c. Agreement Statement Proposal shall include a statement outlining your concurrence or reference to concerns previously submitted with any and all provisions as contained in EXHIBIT II — Sample Agreement of this RFP (if any). Regarding Section 6 - Insurance: Orrick meets the insurance limit requirements. However, a third party cannot be named as additional insured on our professional liability policy. Regarding the Indemnification language in Sections 7 and 8: We propose to replace this with the indemnification language we negotiated with the Authority in our previous contract, as follows: Consultant agrees to indemnify and hold the Authority harmless from and against any and all third party claims, suits and actions, and all associated damages, settlements, losses, liabilities, costs, and expenses, including without limitation reasonable attorneys' fees, to the extent finally determined to have resulted from Consultant's negligent performance of the services set forth in this Agreement. Notwithstanding the foregoing, nothing herein shall (i) serve to expand Consultant's scope of professional responsibilities as set forth in the laws and canons of ethics, (ii) extend any statute of limitations governing any claim arising from Consultant's acts or omissions, or (iii) waive any claims or defenses that Consultant may have against the Authority or any other party. d. Firm and Team Experience Proposal shall include a profile of the firm's experience including the following: i. A general description of the firm, including the number of years providing bond counsel services, and size and number of employees working directly with the City on this agreement. Orrick was founded in 1863 and is today among the nation's leading law firms with over 1,200 attorneys in 25 offices around the world serving domestic and international clients, including numerous governmental entities, universities, charitable and public service organizations, major industrial and financial corporations, commercial and investment banks, developers, and high-technology companies. Orrick has been ranked the No. 1 Bond Counsel and No.1 Disclosure Counsel law firm in the country for the last 25 years based on total volume of financings. The firm consistently issues a greater volume of bonds than any other public finance firm in the nation. With more than 75 lawyers practicing public finance, Orrick is the best-known, most widely respected and most experienced bond counsel firm in the country — maintaining a substantial public finance practice for over 100 years. Orrick partner Justin Cooper will serve as the team lead and primary contact for the Authority. He has been practicing in the area of multifamily housing for more than 20 years and is chair of Orrick's housing finance practice group. Justin will be assisted by Marc Bauer (Partner) and Lauren Herrera (Senior Associate). Rich Moore (Tax Partner) and Barbara Jane League (Tax Partner) will provide assistance with respect to tax matters. Other members of the firm's housing finance group will be available as needed. Please see Exhibit A for full attorney resumes. ORRICK, I-rF.l#*&0UMQiI[rCLIFFE LLP 3 — 56 7/15/2025 sOQ P. 2 EXHIBIT 2 REQUEST FOR PROPOSALS FOR BOND COUNSEL FOR AFFORDABLE HOUSING ii. Distinguishing characteristics, skills, and areas of strength. Bond Counsel Services. For each year in this century and for over a decade 2�4 National prior, Orrick has been the leading bond counsel firm in the country in total volume of financings. In 2024, we were ranked number one as bond counsel Bond Counsel Rankings in the country by Refinitiv (now LSEG), with our team serving as bond �� �� �� counsel on 610 transactions aggregating more than $59.73 billion principal ■ amount of bonds (representing a national market share of 11.4%). In 1 P.4% Market Share California alone in 2024, Orrick served as bond counsel for 204 transactions aggregating more than $36.76 billion principal amount of bonds for an overall market share of 49.3%. l Disclosure Counsel Services. Orrick has been ranked number one in total 2024 Nationavolume as disclosure counsel nearly every vear since such rankinns henan. ❑isclosure Counsel Rankings We were ranked number one as disclosure counsel in the country by Refinitiv �l (now LSEG), with our team serving as disclosure counsel on 121 transactions 'It $28.61 bn aggregating more than $28.61 billion (representing a national market share of 5.2% Market Share 5.2%). In California we served on 68 transactions aggregating more than $16.96 billion principal amount of bonds for an overall market share of 22.46%. iii. Firm's nearest address serving the City of Santa Ana and headquarters address. Our Orange County office is closest to Santa Ana. Our other California office locations include Los Angeles, Sacramento, and San Francisco. Headquarters address: 405 Howard St., San Francisco, CA 94105 iv. Name and contact information of the supervising Project Manager/Principal Agent, to be assigned to the agreement. The Project Manager/Principal Agent shall be the primary contact person to represent your firm and will be the person to conduct the presentation, if invited to an interview. Justin Cooper, Partner T: +1 415 773 5908 E: jcooper@orrick.com Resumes for all key staff proposed describing relevant experience. Please see Exhibit A: Team Resumes. e. Proposed Work Plan Proposal shall include a statement demonstrating the firm's understanding of the Scope of Services. Our nationally ranked bond counsel public finance team is dedicated to meeting the goals and fulfilling the functions identified in SAHA's Scope of Work with precision and expertise. With a proven track record of success, we bring unparalleled experience and a deep understanding of complex financial structures, ensuring that our clients receive the highest level of service and strategic guidance. Our commitment to excellence and innovative solutions positions us as the ideal partner to navigate the challenges and opportunities presented in SAHA's financings. Additionally, proposed work plan shall include Proposers': i. Anticipated approach to performing services as specified herein; Please see our answer to Question (b) above, where we detail our approach to meeting the Scope of Services listed in the RFP. Suggestions or special concerns the evaluation committee should take into consideration (if any); We suggest a coordinating call or video meeting among Orrick, the Authority, and the Authority's financial advisor prior to each transaction. In particular, we find it valuable to identify items that fall outside the purview of the bond issuer and its advisors — procurement of third -party reports, for example — but are nonetheless crucial to the successful execution of a financing. It can be helpful to scope these out and identify responsible parties prior to commencing work on bond documents and other bond -related matters. iii. Description of deliverables and implementation plan. Proposer shall submit a general description of the deliverables, implementation plan, and timeline. As detailed above in our answer to Question (b), our implementation plan involves a phased, team -based approach to manage the work effectively.With each engagement, we would immediately reach out to SAHA ORRICK, I­&*G0bl MQllIrCLIFFE LLP 3 — 57 7/15/2025 sOQ p. 3 EXHIBIT 2 REQUEST FOR PROPOSALS FOR BOND COUNSEL FOR AFFORDABLE HOUSING to discuss the transaction and what issues you feel are important, and to highlight any questions you may have. We would also promptly commence the necessary tax diligence, which is usually a long -lead item. In all cases, we would be familiar with SAHA's governing statutes and applicable regulations. With respect to documentation, our team would familiarize itself with SAHA's existing agreements, indentures and resolutions and discuss any suggested precedents for new documents. To the extent we feel it would be helpful, we would share alternative precedents and discuss their applicability. We generally try to circulate documents approximately three times during a transaction, encouraging comments from the group to be received by specific deadlines. We do find that the affordable housing community works well together and issues can be resolved collectively. We aim to prepare closing checklists as early as possible, to the extent another party has not done so (i.e., lender's counsel), to avoid any surprises as closing approaches. In connection with closing, we prepare deliverables and signature pages well in advance and provide a virtual closing room for all interested parties to review prior to closing. We will coordinate closely with SAHA and other stakeholders via regular consultations and updates throughout the process, ensuring all legal proceedings for bond issuance are meticulously prepared and reviewed. f. References: Attachment B References shall be submitted for similar projects performed for state and/or similar local government clients. Please see Attachment B — References, which is attached separately to our response. ORRICK, I-rF.l#*&0MMQiI[rCLIFFE LLP 3 — 58 7/1 5/2025 SOQ p. 4 EXHIBIT 2 EXHIBIT C CONSULTANT'S FEE PROPOSAL (including hourly rates if applicable) City Council 3 — 59 7/15/2025 EXHIBIT Section roposal I-rF.l#*&OMMQbkLIFFE LLP EXHIBIT 2 REQUEST FOR PROPOSALS FOR BOND COUNSEL FOR AFFORDABLE HOUSING Cost Proposal All Proposers are required to submit a fixed rate fee and budget with their Cost Proposal. Pricing instructions should be clearly defined to ensure fees proposed can be compared and evaluated. Cost Proposal must include a payment schedule if applicable. City reserves the right to negotiate compensation and/or payment schedule prior to award of any resulting agreement. If providing hourly rate sheets, Proposer shall not include rate ranges or averages. The City shall not provide reimbursement for travel -related expenses, mileage, parking, lodging, meals, incidental fees, insurance, freight/shipping and handling/delivery, and any other business expenses, supplies and materials related to providing services as specified herein. Additional costs will not be considered and will not be reimbursed by the City, therefore, such costs must be absorbed in Proposer's cost proposal fee structure. Any language related to travel reimbursement shall be stricken from the document by the City and if not stricken, shall be deemed invalid. Our objective is to become your preferred bond counsel on a long-term basis. To that end, we will establish and adjust our fees as needed to make our services attractive to you. We have found in the past that our most satisfactory fee arrangements take into account not only transaction sizes, but also complexity. For example, a private placement with no trustee and no offering document typically requires considerably less bond counsel time than a public offering with a trustee, underwriter, remarketing agent, and one or more credit enhancers. Investment agreements, swaps, and other features may add further complexity. Consistent with the majority of our work in the affordable housing sector, we would expect our fees for our work on behalf of the Authority to be determined on a fixed -fee basis or similar arrangement for each project or matter for which we are engaged. This approach provides the Authority with certainty with respect to the project budget at the commencement of the project financing or matter. Bond counsel fees for bond financings involving exempt -facility bonds and low-income housing tax credits typically range, consistent with market practice, between $60,000 and $90,000 per transaction. Bond counsel fees for public offerings of bonds issued to finance middle -income housing — typically structured as "501(c)(3) bonds" or "governmental bonds" — usually range between $125,000 and $250,000. Our fees for each financing will be payable solely from bond proceeds and other funds made available in connection with each issuance of bonds. We would also be pleased to discuss arrangements for non - transactional, advisory work with the Authority and we would be willing to agree to perform such bond counsel services at a discounted, blended rate of $795/hour during the term of the contract. In our role as bond counsel, we would not expect to be responsible for the preparation of the Official Statement, but rather would expect that the financial advisor, disclosure counsel or underwriter's counsel would have such responsibility. We would expect to participate in developing the description of the terms of the securities that is normally found in the forepart of an Official Statement and would provide a summary of legal documents for inclusion in the Official Statement. Unless we were separately hired as disclosure counsel, our engagement would not include our providing any due diligence on the Official Statement nor providing any standard 10b-5" opinion. ORRICK, I-rF.l#*&0MM6[rCLIFFE LLP 3 — 61 7/1 5/202rbposal p. 1 Community Development Agency www.santa-ana.org/cd Item # 4 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Memorandum of Understanding with Workforce Innovation and Opportunity Act Partners AGENDA TITLE Memorandum of Understanding the City of Santa Ana, the Santa Ana Workforce Development Board, and the Santa Ana Housing Authority — Workforce Innovation and Opportunity Act Partners (Contingent upon approval of City Council Item #07) RECOMMENDED ACTION 1. Approve a Memorandum of Understanding with the City of Santa Ana (City), the Santa Ana Workforce Development Board (SAWDB), and the Santa Ana Housing Authority (SAHA) setting the terms for the sharing of resources and expenses associated with the operations of a comprehensive one stop center for a three-year term expiring June 30, 2028 and payment to the City of Santa Ana in an estimated amount not to exceed $57,152. 2. Authorize the Executive Director to execute amendments during the term that adjust shared operational expenses and make non -substantive changes to comply with changes in federal or state law; provided all other terms and conditions of the MOU remain the same and approved by the City Attorney. GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Workforce Innovation and Opportunity Act (WIOA) of 2014 is the primary federal legislation governing the public workforce development system. The Act mandates that Local Workforce Development Boards (SAWDB for the City) establish Memorandums of Understanding (MOU) with all required One -Stop partners (SAHA is a partner to the City) to define the cooperative relationships and shared responsibilities in providing seamless services to job seekers and employers. The Community Development Agency's Economic Development Division administers and coordinates the workforce and economic development programs and activities on behalf of the City through partnership with the SAWDB. The Santa Ana WORK Center is located at 801 W. Civic Center Drive. The City Council approved the master lease agreement for this office space on June 6, 2023, and it functions as an American Job City Council 4-1 7/15/2025 MOU with Workforce Innovation and Opportunity Act Partners July 15, 2025 Page 2 Center of California (AJCC) or One Stop System. Since the implementation of WIOA, the City has maintained active partnerships with a range of workforce development agencies and service providers through MOUs. These partnerships have enabled a coordinated, client -centered approach to delivering employment and training services across the local workforce area. Existing MOUs have fostered collaboration, streamlined referrals, and aligned resources to better serve job seekers and employers. To continue supporting these partnerships, the City will renew and update MOUs in accordance with current WIOA guidelines and partner agency roles. SAHA has staff that co -locate at the Santa Ana WORK Center to administer the Family Self Sufficiency (FSS) program. The FSS program assists families that receive Housing and Urban Development (HUD) rental assistance (such as Section 8 vouchers) to achieve economic independence and self-sufficiency. The City, SAWDB, and SAHA are parties to the attached MOU (Exhibit 1), and approval of this MOU will strengthen service integration, reinforce mutual responsibilities, and ensure compliance with WIOA regulations while promoting efficient service delivery. The MOU outlines the services to be delivered through the One -Stop System which include, but are not limited to, partner responsibilities, referral process, access for people with disabilities, shared technology, confidentiality, grievance procedures, procedures for amendment, and other administrative and operational provisions that are consistent with the WIOA. In addition, the MOU addresses strategies for sustaining the unified system through resource sharing and joint infrastructure cost allocation. The Infrastructure Funding Agreement is based on services currently provided in the Santa Ana WORK Center located at 801 W. Civic Center, Suite 200, Santa Ana, CA. The MOU is designed to enhance cooperation and ensure regulatory compliance without imposing additional costs on the City. The proposed MOU, effective from July 1, 2025, through June 30, 2028, was approved by the SAWDB at their regular meeting held on May 15, 2025 by a vote of 13:1 (Hubbard abstained; Beasley, Campos, Elliott, and Ruiz absent). FISCAL IMPACT Funding of $57,152 is budgeted and available for FY 25-26 in the SAHA Rent account (no. 14018760-62500 Rent Payments) and various SAHA accounts (no. 14018760- 63001 Miscellaneous Operating Expense and 14018760-62300 Contract Services - Professional) for shared expenses such as copier, security, and parking. Funds for subsequent years will be included in proposed budgets for City Council consideration. The table below provides an estimate; however, funds per fiscal year may vary based upon actual costs incurred from shared expenses. City Council 4-2 7/15/2025 MOU with Workforce Innovation and Opportunity Act Partners July 15, 2025 Page 3 Fiscal Accounting Fund Description Accounting Unit, Amount Year Unit -Account Account Description FY 25-26 14018760-62300 HOUSING HOUSING $2,068 / 63001 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Contract Services - Professional / Miscellaneous Operating Expenses FY 25-26 14018760-62500 HOUSING HOUSING $15,198 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Rent Payments Total $17,266 Fiscal Accounting Fund Description Accounting Unit, Amount Year Unit -Account Account Description FY 26-27 14018760-62300 HOUSING HOUSING $2,275 / 63001 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Contract Services - Professional / Miscellaneous Operating Expenses FY 26-27 14018760-62500 HOUSING HOUSING $16,718 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Rent Payments Total $18,993 Fiscal Accounting Fund Description Accounting Unit, Amount Year Unit -Account Account Description FY 27-28 14018760-62300 HOUSING HOUSING $2,503 / 63001 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Contract Services - Professional / Miscellaneous City Council 4-3 7/15/2025 MOU with Workforce July 15, 2025 Page 4 Innovation and Opportunity Act Partners Operating Expenses FY 27-28 14018760-62500 HOUSING HOUSING $18,390 AUTHORITY- AUTHORITY - VOUCHERS ADM VOUCHERS ADM, Rent Payments Total $20,893 EXHIBIT(S) 1. MOU — City of Santa Ana, Santa Ana Workforce Development Board, and Santa Ana Housing Authority Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager City Council 4-4 7/15/2025 Exhibit 1 Memorandum of Understanding For Santa Ana Workforce Development Board and the Santa Ana Housing Authority City Council 4-5 7/15/2025 Exhibit 1 MEMORANDUM OF UNDERSTANDING 1) LEGAL AUTHORITY The Workforce Innovation and Opportunity Act ("WIOA") sec. 121(c)(1) requires that each Local Workforce Development Area develop and enter into a Memorandum of Understanding ( "MOU") with each America's Job Center of California ("AJCC") Partner, consistent with WIOA Sec. 121(c)(2). This requirement is further described in the WIOA; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the AJCC System Joint Provisions: Final Rule at 20 CFR 678.500, 34 CFR 361.500, and 34 CFR 463.500, and in Federal guidance. Additionally, the sharing and allocation of infrastructure costs among AJCC Partners is governed by WIOA sec. 121(h), its implementing regulations, and the Federal Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) at 2 CFR part 200. 2) AJCC Partner The parties to this MOU are the City of Santa Ana, the Santa Ana Workforce Development Board ("SAWDB"), and the Santa Ana Housing Authority, a collocated one -stop AJCC Partner located at the Santa Ana WORK Center, 801 W. Civic Center Drive, Suite 200, Santa Ana, CA 92701. 3) PURPOSE The purpose of the MOU is consistent with the provisions of WIOA sec. 121(c)(1), to establish a cooperative working relationship between the SAWDB and Santa Ana Housing Authority, the collocated AJCC Partner, and to define their respective roles and responsibilities concerning the operation of the AJCC as it relates to shared services and customers. It serves to establish the framework for providing services to employers, employees, job seekers and others needing workforce services. It also serves to establish a framework to support the established service delivery through the sharing of resources and costs. 4) DURATION The term of this MOU shall commence July 1, 2025 and terminate June 30, 2028, unless earlier terminated pursuant to the provisions of Paragraph 32 of this MOU; however, the Parties shall be obligated to perform such duties as would normally extend beyond this term, including, but not limited to, obligations with respect to indemnification, reporting and confidentiality. This MOU will remain in effect until the termination date, unless one of the conditions in Paragraph 32 occurs. City Council 4-6 7/15/2025 Exhibit 1 5) MODIFICATIONS AND REVISIONS This MOU and its Attachments 1, 2, 3, 3-1, 4, and 5 constitute the entire agreement between the parties, and no oral understanding not incorporated herein shall be binding on any of the parties hereto. This MOU may be modified, altered, or revised, as necessary, by mutual consent of the parties, by the issuance of a written amendment, signed and dated by the parties, which may require approval by the governing body of each Party. Assignment of responsibilities under this MOU by any of the parties shall require prior written notice and preapproval of all parties. Any assignee shall also commit in writing to the terms of this MOU. 6) SANTA ANA WORKFORCE DEVELOPMENT STRATEGIES Santa Ana's vision rests on integrating current and future resources through its SAWDB Partners. Integration suggests more than partnering or assembling multiple funding sources. It means making certain that all elements of the workforce support system work together to create inviting and seamless services wherever a client enters the system. Santa Ana's vision is sensitive to the needs of its unique demographics. The SAWDB's overall strategies include: a) Identifying regional industry clusters (e.g., manufacturing cluster, medical cluster, etc.) to create new jobs in which Santa Ana's workforce can participate; b) Expanding small business development support as a creator of new jobs and method for growing the local tax base; c) Educating Santa Ana's current and future workforce through classroom pre -training and training activities, plus on-the-job training and workforce skill enhancement activities; d) Offering career pathway programs for both unemployed and employed adults and youth; e) Increasing access to jobs for disconnected and underserved populations, especially youth; f) Organizing, integrating and supporting social and other services through the SAWDB's network of partnerships, volunteer organizations, and established institutional resources; and, g) Assuring funding from all public, private, and other sources in support of its programs. 7) ONE -STOP SYSTEM & SERVICES A. LOCATION The AJCC is currently located in Santa Ana as follows: American Job Center (Comprehensive AJCC) Santa Ana WORK CENTER 801 W. Civic Center Drive, Suite 200 Santa Ana, CA 92701 (714) 565-2600 Open to the Public: Monday — Friday 8:00 am-5:00 pm City Council 4-7 7/15/2025 Exhibit 1 The AJCC is currently located at the Santa Ana WORK Center ("SAWC") as described in the Location of AJCC and all Partners, attached herein as Attachment 1 and incorporated herein by reference. Santa Ana ranks as the fourth densest city in the entire nation. SAWC, through its central location in downtown Santa Ana, shall provide and/or coordinate WIOA services to individuals, providing them with the necessary skills to participate in building a world -class workforce in Santa Ana. The SAWC offers the community a variety of informational, employment and training services based on individual needs. Those needs are met by the combined efforts of the SAWC Partners as described by the Santa Ana AJCC Partner Services, included herein as Attachment 2 and incorporated herein by reference. B. SERVICES PROVIDED AT THE SANTA ANA WORK CENTER Services and referrals provided at the SAWC by AJCC Partners may include, but are not limited to, the following: 1. Basic Career Services: a. Eligibility determination; b. Outreach, intake, and orientation to information and services; c. Initial assessment of skill levels, including: literacy, numeracy, and English proficiency; and, aptitudes, abilities, and support service needs; d. Labor exchange services, including: i. Job vacancy listings in labor market areas; ii. Information on job skills needed to obtain the vacant jobs; and, iii. Information relating to in -demand occupations, including earnings and opportunities for advancement; e. Provision of performance and program cost information on the Eligible Training Provider List ("ETPL") eligible programs by program and type of provider f. Provision of information in acceptable formats and languages that identify actual performance against performance accountability measures g. Provision of information related to support services h. Provision of information and assistance in filing Unemployment Insurance claims; and, i. Assistance in establishing eligibility for programs of financial aid assistance for training and education programs not funded through WIOA. 2. Individualized Career Services: a. Comprehensive and specialized assessment of skill levels and service needs including: Diagnostic testing; and, other assessment tools; b. In-depth interview and evaluation to determine barriers and goals; c. Development of Individual Employment Plan (IEP) to identify goals, objectives, and services; d. Group counseling; e. Individual counseling; f. Career planning; g. Short-term pre -vocational services, including: development of learning skills; communication skills; and, other soft skills to prepare individuals for employment or training; 0 City Council 4-8 7/15/2025 Exhibit 1 h. Workforce preparation activities, including: basic academic; and, obtaining other skills necessary for successful transition into postsecondary education, training or employment; i. Financial literacy services; and, j. Out -of -area job search assistance and relocation assistance. 3. Trams Services: a. Occupational skills training; b. On -the -Job training; c. Incumbent worker training; d. Programs that combine workplace training with related instruction, which may include cooperative education programs; e. Training programs operated by the private sector; f. Skill upgrading and retraining; g. Entrepreneurial training programs; h. Transitional jobs; i. Job readiness training provided in combination with any of the aforementioned training Services; j. Adult education and literacy activities, including: activities of English language acquisition; and, integrated education and training programs provided concurrently or in combination with any of the aforementioned training services; k. Customized training; 1. Internships and work experiences that are linked to careers; and, m. English language acquisition and integrated education and training program. 4. Employer Services: a. Recruitment and other business services on behalf of employers. C. SYSTEM STRUCTURE 1. AJCC ONE -STOP OPERATOR PROCUREMENT The SAWDB will procure the AJCC Operator through a competitive process in accordance with the Uniform Guidance Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200 (Uniform Guidance), including the Office of Management and Budget's (OMB) approved exceptions for the U.S. Department of Labor at 2 CFR part 2900, WIOA and its implementing regulations, and local procurement laws and regulations. All documentation for the competitive AJCC operator procurement will be available for public inspection. The State requires that the AJCC operator is re -competed at least every three years and no later than every four years. 2. ROLES AND RESPONSIBILITIES OF PARTIES a. Provision of Applicable Career Services and Participation in Planning and Development: The parties to this MOU will work closely together to ensure that the AJCC is a high -performing work place with staff that ensure quality of service. The AJCC Partner has indicated they shall provide an array of applicable career services to clients as set forth in the Santa Ana AJCC Partner City Council 4-9 7/15/2025 Exhibit 1 Services. The AJCC Partner agrees to the responsibilities required of all Partners under WIOA Section 121(b). In addition, the AJCC Partners will participate in joint planning, plan development, and modification of activities to accomplish the following: i. Continuous partnership building; ii. Continuous planning in response to state and federal requirements; and, iii. Responsiveness to local and economic conditions, including employer needs. Parties agree to the co -enrollment of mutual customers in case management to better leverage the resources available for the benefit of the participant and enhance successful outcomes and participate in the operation of the one -stop system consistent with the terms of the MOU and requirements of authorized laws. Both parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or behavior that requires police intervention. Parties agree to collaborate and reasonably assist each other in the development of necessary service delivery protocols for the services outlined in this MOU. Parties agree that the provisions contained herein are made subject to all applicable federal and state laws, implementing regulations, and guidelines imposed on either or all the parties relating to privacy rights of customers, maintenance of records, and other confidential information relating to customers. Parties agree that all equipment and furniture purchased by any party for purposes described herein shall remain the property of the purchaser after the termination of this MOU. b. Parties shall comply with: i. Section 188 of the WIOA Nondiscrimination and Equal Opportunity Regulations (29 CFR Part 38; Final Rule, published December 2, 2016); ii. Title VI and VII of the Civil Rights Act of 1964 (Public Law 88-352), as amended; iii. Section 504 of the Rehabilitation Act of 1973, as amended; iv. The Americans with Disabilities Act of 1990, as amended; V. The Jobs for Veterans Act (Public Law 107-288) pertaining to priority of service in programs funded by the U.S. Department of Labor; vi. Training and Employment Guidance Letter (TEGL) 37-14, Update on Complying with Nondiscrimination Requirements: Discrimination Based on Gender Identity, Gender Expression and Sex Stereotyping are Prohibited Forms of Sex Discrimination in the Workforce Development System and other guidance related to implementing WIOA sec. 188; vii. The Non-traditional Employment for Women Act of 1991; viii. The Age Discrimination Act of 1967, as amended; City Council 4 — 10 7/15/2025 Exhibit 1 ix. The Age Discrimination Act of 1975, as amended; X. Title IX of the Education Amendments of 1972, as amended; xi. The Family Educational Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR part 99); xii. Title IX of the Education Amendments of 1972, as amended; xiii. Confidentiality requirements governing the protection and use of personal information held by the VR agency (34 CFR 361.38); xiv. The confidentiality requirements governing the use of confidential information held by the State UI agency (20 CFR part 603); and, xv. All amendments to each, and all requirements imposed by the regulations issued pursuant to these acts. The Parties agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or activity that requires policy intervention. 8) COLLOCATED AJCC PARTNER RESPONSIBILITIES Partner commits to collocation of staff, as appropriate, and to providing other professional learning opportunities that promote continuous quality improvement. Partner will further promote system integration to the maximum extent feasible through: a. Effective communication, information sharing, and collaboration with the AJCC operator; b. Joint planning, policy development, and system design processes; c. Commitment to the joint mission, vision, goals, strategies, and performance measures; d. The design and use of common intake, assessment, referral, and case management processes; e. The use of common and/or linked data management systems and data sharing methods, as appropriate; f. Leveraging of resources, including other public agency and non-profit organization services; g. Participation in a continuous improvement process designed to boost outcomes and increase customer satisfaction; and h. Participation in regularly scheduled Partner meetings to exchange information in support of the above and encourage program and staff integration. 7 City Council 4 —11 7/15/2025 Exhibit 1 Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. 9) REFERRALS The primary principle of the referral system is to provide integrated and seamless delivery of services to workers, job seekers, and employers. In order to facilitate such a system, Partners will ensure and agree to: a. Familiarize themselves with the basic eligibility and participation requirements, as well as with the available services and benefits offered, for each of the Partners' programs represented in the AJCC network; b. Develop materials summarizing their program requirements and making them available for Partners and customers; c. Develop and utilize common intake, eligibility determination, assessment, and registration forms, as appropriate; d. Provide substantive referrals to customers who are eligible for supplemental and complementary services and benefits under Partner programs; e. Regularly evaluate ways to improve the referral process, including the use of customer satisfaction surveys; f. Commit to robust and ongoing communication required for an effective referral process; g. Commit to actively follow up on the results of referrals and assuring that Partner resources are being leveraged at an optimal level; h. Ensure that intake and referral processes are customer -centered with the intent to provide high quality customer service; i. Ensure that general information regarding AJCC programs, services, activities, and resources shall be made available to all customers as appropriate; j. Ensure that referrals will be made via email or other electronic means; k. Ensure that referrals will include a direct link or access to other AJCC Partner staff that can provide meaningful information or service, through the use of co -location, or real-time technology (two-way communication and interaction with AJCC Partners that results in services needed by the customer); and, 1. Ensure that the referral process will include specific staff name, the activity required, desired outcome and a method for communicating back to the referring agency that the service need was addressed. M City Council 4 — 12 7/15/2025 Exhibit 1 10) SUPERVISION/DAY TO DAY OPERATIONS a. Day -to -Day Supervision The day-to-day supervision of staff assigned to the AJCCs will be the responsibility of the site supervisor(s). Partner will continue to set the priorities of its staff assigned to the AJCC. Changes in work assignments or concerns regarding the responsibilities of the parties are to be handled between the site supervisor and Partner management. b. Santa Ana WORK Center Hours of Operation The SAWC is open for business: Monday through Friday from 8:00 am until 5:00 pm. c. Partner Staff Office Hours The office hours for Partner staff at the AJCC will be established by the Partner. All Partner staff will comply with their corresponding holiday schedule and will provide a copy of their holiday schedule to the SAWDB and SAWC at the beginning of each fiscal year. d. Building Accessibility All Partner staff assigned to the SAWC will be issued an access card to SAWC suite 200 and a parking lot pass that allows them to enter and exit the parking lot. It is all individual staff s responsibility to keep them secure. Should they damage or lose them they can be replace by the SAWDB at the expense of the individual agency staff. e. Benefits Each party shall be solely liable and responsible for providing to, or on behalf of, its employee(s), all legally -required employee benefits. In addition, each party shall be solely responsive and hold all other parties harmless from all matters relating to payment of each party's employee(s), including compliance with social security withholding, workers' compensation, and all other regulations governing such matters. 11) AJCC OPERATING BUDGET The purpose of this section is to establish a financial plan, including terms and conditions, to fund the services and operating costs of the local AJCC. The parties to this MOU agree that joint funding is a necessary foundation for an integrated service delivery system. The goal of the operating budget is to develop a funding mechanism that: a. Establishes and maintains the Local workforce delivery system at a level that meets the needs of the job seekers and businesses in the Local area; b. Reduces duplication and maximizes program impact through the sharing of services, resources, and technologies among Partners (thereby improving each program's effectiveness); E City Council 4 — 13 7/15/2025 Exhibit 1 c. Reduces overhead costs for any one Partner by streamlining and sharing financial, procurement, and facility costs; d. Ensures that costs are appropriately shared by AJCC Partners by determining contributions based on the proportionate use of the AJCC centers and relative benefits received, and requiring that all funds are spent solely for allowable purposes in a manner consistent with the applicable authorizing statutes and all other applicable legal requirements, including the Uniform Guidance; and, e. All parties will meet and confer regarding replacement, acquisition, cleaning and maintenance of furnishings. The parties consider this AJCC operating budget the master budget that is necessary to maintain the SAWDB's high -standard AJCC. It includes the following cost categories, as required by WIOA and its implementing regulations: a. Infrastructure costs (also separately outlined below in the Infrastructure Funding Agreement); b. Career services; and Shared services. All costs must be included in the MOU, allocated according to the AJCC Partner's proportionate use and relative benefits received, reconciled every six (6) months against actual costs incurred, and adjusted accordingly. The AJCC operating budget is expected to be transparent and negotiated among Partners on an equitable basis to ensure costs are shared appropriately. All Partners must negotiate in good faith and seek to establish outcomes that are reasonable and fair. All Partners must adhere and reference the rules and regulations included in the executed Office Lease, attached hereto as Attachment 5 and incorporated herein by reference. 12) INFRASTRUCTURE FUNDING AGREEMENT The Infrastructure Funding Agreement ("IFA") contains the infrastructure costs budget that is an integral component of the overall AJCC operating budget. The IFA is a mandatory component of the local MOU, described in WIOA sec. 121(c) and 20 CFR 678.500 and 678.755. The IFA contains the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget, included herein as Attachment 3 and incorporated herein by reference, that is an integral component of the overall AJCC operating budget. The other component of the IFA is the Applicable Career Services, attached herein as Attachment 3-1 and incorporated herein by reference, which includes the shared operating costs and shared services. The overall AJCC operating budget includes the Comprehensive Cost Allocation and Partner Contributions, attached herein as Attachment 4 and incorporated herein by reference. AJCC infrastructure costs are defined as non -personnel costs that are necessary for the general operation of the AJCC, including, but not limited to: a. Rental of the facilities; b. Utilities, maintenance and services; 10 City Council 4 — 14 7/15/2025 Exhibit 1 c. Equipment, including assessment -related products and assistive technology for individuals with disabilities; and, d. Technology to facilitate access to the AJCC, including technology used for the center's planning and outreach activities. Any changes to AJCC Partners or an appeal by an AJCC Partner's infrastructure cost contributions will require an amendment of the MOU. 13) COST ALLOCATION METHODOLOGY The purpose of this infrastructure cost sharing methodology is to summarize, in writing, the methods and procedures that the SAWDB will use to share costs with the AJCC Partner. The AJCC Partner agrees that it will be charged on a monthly basis according to the following cost sharing methodology, and that monthly payment will be submitted within the first ten (10) calendar days of each month. 14) INFRASTRUCTURE COST ALLOCATION METHODOLOGY a_ Rent C ostc: Rent costs shall be based on the base rent and common area maintenance (CAM) charges. The base rent is derived from the total assigned square footage, calculating the percentage of usage by AJCC Partner and applying that percentage to the common area square footage. Assigned square footage plus the percentage of common area square footage equals total square footage for each AJCC Partner. Total square footage for each AJCC Partner multiplied by the base rent per square foot equals total base rent for each AJCC Partner as indicated in the AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget and the Comprehensive Cost Allocation and Partner Contributions. The base rent has an annual increase of no more than 3% over the ten-year life of the Office Lease document (Attachment 5 attached herewith and incorporated herein by reference). b. Utilities, Maintenance and Services: This section includes telephone services, which includes voice -mail on AJCC Partners' phones. Costs for staff phones are charged based on the AJCC Partner's assigned space. Common area phones will be charged according to space allocation. Security guard services are also included in this section and are allocated based on the percentage of space usage. Security guard services will increase by approximately 5% annually. c_ Equipment: Public computer are shared and available to all clients. These are allocated on the AJCC partner's assigned space percentage. dd_ Te�� and Internet Access C'nst..c: Cost of printers and copiers for common use that are connected to the internet, and other technology that may become necessary for shared use are allocated based on the AJCC partners percentage of space usage. 15) INFRASTRUCTURE CONTRIBUTIONS The AJCC Partner may provide cash, non -cash (in- kind), and third -party in -kind contributions to cover its share of infrastructure costs. In -kind contributions cannot be used to fund non - infrastructure costs (such as personnel), and must be valued consistent with Uniform Guidance Section 200.306 to ensure such contributions are fairly evaluated and qualify for the AJCC 11 City Council 4 — 15 7/15/2025 Exhibit 1 Partner's proportionate share. If third -party in -kind contributions are made to support the AJCC as a whole (such as facility space), that contribution will not count toward the AJCC Partner's proportionate share of the infrastructure. Rather, the value of the contribution will be applied to the overall infrastructure budget prior to determining proportionate amounts and thereby reduce the contribution required for all AJCC Partners. a. Cash Cash funds provided to the SAWDB, or its designee, by AJCC Partners, either directly or by an interagency transfer, or by a third party. b. Non -Cash Expenditures incurred by AJCC Partners on behalf of the AJCC; and Non -cash contributions or goods or services contributed by a Partner program and used by the AJCC. c. Third party In -kind Contributions of space, equipment, technology, non -personnel services, or other like items to support the infrastructure costs associated with AJCC operations, by a non-AJCC Partner to: Support the AJCC in general; or, Support the proportionate share of AJCC infrastructure costs of a specific Partner [20 CFR 678.720; 20 CFR 678.760; 34 CFR 361.720; 34 CFR 361.760; 34 CFR 463.720; and 34 CFR 463.760]. 16) OTHER AJCC DELIVERY SYSTEM COSTS In compliance with WIOA Joint Rule Section 678.760, the AJCC Partners will use a portion of funds made available under their authorizing federal statute (or fairly evaluated in -kind contributions) to share the additional costs relating to the operation of the One -Stop delivery system. These costs may be shared through cash, non -cash, or third -party in -kind contributions. As required by WSD18-12, the amount of funds that the AJCC Partner has budgeted to expend on applicable career services and other shared services, which cumulatively with the other AJCC Partners budgeted amounts shall form the Comprehensive Cost Allocation and Partner Contributions. a. Career Services Applicable to the AJCC Partner The AJCC Partner shall provide applicable career services to clients as set forth in the Santa Ana AJCC Partner Services. The agreed upon Applicable Career Services Budget is set forth in Attachment 3-1 attached hereto and incorporated herein by reference. This budget consists of the AJCC Partner's costs for the service delivery of each applicable career service indicated in the Santa Ana AJCC Partner Services. b. Required Consolidated Budget for the Delivery of "Applicable Career Services" The other system costs budget must be a consolidated budget for applicable career services. This budget must include each of the Partner's costs for the service delivery of each applicable career service and a consolidated system budget for career services applicable to more than one Partner as indicated in the Comprehensive Cost Allocation and Partner Contributions. 12 City Council 4 — 16 7/15/2025 Exhibit 1 AJCC Partners understand that while only collocated Partners share infrastructure costs, at this time, all AJCC Partners must share in other System costs through non -cash (in -kind) contributions as set forth herein. 17) DATA SHARING City/SAWDB is required to maintain policies and procedures for safeguarding PII. The provision also requires training for the vendor/partner. Parties agree that the use of high -quality, integrated data is essential to inform decisions made by policymakers, employers, and job seekers. Additionally, it is vital to develop and maintain an integrated case management system, as appropriate, that informs customer service throughout customers' interaction with the integrated system and allows information collected from customers at intake to be captured once. Parties further agree that the collection, use, and disclosure of customers' personally identifiable information (PII) is subject to various requirements set forth in Federal and State privacy laws. Partners acknowledge that the execution of this MOU, by itself, does not function to satisfy all of these requirements. All data, including customer PII, collected, used, and disclosed by Partners will be subject to the following: a. Customer PII will be properly secured in accordance with the SAWDB's policies and procedures regarding the safeguarding of PII; b. The collection, use, and disclosure of customer education records, and the PII contained therein, as defined under FERPA, shall comply with FERPA and applicable State privacy laws; c. All confidential data contained in Unemployment Insurance wage records must be protected in accordance with the requirements set forth in 20 CFR part 603; d. All personal information contained in Vocational Rehabilitation records must be protected in accordance with the requirements set forth in 34 CFR 361.38; e. Customer data may be shared with other programs, for those programs' purposes, within the AJCC network only after the informed written consent of the individual has been obtained, where required; f. Customer data will be kept confidential, consistent with Federal and State privacy laws and regulations; and, g. All data exchange activity will be conducted in machine readable format, such as HTML or PDF, for example, and in compliance with Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794 (d)). All AJCC and Partner staff will be trained in the protection, use, and disclosure requirements governing PII and any other confidential data for all applicable programs, including FERPA- 13 City Council 4 — 17 7/15/2025 Exhibit 1 protected education records, confidential information in UI records, and personal information in VR records. 18) CONFIDENTIALITY There are strict confidentiality requirements under State and Federal laws. All parties expressly agree to abide by all applicable Federal, State, and local laws and regulations regarding confidential information, including PII from educational records, such as but not limited to 20 CFR Part 603, 45 CFR Section 205.50, 20 USC 1232g and 34 CFR part 99, and 34 CFR 361.38, as well as any applicable State and local laws and regulations. Each parry will ensure that the collection and use of any information, systems, or records that contain PII and other personal or confidential information will be limited to purposes that support the programs and activities described in this MOU and will comply with applicable law. Each party will ensure that access to software systems and files under its control that contain PII or other personal or confidential information will be limited to authorized staff members who are assigned responsibilities in support of the services and activities described herein and will comply with applicable law. Each party expressly agrees to take measures to ensure that no PII or other personal or confidential information is accessible by unauthorized individuals. To the extent that confidential, private, or otherwise protected information needs to be shared amongst the parties for the parties' performance of their obligations under this MOU, and to the extent that such sharing is permitted by applicable law, the appropriate data sharing agreements will be created and required confidentiality and ethical certifications will be signed by authorized individuals. With respect to confidential unemployment insurance information, any such data sharing must comply with all of the requirements in 20 CFR Part 603, including but not limited to requirements for an agreement consistent with 20 CFR 603.10, payments of costs, and permissible disclosures. With respect to the use and disclosure of FERPA-protected customer education records and the PII contained therein, any such data sharing agreement must comply with all of the requirements set forth in 20 U.S.C. § 1232g and 34 CFR Part 99. With respect to the use and disclosure of personal information contained in VR records, any such data sharing agreement must comply with all of the requirements set forth in 34 CFR 361.38. 19) PRESS RELEASES AND COMMUNICATIONS All parties shall be consulted and notified prior to communicating with the press, television, radio or any other form of media regarding its duties or performance under this MOU. Participation of each party in press/media presentations will be determined by each parry's public relations policies. The parties agree to utilize the AJCC logo developed by the State of California and the SAWDB on buildings identified for AJCC usage. 14 City Council 4 — 18 7/15/2025 Exhibit 1 20) ACCESSIBILITY Accessibility to the services provided by the AJCCs and all Partner agencies is essential to meeting the requirements and goals of the local AJCC network. Job seekers and businesses must be able to access all information relevant to them via visits to physical locations as well as in virtual spaces, regardless of gender, age, race, religion, national origin, disability, veteran's status, or on the basis of any other classification protected under state or federal law. 21) NON-DISCRIMINATION AND EQUAL OPPORTUNITY All parties to this MOU certify that they prohibit, and will continue to prohibit, discrimination, and they certify that no person, otherwise qualified, is denied employment, services, or other benefits on the basis of: (i) political or religious opinion or affiliation, marital status, sexual orientation, gender, gender identification and/or expression, race, color, creed, or national origin; (ii) sex or age, except when age or sex constitutes a bona fide occupational qualification; or (iii) the physical or mental disability of a qualified individual with a disability. 22) GRIEVANCES AND COMPLAINTS PROCEDURE City is required to maintain a procedure for grievance and complaints per the WIOA. The AJCC Partner agrees to establish and maintain a procedure for grievance and complaints as outlined in WIOA. The process for handling grievances and complaints is applicable to customers and Partners. These procedures will allow the customer or entity filing the complaint to exhaust every administrative level in receiving a fair and complete hearing and resolution of their grievance. The Partner further agrees to communicate openly and directly to resolve any problems or disputes related to the provision of services in a cooperative manner and at the lowest level of intervention possible. All Partners agree to inform each other immediately when a customer violates an established policy that would require them to be banned from the center or involves police authorities. 23)AMERICAN'S WITH DISABILITIES ACT AND AMENDMENTS COMPLIANCE The AJCC Partner agrees to ensure that the policies and procedures as well as the programs and services provided at the AJCC are in compliance with the Americans with Disabilities Act ("ADA") and its amendments. Additionally, the SAWDB and the AJCC Partners will ensure that policies and procedures established by the SAWDB and the AJCC Partners are in compliance with the ADA. 24) HOLD HARMLESS/INDEMNIFICATION/LIABILITY In accordance with provisions of Section 895.4 of the California Government Code, each signatory hereby agrees to indemnify, defend and hold harmless all other signatories identified in this MOU from and against any and all claims, demands, damages and costs arising out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. In addition, except for Departments of the State of California which cannot provide for indemnification of court costs and attorney's fees under the indemnification policy of the State of California, all signatories to this MOU agree to indemnify, defend and hold harmless each other from and against all court costs and attorney's fees arising 15 City Council 4 — 19 7/15/2025 Exhibit 1 out of or resulting from any negligent acts or omissions which arise from the performance of the obligations by such indemnifying party pursuant to this MOU. It is understood and agreed that all indemnity provided herein shall survive the termination of this MOU. 25) SEVERABILITY If any part of this MOU is found to be null and void or is otherwise stricken, the rest of this MOU shall remain in force. 26) DRUG AND ALCOHOL -FREE WORKPLACE All parties to this MOU certify they will comply with the Drug -Free Workplace Act of 1988, 41 U.S.C. 702 et seq., and 2 CFR part 182 which require that all organizations receiving grants from any Federal agency maintain a drug -free workplace. The recipient must notify the awarding office if an employee of the recipient is convicted of violating a criminal drug statute. Failure to comply with these requirements may be cause for suspension or debarment under 2 CFR part 180, as adopted by the U.S. Department of Education at 2 CFR 3485, and the U.S. Department of Labor regulations at 29 CFR part 94. 27) CERTIFICATION REGARDING LOBBYING All parties shall comply with the Byrd Anti -Lobbying Amendment (31 U.S.C. Sectionl352), 29 C.F.R. Part 93, and 34 CFR part 82, as well as the requirements in the Uniform Guidance at 2 CFR 200.450. The parties shall not lobby federal entities using federal funds and will disclose lobbying activities as required by law and regulations. 28) DEBARMENT AND SUSPENSION All parties shall comply with the debarment and suspension requirements (E.0.12549 and12689) and 2 CFR part 180 and as adopted by the U.S. Department of Labor at 29 CFR part 2998 and by the U.S. Department of Education at 2 CFR 3485. 29) PRIORITY OF SERVICE All parties certify that they will adhere to all statutes, regulations, policies, and plans regarding priority of service, including, but not limited to, priority of service for veterans and their eligible spouses, and priority of service for the WIOA title I Adult program, as required by 38 U.S.C. sec. 4215 and its implementing regulations and guidance, and WIOA sec. 134(c)(3)(E) and its implementing regulations and guidance. Partners will target recruitment of special populations that receive a focus for services under WIOA, such as individuals with disabilities, low-income individuals, basic skills deficient youth, and English language learners. 30) BUY AMERICAN PROVISION Each party that receives funds made available under title I or II of WIOA or under the Wagner- Peyser Act (29 U.S.C. Section 49, et. seq.) certifies that it will comply with Sections 8301 through 8303 of title 41 of the United States Code (commonly known as the "Buy American Act.") and as referenced in WIOA Section 502 and 20 CFR 683.200(f). 16 City Council 4 — 20 7/15/2025 Exhibit 1 31) SALARY COMPENSATION AND BONUS LIMITATIONS Each party certifies that, when operating grants funded by the U.S. Department of Labor, it complies with TEGL 05-06, Implementing the Salary and Bonus Limitations in Public Law 109- 234, TEGL 17-15, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2017; Final PY 2017 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments; and Workforce Information Grants to States Allotments for PY 2017, Public Laws 114-113 (Division H, title I, Section 105) and 114-223, and WIOA section 194(15)(A), restricting the use of federal grant funds for compensation and bonuses of an individual, whether charged to either direct or indirect, at a rate in excess of the Federal Office of Personnel Management Executive Level II. 32) TERMINATION This MOU will remain in effect until the end date specified in section 4 above, unless: a. Federal oversight agencies charged with the administration of WIOA are unable to appropriate funds or if funds are not otherwise made available for continued performance for any fiscal period of this MOU succeeding the first fiscal period. Any parry unable to perform pursuant to MOU due to lack of funding shall notify the other parties as soon as the party has knowledge that funds may be unavailable for the continuation of activities under this MOU; b. WIOA is repealed or superseded by subsequent federal law; c. Local area designation is changed under WIOA; and, d. A party breaches any provision of this MOU and such breach is not cured within thirty (30) days after receiving written notice from the SAWDB Chair (or designee) specifying such breach in reasonable detail. In such event, the non -breaching party(s) shall have the right to terminate this MOU by giving written notice thereof to the parry in breach, upon which termination will go into effect immediately. In the event of termination, the parties to the MOU must convene within thirty (30) calendar days after the breach of the MOU to discuss the formation of the successor MOU. At that time, allocated costs must be addressed. This MOU is of no force or effect until signed by authorized representatives of the participating parties, and approved by the Chief Local Elected Official or his/her designee. The MOU, once signed, becomes part of the local WIOA Plan. Any parry may withdraw from this MOU by giving written notice of intent to withdraw at least thirty (30) calendar days in advance of the effective withdrawal date. If agreed to by all parties, the timeframes for notice may be reduced or extended. Notice of withdrawal shall be given to the SAWDB at the address listed in the signed attachments of this MOU, and to the contact person so listed, considering any information updates received by the parties, a courtesy notification shall be made to all parties of this MOU in a timely manner. 33) NOTICES All notices, requests, claims, correspondence, reports, statements authorized or required by this Agreement, and/or other communications shall be addressed as follows: 17 City Council 4 — 21 7/15/2025 Exhibit 1 City of Santa Ana: City of Santa Ana Administration Services 801 W. Civic Center Dr., Suite 200 Santa Ana, CA 92701 Partner: Santa Ana Housing Authority Attn: Housing Manager 20 Civic Center Plaza M-25 Santa Ana, CA 92701 34) INSURANCE The AJCC Partners agree that their current in force insurance or self-insurance coverage programs shall apply to their operations performed under the Workforce Innovation Opportunity Act and at the SAWC, including commercial general liability, business personal property, workers' compensation and employee dishonesty/crime coverages. The City of Santa Ana shall be named as additional insured for such insurance by endorsement, to the commercial general liability and employee dishonesty/crime insurance policies and the coverage shall be primary and non- contributory with regard to the City. 35) AUTHORITY AND SIGNATURES The individuals signing this MOU and its attachments, which are incorporated herein by reference, have the authority to commit the party they represent to the terms of this MOU, and do so commit by signing. Attachment 1: AJCC Partners Location and Map Attachment 2: Santa Ana AJCC Partner Services Attachment 3: AJCC Comprehensive Infrastructure Budget, and Other System Cost Budget Attachment 3-1: Applicable Career Services Attachment 4: Comprehensive Cost Allocation and Partner Contributions Attachment 5: Office Lease City Council 4 — 22 7/15/2025 Exhibit 1 IN WITNESS Wl IERLOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Jennifer L. Hall City Cleric APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney Andrea Garcia -Miller Assistant City Attorney CITY OF SANTA ANA Alvaro Nunez City Manager RECOMMENDED FOR APPROVAL: Michael L. Garcia Executive Director Community Development Agency FOR SANTA ANA WORKFORCE DEVELOPMENT BOARD orkforce Vopeht Board Chair FOR AMERICA'S JOB CENTER OF CALIFORNIA PARTNER Santa Ana Housing Authority AJCC Partner _Z Michael L. Garcia Date Executive Director Community Development Agency 20 Civic Center Plaza M-25, Santa Ana, CA 92701 Address 19 City Council 4 — 23 7/15/2025 Exhibit 1 Attachment 1 AJCC Partners Location and Map Partner Program Partner Authorization/Category Physically Organization Co -Located Title I Adult, Dislocated City of Santa Ana Workers and Youth WIOA Title I Adult, Dislocated Workers, Youth Yes Programs programs Rancho Santiago WIOA title II Adult Education and Family Adult Education/ Community College Literacy Act (AEFLA) program Career and technical education (CTE) Literacy and Carl Perkins District Career Technical programs at the postsecondary level, No Education authorized under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) Wagner-Peyser Employment WIOA title III Wagner-Peyser Employment Development Services, authorized under the Wagner-Peyser Yes Department (EDD) Act 29 U.S.C. 49 et se also providing the ( q•)- p g state's public labor exchange. Employment Veterans Development Jobs for Veterans State Grants (JVSG), Yes Department (EDD) authorized under chapter 41 of title 38, U.S.C. Employment Trade Adjustment Assistance (TAA), Trade Act Development authorized under chapter 2 of title II of the Yes Department (EDD) Trade Act of 1974 (19 U.S.C. 2271et seq.) Unemployment Employment Insurance (UI) Development Unemployment Insurance (UI) programs under No Department (EDD) state unemployment compensation laws. State Department of WIOA title IV State Vocational Rehabilitation Vocational Rehabilitation program authorized under title I of the Yes Rehabilitation Services Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) Temporary Assistance Social Service Temporary Assistance for Needy Families for Needy Families Agency -Family Self- (TANF), authorized under part A of title IV of Yes (TANF) Sufficiency the Social Security Act (42 U.S.C. 601 et seq.) Senior Aid Program Senior Community Service Employment Senior Aid Program Regions II & III Program (SCSEP), authorized under title V of Yes SER-Jobs for the Older Americans Act of 1965 (42 U.S.C. Progress, Inc. 3056 et seq.) Job Corps Long Beach Job Corps WIOA Title I C, Jobs Corps No Native American United American Indian Indian and Native American Programs (Section Programs Involvement, Inc. 166) No Housing & Urban Santa Ana Housing Housing & Urban Development (HUD) Development Authority Yes Adult Demonstration Orange County Reentry Employment Opportunities (EO) Sheriff's Department programs authorized under sec. 212 of the No Second Chance Act of 2007 (42 U.S.C. 17532) and WIOA sec. 169 City Council 4 — 24 7/15/2025 Exhibit 1 Attachment 1 AJCC Partners Location and Map ff V,- [� .A'LiiA Af. �f '' - 55 G40I GNNE ltl<. Joe � M Tii451( AY- SA1�A C1MA � SANER O ARA If►'. 1 r 1TTH 5Taqu. • . WASMcn N Nrr 3 . • x SiH Si • SANTA AIM IL lsr St ' I J r ►� t; 9 ❑ G � ELtt"R AV N V 5T. ANt]IEVr P1 z � � WAMB AV y 55 '*a Al SEGOWF M AUM AE MAClplittl� IL i+w 'r � a � � � m SUNELOWR a N Strata Atva WDwCenlar O Cantennial Adult Eduudan 2946 W. Edinger Ave. Stata Dapartrnant & © Rehabilitation lorg B: ach lab Corps 1903 Santa FQ kwa. Ammo's Job Cantor of Csliiornia Td9 The City Drive, Suits 110 lorx3 "dc CA qrA t C W1 W.GricCarrmr Dr. Santa Ana. CA927N Orargq CA 42868 Strata Ar►& CA92101 A9an Anwion Partners Sama Ana Col6ga 153r3 W. 1 Ttft St Social Services Agavty 1928 S. Grand Arne. g Some, Canto N. SL asoni 6nownwd Dbvalopr-ant Dw rt—re Santa Ana. U 927oo Sarta Arai. CA 927M AnaRrc. Sancta Ana. U 9I701 SarA 51ata Dopartntant of Rehabrlitabon O.0 5odW Srrvices Agency Goadrrrll Industries Colkwp 3 Wbrkforca Pr rabvr Cantor spa aulbopVallay High Sdwol 1 ism S Greartrilla Rxnington Education Cantu 1 13Zs L sllt St. SEWSankw Aid Prograrn � :/ Santa And U 92 Tn 1 1572 N. ilAiin S2. Santa Ma. U 927D4 Laatnalik Oranip, CA 92867 City Council tta mtrLt 15 7/15/2025 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 SANTA ANA AJCC Partner Services Service Partner Name Entity/Program Career Training Employer Delivery Method Title I Adult, DW, Youth City of Santa Ana 1, 2, 3, 4, 6, 7, 8, 10, 11, 12, 13, 14, 15, 1 2 5 7 9 1 2 3 4 5 6 7 8 FT T B P O , 16,17 Rancho Santiago Adult Education/ Literacy Community College 2, 3, 12, 14-15, 17 1,8 B, P, O District Employment Development Wagner-Peyser Department (EDD) 1" " " ' 2 3 4 5 6 8 9 10 17 2 3 416 7 8 1" ' FT PT T A B P V " ' Veterans (Jobs for Veterans Employment Development 1,2,3,4,5,6,8,9,10,11, State Grant) Department (EDD) 12,13,14,15,16,17 1 2 3 4 ,6,7 FT,T,A,B,P,V Trade Act (Trade Adjustment Employment Development Current program is expired Assistance) Department (EDD) Unemployment Compensation Employment Development 1,9 8 T,A,B Department (EDD) State Department of 1, 2, 3, 4, 5, 6, 7, 8, 11, 12, 13, 14, 15, DOR Eligible: 1, 1, 2, 4 DOR PT, FT Vocational Rehabilitation Rehabilitation 16,17 2, 3, 4, 5, 6, 7, Eligible: 3, 5, 8, 9, 8 Social Service Agency - TAN Family Self -Sufficiency Carl Perkins Career Technical Rancho Santiago Education Community College District Senior Aid Program Regions II & III SER-Jobs for 1, 2, 3, 4, 8, 10, 11, 12, 13, 15, 16 1, 2, 5, 7 PT, T, B Title V Older Americans Act Progress, Inc. Job Corps Long Beach Job Corps Native American Programs United American Indian (Section 166) Involvement, Inc. City Council 4 - 26 7/15/2025 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 Housing & Urban Development Housing Authority 11,2, 3, 4, 8, 10,13, 15,16,17 FT, B, P, O CAREER SERVICES: Basic Career Services (BCS) include self-help service services requiring minimal staff assistance and Individualized Career Services (ICS) requiring more staff involvement generally provided to individuals unable to find employment through basic career services, and deemed to be in need of more concentrated services to obtain employment; or who are employed but deemed to be in need of more concentrated services to obtain or retain employment that allows for self-sufficiency. 1. Eligibility Determination: This is the process of obtaining and documenting information about an individual's circumstances and comparing that information with the criteria set by an agency or program to decide if the individual qualifies for participation. 2. Outreach, Intake and Orientation: Outreach activities involve the collection, publication, and dissemination of information on program services available and directed toward jobless, economically disadvantaged, and other individuals. Intake is the process of collecting basic information, e.g., name, address, phone number, SSN, and all other required information to determine eligibility or ineligibility for an individual's program. Orientation, whether offered in a group setting, one-on-one, or electronically, is the process of providing broad information to customers in order to acquaint them with the services, programs, staff, and other resources at the Santa Ana Work Center, or its partner agencies. 3. Initial Assessment: For individuals new to the workforce system, initial assessment involves the gathering of basic information about skill levels, aptitudes, abilities, barriers, and supportive service needs in order to recommend next steps and determine potential referrals to partners or community resources. 4. Job Search, Placement Assistance, and Career Counseling: Job Search helps an individual seek, locate, apply for, and obtain a job. It may include but is not limited to: job finding skills, orientation to the labor market, resume preparation assistance; referrals to job openings, placement services, job search workshops, vocational exploration, and re-employment services such as orientation, skills determination, and pre -layoff assistance. Placement Assistance is a service that helps people to identify and secure paid employment. Career Counseling is a facilitated exploration of occupational and industrial information. 5. Employment Statistics -Labor Market Information: Collect and report data about employment levels, unemployment rates, wages and earnings, employment projections, jobs, training resources and careers; (LMI) 6. Eligible Provider performance and program Cost Information: Collect and provide information on: A. Eligible training service providers (described in WIOA Section 122) City Council 4 — 27 7/15/2025 2 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 B. Eligible youth activity providers (described in WIOA Section 123) C. Eligible adult education providers (described in WIOA Title II). D. Eligible postsecondary vocational educational activities and vocational educational activities available to school dropouts under the Carl Perkins Act (20 USC 2301). E. Eligible vocational rehabilitation program activities (described in Title I of the Rehabilitation Act of 1973). 7. Local Performance Information: Collect and provide information on the local area's recent performance measure outcomes. 8. Supportive Services' Information: Collect and provide information on services such as transportation, child care, dependent care, housing, and needs -related payments that are necessary to enable an individual to participate in employment and training activities. 9. Unemployment Compensation: Provide information on filing claims for state benefit payments that protect individuals from economic insecurity while they look for work. Claims may be filed on-line or via telephone available in the Santa Ana Work Center. 10. Eligibility Assistance: Provide guidance to individuals on eligibility for other programs and on financial aid assistance for training and education programs that are available in the local area. 11. Follow -Up Services: Services provided to participants who are placed in unsubsidized employment, for not less than 12 months after the first day of the employment. These services assist those individuals to maintain employment or qualify for promotions with that employment. 12. Comprehensive and Specialized Assessments: A closer look at the skills levels and service needs that may include: A. Diagnostic Testing and use of other assessment tools; and B. In-depth interviewing and evaluation to identify employment barriers and appropriate employment goals. 13. Individual Employment Plan Development: Working with individuals to identify their employment goals, the appropriate achievement objectives, and the appropriate combination of services that will help the individual achieve those goals. City Council 4 — 28 7/15/2025 3 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 14. Group Counseling 15. Individual Counseling and Career Planning 16. Case Management: For participants who receive training services under WIOA Section 134(d)(4). 17. Short -Term Prevocational Services: Can include development of learning skills, communication skills, interviewing skills, punctuality, personal maintenance skills, and professional conduct, to prepare individuals for unsubsidized employment or training. Training Services: Services offered through a training provider to help individuals upgrade their skills, earn degrees and certifications, or otherwise enhance their employability through learning and education. Types of training services include: 1. Occupational Skills Training: An organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields at entry, intermediate or advanced levels. 2. On -the -Job Training (OJT): Training by an employer that is provided to a paid participant while engaged in productive work that is limited in duration, provides knowledge or skills essential to the full and adequate performance of the job, and reimburses the employer for the costs associated with training the OJT trainee often calculated based on a percentage of the trainee's wages. 3. Workplace and cooperative education: Programs that combine workplace training with related instruction which may include cooperative education programs 4. Training programs operated by the private sector Skills upgrading and retraining: Courses that prepare persons for entrance into a new occupation through instruction in new and different skills demanded by technological changes. These courses train incumbent workers in specific skills needed by that business or industry and that lead to potential career growth and increased wages. This includes courses that develop professional competencies that are particularly relevant to a vocational/occupational goal. It must be demonstrated that the training will result in the workers' acquisition of transferable skills or an industry -recognized certification or credential. 6. Entrepreneurial training 7. Job -readiness training City Council 4 — 29 7/15/2025 4 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 8. Adult Education and Literacy programs: Services or instruction below the postsecondary level for individuals who are not enrolled or required to be enrolled in secondary school under state law and lack basic educational skills to enable the individuals to function effectively in society and on a job, Services include, but are not limited to, one-on-one instruction, coursework, or workshops that provide direction for the development and ability to read, write, and speak in English, compute, and solve problems, at levels of proficiency necessary to function in society or on the job, 9. Customized training: Training that is designed to meet the special requirements of an employer or group of employers and that is conducted with a commitment by the employer to employ an individual upon successful completion of the training and for which the employer pays for a portion of the cost of training. Employer Services: Santa Ana Work Center services offered to employers include: 1. Employer needs assessment: Evaluation of employer needs, particularly future hiring and talent needs. 2. Job posting: Receiving and filling of job openings; searching resumes; providing access to a diverse labor pool. 3. Applicant pre-screening: Assessing candidates according to the employer's requirements and hiring needs; referring candidates based on their knowledge, skills, and abilities relative to the employer requirements. 4. Recruitment assistance: Raising awareness of employers and job openings and attracting individuals to apply for employment at a hiring organization. Specific activities may include posting of employer announcements, provision of job applications, and hosting job fairs and mass recruitment. 5. Training assistance: Providing training resources to enable employers to upgrade employee skills, introduce workers to new technology, or to help employees transition into new positions. 6. Labor Market Information: Access to information on labor market trends, statistics, and other data related to the economy, wages, industries, etc. 7. Employer information and referral: Provision of information on topics of interest to employers such as services available in the community, local training providers, federal laws and requirements, tax information, apprenticeship 8. programs, human resource practices, alien labor certification, incentive programs such as WOTC or the federal bonding program, etc. 9. Rapid Response and Layoff Aversion: Provision of services to prevent downsizing or closure, or to assist during layoff events, Strategies may include incumbent worker training to avert lay-offs, financing options, employee ownership options, placement assistance, worker assessments, establishment of transition centers, labor- management committees, peer counseling, etc. City Council 4 — 30 7/15/2025 Exhibit 1 SANTA ANA AJCC Partner Services Attachment 2 Service Delivery Codes: How will your agency provide the services indicated? Code Method Description FT On -Site Staff Full Time PT On -Site Staff Part Time T Access Via Telephone A Access Via Automated System B Brochure/Handout P Posting at One -Stop Center O Other NA Not Applicable City Council 4 — 31 7/15/2025 Exhibit 1 Attachment 3 Santa Ana AJCC Comprehensive Infrastructure and Other Costs Budget 2025-2026 Cost Category/ Line Item Base Rent Cost Details Incl. Janitorial, Maint and Utilities CAM Charges Operational Cost 2% of Rent Management Fee 1.76% of Rent Parking Parking Overages Telephone Services Total Rent Dial Tone and Voice Mail Shared Phones by usage percentage Security Guard 1040 hrs x $30.18 1040 x $31.69 Equipment Public Computers Total Utilities/Maintenance Resource Room Computers (21) Computer Lab Computers (21) **Tech & Access Costs Access System/Card Total Equipment Key Card System Data & Phone Cabling Cabling Information Technology Cost Wireless Network Bridge Maintenance ***Copiers (Annual) Resource Room used by clients Copy room Copier for staff only Total Technology and Access Lease & Infrastructure Total SAHA 491.33 Sq Ft 2.54% Percentage Monthly st W Monthly Property Rent 1,224.95 Total Monthly Rent and Equipment Cost 1,224.95 41.53 41.53 38.15 38.15 $38.15 $1,266.48 $1,304.63 129.70 129.70 $129.70 $129.70 $0.00 $0.00 2.76 2.76 1.78 1.78 $4.54 $4.54 $172.39 $1,266.48 $1,438.87 ** Technology and Access Costs are all based on percentage Revised 5/28/2025 9:18 AM ***Copiers are leased equipment and are charged by percentage. Additional charge for usage will be calculated and charged City Council 4 — 32 7/15/2025 Exhibit 1 Attachment 3-1 Applicable Career Services Sharing Other One -Stop Delivery System Costs The budget must include "applicable career services" as well as any other shared costs agreed upon by the AJCC partners. While only co -located partners share infrastructure costs, all One -Stop partners must share in other system costs, including applicable career services. Required Consolidated System Budget for "Applicable Career Services" Summary of Career Services Applicable to Each AJCC Partner The MOU requires identification of the career services that are applicable to each partner program (Attachment 2). Accordingly, this budget includes each of the partner's costs for the service delivery of each applicable career service. Unlike infrastructure cost sharing, other system costs, including "Applicable Career Services" are not limited to the non -personnel costs and should include all costs related to the administration and delivery of those services. AJCC Applicable Career Services DOR Career Services: $589,069.89 • Eligibility Determination (1) • Outreach, Intake and Orientation (2) • Initial Assessment (3) • Job Search, Placement Assistance, and Career Counseling (4) • Employment statistics -Labor Market Information (5) • Eligible Provider performance and program Cost Information (6) • Local Performance Information (7) • Supportive Services' Information (8) • Unemployment Compensation(9) • Eligibility Assistance(10) • Follow -Up Services(11) • Comprehensive and Specialized Assessments(12) • Individual Employment Plan Development (13) • Group Counseling (14) • Individual Counseling and Career Planning (15) • Case Management (16) • Short -Term Prevocational Services (17) Training $2,356,279.58 • Occupational Skills Training (1) • On -the -Job Training (OJT) (2) • Workplace and cooperative education (3) • Training programs operated by the private sector (4) • Skills upgrading and retraining (5) • Entrepreneurial training (6) • Job -readiness training (7) • Adult Education and Literacy programs (8) • Customized training (9) City Council 4 — 33 7/15/2025 Exhibit 1 Attachment 3-1 Applicable Career Services Employer Services $0 • Employer needs assessment (1) • Job posting (2) • Applicant pre-screening (3) • Recruitment assistance (4) • Training assistance (5) • Labor Market Information (6) • Employer information and referral (7) • Rapid Response and Layoff Aversion (8) Total Career Service Cost $2,945,349.48 City Council 4 — 34 7/15/2025 Exhibit 1 Attachment Comprehensive Cost Allocation and Partner Contributions Partner Program Square Footage Paid for Based on Office Sharing / Payment Ratio of Total Square Footage Monthly Property Rent* CAM Charges Operational Cost and Management Fees Monthly Charges Monthly Rent + and Charges Amount: In- Kind Partner Contributions Yearly Career Services** EDD 9448.78 48.90% $ 23,556.90 $ 885.74 $ 6,371.95 $ 30,814.59 $ 2,542,122.41 Santa Ana WORK Center (City of Santa Ana) 5955.50 30.82% $ 14,847.73 $ 1,375.51 $ $ 5,147.23 $ 21,370.47 $ $ 1,947,477.00 Department of Rehabilitation 163.78 0.85% $ 408.32 $ 13.84 $ 118.42 $ 540.58 $ $ 2,945,349.48 Social Services Agency -Family Self -Sufficiency 868.97 4.50% $ 2,166.45 $ 199.29 $ 2,365.74 $ 1,235,907.20 Santa Ana Housing Authority 491.33 2.54% $ 1,224.95 $ 41.53 $ 172.39 $ 1,438.87 $ 202,860.00 SER Jobs for Progress 236.56 1.70% $ 816.64 $ 27.68 $ 236.87 $ 1,081.19 $ 12,397.50 Rent Stabilization Division 1737.52 8.99% $ 4,331.84 $ 146.86 $ 475.14 $ 4,953.84 $ Santa Ana Public Library 327.56 1.70% $ 816.64 $ 27.68 $ 132.74 $ 977.06 $ Community Action Partnership of OC Rancho Santiago Community College District Job Corps United American Indian Involvement, Inc. Total Rentable Space 19230.00 100.00% $ 48,169.47 1 $ 1,633.10 1 $ 885.74 $ 12,854.03 $ 63,542.34 $ $ 8,873,716.09 Revised 6/10/25 6:23:46 AM City Council 4 — 35 7/15/2025 INSURANCE NOT REQUIRED WORK MAY PROCEED CITY CLERK DATE: FIRST AMENDMENT TO OFFICE LEASE BETWEEN -LDA(,A�N) SANTA ANA CA I SGF, LLC AND THE CITY OF SANTA ANA (UebMr A-) Exhibit 1 A-2017-264-02A THIS FIRST AMENDMENT TO OFFICE LEASE (this "First Amendment'') is entered into as of -S,, a (.p, 2023 {the ``Effective Date") by and between SANTA ANA CA I SGF, LLC, a Delaware limited liability company ("Landlord'), and THE CITY OF SANTA ANA, a charter city and municipal corporation ("Tenant"). f WITNESSETH: WHEREAS, Landlord, as successor -in -interest to CF SANTANA, LLC, a Delaware limited liability company, and Tenant entered into that certain Office Lease No. A-2017-264 dated October 7, 2017, Tenant Estoppel Certificate No. A-2017-264-01 dated February 8, 2018, and Exhibit B Notice of Lease Term Dates No. A-2017-264-02 dated February 16. 2018 (hereinafter collectively referred to as the "Lease"), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord that certain premises identified as Suite 200 containing approximately 19321 rentable square feet of office space (the "Premises") in the building located at 801 Civic Center Drive, Santa Ana, CA 92701 (the `'Building"); WHEREAS, Landlord and Tenant desire to amend the Lease to set a new Term of the Lease, subject to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the aforesaid premises and the other agreements and covenants hereafter set forth and for other good and valuable consideration, the receipt of which is hereby acknowledged. the parties do hereby agree as follows: 1. Incorporation of Recitals. The above recitals are hereby incorporated into this First Amendment as if fully set forth herein. As used herein the term "Lease' shall mean the Lease as amended by this First Amendment. 2. Definitions. All capitalized terms used in this First Amendment shall have the meanings assigned to them in the Lease unless otherwise specified herein. 3. Term. The Initial Term as defined by Section 3, Basic Lease Provisions, of the Lease is hereby for a period of One Hundred Twenty (120) full calendar months, commencing on July 1, 2023 and expiring on June 30, 2033 (the "Term"). Tenant shall have the right to extend the Term for two (2) sixty (60) month periods, in accordance with Section 3.2.2, Standard Lease Provisions. of the Lease. 4. Base Rent. Commencing on July 1, 2023, Tenant shall pay Base Rent in the following amounts: Dates Annual Base Rent tvIonthly Installment of Base Rent Annual Rental Rate per RSF 7/l/2023 — 6/30/2024 $544,852.20 $45,404.35 $2.35 5910216.11 City Council 4 — 36 7/15/2025 Exhibit 1 7/l/2024 — 6/30/2025 $561,197.77 $46,766.48 $2.42 7/l/2025 — 6/30/2026 $578 033.70 $48,169.47 _ $2.49 7/l/2026 — 6/30/2027 $595 374.71 $49 614.56 $2.57 7/1/2027 — 6/30/2028 $613,235,95 $51,103.00 $2.64 7/1/2028 — 6/30/2029 $6311633.03 $52,636.09 $2.72 7/1/2029 -- 6/30/2030 $650 582.02 $54,215.17 $2.81 7/1/2030 — 6/30/2031 $670 099.48 $55,841.62 $2.89 7/1/2031 — 6/30/2032 $690,202.47 $57,51.6.87 $2.98 7/l/2032 — 6/30/2033 1 $710 908.54 $59,242.38 $3.07 5. Base Year. The "Base Year" is hereby amended to reflect calendar year 2023. 6. Subsection 14.1, Waiver of Liability and Indemnification, of the Standard Lease Provisions, is hereby amended as follows: Except to the extent caused by the gross negligence of Landlord or its agents, contractors or employees, Tenant hereby waives all claims and causes of action against Landlord and all of the other Landlord Parties for any damage to persons or property (.including; without limitation, loss of profits and intangible, property) in any way relating to Tenant's use and occupancy of the Premises from any cause whatsoever, including, without limitation fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks from any part the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or sub -surface or from any other place or caused by dampness, vandalism, malicious mischief. Tenant shall indemnify, defend, protect and :hold harmless Landlord and each of the Landlord Parties from and against any and all Claims that arise out of, are occasioned by or are in any way attributable to: (a) the use or occupancy of the Premises or any portion of the Project by Tenant, (b) the acts or omissions of"Tenant or any Tenant Party, (c) any default of this Lease by Tenant, or (d) any litigation or other proceedings between Tenant and any third party; provided that Tenant shall not be required to so indemnify, defend or hold Landlord or any of the other Landlord Parties harmless to the extent that any such Claims arise out of the gross negligence or willful misconduct of Landlord, its agents or employees. 7. Tenant JDVroyemetits. Landlord consents to (but does not require) "Tenant's completion of certain improvements to the Premises (collectively, the "Tenant Improvements"), subject to the terms and conditions of Exhibit A. attached hereto and made a part hereof. 8. As -Is Condition. Tenant accepts the Premises in its "AS -IS, WHERE -IS" condition as of the Effective Date, and Landlord makes no representation or warranty concerning the condition of the Leased Premises and has no obligation to construct, remodel, improve, repair, decorate or paint the Premises or any improvement on or a part of the Premises, except as may be otherwise set forth in the Lease. Tenant represents that (a) it has been in possession of the Premises pursuant to the Lease, (b) it has inspected the Premises prior to execution of this First Amendment, (c) it is not relying on any statement, representation or warranty of Landlord, its employees or agents, and (d) is fully satisfied with the condition of the Premises. 2 59102t6.1 City Council 4 — 37 7/15/2025 Exhibit 1 9. Parking. Section 2.3.2(c)(ii) is hereby deleted in its entirety and replaced with the following: "Notwithstanding the foregoing, each calendar month during the Term, Landlord shall provide to Tenant, without charge: (A) a number of Short Term Project Parking Validations (defined below) equal to the product of thirty (30) and the number of days in such calendar month (during the Term) and (B) a number of Long Term Project Parking Validations (defined below) equal to the product of one hundred eighty (180) and the number of days in such calendar month (during the Term), in each case to be used only by Tenant's Business Customers for parking in the Parking Facilities without charge, provided that (x) Landlord shall not, at any time during the 'Perm, be required under this Section 2.3.2(c)(ii) to provide a number of Project Parking Validations in any calendar month in excess of a number equal to the product of hvo hundred ten (210) and the number of days in such calendar month (during the Tenn) and (y) any Project Parking Validations provided by Landlord with respect to any particular calendar month that are not used during such calendar month. shall, at the election ofLandlord, either: (.1) become null and void (and be returned to Landlord) or (2) be credited against Landlord's obligations to provide Project Parking Validations under this Section 2.3.2(c)(ii) for subsequent calendar months. No Project Parking Validations provided by Landlord to Tenant under this Section 2.3.2(c)(E) shall be used to accommodate parking, without charge, by any particular Tenant's Business Customer(s), for a period in excess of three (3) hours on any day without Landlord's prior approval (and Tenant shall not provide any particular Tenant's Business Customer more than one Project Parking Validation on any particular day). "Short Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to twenty (20) minutes without charge. "Long Term Project Parking Validations" means Project Parking Validations permitting Persons using such Project Parking Validations to park in the Parking Facilities for up to one (1) hour without charge." 10. No Default. Each of Landlord and Tenant hereby affirm to each other that as of the Effective Date no breach, default, event of default, or other act, error, or omission which, with the giving of notice or passage of time or both would constitute a breach, default, or event of default by such party has occurred and is continuing under the Lease beyond any applicable notice or cure period. 11. Affirmation of -Lease Terms,. Except as modified by this First Amendment, Landlord and Tenant hereby ratify the Lease and agree that the Lease shall .remain unchanged and shall continue in full force and effect. In the event there is any conflict between the terms of the Lease and the terms set forth in this FirstAmendment, the terms specifically set out in this First Amendment shall control. From and after the Effective Date, any and all references to "the Lease" or "this Lease" in the Lease shall mean the Lease as modified by this First Amendment. 12. Mutual Authorization Representation. Each of Landlord and Tenant hereby represent and warrant to each other that: (a) this First Amendment (and each term and provision hereof) has been duly and appropriately authorized and executed by such party through proper written corporate or limited liability company action and approval; and (b) no additional consent, agreement, or approval is required with respect hereto. 591b2M11 City Council 4 — 38 7/15/2025 Exhibit 1 I3. Brokerage. Landlord and Tenant each represent that they had no dealings with any real estate broker, .finder, or other person with respect to this First Amendment in any manner, other than Lee & Associates Newport Beach, Inc. representing Tenant ("Tenant's Broker") and Newmark representing Landlord ("Landlord's Broker" and collectively with Tenant's Broker, the `Brokers"). Landlord shall pay Brokers a leasing commission in connection with this first Amendment pursuant to separate agreement. Tenant shall indemnify and hold Landlord harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or :fees claimed by any other real estate broker or agent in corniection with this First Amendment or its negotiation by reason of the act of Tenant. Landlord shall indemnify Tenant and hold Tenant harmless from any cost, expense or liability (including costs of suit and reasonable attorney's fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this First Amendment or its negotiation by reason of the act of Landlord. 14. Miscellaneous. The submission of an unsigned copy of this First Amendment to Tenant shall not constitute an offer. This First Amendment (a) shall be binding upon an inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and assigns, (b) may be executed in two or.more counterparts, all of which together shall constitute but one and the same agreement, (c) shall be governed by and construed in accordance with the laws of the State of California and 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 this Agreement, (d) shall constitute the entire agreement between the parties relating to the subject matter hereof, all prior negotiations, agreements, and understandings (not including the Lease, as amended), whether oral or written, being hereby superseded and terminated, and (e) shall become effective and binding only upon execution and delivery by both Landlord and Tenant. The execution of facsimiles, including the use of electronic signatures, of this First Amendment shall be binding on the parties hereto. 17. E-SIGN and Counterparts. Landlord and Tenant agree: (a) that a party's electronic signature with respect to this Lease has been executed or adopted by the signatory with the intent to sign, and be bound by, this Lease; (b) delivery of this Lease via electronic transmission or other electronic means shall be valid delivery for all purposes; (c) this Lease and any additional information incidental hereto may be maintained as electronic records; (d) photocopies, facsimile transmissions, electronic images and other copies of this Lease and/or its signature pages, shall be valid, binding, effective and enforceable the same as originals for all purposes, and may be so admitted in any.judicial proceeding, regulatory proceeding or arbitration, and in making proof of this Lease it shall be unnecessary to produce the original hereof or any or all original signature pages; and (e) each party agrees to take any and al reasonable actions, .if any; as may be necessary or as may be reasonably requested by any other party to this Lease to further evidence such party's intent to be bound by the provisions ofthis Lease and to ensure compliance with the provisions of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001, et seq., the Uniform Electronic Transactions Act as incorporated into applicable law, and any other applicable law pertaining to electronic signatures. rRemainder• ofEake 11ntentiopgIl Blank- Signature Page Followsl 4 5910216.1 t City Council 4 — 39 7/15/2025 Exhibit 1 IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment to be effective as of the date first set forth above. ATTEST: APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By:,Oose Montoya, As istant City Attorney RECOMMENDED FOR APPROVAL: -v& , "/ Mike Garcia Executive Director Community Development Agency CITY OF SANTA ANA (TENANT): Kristine Ridge City Manager LANDLORD: SANTA ANA CA I SGF, LLC, a Delaware limited liability company B N Ti Mike Garcia - Executive Director Community Development Agency [SIGNATURE PAGE TO FIRST AMENDMENT TO OFFICE LEASE] 5910216.11 City Council 4 — 40 7/15/2025 Exhibit 1 EXHIBIT A WORK LETTER THIS WORK LETTER (this "Work Letter") is attached to and incorporated into the First Amendment. Supplementing the provisions of the Lease (as amended by the First Amendment), but without limiting those provisions, Landlord and Tenant agree as follows with respect to the Tenant Improvements to be installed in the Premises. I. Purpose. This Work Letter establishes responsibilities for the design and construction of the Tenant Improvements as well as the allocation of the costs of the Tenant Improvements. The terms, conditions, and requirements of the Lease, except where clearly inconsistent or inapplicable to this Work Letter, are incorporated into this Work Letter. 2. Definitions. The following defined terms used in this Work Letter shall have the meanings set forth below. Unless provided to the contrary herein, any other capitalized teen that is not defined in this Work Letter shall have the meaning given to that term in the Lease. (a) "Approved Working Drawings" is defined in Section 3(c) hereof. (b) "Building Systems" means the structural portions of the Building, the common area restrooms, elevators, the Building's HVAC, mechanical, electrical, plumbing, and fire and life safety systems and equipment (including, but not limited to, the fire alarm and fire sprinklers). (c) "Contractor" means the general contractor engaged by Landlord for performance of the Landlord Work pursuant to Section 4 hereof. (d) "Cast Proposal" is defined in Section 5(a) hereof. (e) "Days" means, unless otherwise indicated, calendar days. (t) "Landlord Coordination Fee" means a fee equal to five percent (5%) of the hard and soft costs of the Landlord Work charged by Landlord for its services in managing the design and construction of the Tenant Improvements, and such tee will be included in the cost of the Landlord Work and deducted from the Tenant Allowance. (g) "Landlord's Representative" means Dana Duarte as the only person authorized to act for Landlord pursuant to this Work Letter. Tenant shall not be obligated to respond to or act upon any request, approval, inquiry or other communication from or on behalf of Landlord .in connection with this Work. Letter unless such communication is in writing from Landlord's Representative. Landlord may change the Landlord's Representative at any time upon not less than five (5) days' advance written notice to Tenant. (h) "Landlord Work" means all work necessary and appropriate to complete the Tenant Improvements in accordance with this Work Letter and the Lease. 6 5910216.11 City Council 4 — 41 7/15/2025 Exhibit 1 (i) "Over -Allowance Amount" is defined in Section 10(d) hereof. 0) "Permits" is defined in Section 6(a) hereof. (k) "Punch List Worlc" means those minor corrections of construction or decoration details, and minor mechanical adjustments, that are required to cause any applicable portion of the Tenant Improvements as constructed to conform to the Approved Plans in all material respects and that do not materially interfere with Tenant's use or occupancy of the Building and the Premises. (1) "Space Plan" is defined in Section 3(a) hereof. (m) "Space Plan Allowance" shall be Zero and 15/100 Dollars ($0.15) per rentable square :foot of the Premises (i.e., up to $2,898,15), based on 19,321 rentable square feet of the Premises, and shall be included in the Tenant Allowance and deducted therefrom. (n) "Substantial Completion" of the Tenant Improvements shall be deemed to have occurred on the date that: (i) all Landlord Work has been performed in accordance with the terms of this Work Letter, other than any Punch List Work; and (ii) if required, Landlord has obtained and delivered to Tenant a permanent or temporary certificate of occupancy ("COO") with respect to the Premises, except to the extent the same cannot be obtained by reason of the incompletion of installations or other work that is the responsibility of Tenant (such as, but not limited to, the installation and making operational of Tenant's systems and telecommunications equipment), in which case Landlord shall obtain the same within a reasonable time after the same can be obtained. (o) "Tenant Allowance" shall be Twenty -fight and 00/100 Dollars ($28.00) per rentable square foot of the Premises (i.e., up to $540,988.00), based on 19,321 rentable square feet of the Premises. (p) "Tenant Contractor" or "Tenant Contractors" means any employees, agents, contractors, consultants, subcontractors, mechanics, suppliers and invitees of Tenant, whether or not directly employed by Tenant, each of whom shall be reasonably approves[ by Landlord before they may work in the Building. (q) "Tenant Delay" means a delay caused by any of the following: (i) Tenant's failure to timely approve the Working Drawings or any other matter requiring Tenant's approval; (ii) a breach by Tenant of the terms of this Work Letter or the Lease; (iii) Tenant's request for changes in any of the Working Drawings, but only if such a request actually causes a delay to Substantial Completion of the Premises; 7 59162W11 City Council 4 — 42 7/15/2025 Exhibit 1 (iv) Tenant's requirement for: (A) materials, components, finishes, or improvements which are different from, or not included in, Landlord's standard tenant improvement items for the Building (which have been provided to Tenant and of which Tenant acknowledges receipt); or (B) materials that are not available in a commercially reasonable time given the estimated date of Substantial Completion of the Premises, but only to the extent that such a requirement actually causes a delay to Substantial Completion of the Premises; or (v) any other acts or omissions of Tenant, or of any of the Tenant Contractors, their agents, or employees that continue more than one (1) day aver written notice thereof by Landlord. (r) "Tenant FF&E Allowance: means a portion of the Tenant Allowance in the amount of up to Ten and 00/100 Dollars ($10.00) per rentable square foot of the .Premises (i.e., up to $1.93,21 OM), which Tenant may use for Tenant's furniture, fixtures and equipment to be purchased and installed in the Premises and any costs of data cabling and IT infrastructure in connection with Tenant's furniture, fixtures and equipment. (s) "Tenant's Representative" means the Executive Director, Community Development, or the Economic Development Manager or their designee (either such individual acting alone) as the only person[s] authorized to act for Tenant pursuant to this Work Letter. Landlord shall not be obligated to respond to or act upon any request, approval, inquiry, or other communication from or on behalf of Tenant in connection with this Work Letter unless such communication is .in writing from Tenant's Representative. Tenant may change the Tenant's Representative[s] at any time upon not less than five (5) days' advance written notice to Landlord. (t) "Working Drawings" is defined in Section 3(b)hereof. 3. Plan Approval. (a) Prior to commencement of the Landlord Work, Landlord and Tenant shall approve detailed space plans (collectively, the "Space Plan") for the construction of the Tenant lmprovements, which space plans shall be prepared by Landlord's architect and subject to Tenant's reasonable approval within ten (10) days after receipt thereof. (b) Promptly following Tenant's approval of the Space Plan, Landlord shall cause its architcct and engineers to prepare and deliver to Tenant detailed specifications and engineered working drawings for the Tenant Improvements shown on the Space Plan, with such modifications to the Space Plan as shall be necessary to comply with the requirements of the Building Systems of the Building (the "Working Drawings"). (c) Tenant shall approve or disapprove the Working .Drawings in writing with in fourteen (14) business days after receipt. Tenant may only disapprove the Working Drawings to the extent such Working Drawings are inconsistent with the Space Plan and only if Tenant delivers to Landlord, within such fourteen (14) business day period, specific changes proposed by Tenant which are consistent with the Space Plan. If any such revisions are timely and properly proposed by Tenant, Landlord shall cause its architect and 5910216.11 City Council 4 — 43 7/15/2025 Exhibit 1 engineers to revise the Working Drawings to incorporate such revisions and submit the same for Tenant's approval in accordance with the foregoing provisions, and the parties shall follow the foregoing procedures for approving the Working Drawings until the same are finally approved by Landlord and Tenant. Upon Landlord's and Tenant's written approval of the Working Drawings, including any agreed changes pursuant to Sections 5 and 6, the same shall be known as the "Approved Working Drawings". 4. Construction Contracts. Landlord shall enter into a construction contract for the performance of the Landlord Work with the Contractor. Landlord shall use commercially reasonable efforts to obtain at least three (3) bids From each trade (other than mechanical, electrical, plumbing, and fire/life safety, for each of which Landlord shall require all work to be performed by Landlord's approved subcontractor for such trade) and shall select the lowest qualified bidder unless otherwise approved by Tenant in writing. Landlord shall require its Contractor to exercise reasonable efforts to avoid disruption of Tenant's business and to protect the health & safety of Tenant, its employees and its guests. This shall include, at a minimum, using all feasible methods to minimize danger, noise, vibration, fumes, dust and other pollution, and to the extent practicable, perform work outside of normal business hours. 5. Cost Estimate. (a) Landlord shall provide Tenant with a cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of the Tenant Improvements (the "Cost Proposal"). The Cost Proposal shall be provided to Tenant on an open book basis (i.e., Landlord shall make available to Tenant the economic terms of the construction agreement with the Contractor (including, without limitation, the cost of labor and materials, contractor fees and permit fees), as well as all bids received by Landlord for the Landlord Work, and reasonable documentation supporting Landlord's estimate of plan preparation costs and all other costs of the Landlord Work). (b) Within ten (10) days of the receipt of the same, Tenant shall either: (i) approve the Cost Proposal; or (ii) have a one-time right to propose modifications to the Working .Drawings so that the Cost Proposal does not exceed the amount of the Tenant Allowance. With the exception of the City's one-time right to modify as provided in this section, any proposed changes to the Working Drawings (other than changes that make the Working Drawings conform to the Space Plan) shall be subject to Landlord's approval, which approval shall not be unreasonably withheld, conditioned, or delayed. If Landlord approves the proposed revisions: (A) Landlord shall have the Working Drawings revised in accordance with. the approved revisions; and (B) Landlord shall submit a revised Cost Proposal to Tenant. Tenant shall notify Landlord in writing within ten (10) days whether it desires to proceed with such revisions. If Tenant fails to approve such revisions and revised Cost Proposal within such ten (10) day period; such failure shall be deemed to be a Tenant Delay. Any delays arising from further changes to the Working Drawings requested by Tenant shall be deemed to be Tenant Delays. (c) Tenant's final written approval of the Cost Proposal and the Approved Working Drawings shall be authorization by Tenant for Landlord to purchase all materials 9 5910216.1 t City Council 4 — 44 7/15/2025 Exhibit 1 set forth in the Cost Proposal and to promptly commence the construction of the Tenant Improvements in accordance with the Approved Working Drawings. 6. Performance of the Landlord Work. (a) Landlord shall cause the Contractor to obtain all applicable building permits for construction of the Landlord Work (collectively, the ".Permits"), and to perform the Landlord Work in a good and workmanlike manner and in compliance with the Permits and all applicable Laws in effect at the time of construction. All costs associated with obtaining Permits will be deducted from the Tenant Allowance. (b) If any local governmental agency requires revisions to the Approved Working Drawings, Tenant shall be deemed to have approved any adjustments to the Approved Working Drawings and the Cost Proposal resulting therefrom. If any Authority issuing Permits for the construction of the Tenant Improvements shall impose terms or conditions upon the construction thereof that: (i) are inconsistent with .Landlord's obligations hereunder; (i.i) increase the cost of constructing the Tenant Improvements; or (i.ii) will materially delay the construction of the Tenant Improvements, .Landlord and Tenant shall reasonably and in good faith seek means by which to mitigate or eliminate any such adverse terms and conditions. 7. Chanee Requests. No changes to the Approved Working Drawings or the agreed Cost Proposal may be made without the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion. If Tenant requests a change that would directly or indirectly delay the Substantial Completion of the Tenant Improvements, Landlord shall not be obligated to make such change unless Tenant agrees in writing that such delay (in the amount reasonably determined by Landlord) is a Tenant Delay. If Tenant requests a change to the Approved Working Drawings that increases the agreed Cost Proposal, Landlord shall not be obligated to make such change unless Tenant agrees in writing to pay any such increase in. costs in accordance with Section t0. 8. Substantial Completion. When Landlord's architect certifies that the Landlord Work is Substantially Complete, Landlord shall notify Tenant thereof in writing, Tenant's Representative and Landlord's Representative shall at a mutually convenient date and time [but in no event later than ten (10) days after such notice] conduct a joint walls -through of the Premises in order to review the Tenant Improvements. Based upon said walk-through, Landlord's Representative and Tenant's Representative shall prepare a list of Punch List Work and, subject to Force Majeure, Tenant Delays and other causes beyond Landlord's reasonable control, Landlord shall complete the Punch List Work items within thirty (30) days after such joint walk-through. in the event of any dispute as to whether Landlord has Substantially Completed the Tenant Improvements, the City will be alTorded an opportunity to provide input before the Landlord's architect renders a final decision on the dispute. The decision of .Landlord's architect shall be final and binding on the parties. Tenant agrees that, at the request of Landlord from titne to time after the initial .inspection, Tenant shall initial such punch list or execute revised lists of Punch List Work to reflect completion or partial completion of prior Punch List Work. 10 5910216.11 City Council 4 — 45 7/15/2025 Exhibit 1 9. Access by Tenant. Subject to the terms hereof and provided that Tenant and its agents do not interfere with the Contractor's work in the Building and the Premises, Landlord shall allow Tenant and any of the Tenant Contractors access to the applicable portions of the Premises at least ten (10) days prior to the Substantial Completion of the Landlord Work for the purpose of installing equipment and/or fixtures (including Tenant's data and telephone equipment) and Tenant's furniture in the Premises. Prior to Tenant's entry into the Premises, Tenant shall submit a schedule to Landlord and the Contractor, for their approval, which schedule shall detail the Tenant Contractors accessing the Premises and the timing and purpose of such entry. in connection with any such entry, Tenant acknowledges and agrees that all Tenant Contractors shall fully cooperate, work in harmony with and not, in any manner, materially interfere with Landlord or Landlord's contractors (including the Contractor), agents, or representatives in performing work in the Building and the Premises, or in performing any inspections, or interfere with the general operation of the Building. If at any time any of the Tenant Contractors shall not be cooperative or shall otherwise cause or threaten to cause any such disharmony or interference, including, without limitation, labor disharmony, and Tenant fails to immediately institute and maintain corrective actions as directed by Landlord, then Landlord may revolve Tenant's entry rights (as to an individual Tenant Contractor, or as to all Tenant Contractors, as Landlord shall deem appropriate). Tenant acknowledges and agrees that any such entry into and occupancy of the Premises or any portion thereof by Tenant or any Tenant Contractor shall be deemed to be subject to all the terms, covenants, conditions, and provisions of the Lease, excluding only the covenant to pay Rent (until the occurrence of the Lease Commencement Date). 10. Cost Allocation. (a) Provided this Lease is in full force and effect, and Tenant is not in default thereunder beyond any applicable notice and cure period, Landlord shall pay (i) the costs of Space Plan in an amount up to, but not exceeding, the Space flan Allowance, and (ii) the costs of the Tenant Work in an amount up to, but not exceeding, the Tenant Allowance. Landlord shall deduct the Landlord Coordination Fee orthe Tenant Improvements from the Tenant Allowance. (b) In no event shall Landlord be obligated to pay for the costs of any of Tenant's furniture, computer systems, telephone systems, equipment, or other personal property (whether or not such items may be depicted on the Approved Working Drawings) that exceed the Tenant FF&E Allowance. Eligible costs that exceed the Tenant FF&.E Allowance shall be borne by Tenant. (c) In the event that all costs associated with the Space Plan and design, permitting, and construction of the Tenant Improvements, including the Landlord Coordination Fee, exceeds the Space Plan Allowance and/or the Tenant .Allowance, as applicable, the amount of such excess (the "Over -Allowance Amount") shall be paid by Tenant to Landlord within thirty (30) days following delivery of an invoice by Landlord. Tenant shall .not be responsible for the Over -Allowance Amount if caused by Landlord. or Landlord Contractor's own negligence, willful misconduct, or delay. 5910216.11 City Council 4 — 46 7/15/2025 Exhibit 1 (d) Tenant shall not be entitled to receive (in cash or as a credit against any rental or otherwise) any portion of the Tenant Allowance not used to pay for the costs of the design, permitting, and construction ofthe Tenant improvements. IL Miscellaneous. (a) All Tenant Improvements to be performed by Landlord (and any installations in the Premises as set forth in the Approved Working Drawings, or otherwise) shall use Building -standard specifications, materials, finishes, and supplies, unless otherwise specified in the Approved Working Drawings. Landlord, in its sole discretion, may substitute items, materials, or finishes with other items, materials, or finishes of comparable kind and quality. Landlord, at its sole option, may also change mechanical plans and specifications where necessary for the installation or modification of the Building Systems to accommodate the Tenant Improvements, provided that any such changes shall not materially and adversely affect Tenant's use and occupancy of the Demised Premises for the Permitted Use. (b) Tenant acknowledges that the timely completion of the Tenant Improvements is of the utmost importance to Landlord and Tenant. Accordingly, Tenant hereby agrees to fully and diligently cooperate with all reasonable requests by Landlord in connection with or .related to the design and construction of the Tenant Improvements and the completion of the permitting process and, in connection therewith, Tenant shall respond to Landlord's requests for information and/or approvals, except as speciFically set forth herein to the contrary, within two (2) days following request by Landlord. Landlord and Tenant, and such other parties as may be useful or appropriate, shall meet on a scheduled basis to be determined by Landlord's Representative and Tenant's Representative, to discuss progress in connection with the same. (c) If at any time on or before the Substantial Completion of the Landlord Work, Tenant is in default under this Work Letter or under the Lease, which default remains uncured after the expiration of applicable notice and cure periods, then: (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to instruct the Contractor to cease the construction of the Landlord Work (in which case, Tenant shall be responsible for the Tenant Delay caused by such work stoppage); and (ii) all other obligations of Landlord under the terms of this Work Letter shall be suspended until such time as such default is fully and finally cured. (d) Landlord hereby assigns to Tenant all warranties by Contractor relating to the Tenant Improvements, which assignment shall be on a non-exclusive basis such that the warranties may be enforced by Landlord and/or Tenant; such warranties shall be for a twelve (12) month period. (e) Any portion of the Tenant Allowance not used within thirty-six (36) months of the Effective Date of this First Amendment shall be forfeited with no further obligation by Landlord with respect thereto. In no event shall Tenant be entitled to apply any unused portion of the Tenant .Allowance towards future payments of Base Rent and/or, except as expressly set forth herein, purchase of Tenant's furniture, fixtures and equipment. 12 5910216.11 City Council 4 — 47 7/15/2025 Community Development Agency .; www.santa-ana.org/cd Item # 5 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report July 15, 2025 TOPIC: Update to the Housing Choice Voucher Administrative Plan AGENDA TITLE Approve an Update to the Housing Choice Voucher Administrative Plan to Comply with the Housing Opportunity Through Modernization Act RECOMMENDED ACTION Approve an update to the Housing Choice Voucher Administrative Plan to comply with the Housing Opportunity Through Modernization Act. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The U.S. Department of Housing and Urban Development (HUD) requires public housing authorities (PHAs) administering a Housing Choice Voucher (HCV) program to have an HCV Administrative Plan that establishes policies for implementing the program consistent with both HUD requirements and the goals and objectives contained in the Santa Ana Housing Authority's (SAHA's) 5-Year and Annual Plans. In addition to the HCV Administrative Plan, SAHA's HCV program is governed by federal regulations, HUD handbooks and guidebooks, notices, and other applicable law. In 2016, HUD adopted the Housing Opportunity Through Modernization Act (HOTMA) that made changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937, and improved the efficiency and effectiveness of HUD programs. This comprehensive HCV Administrative Plan update (the "Plan" attached hereto as Exhibit 1) is necessary to maintain compliance with HUD and HOTMA regulations, ensure program integrity, and preserve funding. SAHA prepared this update using a model administrative plan provided by Nan McKay & Associates (Nan McKay) that is used by many PHAs throughout the country and updates all of the Plan's policies and language in compliance with the latest guidance and regulations from HUD. Nan McKay updates their model administrative plan every year, and the last time SAHA's Plan was comprehensively updated using a template was on March 15, 2016. City Council 5-1 7/15/2025 Update to the Housing Choice Voucher Administrative Plan July 1, 2025 Page 2 Summary of Updates The Plan incorporates regulatory changes required under HOTMA Sections 102, 104, 105, 106, and 112 for determining income, calculating deductions, and assessing eligibility. For example, the Plan introduces new requirements for calculating annual income and adjusted income, including expanded definitions of assets, new treatment of student financial assistance, and updated policies for business income and periodic payments. SAHA updated deduction amounts, such as the increased elderly/disabled family deduction, and added hardship exemptions and permissive deductions per HUD's implementation guidance. In addition to updates for HOTMA-specific provisions, the Plan aligns SAHA policies with the most current HUD regulations, notices, and model administrative plan guidance. Entirely new sections were introduced, such as Chapter 6.13, which outlines Income and Subsidy Determinations, and Chapter 7.A, which updates verification hierarchy and methods. The Plan incorporates updated guidance from HUD's PIH Notices 2023-27, 2024-34, and 2024-38, amongst others, including verification procedures using Form HUD-9886-A, refined rules for self -certification, and expanded use of enterprise income verification tools. Other changes ensure consistency with HUD's new NSPIRE inspection standards, student eligibility, and the use of digital tools in briefings and application processes. The Plan integrates new subsections, adds clarifying definitions, and improves organization for clarity and accessibility that provide greater transparency for families and landlords, ensures fair and uniform application of HUD policies, and maintains SAHA's eligibility for federal funding. Adopting this Plan allows SAHA to comply with federal law, implement modernized administrative practices, and better serve program participants, applicants, landlords, and the broader Santa Ana community. Failure to adopt these updates may place SAHA at risk of noncompliance, potentially impacting program funding and the City's ability to continue administering the HCV program in accordance with federal law. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Update to HCV Administrative Plan Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nunez, City Manager City Council 5-2 7/15/2025 EXHIBIT 1 .7kRyif l`4}4 `i�Y G:IYIkry65k N1 J II E'9�FN CII, ADMINISCRATNE PLAN FOR THE G AUTHORITY OF THE CITY OF SANTA ANA Michael L. Garcia Executive Director Judson Brown, AICP Housing Manager Approved by the Housing Authority of the City of Santa Ana: July 1, 2025 City Council 5-3 7/15/2025 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Introduction HOTMA CHANGES IN THE ADMINSTRATIVE PLAN HOTMA102/104............................................................................................... Intro-i HOTMA Voucher Final Rule........................................................................... Intro-ii ABOUT THE ADMINISTRATIVE PLAN References Cited in the Administrative Plan ................................................... Intro-iii HUD................................................................................................................. Intro-iii NSPIRE and HQS in the Administrative Plan ................................................. Intro -iv HOTMA Sections 102 And 104 Changes in the Model Policy ....................... Intro -iv HOTMA Voucher Final Rule Changes in the Model Policy ............................ Intro-v Resources Cited in the Administrative Plan ..................................................... Intro-v Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN PARTI: THE PHA................................................................................................................ 1-1 1-I.A. Overview................................................................................................. 1-1 1-I.B. Organization and Structure of the PHA .................................................. 1-2 1-I.C. PHA Mission.......................................................................................... 1-2 1-I.D. The PHA's Programs.............................................................................. 1-3 1-I.E. The PHA's Commitment to Ethics and Service ..................................... 1-3 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ................................. 1-5 1-II.A. Overview and History of the Program .................................................... 1-5 1-II.B. HCV Program Basics.............................................................................. 1-7 1-II.C. The HCV Partnerships............................................................................ 1-7 The HCV Relationships: ................................................................... 1-8 What Does HUD Do?....................................................................... 1-9 What Does the PHA Do?..................................................................1-9 What Does the Owner Do?............................................................. 1-10 What Does the Family Do?............................................................. 1-11 1-II.D. Applicable Regulations......................................................................... 1-12 PART III: THE HCV ADMINISTRATIVE PLAN............................................................... 1-13 1-III.A. Overview and Purpose of the Plan ........................................................ 1-13 1-III.B. Contents of the Plan (24CFR 982.54)................................................... 1-13 Mandatory vs. Discretionary Policy ............................................... 1-15 1-III.C. Organization of the Plan.......................................................................1-15 1-III.D. Updating and Revising the Plan........................................................... 1-15 - 025 City Council 5-4 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY PART I: NONDISCRIMINATION....................................................................................... 2-3 2-I.A. Overview................................................................................................. 2-3 2-I.B. Nondiscrimination.................................................................................. 2-4 Providing Information to Families and Owners ............................... 2-5 2-1.0 Discrimination Complaints.....................................................................2-5 General Housing Discrimination Complaints ................................... 2-5 Complaints under the Equal Access Final Rule [Notice PIH 2O14-20]....................................................................... 2-5 VAWA Complaint Processing [Notice FHEO 2023-01].................. 2-6 PART II: POLICIES RELATED TO PERSONS WITH DISABILITIES ............................. 2-7 2-II.A. Overview................................................................................................. 2-7 2-II.B. Definition of Reasonable Accommodation ............................................ 2-8 Types of Reasonable Accommodations ............................................ 2-8 2-II.C. Request for an Accommodation............................................................. 2-9 2-II.D. Verification of Disability...................................................................... 2-10 2-II.E. Approval/Denial of a Requested Accommodation [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2O10-26]............................................................................. 2-11 2-II.F. Program Accessibility for Persons with Hearing or Vision Impairments......................................................................... 2-12 2-II.G. Physical Accessibility........................................................................... 2-13 2-II.H. Denial or Termination of Assistance.................................................... 2-14 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP)....................................................................... 2-15 2-III.A. Overview............................................................................................... 2-15 2-III.B. Oral Interpretation................................................................................ 2-16 2-III.C. Written Translation............................................................................... 2-16 2-III.D. Implementation Plan............................................................................. 2-17 Exhibit 2-1: Definition of a Person with a Disability Under Federal Civil Rights Laws [24 CFR Parts 8.3, and 100.2011 ............................... 2-19 - 025 City Council 5-5 W2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 3 ELIGIBILITY PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS .......................... 3-3 3-I.A. Overview................................................................................................. 3-3 3-I.B. Family and Household [24 CFR 5.403; FR Notice 02/03/12; Notice PIH 2O14-20; FR Notice 2/14/23]............................................... 3-3 Family............................................................................................... 3-3 Household......................................................................................... 3-3 3-I.C. Family Breakup and Remaining Member of Tenant Family .................. 3-4 Family Breakup [24 CFR 982.315; Notice PIH 2O17-08]................ 3-4 Remaining Member of a Tenant Family [24 CFR 5.403] ................ 3-5 3-I.D. Head of Household [24 CFR 5.504(b)].................................................. 3-5 3-I.E. Spouse, Cohead, and Other Adult.......................................................... 3-5 3-I.F. Dependents and Minors [24 CFR 5.603]................................................ 3-6 Joint Custody of Dependents............................................................ 3-6 3-I.G. Full -Time Student [24 CFR 5.603, HVC GB, p. 5-29] .......................... 3-6 3-I.H. Elderly and Near -Elderly Persons, and Elderly Family [24 CFR 5.100 and 5.403, FR Notice 02/03/12]..................................... 3-6 ElderlyPersons................................................................................ 3-6 Near -Elderly Persons........................................................................ 3-6 ElderlyFamily.................................................................................. 3-6 3-I.I. Persons with Disabilities and Disabled Family [24 CFR 5.403, FR Notice 02/03/12]............................................................................... 3-7 Persons with Disabilities................................................................... 3-7 DisabledFamily................................................................................ 3-7 3-I.J. Guests [24 CFR 5.100]........................................................................... 3-7 3.I.K. Foster Children and Foster Adults [24 CFR 5.603]................................ 3-8 3-I.L. Absent Family Members......................................................................... 3-9 Definitions of Temporarily and Permanently Absent ....................... 3-9 AbsentStudents................................................................................ 3-9 Absences Due to Placement in Foster Care [24 CFR 5.403].......... 3-10 Absent Head, Spouse, or Cohead................................................... 3-10 Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-22]......................................................................... 3-10 Return of Permanently Absent Family Members ........................... 3-10 3-I.M. Live -In Aide.......................................................................................... 3-11 - 025 City Council 5-6 W2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART II: BASIC ELIGIBILITY CRITERIA....................................................................... 3-13 3-II.A. Income Eligibility and Targeting.......................................................... 3-13 IncomeLimits................................................................................. 3-13 Definitions of the Income Limits [24 CFR 5.603(b)]..................... 3-13 Using Income Limits for Eligibility [24 CFR 982.201] and Notice PIH 2O23-27................................................................. 3-13 Using Income Limits for Targeting [24 CFR 982.201 ] .................. 3-14 3-II.B. Citizenship or Eligible Immigration Status [24 CFR 5, Subpart E] ..... 3-15 Declaration [24 CFR 5.508]........................................................... 3-15 Mixed Families............................................................................... 3-16 Ineligible Families [24 CFR 5.514(d), (e), and (f)] ........................ 3-16 Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)].......................................................................... 3-17 3-II.C. Social Security Numbers [24 CFR 5.216 and 5.218, Notice PIH 2O18-24]............................................................................. 3-17 3-II.D. Family Consent to Release of Information [24 CFR 5.230, 24 CFR 5.232, and HCV GB, p. 5-13]................................................. 3-17 3-II.E. Students Enrolled In Institutions of Higher Education [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/16]...................... 3-18 Definitions...................................................................................... 3-18 Determining Student Eligibility...................................................... 3-28 3-II.F. EIV System Searches [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2O23-27]...................................................................... 3-23 Existing Tenant Search................................................................... 3-23 Debts Owed to PHAs and Terminations ......................................... 3-24 EIVIncome Report ......................................................................... 3-24 - 025 City Council 5-7 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART III: DENIAL OF ASSISTANCE................................................................................ 3-25 3-III.A. Overview............................................................................................... 3-25 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] ........ 3-26 Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)]....................................... 3-26 3-III.B. Mandatory Denial of Assistance [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)].................................................................. 3-27 3-III.C. Restriction on Assistance Based on Assets [24 CFR 5.618] ................ 3-28 3-III.D. Other Permitted Reasons for Denial of Assistance ................................. 3-30 Criminal Activity [24 CFR 982.553].............................................. 3-30 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] ....... 3-31 3-III.E. Screening.............................................................................................. 3-33 Screening for Eligibility................................................................. 3-33 Screening for Suitability as a Tenant [24 CFR 982.307]................ 3-34 3-III.F. Criteria for Deciding to Deny Assistance ............................................. 3-35 Evidence [24 CFR 982.553(c)]....................................................... 3-35 Consideration of Circumstances [24 CFR 982.552(c)(2)].............. 3-35 Removal of a Family Member's Name from the Application......... 3-37 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ............. 3-37 3-III.G. Notice of Eligibility or Denial.............................................................. 3-38 3-III.H. Prohibition Against Denial of Assistance to Victims of Domestic Violence, Dating Violence, Sexual Assault, Stalking. and Human Trafficking......................................................................... 3-39 Notification..................................................................................... 3-39 Documentation................................................................................ 3-40 Exhibit 3-1: Detailed Definitions Related to Disabilities......................................................... 3-41 Person with Disabilities [24 CFR 5.403]........................................ 3-41 Individual with Handicaps [24 CFR 8.3]........................................ 3-43 Exhibit 3-2: Definition of Institution of Higher Education [20 U.S.0 1001 and 1002] ........... 3-45 Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006]...................................... 3-45 - 025 City Council 5-8 W2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION PART I: THE APPLICATION PROCESS........................................................................... 4-3 4-I.A. Overview................................................................................................. 4-3 4-I.13. Applying for Assistance [HCV GB, pp. 4-11 — 4-16, Notice PIH 2O09-36].................................. 4-3 4-I.C. Accessibility of the Application Process ................................................ 4-4 Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11 — 4-13]................................................................................ 4-4 Limited English Proficiency............................................................. 4-4 4-I.D. Placement on the Waiting List................................................................ 4-5 Ineligible for Placement on the Waiting List .................................... 4-5 Eligible for Placement on the Waiting List ...................................... 4-5 PART II: MANAGING THE WAITING LIST...................................................................... 4-7 4-II.A. Overview................................................................................................. 4-7 4-II.13. Organization of the Waiting List [24 CFR 982.204 and 205] ................ 4-7 4-II.C. Opening and Closing the Waiting List [24 CFR 982.206] ..................... 4-8 Closing the Waiting List................................................................... 4-8 Reopening the Waiting List.............................................................. 4-8 4-II.D. Family Outreach [HCV GB, pp. 4-2 to 4-4]........................................... 4-9 4-II.E. Reporting Changes in Family Circumstances ....................................... 4-10 4-II.F. Updating the Waiting List [24 CFR 982.204]...................................... 4-10 Purging the Waiting List................................................................. 4-10 Removal from the Waiting List ...................................................... 4-11 PART III: SELECTION FOR HCV ASSISTANCE............................................................. 4-13 4-III.A. Overview............................................................................................... 4-13 4-III.B. Selection and HCV Funding Sources ................................................... 4-13 Special Admissions [24 CFR 982.203].......................................... 4-13 Targeted Funding [24 CFR 982.204(e)]......................................... 4-13 Regular HCV Funding.................................................................... 4-13 4-III.C. Selection Method.................................................................................. 4-14 Local Preferences [24 CFR 982.207; HCV p. 4-16] ...................... 4-14 Income Targeting Requirement [24 CFR 982.201(b)(2)] ............... 4-15 Order of Selection........................................................................... 4-15 4-III.D. Notification of Selection....................................................................... 4-16 4-III.E. The Application Interview.................................................................... 4-16 4-III.F. Completing the Application Process .................................................... 4-18 - 025 City Council 5-9 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 5 BRIEFINGS AND VOUCHER ISSUANCE PART I: BRIEFINGS AND FAMILY OBLIGATIONS...................................................... 5-1 5-I.A. Overview................................................................................................. 5-1 5-I.B. Briefing [24 CFR 982.301] ..................................................................... 5-2 Notification of Briefing.................................................................... 5-2 In -Person Briefings........................................................................... 5-2 Remote Briefings [Notice PIH 2O20-32].......................................... 5-3 Accessibility Requirements for Persons with Disabilities and LEP Individuals...................................................... 5-3 Conducting Remote Briefings.......................................................... 5-4 Oral Briefing [24 CFR 982.301(a)].................................................. 5-5 Briefing Packet [24 CFR 982.301(b); New HCV GB, Housing Search and Leasing, p. 7]................................................... 5-6 Additional Items to be Included in the Briefing Packet ................... 5-8 5-I.C. Family Obligations................................................................................ 5-9 Time Frames for Reporting Changes Required by Family Obligations...................................................................... 5-9 Family Obligations [24 CFR 982.551]............................................. 5-9 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE .................................. 5-13 5-II.A. Overview............................................................................................... 5-13 5-II.B. Determining Family Unit (Voucher) Size [24 CFR 982.402] .............. 5-13 5-II.C. Exceptions to Subsidy Standards.......................................................... 5-15 5-II.D. Voucher Issuance [24 CFR 982.302].................................................... 5-16 5-II.E. Voucher Term and Extensions.............................................................. 5-17 Voucher Term [24 CFR 982.303]................................................... 5-17 Extensions of Voucher Term [24 CFR 982.303(b)] ....................... 5-17 Suspensions of Voucher Term [24 CFR 982.303(c)] ..................... 5-19 Expiration of Voucher Term........................................................... 5-19 Tee_025 City Council 5 — 10 W2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 6.A. INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] PART I: ANNUAL INCOME............................................................................................... 6-2 6-I.A. Overview................................................................................................. 6-2 6-I.B. Household Composition and Income ...................................................... 6-3 Summary of Income Included and Excluded by Person ................... 6-3 Temporarily Absent Family Members .............................................. 6-4 Family Members Permanently Confined for Medical Reasons........ 6-5 Joint Custody of Dependents............................................................ 6-5 Caretakers for a Child....................................................................... 6-6 6-I.C. Anticipating Annual Income.................................................................. 6-7 Basis of Annual Income Projection .................................................. 6-7 ProjectingIncome............................................................................. 6-8 6-I.D. Earned Income........................................................................................ 6-9 Types of Earned Income Included in Annual Income ...................... 6-9 Types of Earned Income Not Counted in Annual Income ............... 6-9 6-I.E. Earned Income Disallowance for Persons with Disabilities [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16; Notice PIH 2O23 27]..................................... 6-13 Calculation of the Disallowance..................................................... 6-13 Calculation Method........................................................................ 6-13 6-I.F. Business Income [24 CFR 5.609(b)(2)]................................................ 6-14 Business Expenses.......................................................................... 6-14 Business Expansion........................................................................6-14 Capital Indebtedness....................................................................... 6-14 Negative Business Income.............................................................. 6-15 Withdrawal of Cash or Assets from a Business .............................. 6-15 Co -owned Businesses..................................................................... 6-15 6-I.G. Assets [24 CFR 5.609(b)(3); 24 CFR 5.603(b)]................................... 6-16 Overview......................................................................................... 6-16 GeneralPolicies.............................................................................. 6-16 Typesof Assets............................................................................... 6-20 6-I.H. Periodic Payments................................................................................ 6-24 Periodic Payments Included in Annual Income .............................. 6-24 Lump -Sum Payments for the Delayed Start of a PeriodicPayment............................................................................ 6-24 Treatment of Overpayment Deductions from Social Security Benefits.................................................................. 6-24 Periodic Payments Excluded from Annual Income ........................ 6-25 6-I.1. Payments In Lieu of Earnings............................................................... 6-26 THe7025 City Council 5 —11 V2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 6-I.J. Welfare Assistance............................................................................... 6-27 Overview......................................................................................... 6-27 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615]............................................................................... 6-27 6-I.K. Periodic and Determinable Allowances [24 CFR 5.609(b)(7)] ............ 6-28 Alimony and Child Support............................................................ 6-28 Regular Contributions or Gifts ....................................................... 6-28 6-I.L. Student Financial Assistance [24 CFR 5.609(b)(9); Notice PIH 2O15-21]............................................................................. 6-29 Student Financial Assistance Included in Annual Income [24 CFR 5.609(b)(9) ); FR 4/10/06; Notice PIH 2015-21]............. 6-29 Student Financial Assistance Excluded from Annual Income [24 CFR 5.609(c)(6)]...................................................................... 6-30 6-I.M. Additional Exclusions From Annual Income ....................................... 6-31 PART II: ADJUSTED INCOME.......................................................................................... 6-35 6-II. A. Introduction........................................................................................... 6-3 5 Overview......................................................................................... 6-3 5 Anticipating Expenses.................................................................... 6-35 6-II.B. Dependent Deduction........................................................................... 6-36 6-II.C. Elderly or Disabled Family Deduction ................................................. 6-36 6-II.D. Medical Expenses Deduction [24 CFR 5.611(a)(3)(i)] ........................ 6-37 Definition of Medical Expenses...................................................... 6-37 Summary of Allowable Medical Expenses from IRS Publication 502............................................................................... 6-37 Families That Qualify for Both Medical and Disability Assistance Expenses....................................................................... 6-38 6-II.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)]........................................................................ 6-39 Earned Income Limit on the Disability Assistance ExpenseDeduction......................................................................... 6-39 Eligible Disability Expenses........................................................... 6-40 Necessary and Reasonable Expenses .............................................. 6-41 Families That Qualify for Both Medical and Disability Assistance Expenses....................................................................... 6-41 6-II.F. Childcare Expense Deduction............................................................... 6-42 Clarifying the Meaning of Child for This Deduction ..................... 6-42 Qualifying for the Deduction.......................................................... 6-42 Earned Income Limit on Childcare Expense Deduction ................ 6-43 Eligible Childcare Expenses........................................................... 6-44 025 City Council 5 — 12 V2b 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................... 6-45 6-III.A. Overview of Rent and Subsidy Calculations ........................................ 6-45 TTP Formula [24 CFR 5.628]........................................................ 6-45 Family Share [24 CFR 982.305(a)(5)]............................................ 6-45 PHA Subsidy [24 CFR 982.505(b)]................................................ 6-46 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ............. 6-50 6-III.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-47 Overview......................................................................................... 6-47 HUD -Defined Financial Hardship .................................................. 6-47 Implementation of Hardship Exemption ........................................ 6-48 6-III.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2O24-34]............................................................................. 6-50 Overview......................................................................................... 6-50 Changes in Payment Standards....................................................... 6-50 Reasonable Accommodation [24 CFR 982.503(d)(5)]................... 6-52 6-III.D. Applying Utility Allowances [24 CFR 982.517].................................. 6-53 Overview......................................................................................... 6-53 Flat Fees [24 CFR 982.517(b)(2)(iii)]............................................ 6-53 PBV Developments [24 CFR 982.517(b)(2)(iv)] ........................... 6-53 Reasonable Accommodation and Individual Relief ....................... 6-53 Utility Allowance Revisions........................................................... 6-54 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520]..................... 6-55 Exhibit 6-1: Annual Income Inclusions.................................................................................... 6-57 HHS Definition of "Assistance"........................................................................... 6-58 Exhibit 6-2: Annual Income Exclusions................................................................................... 6-60 Exhibit 6-3: Treatment of Family Assets.................................................................................. 6-62 Exhibit 6-5: The Effect of Welfare Benefit Reduction............................................................. 6-63 - 025 City Council 5 — 13 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 6.B. INCOME AND SUBSIDY DETERMINATIONS UNDER HOTMA 102/104 [24 CFR Part 5, Subparts E and F; 24 CFR 982] PART I: ANNUAL INCOME............................................................................................... 6-2 6-I.A. Overview [24 CFR 5.609]...................................................................... 6-2 6-I.B. Household Composition and Income ...................................................... 6-3 Overview........................................................................................... 6-3 Summary of Income Included and Excluded by Person ................... 6-3 Temporarily Absent Family Members .............................................. 6-4 Family Members Permanently Confined for Medical Reasons........ 6-5 Joint Custody of Dependents............................................................ 6-5 Caretakers for a Child....................................................................... 6-6 6-I.C. Calculating Annual Income................................................................... 6-7 Anticipating Annual Income [24 CFR 5.609(c)(1)] ......................... 6-7 Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2O23-27]........................................ 6-8 6-I.D. Earned Income........................................................................................ 6-9 6-I.E. Earned Income Disallowance for Persons with Disabilities [24 CFR 5.617; Streamlining Final Rule (SFR) Federal Register 3/8/16; Notice PIH 2O23-27]..................................... 6-11 Calculation of the Disallowance..................................................... 6-11 Calculation Method........................................................................ 6-11 6-I.F. Business and Self -Employment Income [24 CFR 5.609(b)(28); Notice PIH 2O23-27]............................................................................. 6-12 Independent Contractors................................................................. 6-12 Business Expansion........................................................................6-12 Capital Indebtedness....................................................................... 6-13 Negative Business Income.............................................................. 6-13 Withdrawal of Cash or Assets from a Business .............................. 6-13 Co -owned Businesses..................................................................... 6-13 Assets Owned by a Business Entity ................................................ 6-13 6-I.G. Student Financial Assistance [FR Notice 2/14/23 and Notice PIH 2O23-27]...................................................................... 6-14 Introduction..................................................................................... 6-14 Pre-HOTMA Section 8 Student Financial Assistance Limitation [FR 4/10/06; Notice PIH 2015-21] ............................... 6-14 HOTMA Student Financial Assistance Requirements [24 CFR 5.609(b)(9)]...................................................................... 6-14 Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2O23-27........................................................................ 6-16 - 025 City Council 5 — 14 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 6-I.H. Periodic Payments................................................................................ 6-20 Lump -Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)]...................................... 6-20 Retirement Accounts [24 CFR 5.609(b)(26); Notice PIH 2O23-27]....................................................................... 6-21 Social Security Benefits [Notice PIH 2O23-27].............................. 6-21 Alimony and Child Support ............................................................ 6-22 6-I.I. Nonrecurring Income [24 CFR 5.609(b)(24) and Notice PIH 2O23-27]............................................................................. 6-23 6-I.J. Welfare Assistance............................................................................... 6-24 Overview......................................................................................... 6-24 Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.615]............................................................................... 6-24 6-I.K. State Payments to Allow Individuals with Disabilities to Live at Home [24 CFR 5.609(b)(19)]................................................. 6-25 6-I.L. Civil Rights Settlements [24 CFR 5.609(b)(25); FR Notice 2/14/23]............................................................................... 6-25 6-I.M. Additional Exclusions From Annual Income [24 CFR 5.609(b); FR Notice 1/31/2024]............................................. 6-26 PARTII: ASSETS................................................................................................................ 6-33 6-II. A. Overview............................................................................................... 6-3 3 6-II.B. Assets Disposed of for Less Than Fair Market Value [24 CFR 5.603(b)(2)]............................................................................ 6-34 6-II.C. Asset Inclusions and Exclusions........................................................... 6-35 6-II.D. Determining Income from Assets......................................................... 6-43 PART III: ADJUSTED INCOME.......................................................................................... 6-45 6-III.A. Introduction........................................................................................... 6-45 Overview......................................................................................... 6-45 Anticipating Expenses.................................................................... 6-46 6-III.B. Dependent Deduction........................................................................... 6-46 6-III.C. Elderly or Disabled Family Deduction ................................................. 6-46 6-III.D. Health and Medical Care Expenses Deduction [24 CFR 5.611(a)(3)(i) and 5.603(b)]................................................... 6-47 Definition of Medical Expenses...................................................... 6-47 Families That Qualify for Both and Medical and Disability Assistance Expenses...................................................... 6-48 6-III.E. Disability Assistance Expenses Deduction [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)]........................................................................ 6-49 Earned Income Limit on the Disability Assistance ExpenseDeduction......................................................................... 6-49 Necessary and Reasonable Expenses .............................................. 6-49 Families That Qualify for Both Health and Medical and Disability Assistance Expenses...................................................... 6-50 - 025 City Council 5 — 15 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 6-III.F. Childcare Expense Deduction............................................................... 6-51 Clarifying the Meaning of Child for This Deduction ..................... 6-51 Qualifying for the Deduction.......................................................... 6-51 Earned Income Limit on Childcare Expense Deduction ................ 6-52 Eligible Childcare Expenses........................................................... 6-53 6-III.G. Hardship Exemptions [24 CFR 5.611(c), (d), and (e)] ......................... 6-54 Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2O23-27] ........................ 6-54 Phased -In Relief ............................................................................. 6-54 GeneralRelief................................................................................ 6-55 Childcare Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2O23-27]................................................................ 6-57 6-III.H. Permissive Deductions [24 CFR 5.611(b)(1)(ii)]................................. 6-60 PART IV: CALCULATING FAMILY SHARE AND PHA SUBSIDY ............................... 6-61 6-IV.A. Overview of Rent and Subsidy Calculations ........................................ 6-61 TTP Formula [24 CFR 5.628]........................................................ 6-61 Family Share [24 CFR 982.305(a)(5)]............................................ 6-61 PHA Subsidy [24 CFR 982.505(b)]................................................ 6-62 Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] ............. 6-62 6-IV.B. Financial Hardships Affecting Minimum Rent [24 CFR 5.630] .......... 6-63 Overview......................................................................................... 6-63 HUD -Defined Financial Hardship .................................................. 6-61 Implementation of Hardship Exemption ........................................ 6-64 6-IV.C. Applying Payment Standards [24 CFR 982.505(c) and Notice PIH 2O24 34]............................................................................. 6-66 Overview......................................................................................... 6-66 Changes in Payment Standards....................................................... 6-66 Reasonable Accommodation [24 CFR 982.503(d)(5)]................... 6-68 6-IV.D. Applying Utility Allowances [24 CFR 982.517].................................. 6-69 Overview......................................................................................... 6-69 Flat Fees [24 CFR 982.517(b)(2)(iii)]............................................ 6-69 PBV Developments [24 CFR 982.517(b)(2)(iv)] ........................... 6-69 Reasonable Accommodation and Individual Relief ....................... 6-69 Utility Allowance Revisions........................................................... 6-70 6-III.E. Prorated Assistance for Mixed Families [24 CFR 5.520]..................... 6-71 Exhibit 6-1: Annual Income Full Definition............................................................................. 6-73 Exhibit 6-2: Treatment of Family Assets.................................................................................. 6-78 Exhibit 6-3: The Effect of Welfare Benefit Reduction............................................................. 6-79 - 025 City Council 5 — 16 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 7.A. VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2O18-18] PART I: GENERAL VERIFICATION REQUIREMENTS ................................................. 7-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516 and 982.551, 24 CFR 5.230]................................................................... 7-1 ConsentForms.................................................................................. 7-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5); and Notice PIH 2O23-27]................................................ 7-2 Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-2 7-I.B. Overview of Verification Requirements ................................................. 7-3 Use of Other Programs' Income Determinations [24 CFR 5.609(c)(3) and Notice PIH 2O23 27]................................ 7-3 HUD's Verification Hierarchy [Notice PIH 2O18-18] ..................... 7-6 Requirements for Acceptable Documents ........................................ 7-6 FileDocumentation.......................................................................... 7-7 7-I.C. Up -Front Income Verification (UIV)..................................................... 7-7 Upfront Income Verification Using HUD's Enterprise Income Verification (EIV) System (Mandatory) ........................................... 7-8 Upfront Income Verification Using Non -HUD Systems (Optional)........................................................................... 7-9 7-I.D. Third -Party Written and Oral Verification ........................................... 7-10 Written Third -Party Verification [Notice PIH 2O18-18] ................ 7-10 Written Third -Party Verification Form .......................................... 7-11 Oral Third -Party Verification [Notice PIH 2O18-18] ..................... 7-11 When Third -Party Verification is Not Required [Notice PIH 2O18-18]..................................................................... 7-12 7-I.E. Self-Certification.................................................................................. 7-13 PART II: VERIFYING FAMILY INFORMATION............................................................ 7-15 7-II.A. Verification of Legal Identity............................................................... 7-15 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2018-24].......... 7-16 7-II.C. Documentation of Age.......................................................................... 7-18 7-II.D. Family Relationships............................................................................ 7-18 Marriage.......................................................................................... 7-19 Separation or Divorce..................................................................... 7-19 Absence of Adult Member.............................................................. 7-19 Foster Children and Foster Adults .................................................. 7-19 7-II.E. Verification of Student Status............................................................... 7-20 General Requirements.................................................................... 7-20 Restrictions on Assistance to Students Enrolled in Institutions of Higher Education..................................................... 7-20 7-II.F. Documentation of Disability................................................................. 7-21 Family Members Receiving SSA Disability Benefits .................... 7-22 Family Members Not Receiving SSA Disability Benefits ............. 7-22 - 025 City Council 5 — 17 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-23 Overview......................................................................................... 7-23 U.S. Citizens and Nationals............................................................ 7-23 Eligible Immigrants........................................................................ 7-24 7-II.H. Verification of Preference Status.......................................................... 7-24 PART III: VERIFYING INCOME AND ASSETS............................................................... 7-25 7-III.A. Earned Income...................................................................................... 7-25 Tips................................................................................................. 7-25 7-III.B. Business and Self Employment Income ............................................... 7-25 7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-26 Social Security/SSI Benefits........................................................... 7-26 7-III.D. Alimony or Child Support .................................................................... 7-27 7-III.E. Assets and Income From Assets........................................................... 7-28 Assets Disposed of for Less than Fair Market Value ..................... 7-28 7-III.F. Net Income From Rental Property........................................................ 7-28 7-III.G. Retirement Accounts............................................................................ 7-29 7-III.H. Income From Excluded Sources........................................................... 7-30 7-III.I. Zero Income Families [Notice PIH 2O23-27]....................................... 7-31 7-III.J. Student Financial Assistance [Notice PIH 2015-21 ] ............................ 7-32 7-III.K. Parental Income of Students Subject to Eligibility Restrictions........... 7-33 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-35 7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-35 Dependent Deduction..................................................................... 7-35 Elderly/Disabled Family Deduction ............................................... 7-35 7-IV.B. Medical Expense Deduction................................................................. 7-36 Amount of Expense........................................................................ 7-36 Eligible Household......................................................................... 7-37 Qualified Expenses......................................................................... 7-37 Unreimbursed Expenses................................................................. 7-37 Expenses Incurred in Past Years ..................................................... 7-37 7-IV.C. Disability Assistance Expenses............................................................ 7-38 Amountof Expense........................................................................ 7-38 Family Member is a Person with Disabilities ................................. 7-39 Family Member(s) Permitted to Work ........................................... 7-39 Unreimbursed Expenses................................................................. 7-39 7-IV.D. Childcare Expenses............................................................................... 7-40 Eligible Child.................................................................................. 7-40 Unreimbursed Expense................................................................... 7-40 Pursuing an Eligible Activity......................................................... 7-41 Allowable Type of Childcare.......................................................... 7-42 Reasonableness of Expenses........................................................... 7-42 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10]................................................................................ 7-43 THC7- 025 City Council 5 — 18 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 7.13. VERIFICATION UNDER HOTMA 102/104 [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2O23-27] PART I: GENERAL VERIFICATION REQUIREMENTS ................................................. 7-1 7-I.A. Family Consent to Release of Information [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; and Notice PIH 2O23-27] .................. 7-1 ConsentForms.................................................................................. 7-1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5); and Notice PIH 2O23-27]................................................ 7-2 Penalties for Failing to Consent [24 CFR 5.232] ............................. 7-3 7-I.13. Use of Other Programs' Income Determinations [24 CFR 5.609(c)(3) and Notice PIH 2O23-27]...................................... 7-4 7-LC. Streamlined Income Determinations [24 CFR 960.257(c); Notice PIH 2O23-27]............................................................................... 7-8 7-I.D. Verification Hierarchy [Notice PIH 2O23-27]...................................... 7-10 File Documentation........................................................................ 7-10 7-I.E. Level 5 and 6 Verifications: Up -Front Income Verification (UIV) ..... 7-11 HUD's Enterprise Income Verification (EIV) System (Mandatory).................................................................................... 7-11 Upfront Income Verification Using Non -HUD Systems ................ 7-14 7-I.F. Level 4 Verification [Notice PIH 2O23-27].......................................... 7-15 EIV + Self-Certification................................................................. 7-15 Written Third -Party Verification from the Source ......................... 7-15 7-I.G. Level 3 Verification: Written, Third -Party Form [Notice PIH 2O23 27]........................................................................... 7-17 7.I.H. Level 2: Oral Third -Party Verification [Notice PIH 2O23-27]............. 7-17 When Third -Party Verification is Not Required [Notice PIH 2O23-27]..................................................................... 7-18 7-I.I. Level 1: Non -Third -Party Verification: Self -Certification [Notice PIH 2O23-271 .............................................. 7-19 PART II: VERIFYING FAMILY INFORMATION............................................................ 7-21 7-II.A. Verification of Legal Identity............................................................... 7-21 7-II.B. Social Security Numbers [24 CFR 5.216, Notice PIH 2023-27].......... 7-22 7-II.C. Documentation of Age.......................................................................... 7-24 7-II.D. Family Relationships............................................................................ 7-25 Marriage.......................................................................................... 7-25 Separation or Divorce..................................................................... 7-25 Absence of Adult Member.............................................................. 7-25 Foster Children and Foster Adults .................................................. 7-25 7-II.E. Verification of Student Status............................................................... 7-26 General Requirements.................................................................... 7-26 Restrictions on Assistance to Students Enrolled in Institutions of Higher Education..................................................... 7-26 THC7- 025 City Council 5 — 19 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 7-II.F. Documentation of Disability................................................................. 7-27 Family Members Receiving SSA Disability Benefits .................... 7-28 Family Members Not Receiving SSA Disability Benefits ............. 7-28 7-II.G. Citizenship or Eligible Immigration Status [24 CFR 5.508] ................ 7-29 Overview......................................................................................... 7-29 U.S. Citizens and Nationals............................................................ 7-29 Eligible Immigrants........................................................................ 7-30 7-II.H. Verification of Preference Status.......................................................... 7-30 PART III: VERIFYING INCOME AND ASSETS............................................................... 7-31 7-III.A. Earned Income...................................................................................... 7-31 Tips................................................................................................. 7-31 Wages............................................................................................. 7-31 7-III.B. Business and Self Employment Income ............................................... 7-32 7-III.C. Periodic Payments and Payments In Lieu of Earnings ......................... 7-32 Social Security/SSI Benefits [Notice PIH 2O23-27]....................... 7-32 7-III.D. Alimony or Child Support [Notice PIH 2O23-27]................................ 7-34 7-III.E. Nonrecurring Income [Notice PIH 2O23-27]........................................ 7-34 7-III.F. Assets and Income From Assets........................................................... 7-35 Net Family Assets [24 CFR 5.603]................................................. 7-35 Self -Certification of Real Property Ownership [24 CFR 5.618(b)(2); Notice PIH 2O23-27]................................... 7-36 7-III.G. Net Income From Rental Property........................................................ 7-37 7-III.H. Federal Tax Refunds or Refundable Tax Credits [Notice PIH 2O23-27]........................................................................... 7-37 7-III.I. Retirement Accounts............................................................................ 7-37 7-III.J. Income From Excluded Sources [Notice PIH 2O23-27]....................... 7-38 7-III.K. Zero Income Families [Notice PIH 2O23-27]....................................... 7-39 7-III.L. Student Financial Assistance [24 CFR 5.609(b)(9)]............................. 7-40 7-III.M. Parental Income of Students Subject to Eligibility Restrictions........... 7-41 PART IV: VERIFYING MANDATORY DEDUCTIONS ................................................... 7-43 7-IV.A. Dependent and Elderly/Disabled Household Deductions ..................... 7-43 Dependent Deduction..................................................................... 7-43 Elderly/Disabled Family Deduction ............................................... 7-43 7-IV.B. Health and Medical Care Expense Deduction ...................................... 7-44 Amount of Expense........................................................................ 7-44 Eligible Household......................................................................... 7-45 Qualified Expenses......................................................................... 7-45 Unreimbursed Expenses................................................................. 7-45 Expenses Incurred in Past Years ..................................................... 7-45 7-IV.C. Disability Assistance Expenses............................................................ 7-46 Amount of Expense........................................................................ 7-46 Family Member is a Person with Disabilities ................................. 7-48 Family Member(s) Permitted to Work ........................................... 7-48 Unreimbursed Expenses................................................................. 7-48 - 025 City Council 5 — 20 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 7-IV.D. Childcare Expenses............................................................................... 7-49 EligibleChild.................................................................................. 7-49 Unreimbursed Expense................................................................... 7-49 Pursuing an Eligible Activity......................................................... 7-50 Allowable Type of Childcare.......................................................... 7-51 Reasonableness of Expenses........................................................... 7-51 Exhibit 7-1: Summary of Documentation Requirements for Noncitizens [HCV GB, pp. 5-9 and 5-10]................................................................................ 7-52 - 025 City Council 5 — 21 5 2 5 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 8.A. HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] NSPIREAND HQS ..................................................................................................................... 8-1 PART I: PHYSICAL STANDARDS.................................................................................... 8-2 8-I.A. General HUD Requirements................................................................... 8-2 HUD Performance and Acceptability Standards .............................. 8-2 NSPIRE Standards Applicable to HQS [HUD Letter 6/14/24] ........ 8-3 Tenant Preference Items................................................................... 8-3 Modifications to Provide Accessibility ............................................ 8-3 8-I.B. Additional Local Requirements.............................................................. 8-4 Thermal Environment [HCV GB p.10-7]......................................... 8-4 Clarifications of HUD Requirements ............................................... 8-4 8-LC. Life -Threatening Conditions [24 CFR 982.404(a); FRNotice 1/18/17]................................................................................. 8-6 8-I.D. Owner and Family Responsibilities [24 CFR 982.404].......................... 8-9 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ................................................. 8-9 Family Responsibilities.................................................................... 8-9 Owner Responsibilities..................................................................... 8-9 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ..................................................... 8-9 OwnerObligation............................................................................. 8-9 Family Responsibilities.................................................................. 8-10 8-I-E. Special Requirements for Children with Elevated Blood Lead Level [24 CFR 35.1225; FR Notice l/13/17; Notice PIH 2O17-13]............................................................................. 8-11 8-I-F. Violation of HQS Space Standards [24 CFR 982.401, 24 CFR 982.403]..................................................... 8-12 PART II: THE INSPECTION PROCESS............................................................................ 8-13 8-II.A. Overview [24 CFR 982.405]................................................................ 8-13 Types of Inspections....................................................................... 8-13 Inspection of PHA -Owned Units [24 CFR 982.352(b)] ................. 8-13 Inspection Costs [Notice PIH 2O16-05; 24 CFR 5.705(h)] ............ 8-14 Remote Video Inspections (RVIs) [Notice PIH 2020-31 ] .............. 8-14 Notice and Scheduling.................................................................... 8-14 Owner and Family Inspection Attendance ..................................... 8-15 - 025 City Council 5 — 22 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 8-II.13. Initial HQS Inspection [24 CFR 982.405(a)]....................................... 8-15 Approving Units with Non -Life -Threatening Deficiencies [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.4050)].................................................................. 8-15 Approving Units Using Alternative Inspections [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.406]...................................................................... 8-16 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] ............... 8-16 Inspection Results and Reinspections............................................. 8-17 Utilities........................................................................................... 8-17 Appliances [Form HUD-52580]..................................................... 8-17 8-II.C. Periodic HQS Inspections [24 CFR 982.405(b) and Notice PIH 2O16-05]............................................................................. 8-18 Scheduling the Inspection............................................................... 8-18 8-II.D. Special Interim Inspections [24 CFR 982.405(d)]................................ 8-18 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV G13, p. 10-32]................................................. 8-19 8-II.F. Inspection Results and Reinspections for Units Under HAP Contract............................................................................. 8-19 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ............................................... 8-19 Notification of Corrective Actions ................................................. 8-19 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ................................................... 8-20 Notification of Corrective Actions [24 CFR 982.404(d)(1)].......... 8-20 Extensions....................................................................................... 8-22 Reinspections [24 CFR 982.405(i)]................................................ 8-22 8-II.G. Enforcing Owner Compliance.............................................................. 8-23 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ............................................... 8-23 HAPAbatement.............................................................................. 8-23 HAP Contract Termination............................................................. 8-23 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ................................................... 8-24 HAP Withholding [24 CFR 982.404(d)(1)].................................... 8-24 HAP Abatement [24 CFR 982.404(d)(2)]...................................... 8-24 HAP Contract Termination............................................................. 8-25 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)].......... 8-26 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ............................................... 8-26 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ................................................... 8-26 025 City Council 5 — 23 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART III: RENT REASONABLENESS [24 CFR 982.507]................................................. 8-27 8-III.A. Overview............................................................................................... 8-27 PHA -Owned Units [24 CFR 982.352(b)]....................................... 8-27 8-III.B. When Rent Reasonableness Determinations Are Required .................. 8-28 Owner -Initiated Rent Determinations ............................................. 8-28 PHA- and HUD -Initiated Rent Reasonableness Determinations ... 8-28 LIHTC- and HOME -Assisted Units [24 CFR 982.507(c) ............. 8-29 8-III.C. How Comparability Is Established....................................................... 8-29 Factors to Consider......................................................................... 8-29 Units that Must Not be Used as Comparables................................ 8-29 Rents Charged for Other Units on the Premises ............................. 8-30 8-III.D. PHA Rent Reasonableness Methodology ............................................. 8-31 How Market Data Is Collected....................................................... 8-31 How Rents Are Determined............................................................ 8-31 Exhibit 8-1: Overview of HUD Housing Quality Standards .................................................... 8-33 Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality ..................... 8-37 025 City Council 5-24 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 8.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE AND RENT REASONABLENESS DETERMINATIONS [24 CFR 5 Subpart G and Notice PIH 2O24-26] NSPIREAND HQS..................................................................................................................... 8-2 PART I: NSPIRE STANDARDS.......................................................................................... 8-3 8-I.A. Inspectable Areas [24 CFR 5.703 (a)(1) and 24 CFR 5.705(a)(2)]............................................................................... 8-3 8-I.B. Affirmative Habitability Requirements [24 CFR 5.703(b), (c), and(d)]............................................................... 8-3 8-I.C. Modifications to Provide Accessibility [24 CFR 100.203; Notice 2003-31; and Notice PIH 2O14-02]............... 8-4 8-I.D. Additional Local Requirements [24 CFR 5.705(a)(3) and Notice PIH 2O24-26]...................................... 8-5 8-I.E. Life -Threatening Deficiencies [Notice PIH 2O24-26] ............................ 8-6 8-I.F. Owner and Family Responsibilities [24 CFR 982.404].......................... 8-9 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ................................................. 8-9 Family Responsibilities.................................................................... 8-9 Owner Responsibilities..................................................................... 8-9 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later .................................................... 8-10 OwnerObligation........................................................................... 8-10 Family Responsibilities.................................................................. 8-10 8-I.G. Lead -Based Paint.................................................................................. 8-12 Special Requirements for Children with Elevated Blood Lead Level [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2O17-13]....................................................................... 8-12 8-I-H. Violation of Space Standards [24 CFR 5.703(d)(5)] ............................ 8-13 PART II: THE INSPECTION PROCESS............................................................................ 8-15 8-II.A. Overview [24 CFR 982.405]................................................................ 8-15 Types of Inspections....................................................................... 8-15 Inspection of PHA -Owned Units [24 CFR 982.352(b)] ................. 8-15 Inspection Costs [Notice PIH 2O16-05 and 24 CFR 5.705(h)]....... 8-16 Remote Video Inspections (RVIs) [Notice PIH 2020-31 ] .............. 8-16 Notice and Scheduling.................................................................... 8-16 Owner and Family Inspection Attendance ..................................... 8-17 - 025 City Council 5 — 25 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 8-II.13. Initial Inspection [24 CFR 982.405(a)]................................................ 8-17 Approving Units with Non -Life -Threatening Deficiencies [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.4050)].................................................................. 8-17 Approving Units Using Alternative Inspections [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.406]...................................................................... 8-18 Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] ............... 8-18 Inspection Results and Reinspections............................................. 8-19 Utilities........................................................................................... 8-19 Appliances...................................................................................... 8-19 8-II.C. Periodic Inspections [24 CFR 982.405(b) and Notice PIH 2O16-05]............................................................................. 8-20 Scheduling the Inspection............................................................... 8-20 8-II.D. Interim Inspections [24 CFR 982.405(d)]............................................ 8-20 8-II.E. Supervisory Quality Control Inspections [24 CFR 982.405(b); 24 CFR 985.3(e); HCV G13, p. 10-32]................................................. 8-21 8-II.F. Inspection Results and Reinspections for Units Under HAPContract........................................................................................ 8-21 Correction Timeframes................................................................... 8-21 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: ............................................... 8-22 Notification of Corrective Actions ................................................. 8-22 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ..................................................................... 8-22 Notification of Corrective Actions [24 CFR 982.404(d)(1)].......... 8-22 Extensions....................................................................................... 8-24 Reinspections [24 CFR 982.405(i)]................................................ 8-24 8-II.G. Enforcing Owner Compliance.............................................................. 8-25 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: .................................................................. 8-25 HAPAbatement.............................................................................. 8-25 HAP Contract Termination............................................................. 8-25 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ................................................... 8-26 HAP Withholding [24 CFR 982.404(d)(1)].................................... 8-26 HAP Abatement [24 CFR 982.404(d)(2)]...................................... 8-26 HAP Contract Termination............................................................. 8-27 8-II.H. Enforcing Family Compliance with HQS [24 CFR 982.404(b)].......... 8-28 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: .................................................................. 8-28 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: ..................................................................... 8-28 025 City Council 5 — 26 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART III: RENT REASONABLENESS [24 CFR 982.507]................................................. 8-29 8-III.A. Overview............................................................................................... 8-29 PHA -Owned Units [24 CFR 982.352(b)]....................................... 8-29 8-III.B. When Rent Reasonableness Determinations Are Required .................. 8-30 Owner -Initiated Rent Determinations ............................................. 8-30 PHA- and HUD -Initiated Rent Reasonableness Determinations ... 8-30 LIHTC- and HOME -Assisted Units [24 CFR 982.507(c) ............. 8-31 8-III.C. How Comparability Is Established....................................................... 8-31 Factors to Consider......................................................................... 8-31 Units that Must Not be Used as Comparables................................ 8-31 Rents Charged for Other Units on the Premises ............................. 8-32 8-III.D. PHA Rent Reasonableness Methodology ............................................. 8-33 How Market Data Is Collected....................................................... 8-33 How Rents Are Determined............................................................ 8-33 Exhibit 8-1: affirmative habitability requirements.................................................................... 8-35 025 City Council 5 — 27 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 9 GENERAL LEASING POLICIES M.A. Tenant Screening.................................................................................... 9-2 9-I.B. Requesting Tenancy Approval [Form HUD-52517] .............................. 9-3 9-I.C. Owner Participation................................................................................ 9-4 9-I.D. Eligible Units.......................................................................................... 9-5 Ineligible Units [24 CFR 982.352(a)]............................................... 9-5 PHA -Owned Units [24 CFR 982.352(b)]......................................... 9-5 Special Housing Types [24 CFR 982 Subpart M] ............................ 9-5 Duplicative Assistance [24 CFR 982.352(c)]................................... 9-6 Initial Inspection............................................................................... 9-6 UnitSize........................................................................................... 9-7 Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.507] ........ 9-7 Rent Burden [24 CFR 982.508]........................................................ 9-7 9-I.E. Lease and Tenancy Addendum............................................................... 9-8 Lease Form and Tenancy Addendum [24 CFR 982.308] ................. 9-8 Lease Information [24 CFR 982.308(d)].......................................... 9-8 Term of Assisted Tenancy................................................................ 9-9 Security Deposit [24 CFR 982.313 (a) and (b)] ............................... 9-9 Separate Non -Lease Agreements between Owner and Tenant....... 9-10 PHA Review of Lease.................................................................... 9-11 9-I.F. Tenancy Approval [24 CFR 982.305].................................................. 9-12 9-I.G. HAP Contract Execution [24 CFR 982.305]........................................ 9-13 9-I.H. Changes in Lease or Rent [24 CFR 982.308]....................................... 9-15 025 City Council 5 — 28 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY PART I: MOVING WITH CONTINUED ASSISTANCE ................................................. 10-1 10-I.A. Allowable Moves..................................................................................10-1 10-I.B. Family Moves Due to Unit Deficiencies .............................................. 10-3 Units in Abatement [24 CFR 982.404(d)(3)]................................. 10-3 Termination of HAP Contract and Family Moves [24 CFR 982.404(e)]....................................................................... 10-3 Offer of Public Housing [24 CFR 982.404(e)(2)] .......................... 10-4 Relocation Assistance [24 CFR 982.404(e)(3)].............................. 10-4 10-I.C. Restrictions On Moves......................................................................... 10-5 Denialof Moves............................................................................. 10-5 Restrictions on Elective Moves [24 CFR 982.354(c)].................... 10-6 10-I.D. Moving Process.................................................................................... 10-7 Notification..................................................................................... 10-7 Approval......................................................................................... 10-7 Reexamination of Family Income and Composition ...................... 10-7 Voucher Issuance and Briefing....................................................... 10-7 Housing Assistance Payments [24 CFR 982.311(d)] .....................10-8 Zero HAP Families Who Wish to Move [24 CFR 982.455] .......... 10-8 PART II: PORTABILITY.................................................................................................... 10-9 10-II.A. Overview............................................................................................... 10-9 10-II.B. Initial PHA Role.................................................................................10-10 Allowable Moves under Portability .............................................. 10-10 Determining Income Eligibility.................................................... 10-11 Reexamination of Family Income and Composition .................... 10-11 Briefing......................................................................................... 10-12 Voucher Issuance and Term ......................................................... 10-12 Voucher Extensions and Expiration ............................................. 10-13 Preapproval Contact with the Receiving PHA ............................. 10-13 Initial Notification to the Receiving PHA .................................... 10-13 Sending Documentation to the Receiving PHA ........................... 10-14 Initial Billing Deadline [Notice PIH 2O16-09] ............................. 10-15 Monthly Billing Payments [Notice PIH 2O16-09]........................ 10-16 Annual Updates of Form HUD-50058.........................................10-16 Denial or Termination of Assistance [24 CFR 982.355(c)(17)]... 10-16 10-II.C. Receiving PHA Role........................................................................... 10-17 Responding to Initial PHA's Request [24 CFR 982.355(c)] ........ 10-17 Initial Contact with Family........................................................... 10-17 Briefing......................................................................................... 10-18 Income Eligibility and Reexamination ......................................... 10-18 Voucher Issuance.......................................................................... 10-19 Notifying the Initial PHA............................................................. 10-20 Administering a Portable Family's Voucher ................................ 10-20 Absorbing a Portable Family........................................................ 10-24 025 City Council 5 — 29 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 11.A. REEXAMINATIONS PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516]........................................... 11-1 11-I.A. Overview............................................................................................... 11-1 11-I.B. Streamlined Annual Reexaminations [24 CFR 982.516(b); New HCV GB, Reexaminations] ....................... 11-2 11-I.C. Scheduling Annual Reexaminations..................................................... 11-3 Notification of and Participation in the Annual Reexamination Process................................................................... 11-3 11-I.D. Conducting Annual Reexaminations.................................................... 11-4 11-I.E. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)]........................................................................ 11-6 11-I.F. Effective Dates...................................................................................... 11-7 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516]........................................... 11-9 11-II.A. Overview...............................................................................................11-9 11-II.B. Changes In Family and Household Composition ................................. 11-9 New Family Members Not Requiring PHA Approval ................... 11-9 New Family and Household Members Requiring Approval ........ 11-10 Departure of a Family or Household Member..............................11-11 Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6)]................................................................11-11 11-II.C. Changes Affecting Income or Expenses ............................................. 11-12 PHA -Initiated Interim Reexaminations ........................................ 11-12 Family -Initiated Interim Reexaminations ..................................... 11-13 11-II.D. Processing the Interim Reexamination ............................................... 11-14 Method of Reporting..................................................................... 11-14 Effective Dates.............................................................................. 11-14 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-15 11-III.A. Overview............................................................................................. 11-15 11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-15 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ...... 11-15 Subsidy Standards [24 CFR 982.505(c)(4)]................................. 11-15 Utility Allowances [24 CFR 982.517(d)].....................................11-15 11-III.C. Notification of New Family Share and HAP Amount ........................ 11-16 11-III.D. Discrepancies......................................................................................11-16 025 City Council 5 — 30 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 11.13. REEXAMINATIONS UNDER HOTMA 102/104 PART I: ANNUAL REEXAMINATIONS [24 CFR 982.516]...........................................11-1 11-I.A. Overview............................................................................................... 11-1 11-I.B. Scheduling Annual Reexaminations..................................................... 11-2 Notification of and Participation in the Annual Reexamination Process................................................................... 11-2 11-I.C. Conducting Annual Reexaminations.................................................... 11-3 11-I.D. Determining Ongoing Eligibility of Certain Students [24 CFR 982.552(b)(5)]........................................................................ 11-5 11-I.E. Calculating Annual Income at Annual Reexamination [24 CFR 5.609(c)(2) and Notice PIH 2O23-27].................................... 11-6 11-I.F. Effective Dates...................................................................................... 11-8 PART II: INTERIM REEXAMINATIONS [24 CFR 982.516; Notice PIH 2O23-27] ........ 11-9 11-II.A. Overview...............................................................................................11-9 11-II.B. Changes In Family and Household Composition ................................. 11-9 Reporting........................................................................................11-9 New Family Members Not Requiring PHA Approval ................... 11-9 New Family and Household Members Requiring Approval ........ 11-10 Departure of a Family or Household Member .............................. 11-11 Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6)]................................................................ 11-11 11-II.C. Changes Affecting Income or Expenses ............................................. 11-12 Overview....................................................................................... 11-12 Interim Decreases [24 CFR 982.516(c)(2) and Notice PIH 2O23-27].............................................................. 11-12 Interim Increases [24 CFR 982.516(c)(3) and Notice PIH 2O23-27]..................................................................... 11-13 11-II.D. Effective Dates [24 CFR 982.516(e) and Notice 2023-27] ................11-16 Changes Reported Timely [Notice PIH 2O23-27] ........................ 11-16 Changes Not Reported Timely [Notice PIH 2O23-27] ................. 11-16 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT .............. 11-19 11-III.A. Overview.............................................................................................11-19 11-III.B. Changes In Payment Standards and Utility Allowances .................... 11-19 Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] ......11-19 Subsidy Standards [24 CFR 982.505(c)(4)]................................. 11-19 Utility Allowances [24 CFR 982.517(d)].....................................11-19 11-IILC. Notification of New Family Share and HAP Amount ........................ 11-20 11-III.D. Discrepancies......................................................................................11-20 PART IV: NON -INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2O23-27]......................................................................................... 11-21 Exhibit 11-1: Calculating Income at Annual Reexamination................................................... 11-23 025 City Council 5 — 31 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 12 TERMINATION OF ASSISTANCE AND TENANCY PART I: GROUNDS FOR TERMINATION OF ASSISTANCE ...................................... 12-1 12-I.A. Overview............................................................................................... 12-1 12-I.13. Family No Longer Requires Assistance [24 CFR 982.455] .................12-1 12-I.C. Family Chooses to Terminate Assistance ............................................. 12-2 12-I.D. Mandatory Termination of Assistance .................................................. 12-2 Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)]................ 12-2 Upon the PHA's HOTMA 102/104 compliance date, the below section on failure to provide consent is added: .............. 12-2 Failure to Provide Consent [24 CFR 982.552(b)(3)] ...................... 12-2 Failure to Document Citizenship [24 CFR 982.552(b)(4) and 24 CFR 5.514(c)].....................................................................12-3 Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2O18-24]........................................ 12-3 Methamphetamine Manufacture or Production [24 CFR 983.553(b)(1)(ii)].............................................................12-3 Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/06].................12-3 Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2O10-9].........................................................................12-4 12-I.E. Mandatory Policies and Other Authorized Terminations ..................... 12-4 Mandatory Policies [24 CFR 982.553(b) and 982.551(1)]..............12-4 Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] ......12-7 Upon the PHA's HOTMA 102/104 compliance date, the below section on the asset limitation is added: ......................................... 12-8 Asset Limitation [24 CFR 5.618; Notice PIH 2O23-27]................. 12-8 PART II: APPROACH TO TERMINATION OF ASSISTANCE ..................................... 12-11 12-II.A. Overview............................................................................................. 12-11 12-II.B. Method of Termination [24 CFR 982.552(a)(3)] ............................... 12-11 12-II.C. Alternatives to Termination of Assistance ......................................... 12-11 Change in Household Composition .............................................. 12-11 Repayment of Family Debts......................................................... 12-11 12-II.D. Criteria for Deciding to Terminate Assistance ................................... 12-12 Evidence....................................................................................... 12-12 Use of Criminal Conviction Records after Admission [24 CFR 5.903].................................................. 12-12 Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] ........ 12-12 Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] ........... 12-13 12-II.E. Terminations Related to Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking ................................ 12-14 VAWA Protections against Terminations .................................... 12-14 Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)].......................................................... 12-15 025 City Council 5 — 32 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Documentation of Abuse [24 CFR 5.2007].................................. 12-16 Terminating the Assistance of a Domestic Violence Perpetrator..................................................................... 12-16 12-II.F. Termination Notice............................................................................. 12-18 PART III: TERMINATION OF TENANCY BY THE OWNER ........................................ 12-19 12-III.A. Overview............................................................................................. 12-19 12-III.B. Grounds for Owner Termination of Tenancy [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum].......................................12-19 Serious or Repeated Lease Violations..........................................12-19 Violation of Federal, State, or Local Law .................................... 12-19 Criminal Activity or Alcohol Abuse ............................................. 12-19 Other Good Cause.........................................................................12-20 12-III.C. Eviction [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum].......................................................................... 12-21 12-III.D. Deciding Whether to Terminate Tenancy [24 CFR 982.310(h), 24 CFR 982.310(h)(4)].....................................12-20 12-III.E. Effect of Tenancy Termination on the Family's Assistance .............. 12-22 Exhibit 12-1: Statement of Family Obligations........................................................................ 12-23 THC7025 City Council 5 — 33 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 13 OWNERS PART I: OWNERS IN THE HCV PROGRAM................................................................. 13-3 13-I.A. Owner Recruitment and Retention [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs]....................................13-3 Education and Outreach.................................................................. 13-3 Retention......................................................................................... 13 -4 13-I.B. Basic HCV Program Requirements...................................................... 13-5 13-I.C. Owner Responsibilities [24 CFR 982.452]...........................................13-7 13-I.D. Owner Qualifications............................................................................ 13-8 Owners Barred from Participation [24 CFR 982.306(a) and (b)] ... 13-8 Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-2] ....... 13-8 Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19; Form HUD-52641, Section 13]...................................................... 13-8 Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)]........................................ 13-10 Legal Ownership of Unit..............................................................13-11 13-I.E. Non -Discrimination [HAP Contract —Form HUD-52641 ] ................ 13-11 PART II: HAP CONTRACTS............................................................................................13-13 13-II.A. Overview............................................................................................. 13-13 13-II.B. HAP Contract Contents......................................................................13-14 13-II.C. HAP Contract Payments.....................................................................13-16 General..........................................................................................13-16 Owner Certification of Compliance .............................................. 13-16 Late HAP Payments [24 CFR 982.451(a)(5)] .............................. 13-17 Termination of HAP Payments [24 CFR 982.311(b)] .................. 13-17 13-II.D. Breach of HAP Contract [24 CFR 982.453].......................................13-18 13-II.E. HAP Contract Term and Terminations ............................................... 13-19 13-II.F. Change In Ownership / Assignment of the HAP Contract [HUD-52641 ]...................................................................................... 13-21 13-II.G. Foreclosure [Notice PIH 2O10-49].....................................................13-22 - 025 City Council 5 — 34 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 14 PROGRAM INTEGRITY PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE............................................................................................ 14-3 14-I.A. Preventing Errors and Program Abuse ................................................. 14-3 14-I.B. Detecting Errors and Program Abuse ................................................... 14-4 Quality Control and Analysis of Data ............................................ 14-4 Independent Audits and HUD Monitoring ..................................... 14-4 Individual Reporting of Possible Errors and Program Abuse ........ 14-4 14-I.C. Investigating Errors and Program Abuse .............................................. 14-5 When the PHA Will Investigate..................................................... 14-5 Consent to Release of Information [24 CFR 982.516] ................... 14-5 Analysis and Findings..................................................................... 14-5 Consideration of Remedies............................................................. 14-6 Noticeand Appeals......................................................................... 14-6 PART II: CORRECTIVE MEASURES AND PENALTIES ............................................... 14-7 14-II.A. Subsidy Under- or Overpayments........................................................ 14-7 Corrections...................................................................................... 14-7 Reimbursement............................................................................... 14-7 14-II.B. Family -Caused Errors and Program Abuse .......................................... 14-8 Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] ....14-8 PHA Reimbursement to Family [HCV GB p. 22-12]..................... 14-8 Prohibited Actions.......................................................................... 14-9 Penalties for Program Abuse.......................................................... 14-9 14-II.C. Owner -Caused Error or Program Abuse ............................................. 14-10 Owner Reimbursement to the PHA .............................................. 14-10 Prohibited Owner Actions............................................................ 14-10 Remedies and Penalties................................................................ 14-11 14-II.D. PHA -Caused Errors or Program Abuse .............................................. 14-12 De Minimis Errors [24 CFR 5.609(c)(4)]..................................... 14-12 Prohibited Activities..................................................................... 14-13 14-II.E. Criminal Prosecution..........................................................................14-14 14-II.F. Fraud and Program Abuse Recoveries ............................................... 14-14 - 025 City Council 5 — 35 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M; New HCV GB, Special Housing Types] PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605; Form IUD-52641; New HCV GB, Special Housing Types, p. 4]....................... 15-3 15-I.A. Overview............................................................................................... 15-3 15-I.13. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-3 15-I.C. SRO: Housing Quality Standards [24 CFR 982.605(a)] ...................... 15-3 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609; Form HUD-52641; New HCV GB, Special Housing Types, p. 6]....................... 15-5 15-II.A. Overview............................................................................................... 15 -5 15-II.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-6 15-II.C. Congregate: Housing Quality Standards .............................................. 15-6 PART III: GROUP HOME [24 CFR 982.610 through 982.614; Form HUD-52641; and New HCV GB, Special Housing Types, p. 8]................................................ 15-7 15-III.A. Overview............................................................................................... 15-7 15-III.B. Payment Standard, Utility Allowance, and HAP Calculation .............. 15-7 15-III.C. Group Home: Housing Quality Standards ............................................ 15-8 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618; Form HUD-52641; Notice PIH 2O21-05; New HCV GB, Special Housing Types, p. I I] ................ 15-11 15-IV.A. Overview.............................................................................................15-11 15-IV.B. Payment Standard, Utility Allowance and HAP Calculation.............15-13 15-IV.C. Shared Housing: Housing Quality Standards ..................................... 15-14 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14]............................................................................ 15-15 15-V.A. Overview............................................................................................. 15-15 15-V.B. Payment Standard, Utility Allowance and HAP Calculation ............. 15-15 15-V.C. Cooperative: Housing Quality Standards ........................................... 15-16 - 025 City Council 5 — 36 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624; FR Notice 1/18/17; New HCV GB, Special Housing Types, p. 15j ................. 15-17 15-VI.A. Overview............................................................................................. 15-17 15-VI.B. Special Requirements for Manufactured Home Owners WhoLease A Space............................................................................ 15-17 FamilyIncome.............................................................................. 15-17 Lease and HAP Contract.............................................................. 15-17 15-VI.C. Payment Standard, Utility Allowance and HAP Calculation.............15-18 Payment Standards........................................................................ 15-18 Utility Allowance [24 CFR 982.624]........................................... 15-18 Space Rent [24 CFR 982.622]...................................................... 15-18 Amortization Costs....................................................................... 15-18 Housing Assistance Payment [24 CFR 982.623(a)] ..................... 15-18 Eligible Housing Expenses [24 CFR 982.623(b)] ........................ 15-19 Rent Reasonableness [24 CFR 982.622(b)]..................................15-19 Distribution of HAP [24 CFR 982.623(c)]................................... 15-20 Single HAP to Family [24 CFR 982.623.(d)]...............................15-20 15-VI.D. Manufactured Homes: Housing Quality Standards [24 CFR 982.621] ...............................................................................15-20 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643]................................ 15-21 15-VII.A.Overview [24 CFR 982.625].............................................................. 15-21 15-VII.B. Family Eligibility [24 CFR 982.627].................................................. 15-22 15-VII.C. Selection of Families [24 CFR 982.626]............................................15-24 15-VII.D. Eligible Units [24 CFR 982.628]........................................................ 15-25 15-VII.E. Additional PHA Requirements for Search and Purchase [24 CFR 982.629]............................................................................... 15-27 15-VII.F. Homeownership Counseling [24 CFR 982.630]................................15-28 15-VII.G.Home Inspections, Contract of Sale, and PHA Disapproval of Seller [24 CFR 982.631 ].....................................................................15-29 Home Inspections......................................................................... 15-29 Contract of Sale............................................................................ 15-30 Disapproval of a Seller................................................................. 15-30 15-VII.H. FINANCING [24 CFR 982.632]........................................................ 15-31 15-VII.I. Continued Assistance Requirements; Family Obligations [24 CFR 982.633]...............................................................................15-32 15-VII.J. Maximum Term of Homeowner Assistance [24 CFR 982.634]......... 15-33 15-VII.K. Homeownership Assistance Payments and Homeownership Expenses [24 CFR 982.635]............................................................... 15-34 15-VII.L. Portability [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.553]............................................................................... 15-36 15-VII.M. Moving with Continued Assistance [24 CFR 982.637].................... 15-37 15-VII.N.Denial or Termination of Assistance [24 CFR 982.638] .................... 15-38 - 025 City Council 5 — 37 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 16 PROGRAM ADMINISTRATION PART L• ADMINISTRATIVE FEE RESERVE [24 CFR 982.155]................................... 16-3 PART 1L• SETTING PROGRAM STANDARDS AND SCHEDULES .............................. 16-5 16-II.A. Overview............................................................................................... 16-5 16-II.B. Payment Standards [24 CFR 982.503; HCV GB, Chapter 7; and Notice PIH 2O24-34]...................................................................... 16-5 Small Area FMR PHAs (Mandatory and Opt -In) [Notice PIH 2O18-01; Notice PIH 2O23 32; Notice PIH 2O24-34; and Implementing Small Area Fair Market Rents (SAFMR) Guidebook] ...................................... 16-6 The Basic Range [24 CFR 982.503(c) and Notice PIH 2O24-34]....................................................................... 16-7 Designated Payment Standard Areas [24 CFR 982.503(d), Notice PIH 2O18-01, Notice PIH 2O24-34, and FR Notice 9/27/21]......................................................................... 16-7 Exception Payment Standards [24 CFR 982.503(c)(5), Notice PIH 2018-01, FR Notice 9/27/21 ]....................................... 16-7 Reasonable Accommodation [24 CFR 982.503(d)(5), 24 CFR 982.505(d), Notice PIH 2O24 34, and Notice PIH 2O10-26] ..........16-9 Payment Standard below the Basic Range [24 CFR 982.503(e) and Notice PIH 2O24-34] .............................. 16-9 Updating Payment Standards [24 CFR 982.503(c)(3) and Notice PIH 2O23-24]..................................................................... 16-10 16-II.C. Utility Allowances [24 CFR 982.517]................................................ 16-11 Energy Efficient Utility Allowance [24 CFR 982.517(b)(2)(ii)]...........................................................16-11 Air Conditioning [24 CFR 982.517(b)(1)(iii)] ............................. 16-11 Reasonable Accommodation and Individual Relief ..................... 16-12 Utility Allowance Revisions......................................................... 16-12 PART III: INFORMAL REVIEWS AND HEARINGS...................................................... 16-13 16-III.A. Overview............................................................................................. 16-13 16-III.B. Informal Reviews................................................................................ 16-13 Decisions Subject to Informal Review [24 CFR 982.554(a) and (c)]........................................................16-13 Notice to the Applicant [24 CFR 982.554(a)] .............................. 16-14 Scheduling an Informal Review...................................................16-14 Informal Review Procedures [24 CFR 982.554(b)] ..................... 16-14 Remote Informal Reviews [Notice PIH 2O20-32] ........................ 16-15 Ensuring Accessibility for Persons with Disabilities and LEP Individuals..................................................................... 16-15 Conducting Remote Informal Reviews ........................................ 16-16 Informal Review Decision [24 CFR 982.554(b)] ......................... 16-17 - 025 City Council 5 — 38 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 16-III.C. Informal Hearings for Participants [24 CFR 982.555] ....................... 16-18 Decisions Subject to Informal Hearing ......................................... 16-18 Remote Informal Hearings [Notice PIH 2O20-32] ....................... 16-19 Ensuring Accessibility for Persons with Disabilities and LEP Individuals.....................................................................16-20 Conducting Informal Hearings Remotely ..................................... 16-21 Informal Hearing Procedures........................................................ 16-22 16-III.D. Hearing and Appeal Provisions for Noncitizens [24 CFR 5.514]................................................................................... 16-29 Notice of Denial or Termination of Assistance [24 CFR 5.514(d)]........................................................................16-29 USCIS Appeal Process [24 CFR 5.514(e)]................................... 16-30 Informal Hearing Procedures for Applicants [24 CFR 5.514(f)]......................................................................... 16-30 Informal Hearing Procedures for Residents [24 CFR 5.514(f)]......................................................................... 16-31 Retention of Documents [24 CFR 5.514(h)]................................16-31 PART IV: OWNER OR FAMILY DEBTS TO THE PHA ................................................. 16-33 16-IV .A. Overview.............................................................................................16-3 3 16-IV.B. Repayment Policy............................................................................... 16-33 Owner Debts to the PHA..............................................................16-33 Family Debts to the PHA.............................................................. 16-34 Refusal to Enter into an Agreement .............................................. 16-34 Repayment Agreement [24 CFR 792.103]................................... 16-34 General Repayment Agreement Guidelines for Families ............. 16-34 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) .......... 16-37 16-V .A. Overview.............................................................................................16-3 7 16-V.B. SEMAP Certification [24 CFR 985.101]............................................16-38 HUD Verification Method............................................................16-38 16-V.C. SEMAP Indicators [24 CFR 985.3 and Form HUD-52648] ..............16-39 SEMAP Indicators Chart ..............................................................16-39 PART VI: RECORD KEEPING......................................................................................... 16-43 16-VI.A. Overview............................................................................................. 16-43 16-VI.B. Record Retention [24 CFR 982.158; 24 CFR 908.101] ..................... 16-43 16-VI.C. Records Management.........................................................................16-44 Privacy Act Requirements [24 CFR 5.212 and Form-9886-A] .... 16-44 Upfront Income Verification (UIV) Records ............................... 16-45 Criminal Records.......................................................................... 16-45 Medical/Disability Records.......................................................... 16-45 Documentation of Domestic Violence, Dating Violence, Sexual Assault, Stalking or Human Trafficking................................................................... 16-45 - 025 City Council 5 — 39 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL ................................................... 16-47 16-VII.A. Overview............................................................................................. 16-47 16-VII.B. Reporting Requirement [24 CFR 35.1225(e) ); Notice PIH 2O17-13]...........................................................................16-47 16-VII.C. Data Collection and Record Keeping [24 CFR 35.1225(f)] ............... 16-47 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING ...................................... 16-49 16-V III. A. Overview........................................................................................... 16-49 16-VIII.B. Methodology..................................................................................... 16-49 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY................................................... 16-51 16-IX.A. Overview............................................................................................. 16-51 16-IX.B. Definitions [24 CFR 5.2003]...............................................................16-51 16-IX.C. Notification [24 CFR 5.2005(a), 42 USC 13925] ............................... 16-53 Notification to Public.................................................................... 16-53 Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)]..................................................................16-54 Notification to Owners and Managers .......................................... 16-55 16-IX.D. Documentation [24 CFR 5.2007]........................................................16-56 Conflicting Documentation [24 CFR 5.2007(e)] .......................... 16-57 Discretion to Require No Formal Documentation [24 CFR 5.2007(d)]...................................................................... 16-57 Failure to Provide Documentation [24 CFR 5.2007(c)] ............... 16-58 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)].................................... 16-58 Exhibit 16-1: Sample Notice of Occupancy Rights Under the Violence Against Women Act, Form HUD-5380............................................................. 16-59 Exhibit 16-2: Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation, Form HUD-5382 ............................ 16-65 Exhibit 16-3: Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (HCV Version) .......................... 16-67 Exhibit 16-4: Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, Form HUD-5383 ...................... 16-71 Exhibit 16-5: Model Owner Notification of Rights and Obligations ...................................... 16-75 - 025 City Council 5 — 40 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 17 PROJECT -BASED VOUCHERS PART I: GENERAL REQUIREMENTS............................................................................ 17-3 17-I.A. Overview [24 CFR 983.5].................................................................... 17-3 17-I.B. PBV Definitions [24 CFR 983.3]......................................................... 17-4 17-I.C. Maximum Number of PBV Units (Percentage Limitation) [24 CFR 983.6]..................................................................................... 17-7 ProgramCap................................................................................... 17-7 Increased Cap [24 CFR 983.6(d)]................................................... 17-7 17-I.D. Cap on Number of PBV Units in Each Project [24 CFR 983.54] ........ 17-9 Project Cap [24 CFR 983.54(a)]..................................................... 17-9 Higher Project Cap [24 CFR 983.54(b)]......................................... 17-9 Exceptions to the Project Cap [24 CFR 983.54(c)] ........................ 17-9 Units that No Longer Qualify as Excepted Units or Units under the Increased Program Cap [24 CFR 983.262(b)] ..............17-10 17-I.E. Units not Subject to the PBV Program Cap or Project Cap [FR Notice 1/18/17 and 24 CFR 983.59]............................................17-12 17-I.F. PHA -Owned Units [24 CFR 982.4 and 983.57].................................17-14 17-I.G. Tenant -Based vs. Project -Based Voucher Assistance [24 CFR 983.2]................................................................................... 17-15 17-I.H. Relocation Requirements [24 CFR 983.7].......................................... 17-15 17-I.I. Equal Opportunity Requirements [24 CFR 983.8] ............................. 17-15 PART II: PROPOSAL AND PROJECT SELECTION...................................................... 17-17 17-II.A. Overview............................................................................................. 17-17 Selection of PHA -Owned Units [24 CFR 983.51(h)] ...................17-17 17-II.B. Competitive Selection Of Proposals [24 CFR 983.51(b)] .................. 17-18 Solicitation and Selection of PBV Proposals [24 CFR 983.51(d)]...................................................................... 17-18 17-II.C. Non -Competitive Project Selection [24 CFR 983.51(c)] ................... 17-22 17-II.D. Project or Proposal Selection [24 CFR 983.51(f) and 24 CFR 983.153(c)(3)]....................................................................... 17-24 PHA Written Notice of Proposal or Project Selection [24 CFR 983.51(f) and (h) and 24 CFR 983.153(c)(3)] ...............17-24 17-II.E. Housing Type [24 CFR 983.52]......................................................... 17-27 17-II.F. Prohibition of Assistance For Certain Units ....................................... 17-28 Ineligible Units [24 CFR 983.52]................................................. 17-28 Subsidized Housing [24 CFR 983.53]..........................................17-29 - 025 City Council 5 — 41 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 17-II.G. Subsidy Layering Requirements [24 CFR 983.11, 24 CFR 983.153(b), 24 CFR 4.13, Notice PIH 2O13-11, and FR Notice 3/13/23]...................................................................... 17-30 Development Activity Before HAP Contract [24 CFR 983.153(b)].................................................................... 17-30 Conducting the SLR [FR Notice 3/3/23 and Notice PIH 2O23-15]..................................................................... 17-30 Additional Assistance after HAP Contract \[24 CFR 983.11(d)].....................................................................17-31 17-II.H. Site Selection Standards.....................................................................17-32 Compliance with PBV Goals, Civil Rights Requirements, and Site and Neighborhood Standards [24 CFR 983.55(b)] .........17-32 Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.55(d)].............................. 17-33 New Construction Site and Neighborhood Standards [24 CFR 983.55(e)].......................................................................17-34 17-II.I. Environmental Review [24 CFR 983.56]........................................... 17-35 PART III: DWELLING UNITS........................................................................................... 17-37 17-III.A. Overview............................................................................................. 17-3 7 17-III.B. Housing Quality Standards [24 CFR 983.101]................................... 17-37 Lead -based Paint [24 CFR 983.101(c)]........................................17-37 Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)]...........................................17-37 17-III.C. Housing Accessibility for Persons with Disabilities [24 CFR 983.102]...............................................................................17-38 17-III.D. Inspecting Units[24 CFR 983.103]..................................................... 17-38 Pre -selection Inspection [24 CFR 983.103(a)].............................17-38 Initial Inspection: Newly Constructed and Rehabilitated Projects That Underwent Substantial Improvement [24 CFR 983.103(b)].............................................. 17-38 Initial Inspection: Existing Housing [24 CFR 983.103(d)] .......... 17-39 Turnover Inspections [24 CFR 983.103(d)................................... 17-39 Periodic Inspections [24 CFR 983.103(e); FR Notice 6/25/14] ... 17-39 Alternative Inspections for Periodic Inspections [24 CFR 983.103(g); Notice PIH 2O16-05]..................................17-40 Interim Inspections [24 CFR 983.103(f)].....................................17-40 Follow Up Inspections [24 CFR 983103(f)(2)]............................17-40 Supervisory Quality Control Inspections [24 CFR 983.103(f)(3)]................................................................ 17-40 Inspecting PHA -Owned Units [24 CFR 983.103(g)] ................... 17-40 - 025 City Council 5 — 42 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS ......................... 17-41 17-IV.A. Overview [24 CFR 983.151 and 983.152].......................................... 17-41 17-IV.B. Agreement to Enter into HAP Contract (AHAP) [24 CFR 983.154]............................................................................... 17-41 PHA Discretion Not to Use an AHAP [24 CFR 983.154(f)] .......17-41 Content of the AHAP [24 CFR 983.154(e)]................................. 17-42 Execution of the AHAP [FR Notice 11/24/08]............................. 17-42 17-IV.C. Development Requirements................................................................ 17-43 Labor Standards [24 CFR 983.153(c)].........................................17-43 Accessibility [24 CFR 983.153(e)]...............................................17-43 Broadband Infrastructure [24 CFR 983.153(f)]............................ 17-44 Owner Disclosure [24 CFR 983.153(g)]...................................... 17-44 17-IV.D. Completion of Work [24 CFR 983.155]............................................. 17-45 Evidence of Completion [24 CFR 983.155]................................. 17-45 PHA Acceptance of Completed Units [24 CFR 983.156(a) and (b)]........................................................ 17-46 Staged Completion of Contract Units [24 CFR 983.156(c)] ........ 17-46 PART V: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT ......................... 17-47 17-V.A. Overview [24 CFR 983.202(a)].......................................................... 17-47 17-V.B. HAP Contract Requirements.............................................................. 17-47 Contract Information [24 CFR 983.204]...................................... 17-47 Execution of the HAP Contract [24 CFR 983.204] ...................... 17-48 Effective Date of the HAP Contract [24 CFR 983.204(d)] .......... 17-48 Term of HAP Contract [24 CFR 983.205, FR Notice 1/18/17, and Notice PIH 2017-21] .............................. 17-49 17-V.C. Termination of the HAP Contract....................................................... 17-50 Termination by Agreement of PHA and Owner [24 CFR 983.206(e)]..................................................................... 17-50 Termination by PHA [24 CFR 983.205(c)]..................................17-50 Non -extension by Owner — Notice Requirements [24 CFR 983.206(a)].....................................................................17-50 Termination by Owner — Reduction Below Initial Contract Rent [24 CFR 983.206(d)].............................................17-51 Termination or Expiration without Extensions — Required Provision of Tenant -Based Assistance [24 CFR 983.206(b)] ...... 17-51 Remedies for Housing Quality Standards Deficiencies [24 CFR 983.208].........................................................................17-53 Enforcement of Housing Quality Standards [24 CFR 983.208(b)].................................................................... 17-53 Family Obligation [24 CFR 983.208(c)]......................................17-54 PHA Remedies [24 CFR 983.208(d)]........................................... 17-55 HAP Withholding [24 CFR 983.208(d)(1)...................................17-56 HAP Abatement [24 CFR 983.208(d)(2)].................................... 17-56 Failure to Make Repairs................................................................ 17-57 Offer of Public Housing [24 CFR 983.208(d)(6)(ii)] ................... 17-57 Relocation Assistance [24 CFR 983.208(d)(6)(iii)] ..................... 17-58 City Council 5 — 43 5 2 025 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 17-V.D. Amendments to the HAP Contract to Add or Substitute Units [24 CFR 983.207]...............................................................................17-59 Addition of Contract Units [24 CFR 983.207(b)] ........................ 17-59 Substituting or Adding Occupied Units [24 CFR 983.207(c)] .....17-60 17-V.E. HAP Contract Year, Anniversary and Expiration Dates [24 CFR 983.207(b)(2) and (g) and 983.302(e)]................................ 17-60 17-V.F. Owner Responsibilities Under the HAP Contract [24 CFR 983.210]............................................................................... 17-61 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS ...................................... 17-63 17-VI.A. Overview............................................................................................. 17-63 17-VI.B. Eligibility for PBV Assistance [24 CFR 983.251(a) and (b)] ............ 17-63 In -Place Families [24 CFR 983.251(b)]....................................... 17-64 17-VI.C. Organization of the Waiting List [24 CFR 983.251(c)]...........................................................................17-65 PHA Waiting List Preferences [24 CFR 983.251(c)(3)] ..............17-65 17-VI.D. Owner -Maintained Waiting Lists [24 CFR 983.251(c)(7)] ................ 17-66 Owner Waiting List Policy [24 CFR 983.25 1 (c)(7)(i)] ................ 17-67 Owner -Maintained Waiting List Preferences [24 CFR 983.25 1 (c)(7)(ii)] ........................................................... 17-68 Preliminary Eligibility Determinations [24 CFR 983.25 1 (c)(7)(vi)] ..........................................................17-68 PHA Oversight [24 CFR 983.25 1 (c)(7)(x)] ..................................17-69 17-VI.E. Selection From the Waiting List [24 CFR 983.251(c)] ...................... 17-70 Income Targeting [24 CFR 983.251(c)(9)].................................. 17-70 Units with Accessibility Features [24 CFR 983.251(c)(9)] ..........17-70 17-VI.F. Offer of PBV Assistance or Owner's Rejection ................................. 17-71 Refusal of Offer [24 CFR 983.251(e)].........................................17-71 Acceptance of Offer [24 CFR 983.252(a) and (b)]....................... 17-72 17-VI.G. Leasing of Contract Units [24 CFR 983.252].....................................17-73 Filling Vacancies [24 CFR 983.254(a)]........................................17-73 Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)]....................................................................17-74 17-VI.H. Tenant Screening [24 CFR 983.255].................................................. 17-75 PHAOption.................................................................................. 17-75 Owner Responsibility................................................................... 17-75 - 025 City Council 5 — 44 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART VII: OCCUPANCY.................................................................................................... 17-77 17-VII.A. Overview............................................................................................. 17-77 17-VII.B. Lease [24 CFR 983.256]..................................................................... 17-77 Form of Lease [24 CFR 983.256(b)]............................................ 17-77 Lease Requirements [24 CFR 983.256(c)]................................... 17-77 Tenancy Addendum [24 CFR 983.256(d)]................................... 17-78 Initial Term and Lease Renewal [24 CFR 983.256(f)] ................. 17-78 Changes in the Lease [24 CFR 983.256(e)].................................. 17-78 Owner Termination of Tenancy [24 CFR 983.257] ..................... 17-79 Continuation of Housing Assistance Payments [24 CFR 983.258]........................................................................17-79 Security Deposits [24 CFR 983.259]............................................17-80 17-VII.C. Moves.................................................................................................17-81 Overcrowded, Under -Occupied, and Accessible Units [24 CFR 983.260].........................................................................17-81 Family Right to Move [24 CFR 983.261]....................................17-83 Emergency Transfers under VAWA [Notice PIH 2O17-08 and 24 CFR 983.261(f) and (g)] ................ 17-84 PART VIII: DETERMINING RENT TO OWNER............................................................... 17-87 17-VIII.A. Overview [24 CFR 983.301(a)]........................................................ 17-87 17-VIII.B. Amount of Rent To Owner [24 CFR 983.301(b)] ............................ 17-87 Rent to Owner for Certain Tax Credit Units [24 CFR 983.301(c)]..................................................................... 17-87 Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)]...............................17-88 Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h) and 24 CFR 983.301(f)(3)] .........................17-89 17-VIII.C. Redetermination of Rent to Owner [24 CFR 983.302] ..................... 17-90 PHA -Owned Units [24 CFR 983.301(g)].....................................17-92 17-VIII.D. Reasonable Rent [24 CFR 983.301(d) and 983.303]........................ 17-93 When Rent Reasonable Determinations Are Required ................ 17-93 RentFloor..................................................................................... 17-93 How to Determine Reasonable Rent [24 CFR 983.303(c)] ..........17-94 PHA -Owned Units [24 CFR 983.303(f)]......................................17-94 Owner Certification of Reasonable Rent [24 CFR 983.303(e)] ...17-94 17-VIII.D. Effect of Other Subsidy and Rent Control........................................17-95 Other Subsidy [24 CFR 983.304].................................................17-95 Rent Control [24 CFR 983.305]................................................... 17-95 - 025 City Council 5 — 45 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART IX: PAYMENTS TO OWNER................................................................................. 17-97 17-IX.A. Housing Assistance Payments [24 CFR 983.351].............................. 17-97 17-IX.B. Vacancy Payments [24 CFR 983.352]................................................ 17-98 Payment at Move -Out Month [24 CFR 983.352(a)] .................... 17-98 Vacancy Payments [24 CFR 983.352(b)].....................................17-98 17-IX.C. Tenant Rent to Owner [24 CFR 983.353]........................................ 17-100 Tenant and PHA Responsibilities............................................... 17-100 Utility Reimbursements [24 CFR 983.353(d)] ........................... 17-100 17-IX.D. Other Fees and Charges [24 CFR 983.354]......................................17-101 Meals and Supportive Services ................................................... 17-101 Other Charges by Owner............................................................ 17-101 17-IX.E. Project Record Retention [24 CFR 983.12]...................................... 17-101 Exhibit 17-1: PBV Development Information....................................................................... 17-103 Exhibit 17-2: Special Provisions Applying to TPVs Awarded as Part of a Voluntary Conversion of Public Housing Units in Projects that Include RAD PBV Units.................................................................................. 17-106 Exhibit 17-3: Owner Waiting List Policy.............................................................................. 17-109 - 025 City Council 5 — 46 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents Chapter 18 SPECIAL PURPOSE VOUCHERS PART I: FOSTER YOUTH TO INDEPENDENCE INITIATIVE ................................... 18-23 18-I.A. Program Overview [Notice PIH 2O20-28; Notice PIH 2O23-04; FR Notice 1/24/22]...........................................18-23 18-I.B. Partnering Agencies [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar].............................................. 18-24 Public Child Welfare Agency(PCWA)........................................18-24 Continuum of Care (CoC) and Other Partners ............................. 18-24 18-I.C. Youth Eligibility Criteria [Notice PIH 2O23-04; FYI Q&As; FYI FAQs]...................................................................... 18-25 18-I.D. Supportive Services [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] .......................... 18-26 18-I.E. Referrals and Waiting List Management [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] ...... 18-27 Referrals........................................................................................ 18-27 Waiting List Placement [Notice PIH 2O23-04 and FYI FAQs].... 18-28 Waiting List Selection.................................................................. 18-28 18-I.F. PHA HCV Eligibility Determination [FYI FAQs] ............................. 18-29 Additional Eligibility Factors....................................................... 18-29 18-I.G. Lease Up [FR Notice 1/24/22]............................................................18-30 Turnover....................................................................................... 18-30 18-I.H. Maximum Assistance Period [Notice PIH 2O23-04 and FYI FAQs; FR Notice 1/24/22]................. 18-31 Extension of Assistance................................................................ 18-31 Statutory Exceptions..................................................................... 18-31 Education, Workforce Development, or Employment Activities............................................................. 18-33 FSS Enrollment at 24 Months ....................................................... 18-34 FSS Enrollment Between 36 and 48 Months ................................ 18-34 FSS Enrollment After 48 Months ................................................. 18-35 Extensions of Assistance.............................................................. 18-35 No FSS Program or Unable to Enroll in FSS ............................... 18-35 Verification Prior to Annual Reexam........................................... 18-35 Termination of Assistance for Failure to Meet Conditions\......... 18-37 18-I.I. Termination of Assistance [FYI FAQs]............................................. 18-37 18-I.J. Portability [FYI FAQs].......................................................................18-38 18-I.K. Project -Basing FYI Vouchers [FYI FAQs; FR Notice 1/24/22; Notice PIH 2O24-03]........................................................................... 18-38 - 025 City Council 5 — 47 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents PART II: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM....... 18-39 18-II.A. Program Overview.............................................................................. 18-39 18-II13. Referrals [FR Notice 8/13/24 and HUD-VASH Qs and As] ..............18-40 18-II.C. HCV Program Eligibility [FR Notice 8/13/24].................................. 18-41 Social Security Numbers.............................................................. 18-41 Proofof Age................................................................................. 18-41 Photo Identification...................................................................... 18-41 Income Eligibility [FR Notice 8/13/24]........................................ 18-42 Minimum Rent [FR Notice 8/13/24]............................................18-43 Screening [FR Notice 8/13/24]..................................................... 18-43 Denial of Assistance [Notice PIH 2O08-37].................................18-43 18-III.D. Changes in Family Composition........................................................ 18-44 Adding Family Members [FR Notice 8/13/24] ............................ 18-44 Remaining Family Members [HUD-VASH Qs and As] .............. 18-44 Family Break Up [HUD-VASH Qs and As] ................................ 18-44 18-II.E. Leasing [FR Notice 8/13/24].............................................................. 18-45 WaitingList.................................................................................. 18-45 Exception Payment Standards [FR Notice 8/13/24] ..................... 18-45 Voucher Issuance [FR Notice 8/13/24]........................................18-45 Special Housing Types [FR Notice 8/13/24]................................ 18-46 Initial Lease Term [FR Notice 8/13/24].......................................18-46 Ineligible Housing [[FR Notice 8/13/24]...................................... 18-46 Pre -Inspections [FR Notice 8/13/24]............................................18-46 18-II.F. Portability [Notice PIH 2O11-53 and FR Notice 8/13/24].................. 18-47 General Requirements.................................................................. 18-47 Portability within the Initial VAMC or DSP's Catchment Area.. 18-47 Portability Outside of the Initial VAMC or DSP's Catchment Area............................................................. 18-47 Portability Outside of the Initial VAMC or DSP's Catchment Area under VAWA..................................... 18-48 18-II.G. Termination of Assistance [FR Notice 8/13/24]................................. 18-49 Cessation of Case Management.................................................... 18-49 Serious Violation of the Lease ...................................................... 18-49 VAWA [FR Notice 8/13/24]........................................................ 18-50 - 025 City Council 5 — 48 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 18-II.H. Project -Basing VASH Vouchers....................................................... 18-51 General Requirements [Notice PIH 2O17-21 and FR Notice 8/13/24].............................. 18-51 Ineligible Units.............................................................................18-51 Termination of Assistance............................................................ 18-52 Moves........................................................................................... 18-52 Wrong -Sized or Accessible Units ................................................. 18-53 Contract Terminations.................................................................. 18-53 Rents............................................................................................. 18-53 Removing Units from the HAP Contract for Ineligible Families................................................................... 18-53 Zero HAP Families....................................................................... 18-54 Proposal Project Selection............................................................ 18-54 Failure to Participate in Case Management [FR Notice 8/13/24]...................................................................... 18-55 Moves [HUD-VASH Qs and As, FR Notice 8/13/24] ................. 18-55 PART III: MAINSTREAM VOUCHER PROGRAM........................................................ 18-57 18-III.A. Program Overview [Notice PIH 2O20-01 and Notice PIH 2-2024-30]................................................................ 18-57 18-III.B. Eligible Population [Notice PIH 2O20-01 and Notice PIH 2O20-22]...........................................................................18-58 18-III.C. Partnership And Supportive Services [Notice PIH 2O20-01] .............18-58 18-III.D. Waiting List Administration [Notice PIH 2O24-30]...........................18-59 18-III.E. Preferences [Notice PIH 2O24-30]...................................................... 18-60 18-III.F. Voucher Issuance................................................................................18-61 Initial Search Term [Notice PIH 2O24-30]...................................10-61 Voucher Extension [Notice PIH 2O24-30]...................................10-61 18-III.G. Portability [Notice PIH 2O20-01 and Mainstream Voucher Basics Webinar, 10/15/20] ............................... 18-63 18-III.H. Project -Basing Mainstream Vouchers [FY19 Mainstream Voucher NOFA Q&A].......................................................................18-63 PART IV: NON -ELDERLY DISABLED (NED) VOUCHERS ............................................. 18-65 18-IV.A. Program Overview [Notice PIH 2O13-19]..........................................18-65 18-IV.B. Eligible Population.............................................................................18-66 General Requirements [Notice PIH 2O13-19] .............................. 18-66 NED Category 2 [Notice PIH 2O13-19 and NED Category 2 FAQs].........................................................18-66 18-IV.C. Waiting List........................................................................................ 18-67 General Requirements [Notice PIH 2O13-19] .............................. 18-67 NED Category 2 Referrals [NED Category 2 FAQs] ................... 18-67 Reissuance of Turnover Vouchers [Notice PIH 2013-19]............ 18-68 - 025 City Council 5 — 49 5 2 25 EXHIBIT 1 SAHA Administrative Plan -Table of Contents 18-IV.D. Lease Up [Notice PIH 2O13-19]......................................................... 18-69 Briefings....................................................................................... 18-69 VoucherTerm............................................................................... 18-69 Special Housing Types [Notice PIH 2O13-19 and NED Category 2 FAQs]......................................................... 18-70 18-IV.E. Portability [NED Category 2 FAQs].................................................. 18-70 GLOSSARY HOTMA 102/104 Appendix to the Administrative Plan - 025 City Council 5 — 50 5 2 5 EXHIBIT 1 Introduction HOTMA CHANGES IN THE ADMINSTRATIVE PLAN On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. HOTMA 102/104 HUD published a final rule on February 14, 2023, revising regulations related to income, assets, adjusted income, verification, and reexams (among others) to implement Sections 102 and 104 of HOTMA. While the new regulations were effective January 1, 2024, HUD has delayed the compliance date for HOTMA 102/104. Initially, HUD published a delayed compliance date of January 1, 2025, but HUD again delayed the compliance date for HOTMA 102/104and no new date has been provided. Compliance with Sections 102 and 104 of HOTMA means not only applying HOTMA 102/104 regulations to affected programs but also reporting in HUD's new Housing Information Portal (HIP) system. Currently, PHAs remain unable to comply with HOTMA 102/104 because compliance depends on transitioning from HUD's IMS/PIC system (which is unable to accept HOTMA-compliant Form HUD-50058) to HUD's new HIP system (which will be the only system that accepts HOTMA-compliant Form HUD-50058). PHAs cannot transition to HOTMA until HIP is in place, HOTMA-compliant, and accessible. However, HUD has determined that a few HOTMA 102/104 policies are not dependent on transition systems and easily isolated from other HOTMA 102/104 policy changes. These policies may be implemented prior to the migration to HIP. HUD stated that PHAs may update their policy documents before determining the date at which they will transition to all HOTMA Section 102 and 104 policies. HUD stated that in order to update their policy documents for HOTMA in this circumstance, PHAs may create an appendix that contains the HOTMA policies that will be incorporated at a later date. The policy adopts such an approach. HOTMA 102/104 policies are provided in each affected area of the policy. However, with the exception of the policies HUD has indicated may be adopted early, HOTMA policies that are "on hold" are indicated in the policy as such. Further, an appendix has been provided to explicitly call out those policies that are on hold. - 025 City Council 5 — 51 5 2 25 EXHIBIT 1 HOTMA VOUCHER FINAL RULE The final rule implementing streamlining changes to the HCV and PBV programs was published on May 7, 2024, and codified certain provisions in Sections 101, 105, 106, and 112 of HOTMA, as well as incorporating changes from the NSPIRE final rule discussed above. The rule is known as the "HOTMA voucher final rule." The effective date of the HOTMA voucher final rule was June 6, 2024. While the compliance date for certain provisions of the rule is the same as the effective date, the compliance date for other provisions is not until 90 days, 180 days, or one year after the effective date. Further, many new changes to the regulations described in the HOTMA voucher final rule require changes to the PHA's administrative plan. PHAs must make all revisions needed to bring existing policies into compliance with the final rule no later than June 6, 2025 (one year after the effective date). However, if a PHA wishes to use program flexibilities requiring adoption of new local policies not already present in the PHA's administrative plan, the PHA must add those policies to the administrative plan prior to using those program flexibilities. Further, the delayed compliance date for policies of June 6, 2025, does not authorize delayed compliance with the provisions of the rule. PHAs that choose not to bring their policies into compliance with the rule until June 6, 2025, must still implement each provision on its compliance date. In order to identify those provisions of the final rule that are not effective until after June 6, 2024, the policy states that certain policies are not effective until a specific date. - 025 City Council 5 — 52 5 2 25 EXHIBIT 1 ABOUT THE ADMINISTRATIVE PLAN REFERENCES CITED IN THE ADMINISTRATIVE PLAN The authority for PHA policies is derived from many sources. Primary among these sources are federal statutes, federal regulations, and guidance issued by HUD. State law also directs PHA policy. State law must be followed where such law exists and does not conflict with federal regulations. Industry practice may also be used to develop policy as long as it does not conflict with federal requirements or prohibitions. HUD HUD provides the primary source of PHA policy through federal regulations, HUD notices, and handbooks. Compliance with federal regulations, current HUD notices, and current HUD handbooks is mandatory. HUD also provides guidance to PHAs through other means such as HUD -published guidebooks, expired HUD notices, and expired handbooks. Basing PHA policy on HUD guidance is optional, as long as PHA policies comply with federal law, federal regulations and mandatory policy. Because HUD has already determined that the guidance it provides is consistent with mandatory policies, PHA reliance on HUD guidance provides the PHA with a "safe harbor." Material posted on the HUD website can provide further clarification of HUD policies. For example, FAQs on the HUD website can provide direction on the application of federal regulations in various aspects of the program. State Law Where there is no mandatory federal guidance, PHAs must comply with state law, if it exists. Where state law is more restrictive than federal law, but does not conflict with it, the PHA should follow the state law. Industry Practice Where no law or HUD authority exists on a particular subject, industry practice may support PHA policy. Industry practice refers to a way of doing things or a policy that has been adopted by a majority of PHAs. - 025 City Council 5 — 53 5 2 25 EXHIBIT 1 NSPIRE AND HQS IN THE ADMINISTRATIVE PLAN The PHA must determine that the rental unit selected by the family is in safe and habitable condition at certain times prescribed by the regulations. The current applicable inspection standard for the HCV and PBV programs is Housing Quality Standards (HQS). On May 11, 2023, HUD published a final rule implementing the National Standards for the Physical Inspection of Real Estate (NSPIRE final rule), a new approach to defining and assessing housing quality across multiple HUD programs. 24 CFR 5.703 describes the NSPIRE standards, including variations for the HCV and PBV programs. Notice PIH 2O23-28 finalized the administrative procedures for NSPIRE as they pertain specifically to the HCV and PBV programs. Collectively, this is known as "NSPIRE-V." The compliance date for NSPIRE-V is no later than October 1, 2025, at which point the HQS inspection standard will sunset. PHAs may, however, implement NSPIRE-V prior to October 1, 2025, provided they do so in accordance with requirements in FR Notice 7/5/24. However, even once the HQS inspection standard has sunset, the regulations at 24 CFR Part 982 and 983 governing the HCV and PBV programs will continue to use the terms HQS and housing quality standards rather than NSPIRE. This is because, the definition of housing quality standards (HQS) at 24 CFR 982.4 means the minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for the HCV program, including any variations approved by HUD for the PHA. As such, the policy uses the term housing quality standards whenever applicable regulations use this term. Except in the chapter describing HQS, the acronym HQS is not used in the policy in order to avoid confusion between the umbrella term meaning housing standards and the specific inspection protocol. The policy only uses the term NSPIRE when referring to specific NSPIRE standards. HOTMA SECTIONS 102 AND 104 CHANGES IN THE POLICY On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. HUD published a final rule on February 14, 2023, revising regulations related to income and assets (Sections 102 and 104 of HOTMA). While the new income and asset regulations were effective January 1, 2024, PHAs were instructed to select a compliance date no later than January 1, 2025. Compliance with Sections 102 and 104 of HOTMA means not only applying HOTMA regulations to affected programs but also reporting in HUD's new Housing Information Portal (HIP) system. Currently, PHAs remain unable to select a compliance date because HOTMA compliance depends on transitioning from HUD's IMS/PIC system (which is unable to accept HOTMA-compliant Form HUD-50058) to HUD's new HIP system (which will be the only system that accepts HOTMA- compliant Form HUD-50058). Because HOTMA-compliant reexaminations cannot be successfully submitted to IMS/PIC, HUD advised PHAs not to begin conducting reexaminations under HOTMA rules without further information on when the new HOTMA-compliant Form HUD-50058 in HIP will be available. PHAs cannot transition to HOTMA until HIP is in place, HOTMA-compliant, and accessible. 025 City Council 5 — 54 5 2 25 EXHIBIT 1 HOTMA VOUCHER FINAL RULE CHANGES IN THE MODEL POLICY The final rule implementing streamlining changes to the HCV and PBV programs was published on May 7, 2024, and codified certain provisions in Sections 101, 105, 106, and 112 of HOTMA, as well as incorporating changes from the NSPIRE final rule discussed above. The rule is known as the "HOTMA voucher final rule." The effective date of the HOTMA voucher final rule was June 6, 2024. While the compliance date for certain provisions of the rule is the same as the effective date, the compliance date for other provisions is not until 90 days, 180 days, or one year after the effective date. Further, many new changes to the regulations described in the HOTMA voucher final rule require changes to the PHA's administrative plan. PHAs must make all revisions needed to bring existing policies into compliance with the final rule no later than June 6, 2025 (one year after the effective date). However, if a PHA wishes to use program flexibilities requiring adoption of new local policies not already present in the PHA's administrative plan, the PHA must add those policies to the administrative plan prior to using those program flexibilities. Further, the delayed compliance date for policies of June 6, 2025, does not authorize delayed compliance with the provisions of the rule. PHAs that choose not to bring their policies into compliance with the rule until June 6, 2025, must still implement each provision on its compliance date. In order to identify those provisions of the final rule that are not effective until after June 6, 2024, the policy states that certain policies are not effective until a specific date. RESOURCES CITED IN THE ADMINISTRATIVE PLAN The administrative plan cites several documents. Where a document or resource is cited frequently, it may be abbreviated. Where it is cited only once or twice, the administrative plan may contain the entire name of the document or resource. Following is a key to abbreviations used for various sources that are frequently cited in the administrative plan and a list of references and document locations that are referenced in the administrative plan or that may be helpful to you. - 025 City Council 5 — 55 W2b 25 EXHIBIT 1 HUD HCV Guidebook In November 2019 HUD began issuing a new version of the HCV Guidebook chapter -by - chapter. Unlike the previous version of the HCV Guidebook in which chapters were numbered, the new version of the guidebook includes chapter names, but no numbers. As the new version of the guidebook has not yet been fully released, and since the previous version of the guidebook contains guidance not found in the new version, the policy cites both versions of the guidebook. Therefore, where the HCV Guidebook is cited in the policy, the citation will make a distinction between the "old" and "new" versions of the guidebook. The "old" version of the guidebook will continue to be cited as HCV GB with a chapter/page reference (example: HCV GB, p. 5-4). If HUD has also released a new chapter on the same topic with information that either adds new information or updates existing information from the previous guidebook, the new guidebook will be cited as New HCV GB with a chapter title and page reference (example: New HCV GB, Payment Standards, p. 11). On September 29, 2023, HUD issued Notice PIH 2O23-27 to implement sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). The notice supersedes relevant portions of the guidebook, specifically the chapters on eligibility, denials, and annual reexaminations and interim reexaminations. Where chapters have not been altered by the HOTMA implementation notice, the policy continues to cite the HCV Guidebook. Abbreviations Throughout the administrative plan, abbreviations are used to designate certain documents in citations. The following is a table of abbreviations of documents cited in the administrative plan. Abbreviation Document CFR Code of Federal Regulations HCV GB Housing Choice Voucher Program Guidebook (7420.1OG), April 2001. New HCV GB Housing Choice Voucher Program Guidebook (7420.1 OG), Various dates of release HUD-50058 IB HUD-50058 Instruction Booklet RHIIP FAQs Rental Housing Integrity Improvement Program (RHIIP) Frequently Asked Questions. VG PIH Notice 2004-01 Verification Guidance, March 9, 2004. HB 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs Resources and Where to Find Them The HUD website is hgps://www.hud.gov/. Guidebooks, handbooks, and other HUD resources may be found at the HUDClips website: hqps://www.hud.gov/program offices/administration/hudclips. - 025 City Council 5 — 56 5 2 25 EXHIBIT 1 Following is a list of resources helpful to the PHA or referenced in the administrative plan, and the online location of each. Document and Location Code of Federal Regulations htt2s://www.ecfr.g2v/ Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Final Rule hllp://edocket.access.gpo.gov/2008/pdf/E8-19435.pdf Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data hllps://www.hud.gov/sites/documents/EIVSECGUIDEPHA.PDF Executive Order 11063 https://www.archives. gov/federal-register/codification/executive-order/ 11063.html Federal Register hqps://www.federalregister.gov/ Housing Choice Voucher Program Guidebook (7420.10G), Updated Chapters https://www.hud.gov/program_ offices/public indian_housing//programs/hcv/guidebook HOTMA Final Rule hgps://www.federalregister. gov/documents/2023/02/ 14/2023 -01617/housing-opportunity- through-modernization-act-of-2016-implementation-of-sections-102-103-and- 104?utm campaign=subscription+mailing+list&utm_source=federalregister.gov&utm_medium— email HOTMA Implementation Notice, PIH 2O23-27 https://www.hud. gov/sites/dfiles/OCHCO/documents/2023-27pihn.pdf Joint Statement of the Department of Housing and Urban Development and the Department of Justice, issued May 17, 2004 https://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint statement ra.pdf Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007 https://www.lep.gov/guidance/HUD_guidance Jan07.pdf Notice PIH 2O10-26 (HA), Nondiscrimination and Accessibility Notice https://www.hud.gov/sites/documents/DOC 8993.PDF Notice PIH 2O17-12, Administrative Guidance for Effective and Mandated Use of the Enterprise Income Verification (EIV) System https://www.hud.gov/sites/documents/PIH2017-12EIVNOTICE.PDF VAWA Resources https://www.hud.ggvL/vawa ffitt - 025 City Council 5 — 57 5 2 25 EXHIBIT 1 Chapter 1 OVERVIEW OF THE PROGRAM AND PLAN INTRODUCTION The PHA receives its funding for the Housing Choice Voucher (HCV) program from the Department of Housing and Urban Development. The PHA is not a federal department or agency. A public housing agency (PHA) is a governmental or public body, created and authorized by state law to develop and operate housing and housing programs for low-income families. The PHA enters into an Annual Contributions Contract (ACC) with HUD to administer the program requirements on behalf of HUD. The PHA must ensure compliance with federal laws, regulations and notices and must establish policy and procedures to clarify federal requirements and to ensure consistency in program operation. This chapter contains information about the PHA and its programs with emphasis on the HCV program. It also contains information about the purpose, intent and use of the plan and guide. There are three parts to this chapter: Part I: The Public Housing Agency (PHA). This part includes a description of the PHA, its jurisdiction, its programs, and its mission and intent. Part II: The HCV Program. This part contains information about the Housing Choice Voucher program operation, roles and responsibilities, and partnerships. Part III: The HCV Administrative Plan. This part discusses the purpose and organization of the plan and its revision requirements. PART I: THE PHA 1-I.A. OVERVIEW This part explains the origin of the PHA's creation and authorization, the general structure of the organization, and the relationship between the PHA Board and staff. 025 City Council 5 — 58 5 2 25 EXHIBIT 1 1-LB. ORGANIZATION AND STRUCTURE OF THE PHA The Section 8 tenant -based Housing Choice Voucher (HCV) assistance program is funded by the federal government and administered by the Housing Authority of the City of Santa Ana (SAHA) for the jurisdiction of the City of Santa Ana in the County of Orange. The officials of SAHA are known as commissioners or, collectively, as the Board of Commissioners. The City Council for the City of Santa Ana is the Board of Commissioners for the Housing Authority when seated as the Authority. The board is responsible for establishing policies under which SAHA conducts business, ensuring that policies are followed by SAHA staff and ensuring that SAHA is successful in its mission. The board is responsible for preserving and expanding the agency's resources and assuring the agency's continued viability. Formal actions of SAHA are taken through written resolutions, adopted by the board of commissioners and entered into the official records of SAHA. The principal staff member of SAHA is the eExecutive dDirector (ED), hired and appointed by the City Manager. The eExecutive dDirector gives the Housing Division Manager the direct responsibility for carrying out the policies established by the board and is delegated the responsibility for hiring, training and supervising SAHA staff in order to manage the day-to-day operations of SAHA. The Housing Division Manager is responsible for ensuring compliance with federal and state laws and directives for the programs managed. In addition, the Housing Division Manager's duties include budgeting and financial planning for the agency. 1-I.C. PHA MISSION The purpose of a mission statement is to communicate the purpose of the agency to people inside and outside of the agency. It provides guiding direction for developing strategy, defining critical success factors, searching out key opportunities, making resource allocation choices, satisfying clients and stakeholders, and making decisions. SAHA Policy Our Mission is to provide affordable housing for the most vulnerable members of our community to use as a platform to obtain self-sufficiency and independence from our assistance. 1-I.D. THE PHA'S PROGRAMS The following programs are included under this administrative plan: SAHA Policy SAHA's Administrative Plan is applicable to the operation of the Housing Choice Voucher program, Project -Based Voucher Program, Mainstream Voucher Program, and all related programs. 1-I.E. THE PHA'S COMMITMENT TO ETHICS AND SERVICE As a public service agency, the PHA is committed to providing excellent service to HCV program participants, owners, and to the community. The PHA's standards include: - 025 City Council 5 — 59 5 2 25 EXHIBIT 1 • Administer applicable federal and state laws and regulations to achieve high ratings in performance measurement indicators while maintaining efficiency in program operation to ensure fair and consistent treatment of clients served. • Provide decent, safe, and sanitary housing — in compliance with program housing quality standards — for very low income families while ensuring that family rents are fair, reasonable, and affordable. • Encourage self sufficiency of participant families and assist in the expansion of family opportunities which address educational, socio-economic, recreational and other human services needs. • Promote fair housing and the equal opportunity for very low-income families of all ethnic backgrounds to experience freedom of housing choice. • Promote a housing program which maintains quality service and integrity while providing an incentive to private property owners to rent to very low-income families. • Promote a market -driven housing program that will help qualified low-income families be successful in obtaining affordable housing and increase the supply of housing choices for such families. • Create positive public awareness and expand the level of family, owner, and community support in accomplishing the PHA's mission. • Attain and maintain a high level of standards and professionalism in day-to-day management of all program components. • Administer an efficient, high -performing agency through continuous improvement of the PHA's support systems and a high level of commitment to our employees and their development. The PHA will make every effort to keep program participants informed of HCV program rules and regulations, and to advise participants of how the program rules affect them. - 025 City Council 5 — 60 5 2 25 EXHIBIT 1 PART II: THE HOUSING CHOICE VOUCHER (HCV) PROGRAM 1-II.A. OVERVIEW AND HISTORY OF THE PROGRAM The intent of this section is to provide the public and staff with information related to the overall operation of the program. There have been many changes to the program since its inception in 1974 and a brief history of the program will assist the reader to better understand the program. The United States Housing Act of 1937 (the "Act") is responsible for the birth of federal housing program initiatives. The Act was intended to provide financial assistance to states and cities for public works projects, slum clearance and the development of affordable housing developments for low-income residents. The Housing and Community Development (HCD) Act of 1974 created a new federally assisted housing program — the Section 8 Existing program (also known as the Section 8 Certificate program). The HCD Act represented a significant shift in federal housing strategy from locally owned public housing to privately owned rental housing. Under the Certificate program, federal housing assistance payments were made directly to private owners of rental housing, where this housing was made available to lower -income families. Eligible families were able to select housing in the private rental market. Assuming that the housing met certain basic physical standards of quality ("housing quality standards") and was within certain HUD -established rent limitations ("fair market rents"), the family would be able to receive rental assistance in the housing unit. Family contribution to rent was generally set at 30 percent of the family's adjusted income, with the remainder of the rent paid by the program. Another unique feature of the Certificate program was that the rental assistance remained with the eligible family, if the family chose to move to another privately -owned rental unit that met program requirements (in contrast to the public housing program where the rental assistance remains with the unit, should the family decide to move). Consequently, the Certificate program was characterized as tenant -based assistance, rather than unit -based assistance. The Housing and Community Development (HCD) Act of 1987 authorized a new version of tenant -based assistance — the Section 8 Voucher program. The Voucher program was very similar to the Certificate program in that eligible families were able to select housing in the private rental market and receive assistance in that housing unit. However, the Voucher program permitted families more options in housing selection. Rental housing still had to meet the basic housing quality standards, but there was no fair market rent limitation on rent. In addition, family contribution to rent was not set at a limit of 30 percent of adjusted income. Consequently, depending on the actual rental cost of the unit selected, a family might pay more or less than 30 percent of their adjusted income for rent. 025 City Council 5 — 61 5 2 25 EXHIBIT 1 From 1987 through 1999, public housing agencies managed both the Certificate and Voucher tenant -based assistance programs, with separate rules and requirements for each. From 1994 through 1998, HUD published a series of new rules, known as "conforming" rules, to more closely combine and align the two similar housing programs, to the extent permitted by the law. In 1998, the Quality Housing and Work Responsibility Act (QHWRA) — also known as the Public Housing Reform Act — was signed into law. QHWRA eliminated all statutory differences between the Certificate and Voucher tenant -based programs and required that the two programs be merged into a single tenant -based assistance program, now known as the Housing Choice Voucher (HCV) program. The HCV program was modeled closely on the pre -merger Voucher program. However, unlike the pre -merger Voucher program, the HCV program requires an assisted family to pay at least 30 percent of adjusted income for rent. The transition of assistance from the Certificate and Voucher programs to the new HCV program began in October 1999. By October 2001, all families receiving tenant -based assistance were converted to the HCV program. On July 29, 2016, the Housing Opportunity Through Modernization Act of 2016 (HOTMA) was signed into law. HOTMA made numerous changes to statutes governing HUD programs, including sections of the United States Housing Act of 1937. Title I of HOTMA contains 14 different sections that impact the public housing and Section 8 programs. • The Final Rule implementing broad changes to income and assets in Sections 102 and 104 of HOTMA, and for PHAs that administer the public housing program over -income provisions in Section 103, was officially published in the Federal Register on February 14, 2023. On September 29, 2023, HUD issued notice PIH 2023-27, which provided guidance to PHAs on the implementation of the program changes described in the Final Rule. HUD issued a revised version of the notice on February 2, 2024. • The Final Rule implementing streamlining changes to the HCV and PBV programs was published on May 7, 2024, and codified certain provisions in Sections 101, 105, 106, and 112 of HOTMA as well as incorporating changes from the NSPIRE final rule. - 025 City Council 5 — 62 5 2 25 EXHIBIT 1 1-II.B. HCV PROGRAM BASICS The purpose of the HCV program is to provide rental assistance to eligible families. The rules and regulations of the HCV program are determined by the U.S. Department of Housing and Urban Development. The PHA is afforded choices in the operation of the program which are included in the PHA's Administrative Plan, a document approved by the Board of Commissioners of the PHA. The HCV program offers mobility to eligible families because they may search for suitable housing anywhere in the PHA's jurisdiction and may also be eligible to move under portability to other PHAs' jurisdictions. When a family is determined to be eligible for the program and funding is available, the PHA issues the family a housing voucher. When the family finds a suitable housing unit and funding is available, the PHA will enter into a contract with the owner and the family will enter into a lease with the owner. Each party makes their respective payment to the owner so that the owner receives full rent. Even though the family is determined to be eligible for the program, the owner has the responsibility of approving the family as a suitable renter. The PHA continues to make payments to the owner as long as the family is eligible and the housing unit continues to qualify under the program. 1-II.C. THE HCV PARTNERSHIPS To administer the HCV program, the PHA enters into a contractual relationship with HUD (Consolidated Annual Contributions Contract). The PHA also enters into contractual relationships with the assisted family and the owner or landlord of the housing unit. For the HCV program to work and be successful, all parties involved — HUD, the PHA, the owner, and the family — have important roles to play. The roles and responsibilities of all parties are defined in federal regulations and in legal documents that parties execute to participate in the program. The chart on the following page illustrates key aspects of these relationships. - 025 City Council 5 — 63 5 2 25 EXHIBIT 1 The HCV Relationships: Family (Program Participant) Congress Appropriates Funding HUD Provides Funding To PHA Program Reg Pat ons and ACC specifies PH O ligations and Vouch r F nding PHA Administers Program (HAP) G and Lease specifies Tenant an an or Obligations ee Payments ecifies Owner Owner / Landlord 025 City Council t — 64 5 2 5 EXHIBIT 1 What Does HUD Do? HUD has the following major responsibilities: • Develop regulations, requirements, handbooks, notices and other guidance to implement HCV housing program legislation passed by Congress; • Allocate HCV program funds to PHAs; • Provide technical assistance to PHAs on interpreting and applying HCV program requirements; • Monitor PHA compliance with HCV program requirements and PHA performance in program administration. What Does the PHA Do? The PHA administers the HCV program under contract with HUD and has the following major responsibilities: • Establish local policies to administer the program; • Review applications from interested applicants to determine whether they are eligible for the program; • Maintain a waiting list and select families for admission; • Issue vouchers to eligible families and provide information on how to lease a unit; • Conduct outreach to owners, with special attention to owners outside areas of poverty or minority concentration; • Approve the rental unit (including assuring compliance with housing quality standards and rent reasonableness), the owner, and the tenancy; • Make housing assistance payments to the owner in a timely manner; • Recertify families for continued eligibility under the program; • Ensure that owners and families comply with their contractual obligations; • Provide families and owners with prompt, professional service; • Comply with all fair housing and equal opportunity requirements, HUD regulations and requirements, the ACC, HUD -approved applications for funding, the PHA's administrative plan, and other applicable federal, state and local laws. -S 025 City Council 5 — 65 5 2 25 EXHIBIT 1 What Does the Owner Do? The owner has the following major responsibilities: • Screen families who apply for tenancy, to determine suitability as renters. The PHA can provide some information to the owner, but the primary responsibility for tenant screening rests with the owner. - The owner should consider family background factors such as rent and bill -paying history, history of caring for property, respecting the rights of others to peaceful enjoyment of the property, compliance with essential conditions of tenancy, whether the family is engaging in drug -related criminal activity or other criminal activity that might threaten others. • Comply with the terms of the Housing Assistance Payments contract executed with the PHA; • Comply with all applicable fair housing laws and do not discriminate against anyone; • Maintain the housing unit in accordance with minimum quality standards developed by HUD in accordance with 24 CFR 5.703 (including any variations approved by HUD for the PHA) and make necessary repairs in a timely manner; • Collect rent due from the assisted family and otherwise comply with and enforce provisions of the dwelling lease. 025 City Council 5 — 66 5 2 25 EXHIBIT 1 What Does the Family Do? The family has the following responsibilities: • Provide the PHA with complete and accurate information as determined by the PHA to be necessary for administration of the program; • Make their best and most timely efforts to locate qualified and suitable housing; • Attend all appointments scheduled by the PHA; • Allow the PHA to inspect the unit at reasonable times and after reasonable notice; • Take responsibility for care of the housing unit, including any violations of housing quality standards caused by the family; • Comply with the terms of the lease with the owner; • Comply with the family obligations of the voucher; • Not commit serious or repeated violations of the lease; • Not engage in drug -related or violent criminal activity; • Notify the PHA and the owner before moving or terminating the lease; • Use the assisted unit only for residence and as the sole residence of the family. Not sublet the unit, assign the lease, or have any interest in the unit; • Promptly notify the PHA of any changes in family composition; • Not commit fraud, bribery, or any other corrupt or criminal act in connection with any housing programs. 025 City Council 5 — 67 7HV2b25 EXHIBIT 1 1-II.D. APPLICABLE REGULATIONS Applicable regulations include: • 24 CFR Part 5: General Program Requirements • 24 CFR Part 8: Nondiscrimination • 24 CFR Part 35: Lead -Based Paint • 24 CFR Part 100: The Fair Housing Act • 24 CFR Part 982: Section 8 Tenant -Based Assistance: Housing Choice Voucher Program • 24 CFR Part 983: Project -Based Vouchers • 24 CFR Part 985: The Section 8 Management Assessment Program (SEMAP) 025 City Council 5 — 68 5 2 25 EXHIBIT 1 PART III: THE HCV ADMINISTRATIVE PLAN 1-III.A. OVERVIEW AND PURPOSE OF THE PLAN The Administrative Plan is required by HUD. The purpose of the Administrative Plan is to establish policies for carrying out the programs in a manner consistent with HUD requirements and local goals and objectives contained in the PHA's Agency Plan. This Administrative Plan is a supporting document to the PHA agency plan and is available for public review as required by CFR 24 Part 903. This Administrative Plan is set forth to define the PHA's local policies for operation of the housing programs in accordance with federal laws and regulations. All issues related to the HCV program not addressed in this document are governed by such federal regulations, HUD handbooks and guidebooks, notices, and other applicable law. The policies in this administrative plan have been designed to ensure compliance with the consolidated ACC and all HUD - approved applications for program funding. The PHA is responsible for complying with all changes in HUD regulations pertaining to the HCV program. If such changes conflict with this plan, HUD regulations will have precedence. Administration of the HCV program and the functions and responsibilities of PHA staff shall be in compliance with the PHA's personnel policy and HUD regulations as well as all federal, state and local fair housing laws and regulations. 1-III.B. CONTENTS OF THE PLAN [24 CFR 982.54] The HUD regulations at 24 CFR 982.54 define the policies that must be included in the administrative plan. They are as follow: • Selection and admission of applicants from the PHA waiting list, including any PHA admission preferences, procedures for removing applicant names from the waiting list, and procedures for closing and reopening the PHA waiting list (Chapter 4); Issuing or denying vouchers, including PHA policy governing the voucher term and any extensions of the voucher term. If the PHA decides to allow extensions of the voucher term, the PHA Administrative Plan must describe how the PHA determines whether to grant extensions, and how the PHA determines the length of any extension (Chapter 5); • Any special rules for use of available funds when HUD provides funding to the PHA for a special purpose (e.g., desegregation), including funding for specified families or a specified category of families (Chapter 4); 025 City Council 5 — 69 5 2 25 EXHIBIT 1 • Occupancy policies, including definition of what group of persons may qualify as a'family', definition of when a family is considered to be 'continuously assisted'; standards for denying admission or terminating assistance based on criminal activity or alcohol abuse in accordance with 982.553 (Chapters 3 and 12); • Encouraging participation by owners of suitable units located outside areas of low income or minority concentration (Chapter 13); • Assisting a family that claims that illegal discrimination has prevented the family from leasing a suitable unit (Chapter 2); • Providing information about a family to prospective owners (Chapters 3 and 9); • Disapproval of owners (Chapter 13); • Subsidy standards (Chapter 5); • Family absence from the dwelling unit (Chapter 12); • How to determine who remains in the program if a family breaks up (Chapter 3); • Informal review procedures for applicants (Chapter 16); • Informal hearing procedures for participants (Chapter 16); • The process for establishing and revising voucher payment standards (Chapter 16); • Policies on administering decreases and increases in the payment standard during the HAP contract term (Chapter 6); • The method of determining that rent to owner is a reasonable rent (initially and during the term of a HAP contract) (Chapter 8); • Special policies concerning special housing types in the program (e.g., use of shared housing) (Chapter 15); • Policies concerning payment by a family to the PHA of amounts the family owes the PHA (Chapter 16); • Interim redeterminations of family income and composition (Chapter 11); • Restrictions, if any, on the number of moves by a participant family (Chapter 10); • Approval by the board of commissioners or other authorized officials to charge the administrative fee reserve (Chapter 16); • Procedural guidelines and performance standards for conducting required housing quality standards inspections (Chapter 8); • PHA screening of applicants for family behavior or suitability for tenancy (Chapter 3); • Policies governing the project -basing of vouchers in both the standard Project -Based Voucher (PBV) program (Chapter 17) and the RAD Project -Based Voucher program (Chapter 18); and • Special policies governing any special purpose vouchers issued by the PHA (Chapter 19). 025 City Council 5 — 70 5 2 25 EXHIBIT 1 Mandatory vs. Discretionary Policy HUD makes a distinction between: • Mandatory policies: those driven by legislation, regulations, current handbooks, notices, and legal opinions, and • Optional, non -binding._ guidance, including guidebooks, notices that have expired and recommendations from individual HUD staff. HUD expects PHAs to adopt local policies and procedures that are consistent with mandatory policies in areas where HUD gives the PHA discretion. The PHA's administrative plan is the foundation of those policies and procedures. HUD's directions require PHAs to make policy choices that provide sufficient guidance to staff and ensure consistency to program applicants and participants. Creating policies based upon HUD guidance is not mandatory but provides a PHA with a "safe harbor." HUD has already determined that the recommendations and suggestions it makes are consistent with mandatory policies. If a PHA adopts an alternative strategy, it must make its own determination that the alternative approach is consistent with legislation, regulations, and other mandatory requirements. There may be very good reasons for adopting a policy or procedure that is different than HUD's safe harbor, but PHAs should carefully think through those decisions. 1-III.C. ORGANIZATION OF THE PLAN The plan is organized to provide information to users in particular areas of operation. 1-III.D. UPDATING AND REVISING THE PLAN The PHA will revise this administrative plan as needed to comply with changes in HUD regulations. The original plan and any changes must be approved by the Board of Commissioners of the agency, the pertinent sections included in the Agency Plan, and a copy provided to HUD. SAHA Policy SAHA will review and update the plan as needed, to reflect changes in regulations, PHA operations, or when needed to ensure staff consistency in operation. 025 City Council 5 — 71 5 2 25 EXHIBIT 1 Chapter 2 FAIR HOUSING AND EQUAL OPPORTUNITY INTRODUCTION This chapter explains the laws and HUD regulations requiring PHAs to affirmatively further civil rights and fair housing in all federally assisted housing programs. The letter and spirit of these laws are implemented through consistent policy and processes. The responsibility to further nondiscrimination pertains to all areas of the PHA's housing choice voucher (HCV) operations. This chapter describes HUD regulations and PHA policies related to these topics in three parts: Part I: Nondiscrimination. This part presents the body of laws and regulations governing the responsibilities of the PHA regarding nondiscrimination. Part II: Policies Related to Persons with Disabilities. This part discusses the rules and policies of the housing choice voucher program related to reasonable accommodation for persons with disabilities. These rules and policies are based on the Fair Housing Act (42.U.S.C.) and Section 504 of the Rehabilitation Act of 1973, and incorporate guidance from the Joint Statement of The Department of Housing and Urban Development and the Department of Justice (DOJ), issued May 17, 2004. Part III: Prohibition of Discrimination Against Limited English Proficiency Persons. This part details the obligations of the PHA to ensure meaningful access to the HCV program and its activities by persons with limited English proficiency (LEP). This part incorporates the Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons published January 22, 2007, in the Federal Register. - 025 City Council 5 — 72 5 2 25 EXHIBIT 1 PART I: NONDISCRIMINATION 2-I.A. OVERVIEW Federal laws require PHAs to treat all applicants and participants equally, providing the same opportunity to access services, regardless of family characteristics and background. Federal law prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, age, familial status, and disability. In addition, HUD regulations provide for additional protections regarding sexual orientation, gender identity, and marital status. The PHA will comply fully with all federal, state, and local nondiscrimination laws, and with rules and regulations governing fair housing and equal opportunity in housing and employment, including: • Title VI of the Civil Rights Act of 1964 • Title VIII of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974 and the Fair Housing Amendments Act of 1988) • Executive Orders 11063 and 13988 • Section 504 of the Rehabilitation Act of 1973 • The Age Discrimination Act of 1975 • Title II of the Americans with Disabilities Act (to the extent that it applies, otherwise Section 504 and the Fair Housing Amendments govern) • The Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Final Rule, published in the Federal Register February 3, 2012 and further clarified in Notice PIH 2O14-20 • Violence Against Women Act (VAWA) When more than one civil rights law applies to a situation, the laws will be read and applied together. Any applicable state laws or local ordinances and any legislation protecting individual rights of tenants, applicants, or staff that may subsequently be enacted will also apply. SAHA Policy SAHA will comply fully with California Assembly Bill 1418 (AB1418) (Gov. Code, §53165.1) Prohibition on Penalties Against Tenants and Landlords for Law Enforcement Contact or Emergency Services. 2-LB. NONDISCRIMINATION Federal regulations prohibit discrimination against certain protected classes and other groups of people. State and local requirements, as well as PHA policies, can prohibit discrimination based on other factors. The PHA shall not discriminate because of race, color, sex, religion, familial status, age, disability or national origin (called "protected classes") 025 City Council 5 — 73 5 2 25 EXHIBIT 1 Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18. The PHA will not discriminate on the basis of marital status, gender identity, or sexual orientation [FR Notice 02/03/12; Executive Order 13988]. SAHA Policy SAHA does not identify any additional protected classes. The PHA will not use any of these factors to: • Deny to any family the opportunity to apply for housing, nor deny to any qualified applicant the opportunity to participate in the housing choice voucher program • Provide housing that is different from that provided to others • Subject anyone to segregation or disparate treatment • Subject anyone to sexual harassment • Restrict anyone's access to any benefit enjoyed by others in connection with the housing program • Treat a person differently in determining eligibility or other requirements for admission • Steer an applicant or participant toward or away from a particular area based any of these factors • Deny anyone access to the same level of services • Deny anyone the opportunity to participate in a planning or advisory group that is an integral part of the housing program • Discriminate in the provision of residential real estate transactions • Discriminate against someone because they are related to or associated with a member of a protected class • Publish or cause to be published an advertisement or notice indicating the availability of housing that prefers or excludes persons who are members of a protected class - 025 City Council 5 — 74 5 2 25 EXHIBIT 1 Providing Information to Families and Owners The PHA must take steps to ensure that families and owners are fully aware of all applicable civil rights laws. As part of the briefing process, the PHA must provide information to HCV applicant families about civil rights requirements and the opportunity to rent in a broad range of neighborhoods [24 CFR 982.301]. The Housing Assistance Payments (HAP) contract informs owners of the requirement not to discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability in connection with the contract. 2-I.C. DISCRIMINATION COMPLAINTS General Housing Discrimination Complaints If an applicant or participant believes that any family member has been discriminated against by the PHA or an owner, the family should advise the PHA. The PHA should make every reasonable attempt to determine whether the applicant's or participant's assertions have merit and take any warranted corrective action. In all cases, the PHA will advise the family that they may file a fair housing complaint if the family feels they have been discriminated against under the Fair Housing Act. SAHA Polic Applicants or participants who believe that they have been subject to unlawful discrimination may notify SAHA either orally or in writing. Within 14 calendar days of receiving the complaint, SAHA will investigate and attempt to remedy discrimination complaints made against SAHA. SAHA will also advise the family of their right to file a fair housing complaint with HUD's Office of Fair Housing and Equal Opportunity (FHEO). The fair housing poster, posted in conspicuous and accessible locations in SAHA lobbies, will reference how to file a complaint with FHEO. SAHA will keep a record of all complaints, investigations, notices, and corrective actions in the client file and/or electronic records. (See Chapter 16.) Complaints under the Equal Access Final Rule [Notice PIH 2O14-201 Notice PIH 2O14-20 requires an articulated complaint process for allegations of discrimination under the Equal Access Final rule. The Equal Access Final Rule requires that PHAs provide equal access regardless of marital status, gender identity, or sexual orientation. The PHA will be informed on these obligations by the HUD Field Office or FHEO when an Equal Access complaint investigation begins. SAHA Policy Applicants or tenant families who believe that they have been subject to unlawful discrimination based on marital status, gender identity, or sexual orientation under the Equal Access Rule may notify SAHA either orally or in writing. SAHA will make a case note documenting the oral report. SAHA will attempt to remedy discrimination complaints made against SAHA and will conduct an investigation into all allegations of discrimination. - 025 City Council 5 — 75 5 2 25 EXHIBIT 1 SAHA will also provide information on how to complete and submit a housing discrimination complaint form to HUD's Office of Fair Housing and Equal Opportunity (FHEO). VAWA Complaint Processing [Notice FHEO 2023-01] A complainant may, not later than one year after an alleged VAWA violation has occurred or terminated, file a complaint with FHEO alleging such violation. If there is a violation that began prior to a year before the complaint is filed, but it continues into the one-year time period, HUD will accept the complaint. FHEO will investigate the complaint if it is timely and FHEO otherwise has jurisdiction. If a complaint is filed more than one year after the alleged violation occurred or terminated, FHEO may, but is not required to, investigate the allegations under the additional authority and procedures described in FHEO 2023-01. Complaints do not need to allege a violation of the Fair Housing Act for FHEO to accept and investigate the complaint. SAHA Policy Applicants or tenant families who wish to file a VAWA complaint against SAHA may notify SAHA either orally or in writing. SAHA will advise the family of their right to file a VAWA complaint with HUD's Office of Fair Housing and Equal Opportunity (FHEO).. - 025 City Council 5 — 76 5 2 25 EXHIBIT 1 PART IL• POLICIES RELATED TO PERSONS WITH DISABILITIES 2-ILA. OVERVIEW One type of disability discrimination prohibited by the Fair Housing Act is the refusal to make reasonable accommodation in rules, policies, practices, or services when such accommodation may be necessary to afford a person with a disability the equal opportunity to use and enjoy a program or dwelling under the program. The PHA must ensure that persons with disabilities have full access to the PHA's programs and services. This responsibility begins with the first contact by an interested family and continues through every aspect of the program. SAHA Polic SAHA will notify all applicants and participants if they require any type of accommodations, in writing, on the intake application, reexamination documents, and notices of adverse action by SAHA, by including the following language: "If you or anyone in your family is a person with disabilities, and you require a specific accommodation in order to fully utilize our programs and services, please contact our office." Requests for reasonable accommodation will be directed to a Senior Housing Specialist and/or a Supervisor. All requests will be forwarded to the Reasonable Accommodation Committee for review. SAHA will display posters and other housing information and signage in locations throughout the office in such a manner as to be easily readable from a wheelchair. - 025 City Council 5 — 77 5 2 25 EXHIBIT 1 2-II.B. DEFINITION OF REASONABLE ACCOMMODATION A reasonable accommodation is an adjustment made to a rule, policy, practice, or service that allows a person with a disability to have equal access to the HCV program. For example, reasonable accommodations may include making home visits, extending the voucher term, or approving an exception payment standard in order for a participant to lease an accessible dwelling unit. Federal regulations stipulate that requests for accommodations will be considered reasonable if they do not create an "undue financial and administrative burden" for the PHA, or result in a "fundamental alteration" in the nature of the program or service offered. A fundamental alteration is a modification that alters the essential nature of a provider's operations. Types of Reasonable Accommodations When needed, the PHA will modify normal procedures to accommodate the needs of a person with disabilities. Examples include: • Permitting applications and reexaminations to be completed by mail • Conducting home visits • Using higher payment standards (either within the acceptable range or with HUD approval of a payment standard outside the PHA range) if the PHA determines this is necessary to enable a person with disabilities to obtain a suitable housing unit • Providing time extensions for locating a unit when necessary because of lack of availability of accessible units or special challenges of the family in seeking a unit • Permitting an authorized designee or advocate to participate in the application or certification process and any other meetings with PHA staff • Allowing for exceptions to the PHA's subsidy standards • Allowing a change in the family's rent due date to correspond with the receipt of the head of household, or spouse or cohead's SSI or SSDI benefits - 11 025 City Council — 78 5 2 25 EXHIBIT 1 2-II.C. REQUEST FOR AN ACCOMMODATION If an applicant or participant indicates that an exception, change, or adjustment to a rule, policy, practice, or service is needed because of a disability, HUD requires that the PHA treat the information as a request for a reasonable accommodation, even if no formal request is made [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. The family must explain what type of accommodation is needed to provide the person with the disability full access to the PHA's programs and services. If the need for the accommodation is not readily apparent or known to the PHA, the family must explain the relationship between the requested accommodation and the disability. There must be an identifiable connection, or nexus, between the requested accommodation and the individual's disability. SAHA Policy SAHA will encourage the family to make its request in writing using a standard Reasonable Accommodation Request Form. However, SAHA will consider the accommodation any time the family indicates that an accommodation is needed whether or not a formal written request is submitted. - 025 City Council 5 — 79 5 2 25 EXHIBIT 1 2-II.D. VERIFICATION OF DISABILITY The regulatory civil rights definition for persons with disabilities is provided in Exhibit 2-1 at the end of this chapter. The definition of a person with a disability for the purpose of obtaining a reasonable accommodation is much broader than the HUD definition of disability which is used for waiting list preferences and income allowances. Before providing an accommodation, the PHA must determine that the person meets the definition of a person with a disability, and that the accommodation will enhance the family's access to the PHA's programs and services. If a person's disability is obvious or otherwise known to the PHA, and if the need for the requested accommodation is also readily apparent or known, no further verification will be required [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act]. If a family indicates that an accommodation is required for a disability that is not obvious or otherwise known to the PHA, the PHA must verify that the person meets the definition of a person with a disability, and that the limitations imposed by the disability require the requested accommodation. When verifying a disability, the PHA will follow the verification policies provided in Chapter 7. All information related to a person's disability will be treated in accordance with the confidentiality policies provided in Chapter 16. In addition to the general requirements that govern all verification efforts, the following requirements apply when verifying a disability: Third -party verification must be obtained from an individual identified by the family who is competent to make the determination. A doctor or other medical professional, a peer support group, a non -medical service agency, or a reliable third party who is in a position to know about the individual's disability may provide verification of a disability [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act] The PHA must request only information that is necessary to evaluate the disability -related need for the accommodation. The PHA will not inquire about the nature or extent of any disability. • Medical records will not be accepted or retained in the participant file. In the event that the PHA does receive confidential information about a person's specific diagnosis, treatment, or the nature or severity of the disability, the PHA will dispose of it. In place of the information, the PHA will note in the file that the disability and other requested information have been verified, the date the verification was received, and the name and address of the knowledgeable professional who sent the information [Notice PIH 2O10-26]. - 025 City Council 5 — 80 5 2 25 EXHIBIT 1 2-II.E. APPROVAL/DENIAL OF A REQUESTED ACCOMMODATION [Joint Statement of the Departments of HUD and Justice: Reasonable Accommodations under the Fair Housing Act, Notice PIH 2O10-26]. The PHA must approve a request for an accommodation if the following three conditions are met: • The request was made by or on behalf of a person with a disability. • There is a disability -related need for the accommodation. • The requested accommodation is reasonable, meaning it would not impose an undue financial and administrative burden on the PHA, or fundamentally alter the nature of the PHA's HCV operations (including the obligation to comply with HUD requirements and regulations). Requests for accommodations must be assessed on a case -by -case basis, taking into account factors such as the overall size of the PHA's program with respect to the number of employees, type of facilities and size of budget, type of operation including composition and structure of workforce, the nature and cost of the requested accommodation, and the availability of alternative accommodations that would effectively meet the family's disability -related needs. Before making a determination whether to approve the request, the PHA may enter into discussion and negotiation with the family, request more information from the family, or may require the family to sign a consent form so that the PHA may verify the need for the requested accommodation. SAHA Polic After a request for an accommodation is presented, SAHA will respond in writing within 30 calendar days. If SAHA denies a request for an accommodation because there is no relationship, or nexus, found between the disability and the requested accommodation, the notice will inform the family of the right to appeal SAHA's decision through an informal review (if applicable) or informal hearing (see Chapter 16). If SAHA denies a request for an accommodation because it is not reasonable (it would impose an undue financial and administrative burden or fundamentally alter the nature of SAHA's operations), SAHA will discuss with the family whether an alternative accommodation could effectively address the family's disability -related needs without a fundamental alteration to the HCV program and without imposing an undue financial and administrative burden. If SAHA believes that the family has failed to identify a reasonable alternative accommodation after interactive discussion and negotiation, SAHA will notify the family in writing of its determination within 14 calendar days from the date of the most recent discussion or communication with the family. - to 025 City Council 5 — 81 5 2 25 EXHIBIT 1 2-II.F. PROGRAM ACCESSIBILITY FOR PERSONS WITH HEARING OR VISION IMPAIRMENTS HUD regulations require the PHA to ensure that persons with disabilities related to hearing and vision have reasonable access to the PHA's programs and services [24 CFR 8.6]. At the initial point of contact with each applicant, the PHA shall inform all applicants of alternative forms of communication that can be used other than plain language paperwork. SAHA Polic To meet the needs of persons with hearing impairments, TTD/TTY (text telephone display / teletype) communication will be available. To meet the needs of persons with vision impairments, large -print and audio versions of key program documents will be made available upon request. When visual aids are used in public meetings or presentations, or in meetings with SAHA staff, one-on-one assistance will be provided upon request. Additional examples of alternative forms of communication are sign language interpretation; having material explained orally by staff; or having a third party representative (a friend, relative or advocate, named by the applicant) to receive, interpret and explain housing materials and be present at all meetings. - 025 City Council 5 — 82 5 2 25 EXHIBIT 1 2-II.G. PHYSICAL ACCESSIBILITY The PHA must comply with a variety of regulations pertaining to physical accessibility, including the following: • Notice PIH 2O10-26 • Section 504 of the Rehabilitation Act of 1973 • The Americans with Disabilities Act of 1990 • The Architectural Barriers Act of 1968 • The Fair Housing Act of 1988 The PHA's policies concerning physical accessibility must be readily available to applicants and participants. They can be found in three key documents: • This plan describes the key policies that govern the PHA's responsibilities with regard to physical accessibility. • Notice PIH 2O10-26 summarizes information about pertinent laws and implementing regulations related to nondiscrimination and accessibility in federally -funded housing programs. • The PHA Plan provides information about self -evaluation, needs assessment, and transition plans. The design, construction, or alteration of PHA facilities must conform to the Uniform Federal Accessibility Standards (UFAS). Newly -constructed facilities must be designed to be readily accessible to and usable by persons with disabilities. Alterations to existing facilities must be accessible to the maximum extent feasible, defined as not imposing an undue financial and administrative burden on the operations of the HCV program. When issuing a voucher to a family that includes an individual with disabilities, the PHA will include a current list of available accessible units known to the PHA and will assist the family in locating an available accessible unit, if necessary. In general, owners must permit the family to make reasonable modifications to the unit. However, the owner is not required to pay for the modification and may require that the unit be restored to its original state at the family's expense when the family moves. - 025 City Council 5 — 83 5 2 25 EXHIBIT 1 2-II.11. DENIAL OR TERMINATION OF ASSISTANCE A PHA's decision to deny or terminate the assistance of a family that includes a person with disabilities is subject to consideration of reasonable accommodation [24 CFR 982.552 (2)(iv)]. When applicants with disabilities are denied assistance, the notice of denial must inform them of the PHA's informal review process and their right to request an informal review. In addition, the notice must inform applicants with disabilities of their right to request reasonable accommodations to participate in the informal review process. When a participant family's assistance is terminated, the notice of termination must inform them of the PHA's informal hearing process and their right to request a hearing and reasonable accommodation. When reviewing reasonable accommodation requests, the PHA must consider whether any mitigating circumstances can be verified to explain and overcome the problem that led to the PHA's decision to deny or terminate assistance. If a reasonable accommodation will allow the family to meet the requirements, the PHA must make the accommodation. - 025 City Council 5 — 84 7W2625 EXHIBIT 1 PART III: IMPROVING ACCESS TO SERVICES FOR PERSONS WITH LIMITED ENGLISH PROFICIENCY (LEP) 2-III.A. OVERVIEW Language for Limited English Proficiency Persons (LEP) can be a barrier to accessing important benefits or services, understanding and exercising important rights, complying with applicable responsibilities, or understanding other information provided by the HCV program. In certain circumstances, failure to ensure that LEP persons can effectively participate in or benefit from federally -assisted programs and activities may violate the prohibition under Title VI against discrimination on the basis of national origin. This part incorporates the Final Guidance to Federal Assistance Recipients Regarding Title VI Prohibition against National Origin Discrimination Affecting Limited English Proficient Persons, published January 22, 2007, in the Federal Register. The PHA will take affirmative steps to communicate with people who need services or information in a language other than English. These persons will be referred to as Persons with Limited English Proficiency (LEP). LEP is defined as persons who do not speak English as their primary language and who have a limited ability to read, write, speak or understand English. For the purposes of this administrative plan, LEP persons are HCV applicants and participants, and parents and family members of applicants and participants. In order to determine the level of access needed by LEP persons, the PHA will balance the following four factors: (1) the number or proportion of LEP persons eligible to be served or likely to be encountered by the Housing Choice Voucher program; (2) the frequency with which LEP persons come into contact with the program; (3) the nature and importance of the program, activity, or service provided by the program to people's lives; and (4) the resources available to the PHA and costs. Balancing these four factors will ensure meaningful access by LEP persons to critical services while not imposing undue burdens on the PHA. - 025 City Council 5 — 85 5 2 25 EXHIBIT 1 2-III.B. ORAL INTERPRETATION The PHA will offer competent interpretation services free of charge, upon request, to the LEP person. SAHA Polic SAHA will utilize telephone interpreter services. When exercising the option to conduct remote briefings, informal reviews, or hearings, however, SAHA will coordinate with a remote interpretation service which, when available, uses video conferencing technology rather than voice -only interpretation. Where LEP persons desire, they will be permitted to use, at their own expense, an interpreter of their own choosing, in place of or as a supplement to the free language services offered by SAHA. SAHA, at its discretion, may choose to use the language services even when LEP persons desire to use an interpreter of their choosing. The interpreter may be a family member or friend. If the interpreter chosen by the family is a minor, SAHA will not rely on the minor to serve as the interpreter. SAHA will analyze the various kinds of contacts it has with the public, to assess language needs and decide what reasonable steps should be taken. "Reasonable steps" may not be reasonable where the costs imposed substantially exceed the benefits. 2-III.C. WRITTEN TRANSLATION Translation is the replacement of a written text from one language into an equivalent written text in another language. SAHA Policy In order to comply with written -translation obligations, SAHA will take the following steps: SAHA will provide written translations of vital documents for each eligible LEP language group that constitutes 5 percent or 1,000 persons, whichever is less, of the population of persons eligible to be served or likely to be affected or encountered. Translation of other documents, if needed, can be provided orally; or If there are fewer than 50 persons in a language group that reaches the 5 percent trigger, SAHA does not translate vital written materials, but provides written notice in the primary language of the LEP language group of the right to receive competent oral interpretation of those written materials, free of cost. - 025 City Council 5 — 86 5 2 25 EXHIBIT 1 2-III.D. IMPLEMENTATION PLAN After completing the four -factor analysis and deciding what language assistance services are appropriate, the PHA shall determine whether it is necessary to develop a written implementation plan to address the identified needs of the LEP populations it serves. If the PHA determines that it is not necessary to develop a written implementation plan, the absence of a written plan does not obviate the underlying obligation to ensure meaningful access by LEP persons to the PHA's Housing Choice Voucher program and services. SAHA Policy Currently, 100% of Housing Specialists are bilingual in either Spanish or Vietnamese. These three languages (English, Spanish, and Vietnamese) are spoken by program participants. Forms that are in these three languages include, but are not limited to, the Orientation Packet, the Briefing Packet, Statement of Family Responsibilities, Voucher, Declaration of Legal Residency, Lease Addendum, Owner/Tenant Relationship, and any pertinent SAHA correspondence as appropriate. Online translation services are made available for any web based information. - 025 City Council 5 — 87 5 2 25 EXHIBIT 1 EXHIBIT 2-1: DEFINITION OF A PERSON WITH A DISABILITY UNDER FEDERAL CIVIL RIGHTS LAWS [24 CFR Parts 8.3 and 100.2011 A person with a disability, as defined under federal civil rights laws, is any person who: • Has a physical or mental impairment that substantially limits one or more of the major life activities of an individual, or • Has a record of such impairment, or • Is regarded as having such impairment The phrase "physical or mental impairment" includes: Any physiological disorder or condition, cosmetic or disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term "physical or mental impairment" includes, but is not limited to: such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. "Major life activities" includes, but is not limited to, caring for oneself, performing manual tasks, walking, seeing, hearing, breathing, learning, and/or working. "Has a record of such impairment" means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. "Is regarded as having an impairment" is defined as having a physical or mental impairment that does not substantially limit one or more major life activities but is treated by a public entity (such as the PHA) as constituting such a limitation; has none of the impairments defined in this section but is treated by a public entity as having such an impairment; or has a physical or mental impairment that substantially limits one or more major life activities, only as a result of the attitudes of others toward that impairment. - 025 City Council — 88 5 2 25 EXHIBIT 1 The definition of a person with disabilities does not include: • Current illegal drug users • People whose alcohol use interferes with the rights of others Persons who objectively pose a direct threat or substantial risk of harm to others that cannot be controlled with a reasonable accommodation under the HCV program The above definition of disability determines whether an applicant or participant is entitled to any of the protections of federal disability civil rights laws. Thus, a person who does not meet this disability is not entitled to a reasonable accommodation under federal civil rights and fair housing laws and regulations. The HUD definition of a person with a disability is much narrower than the civil rights definition of disability. The HUD definition of a person with a disability is used for purposes of receiving the disabled family preference, the $400 elderly/disabled household deduction, the $480 dependent deduction, the allowance for medical expenses, or the allowance for disability assistance expenses. The definition of a person with a disability for purposes of granting a reasonable accommodation request is much broader than the HUD definition of disability. Many people will not qualify as a disabled person under the HCV program, yet an accommodation is needed to provide equal opportunity. - 025 City Council 5 — 89 5 2 25 EXHIBIT 1 Chapter 3 ELIGIBILITY INTRODUCTION The PHA is responsible for ensuring that every individual and family admitted to the HCV program meets all program eligibility requirements. This includes any individual approved to join the family after the family has been admitted to the program. The family must provide any information needed by the PHA to confirm eligibility and determine the level of the family's assistance. To be eligible for the HCV program: • The applicant family must: - Qualify as a family as defined by HUD and the PHA. - Have income at or below HUD -specified income limits. - Qualify on the basis of citizenship or the eligible immigrant status of family members. - Provide social security number information for household members as required. - Consent to the PHA's collection and use of family information as provided for in PHA - provided consent forms. - Not currently be receiving a duplicative subsidy. - Meet net asset and property ownership restriction requirements. • The PHA must determine that the current or past behavior of household members does not include activities that are prohibited by HUD or the PHA. This chapter contains three parts: Part I: Definitions of Family and Household Members. This part contains HUD and PHA definitions of family and household members and explains initial and ongoing eligibility issues related to these members. Part II: Basic Eligibility Criteria. This part discusses income eligibility, and rules regarding citizenship, social security numbers, and family consent. Part III: Denial of Assistance. This part covers factors related to an applicant's past or current conduct (e.g., criminal activity) that can cause the PHA to deny assistance as well as the asset limitation for HCV. Page 3-1 Administrative Plan 7/l/2025 City Council 5 — 90 7/15/2025 EXHIBIT 1 PART I: DEFINITIONS OF FAMILY AND HOUSEHOLD MEMBERS 3-I.A. OVERVIEW Some eligibility criteria and program rules vary depending upon the composition of the family requesting assistance. In addition, some requirements apply to the family as a whole and others apply to individual persons who will live in the assisted unit. This part provides information that is needed to correctly identify family and household members, and to apply HUD's eligibility rules. 3-I.B. FAMILY AND HOUSEHOLD [24 CFR 5.403; FR Notice 02/03/12; Notice PIH 2O14-20; and FR Notice 2/14/231 The terms family and household have different meanings in the HCV program. Family To be eligible for assistance, an applicant must qualify as a family. Family as defined by HUD includes, but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, a single person, who may be an elderly person, displaced person, disabled person, near -elderly person, or any other single person, an otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has 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 (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or a group of persons residing together. Such group includes but is not limited to a family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family), an elderly family, a near -elderly family, a disabled family, a displaced family, and the remaining member of a tenant family. The PHA has the discretion to determine if any other group of persons qualifies as a family. Gender Identity means actual or perceived gender characteristics. Sexual orientation means homosexuality, heterosexuality, or bisexuality. SAHA Policy A family also includes two or more individuals who are not related by blood, marriage, adoption, or other operation of law but who either can demonstrate that they have lived together previously or certify that each individual's income and other resources will be available to meet the needs of the family. Each family must identify the individuals to be included in the family at the time of application and must notify SAHA if the family's composition changes. Approval for additional family members will only be considered if the change was reported to SAHA prior to notification for an orientation or eligibility interview. Final approval for additional family members will be given at the eligibility interview. Household Household is a broader term that includes additional people who, with the PHA's permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. Page 3-2 Administrative Plan 7/l/2025 City Council 5 — 91 7/15/2025 EXHIBIT 1 3-I.C. FAMILY BREAKUP AND REMAINING MEMBER OF TENANT FAMILY Family Breakup [24 CFR 982.315; Notice PIH 2O17-081 Except under the following conditions, the PHA has discretion to determine which members of an assisted family continue to receive assistance if the family breaks up: • If the family breakup results from an occurrence of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the PHA must ensure that the victim retains assistance. (For documentation requirements and policies related to domestic violence, dating violence, sexual assault, stalking, and human trafficking, see section 16-IX.D of this plan.) In accordance with Notice PIH 2O17-08, for HUD —Veterans Affairs Supportive Housing (HUD—VASH) vouchers, when the veteran is the perpetrator of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator's HUD—VASH voucher, the victim should be given a regular HCV if one is available, and the perpetrator's HUD—VASH voucher should be used to serve another eligible family. If a regular HCV is not available, the victim will continue to use the HUD—VASH voucher, which must be issued to another eligible family upon the voucher's turnover. If a court determines the disposition of property between members of the assisted family, the PHA is bound by the court's determination of which family members continue to receive assistance. SAHA Policy If the head of household is no longer interested or available at the time of eligibility, the application is not transferable to any remaining family members and the application will be removed. If the case of a deceased head of household with a surviving spouse on their application, the application may be transferred to the spouse if a copy of the death and marriage certificates are provided to SAHA.. If a family breaks up into two otherwise eligible families while receiving assistance, only one of the new families will continue to be assisted. If a court determines the disposition of property between members of the assisted family in a divorce or separation decree, SAHA is bound by the court's determination of which family members continue to receive assistance. In the absence of a judicial decision or an agreement among the original family members, SAHA will determine which family will retain their placement on the waiting list or continue to receive assistance. In making its determination, SAHA will take into consideration the following factors: (1) the interest of any minor children, including custody arrangements; (2) the interest of any ill, elderly, or disabled family members; (3) the interest of any family member who is the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including a family member who was forced to leave an assisted unit as a result of such actual or threatened abuse; (4) any possible risks to family members as a result of criminal activity; and (5) the recommendations of social service professionals Page 3-3 Administrative Plan 7/l/2025 City Council 5 — 92 7/15/2025 EXHIBIT 1 Remaining Member of a Tenant Family [24 CFR 5.403] The HUD definition of family includes the remaining member of a tenant family, which is a member of an assisted family who remains in the unit when other members of the family have left the unit. Household members such as live-in aides, foster children, and foster adults do not qualify as remaining members of a family. If dependents are the only "remaining members of a tenant family" and there is no family member able to assume the responsibilities of the head of household, see Chapter 6, Section 6- I.13, for the policy on "Caretakers for a Child." 3-I.D. HEAD OF HOUSEHOLD [24 CFR 5.504(b)] Head of household means the adult member of the family who is considered the head for purposes of determining income eligibility and rent. The head of household is responsible for ensuring that the family fulfills all of its responsibilities under the program, alone or in conjunction with a cohead or spouse. SAHA Policv The family may designate any qualified family member as the head of household. The head of household must have the legal capacity to enter into a lease under state and local law. A minor who is emancipated under state law may be designated as head of household. 3-I.E. SPOUSE, COHEAD, AND OTHER ADULT A family may have a spouse or cohead, but not both [HUD-50058 IB, p. 13]. Spouse means the marriage partner of the head of household. SAHA Policv A marriage partner includes the partner in a "common law" marriage as defined in state law. The term "spouse" does not apply to friends, roommates, or significant others who are not marriage partners. A minor who is emancipated under state law may be designated as a spouse. A cohead is an individual in the household who is equally responsible with the head of household for ensuring that the family fulfills all of its responsibilities under the program, but who is not a spouse. A family can have only one cohead. SAHA Policv Minors who are emancipated under state law may be designated as a cohead. Other adult means a family member, other than the head, spouse, or cohead, who is 18 years of age or older. Foster adults and live-in aides are not considered other adults. Page 3-4 Administrative Plan 7/l/2025 City Council 5 — 93 7/15/2025 EXHIBIT 1 3-I.F. DEPENDENTS AND MINORS [24 CFR 5.6031 A minor is a member of the family, other than the head of family or spouse, who is under 18 years of age. A dependent is a family member who is under 18 years of age or a person of any age who is a person with a disability or a full-time student, except that the following persons can never be dependents: the head of household, spouse, cohead, foster children/adults and live-in aides. Identifying each dependent in the family is important because each dependent qualifies the family for a dependent allowance as described in Chapter 6. Joint Custody of Dependents SAHA Policy Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, SAHA will make the determination based on available documents such as court orders, or an IRS return showing which family has claimed the child for income tax purposes. 3-I.G. FULL-TIME STUDENT [24 CFR 5.603; HCV GB, p. 5-291 A full-time student (FTS) is a person who is attending school or vocational training on a full-time basis. The time commitment or subject load that is needed to be full-time is defined by the educational institution. Identifying each FTS is important because: (1) each family member that is an FTS, other than the head, spouse, or cohead, qualifies the family for a dependent allowance, and (2) the earned income of such an FTS is treated differently from the income of other family members. 3-I.H. ELDERLY AND NEAR -ELDERLY PERSONS, AND ELDERLY FAMILY [24 CFR 5.100 and 5.403, FR Notice 02/03/121 Elderly Persons An elderly person is a person who is at least 62 years of age. Near -Elderly Persons A near -elderly person is a person who is 50-61 years of age. Elderly Family An elderly family is one in which the head, spouse, cohead, or sole member is an elderly person. Identifying elderly families is important because elderly families qualify for the elderly family allowance as described in Chapter 6. Page 3-5 Administrative Plan 7/l/2025 City Council 5 — 94 7/15/2025 EXHIBIT 1 3-I.I. PERSONS WITH DISABILITIES AND DISABLED FAMILY [24 CFR 5.403, FR Notice 02/03/121 Persons with Disabilities Under the HCV program, special rules apply to persons with disabilities and to any family whose head, spouse, or cohead is a person with disabilities. The technical definitions of individual with handicaps and persons with disabilities are provided in Exhibit 3-1 at the end of this chapter. These definitions are used for a number of purposes including ensuring that persons with disabilities are not discriminated against based upon disability. As discussed in Chapter 2, the PHA must make all aspects of the HCV program accessible to persons with disabilities and consider reasonable accommodations requested based upon a person's disability. Disabled Family A disabled family is one in which the head, spouse, or cohead is a person with disabilities. Identifying disabled families is important because these families qualify for the disabled family allowance as described in Chapter 6. Even though persons with drug or alcohol dependencies are considered persons with disabilities, this does not prevent the PHA from denying assistance for reasons related to alcohol and drug abuse in accordance with the policies found in Part III of this chapter, or from terminating assistance in accordance with the policies in Chapter 12. 3-I.J. GUESTS [24 CFR 5.1001 A guest is a person temporarily staying in the unit with the consent of a member of the household who has expressed or implied authority to so consent. SAHA Policy A guest can remain in the assisted unit no longer than 30 cumulative calendar days during any 12-month period subject to the lease term. Children who are subject to a joint custody arrangement or for whom a family has visitation privileges, that are not included as a family member because they live outside of the assisted household more than 50 percent of the time, are not subject to the time limitations of guests as described above. A family may request an exception to this policy for valid reasons (e.g., care of a relative recovering from a medical procedure is expected to last 40 consecutive days). An exception will not be made unless the family can identify and provide documentation of the residence to which the guest will return. Page 3-6 Administrative Plan 7/l/2025 City Council 5 — 95 7/15/2025 EXHIBIT 1 3-I.K. FOSTER CHILDREN AND FOSTER ADULTS [24 CFR 5.6031 A foster adult is a member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. A foster child is a member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction. Foster children and foster adults who are living with an applicant or who have been approved by the PHA to live with a participant family are considered household members but not family members. The income of foster children/adults is not counted in family annual income, and foster children/adults do not qualify for a dependent deduction [24 CFR 5.603; HUD-50058 IB, p. 13]. SAHA Policv A foster child or foster adult may be allowed to reside in the unit if their presence would not result in a violation of space standards as described in Section 8-I.F. of this Administrative Plan. Children that are temporarily absent from the home as a result of placement in foster care are discussed in Section 3-I.L. 3-I.L. ABSENT FAMILY MEMBERS Individuals may be absent from the family, either temporarily or permanently, for a variety of reasons including educational activities, placement in foster care, employment, illness, incarceration, and court order. Definitions of Temporarily and Permanently Absent SAHA Policy Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students SAHA Policv When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to SAHA indicating that the student has established a separate household or the family declares that the student has established a separate household. Page 3-7 Administrative Plan 7/l/2025 City Council 5 — 96 7/15/2025 EXHIBIT 1 Students who attend school out-of-state or a long distance must return for the family's annual recertification appointment. Failure to be present at the annual recertification appointment may result in the student being removed from the household. Absences Due to Placement in Foster Care [24 CFR 5.4031 Children temporarily absent from the home as a result of placement in foster care are considered members of the family. SAHA Policy If a child has been placed in foster care, SAHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member. Absent Head, Spouse, or Cohead SAHA Policy An employed head, spouse, or cohead absent from the unit more than 180 consecutive days due to employment will continue to be considered a family member. Family Members Permanently Confined for Medical Reasons [HCV GB, p. 5-221 If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV GB, p. 5-22]. SAHA Policy SAHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. Return of Permanently Absent Family Members SAHA Policy The family must request SAHA approval for the return of any adult family members that SAHA previously determined to be permanently absent. SAHA will only approve adult returning family members under the following circumstances: - U.S. Military members returning to family within two years of separation - College students returning within two years of graduation - Family members removed for medical or disability issues - Returning spouse The individual is subject to the eligibility and screening requirements discussed elsewhere in this chapter. Page 3-8 Administrative Plan 7/l/2025 City Council 5 — 97 7/15/2025 EXHIBIT 1 3-I.M. LIVE-IN AIDE A live-in aide is a person who resides with one or more elderly persons, or near -elderly persons, or persons with disabilities, and who: (1) is determined to be essential to the care and well-being of the persons, (2) is not obligated for the support of the persons, and (3) would not be living in the unit except to provide the necessary supportive services [24 CFR 5.403]. The PHA must approve a live-in aide if needed as a reasonable accommodation in accordance with 24 CFR 8, to make the program accessible to and usable by the family member with disabilities. The income of a live-in aide is not counted in the calculation of annual income for the family [24 CFR 5.609(b)]. Relatives may be approved as live-in aides if they meet all of the criteria defining a live-in aide. Because live-in aides are not family members, a relative who serves as a live-in aide would not be considered a remaining member of a tenant family. SAHA Policy A family's request for a live-in aide may be made either orally or in writing. SAHA will verify the need for a live-in aide with a reliable, knowledgeable professional, such as a doctor, social worker, or case worker, unless the disability -related need is apparent or known to SAHA. For continued approval, the family may be required to submit a new, written request -subject to SAHA verification at each annual reexamination. In addition, the family and live-in aide will be required to submit a certification stating that the live-in aide is (1) not obligated for the support of the person(s) needing the care, and (2) would not be living in the unit except to provide the necessary supportive services. SAHA will not approve a particular person as a live-in aide, and may withdraw such approval if [24 CFR 982.316(b)]: The person commits fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; The person commits drug -related criminal activity or violent criminal activity; or The person currently owes rent or other amounts to SAHA or to another PHA in connection with Section 8 or public housing assistance under the 1937 Act. SAHA will notify the family of its decision in writing within 30 calendar days of receiving a request for a live-in aide, including all required documentation related to the request. SAHA will not approve current family members to be changed from a family member to a household member. Former family members cannot be approved as a live -in -aide within two years from their removal date from the household. Page 3-9 Administrative Plan 7/l/2025 City Council 5 — 98 7/15/2025 EXHIBIT 1 PART II: BASIC ELIGIBILITY CRITERIA 3-II.A. INCOME ELIGIBILITY AND TARGETING Income Limits HUD establishes income limits for all areas of the country and publishes them annually in the Federal Register. They are based upon estimates of median family income with adjustments for family size. The income limits are used to determine eligibility for the program and for income targeting purposes as discussed in this section. Definitions of the Income Limits [24 CFR 5.603(b)] Low-income family. A family whose annual income does not exceed 80 percent of the median income for the area, adjusted for family size. Very low-income family. A family whose annual income does not exceed 50 percent of the median income for the area, adjusted for family size. Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher. Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30, 50, or 80 percent of the median income for an area if HUD finds that such variations are necessary because of unusually high or low family incomes. Using Income Limits for Eligibility [24 CFR 982.201 and Notice PIH 2O23-27] Income limits are used for eligibility only at admission. Income eligibility is determined by comparing the annual income of an applicant to the applicable income limit for their family size. Income and net family assets of household members are excluded when determining income eligibility; however, household members are considered for purposes of unit size and subsidy standards. In order to be income eligible, an applicant family must be one of the following: • A very low-income family • A low-income family that has been "continuously assisted" under the 1937 Housing Act. A family is considered to be continuously assisted if the family is already receiving assistance under any 1937 Housing Act program at the time the family is admitted to the HCV program [24 CFR 982.4; 24 CFR 982.201(b)] SAHA Policy SAHA will consider a family to be continuously assisted if the family was leasing a unit under any 1937 Housing Act program at the time they were issued a voucher by SAHA. • A low-income family that qualifies for voucher assistance as a non -purchasing household living in HOPE 1 (public housing homeownership), HOPE 2 (multifamily housing homeownership) developments, or other HUD -assisted multifamily homeownership programs covered by 24 CFR 248.173 Page 3-10 Administrative Plan 7/l/2025 City Council 5 — 99 7/15/2025 EXHIBIT 1 • A low-income or moderate -income family that is displaced as a result of the prepayment of a mortgage or voluntary termination of a mortgage insurance contract on eligible low-income housing as defined in 24 CFR 248.101. • A low-income family is eligible for assistance under VASH [FR Notice 8/13/24]. See Chapter 19 of this policy for more information. HUD permits the PHA to establish additional categories of low-income families that may be determined eligible. The additional categories must be consistent with the PHA plan and the consolidated plans for local governments within the PHA's jurisdiction. SAHA Policy SAHA has not established any additional categories of eligible low-income families. Using Income Limits for Targeting [24 CFR 982.2011 At least 75 percent of the families admitted to the PHA's program during a PHA fiscal year must be extremely low-income families. HUD may approve exceptions to this requirement if the PHA demonstrates that it has made all required efforts but has been unable to attract an adequate number of qualified extremely low-income families. Families continuously assisted under the 1937 Housing Act and families living in eligible low- income housing that are displaced as a result of prepayment of a mortgage or voluntary termination of a mortgage insurance contract are not counted for income targeting purposes. Page 3-11 Administrative Plan 7/l/2025 City Council 5 — 100 7/15/2025 EXHIBIT 1 3-II.B. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5, Subpart E] Housing assistance is available only to individuals who are U.S. citizens, U.S. nationals (herein referred to as citizens and nationals), or noncitizens that have eligible immigration status. At least one family member must be a citizen, national, or noncitizen with eligible immigration status in order for the family to qualify for any level of assistance. All applicant families must be notified of the requirement to submit evidence of their citizenship status when they apply. Where feasible, and in accordance with the PHA's Limited English Proficiency Plan, the notice must be in a language that is understood by the individual if the individual is not proficient in English. Declaration [24 CFR 5.508] HUD requires each family member to declare whether the individual is a citizen, a national, or an eligible noncitizen, except those members who elect not to contend that they have eligible immigration status. Those who elect not to contend their status are considered to be ineligible noncitizens. For citizens, nationals and eligible noncitizens the declaration must be signed personally by the head, spouse, cohead, and any other family member 18 or older, and by a parent or guardian for minors. The family must identify in writing any family members who elect not to contend their immigration status (see Ineligible Noncitizens below). No declaration is required for live-in aides, foster children, or foster adults. U.S. Citizens and Nationals In general, citizens and nationals are required to submit only a signed declaration as verification of their status. However, HUD regulations permit the PHA to request additional documentation of their status, such as a passport. SAHA Policy Family members who declare citizenship or national status will not be required to provide additional documentation unless SAHA receives information indicating that an individual's declaration may not be accurate. Eligible Noncitizens In addition to providing a signed declaration, those declaring eligible noncitizen status must sign a verification consent form and cooperate with PHA efforts to verify their immigration status as described in Chapter 7. The documentation required for establishing eligible noncitizen status varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, the person's age, and the date on which the family began receiving HUD -funded assistance. Lawful residents of the Marshall Islands, the Federated States of Micronesia, and Palau, together known as the Freely Associated States, or FAS, are eligible for housing assistance under section 141 of the Compacts of Free Association between the U.S. Government and the Governments of the FAS [Public Law 106-504]. Page 3-12 Administrative Plan 7/l/2025 City Council 5 — 101 7/15/2025 EXHIBIT 1 Ineligible Noncitizens Those noncitizens who do not wish to contend their immigration status are required to have their names listed on a noncontending family members listing, signed by the head, spouse, or cohead (regardless of citizenship status), indicating their ineligible immigration status. The PHA is not required to verify a family member's ineligible status and is not required to report an individual's unlawful presence in the U.S. to the United States Citizenship and Immigration Services (USCIS). Providing housing assistance to noncitizen students is prohibited [24 CFR 5.522]. This prohibition extends to the noncitizen spouse of a noncitizen student as well as to minor children who accompany or follow to join the noncitizen student. Such prohibition does not extend to the citizen spouse of a noncitizen student or to the children of the citizen spouse and noncitizen student. Such a family is eligible for prorated assistance as a mixed family. Mixed Families A family is eligible for assistance as long as at least one member is a citizen, national, or eligible noncitizen. Families that include eligible and ineligible individuals are considered mixed families. Such families will be given notice that their assistance will be prorated, and that they may request a hearing if they contest this determination. See Chapter 6 for a discussion of how rents are prorated, and Chapter 16 for a discussion of informal hearing procedures. Ineligible Families [24 CFR 5.514(d), (e), and (f)] A PHA may elect to provide assistance to a family before the verification of the eligibility of the individual or one family member [24 CFR 5.512(b)]. Otherwise, no individual or family may be assisted prior to the affirmative establishment by the PHA that the individual or at least one family member is eligible. Verification of eligibility for this purpose occurs when the individual or family members have submitted documentation to the PHA in accordance with program requirements [24 CFR 5.512(a)]. SAHA Policy SAHA will not provide assistance to a family before the verification of at least one family member. When SAHA determines that an applicant family does not include any citizens, nationals, or eligible noncitizens, following the verification process, the family will be sent a written notice within 30 calendar days of the determination. The notice will explain the reasons for the denial of assistance, that the family may be eligible for proration of assistance, and will advise the family of its right to request an appeal to the United States Citizenship and Immigration Services (USCIS) or to request an informal hearing with SAHA. The informal hearing with SAHA may be requested in lieu of the USCIS appeal, or at the conclusion of the USCIS appeal process. The notice must also inform the applicant family that assistance may not be delayed until the conclusion of the USCIS appeal process, but that it may be delayed pending the completion of the informal hearing process. Informal hearing procedures are contained in Chapter 16. Page 3-13 Administrative Plan 7/l/2025 City Council 5 — 102 7/15/2025 EXHIBIT 1 Timeframe for Determination of Citizenship Status [24 CFR 5.508(g)] For new occupants joining the assisted family, the PHA must verify status at the first interim or regular reexamination following the person's occupancy, whichever comes first. If an individual qualifies for a time extension for the submission of required documents, the PHA must grant such an extension for no more than 30 days [24 CFR 5.508(h)]. Each family member is required to submit evidence of eligible status only one time during continuous occupancy. SAHA Policy SAHA will verify the citizenship status of applicants at the time other eligibility factors are determined. 3-II.C. SOCIAL SECURITY NUMBERS [24 CFR 5.216 and 5.218, Notice PIH 2O18-241 The applicant and all members of the applicant's household must disclose the complete and accurate social security number (SSN) assigned to each household member, and the documentation necessary to verify each SSN. If a child under age 6 has been added to an applicant family within 6 months prior to voucher issuance, an otherwise eligible family may be admitted to the program and must disclose and document the child's SSN within 90 days of the effective date of the initial HAP contract. A detailed discussion of acceptable documentation is provided in Chapter 7. Note: These requirements do not apply to noncitizens who do not contend eligible immigration status. The PHA must deny assistance to an applicant family if they do not meet the SSN disclosure and documentation requirements contained in 24 CFR 5.216. 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 5.230, 24 CFR 5.232, and HCV GB, p. 5-131 HUD requires that each adult family member, and the head of household, spouse, or cohead, regardless of age, sign form HUD-9886-A, Authorization for the Release of Information/Privacy Act Notice, the form HUD-52675 Debts Owed to Public Housing Agencies and Terminations, and other consent forms as needed to collect information relevant to the family's eligibility and level of assistance. Chapter 7 provides detailed information concerning the consent forms and verification requirements. The consent form remains effective until the family is denied assistance, assistance is terminated, or the family provides written notification to revoke consent. The PHA must deny admission to the program if any member of the applicant family fails to sign and submit the consent forms for obtaining information in accordance with 24 CFR 5, Subparts B and F [24 CFR 982.552(b)(3) and 24 CFR 5.232(a)]. Page 3-14 Administrative Plan 7/l/2025 City Council 5 — 103 7/15/2025 EXHIBIT 1 However, this does not apply if the applicant or participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance [24 CFR 5.232(c)]. SAHA Policy SAHA has established a policy that revocation of consent to access financial records will result in denial of admission. Page 3-15 Administrative Plan 7/1/2025 City Council 5 — 104 7/15/2025 EXHIBIT 1 3-II.E. STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER EDUCATION [24 CFR 5.612, FR Notice 4/10/06, FR Notice 9/21/161 Section 327 of Public Law 109-115 and the implementing regulation at 24 CFR 5.612 established restrictions on the eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student's eligibility must be examined along with the income eligibility of the student's parents. In these cases, both the student and the student's parents must be income eligible for the student to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents in accordance with PHA policy, the income of the student's parents will not be considered in determining the student's eligibility. The law does not apply to students who reside with parents who are applying to receive HCV assistance. It is limited to students who are seeking assistance on their own, separately from their parents. Definitions In determining whether and how the eligibility restrictions apply to a student, the PHA will rely on the following definitions [FR Notice 4/10/06, FR Notice 9/21/16]. Dependent Child In the context of the student eligibility restrictions, dependent child means a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent in 24 CFR 5.603, which states that the dependent must be a member of the assisted family, other than the head of household or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Foster children and foster adults are not considered dependents. Independent Student SAHA Policy SAHA will consider a student "independent" from their parents and the parents' income will not be considered when determining the student's eligibility if the following four criteria are all met: The individual is of legal contract age under state law. The individual has established a household separate from their parents for at least one year prior to application for occupancy or the individual meets the U.S. Department of Education's definition of independent student. To be considered an independent student according to the Department of Education, a student must meet one or more of the following criteria: The individual is at least 24 years old by December 31 of the award year for which aid is sought Page 3-16 Administrative Plan 7/l/2025 City Council 5 — 105 7/15/2025 EXHIBIT 1 The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's state of legal residence The individual is a veteran of the U.S. Armed Forces or is currently serving on active duty in the Armed Forces for other than training purposes The individual is a graduate or professional student The individual is married The individual has one or more legal dependents other than a spouse (for example, dependent children or an elderly dependent parent) The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: A local educational agency homeless liaison The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director A financial aid administrator The individual is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances The individual was not claimed as a dependent by their parents pursuant to IRS regulations, as demonstrated on the parents' most recent tax forms. The individual provides a certification of the amount of financial assistance that will be provided by their parents. This certification must be signed by the individual providing the support and must be submitted even if no assistance is being provided. If SAHA determines that an individual meets the definition of a vulnerable youth such a determination is all that is necessary to determine that the person is an independent student for the purposes of using only the student's income for determining eligibility for assistance. SAHA will verify that a student meets the above criteria in accordance with the policies in Section 7-II.E. Page 3-17 Administrative Plan 7/l/2025 City Council 5 — 106 7/15/2025 EXHIBIT 1 Institution of Higher Education The PHA will use the statutory definition under section 102 of the Higher Education Act of 1965 to determine whether a student is attending an institution of higher education (see Exhibit 3-2). Parents SAHA Policv For purposes of student eligibility restrictions, the definition of parents includes biological or adoptive parents, stepparents (as long as they are currently married to the biological or adoptive parent), and guardians (e.g., grandparents, aunt/uncle, godparents, etc). Person with Disabilities The PHA will use the statutory definition under section 3(b)(3)(E) of the 1937 Act to determine whether a student is a person with disabilities (see Exhibit 3-1). Veteran SAHA Policv A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Vulnerable Youth SAHA Policv A vulnerable youth is an individual who meets the U.S. Department of Education's definition of independent student in paragraphs (b), (c), or (h), as adopted in Section II of FR Notice 9/21/16: The individual is an orphan, in foster care, or a ward of the court, or was an orphan, in foster care, or ward of the court at any time when the individual was 13 years of age or older The individual is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's state of legal residence The individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who is a homeless child or youth, or as unaccompanied, at risk of homelessness, and self-supporting by: A local educational agency homeless liaison The director of a program funded under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act or a designee of the director A financial aid administrator Page 3-18 Administrative Plan 7/l/2025 City Council 5 — 107 7/15/2025 EXHIBIT 1 Determining Student Eligibility If a student is applying for assistance on their own, apart from their parents, the PHA must determine whether the student is subject to the eligibility restrictions contained in 24 CFR 5.612. If the student is subject to those restrictions, the PHA must ensure that: (1) the student is individually eligible for the program, (2) either the student is independent from their parents or the student's parents are income eligible for the program, and (3) the "family" with which the student is applying is collectively eligible for the program. SAHA Policv For any student who is subject to the 5.612 restrictions, SAHA will: Follow its usual policies in determining whether the student individually and the student's "family" collectively are eligible for the program Determine whether the student is independent from their parents in accordance with the definition of independent student in this section Follow the policies below, if applicable, in determining whether the student's parents are income eligible for the program If SAHA determines that the student, the student's parents (if applicable), or the student's "family" is not eligible, SAHA will send a notice of denial in accordance with the policies in Section 3-III.17, and the applicant family will have the right to request an informal review in accordance with the policies in Section 16-III.B. Determining Parental Income Eligibility SAHA Policv For any student who is subject to the 5.612 restrictions and who does not satisfy the definition of independent student in this section, SAHA will determine the income eligibility of the student's parents as follows: If the student's parents are married and living together, SAHA will obtain a joint income declaration and certification of joint income from the parents. If the student's parent is widowed or single, SAHA will obtain an income declaration and certification of income from that parent. If the student's parents are divorced or separated, SAHA will obtain an income declaration and certification of income from each parent. If the student has been living with one of their parents and has not had contact with or does not know where to contact their other parent, SAHA will require the student to submit a certification under penalty of perjury describing the circumstances and stating that the student does not receive financial assistance from the other parent. SAHA will then obtain an income declaration and certification of income from the parent with whom the student has been living or had contact. In determining the income eligibility of the student's parents, SAHA will use the income limits for the jurisdiction in which the parents live. Page 3-19 Administrative Plan 7/l/2025 City Council 5 — 108 7/15/2025 EXHIBIT 1 3-II.F. EIV SYSTEM SEARCHES [EIV FAQs; EIV System Training 9/30/20; and Notice PIH 2O23-271 Existing Tenant Search Prior to admission to the program, the PHA must search for all household members using the EIV Existing Tenant Search module. The PHA must review the reports for any SSA matches involving another PHA or a multifamily entity and follow up on any issues identified. The PHA must provide the family with a copy of the Existing Tenant Search results if requested. At no time may any family member receive duplicative assistance. If the tenant is a new admission to the PHA, and a match is identified at a multifamily property, the PHA must report the program admission date to the multifamily property and document the notification in the tenant file. The family must provide documentation of move -out from the assisted unit, as applicable. SAHA Policy SAHA will contact the other PHA or owner identified in the report to confirm that the family has moved out of the unit and obtain documentation of current tenancy status, showing that the family moved out of the unit. SAHA will only approve assistance contingent upon the move -out from the currently occupied assisted unit. Debts Owed to PHAs and Terminations All adult household members must sign the form HUD-52675 Debts Owed to Public Housing and Terminations. Prior to admission to the program, the PHA must search for each adult family member in the Debts Owed to PHAs and Terminations module. If a current or former tenant disputes the information in the module, the tenant should contact the PHA directly in writing to dispute the information and provide any documentation that supports the dispute. If the PHA determines that the disputed information is incorrect, the PHA will update or delete the record from EIV. Former tenants may dispute debt and termination information for a period of up to three years from the end of participation date in the program. SAHA Policy SAHA will require each adult household member to sign the form HUD-52675 once at the eligibility determination. Any new members added to the household after admission will be required to sign the form HUD-52675 prior to being added to the household. SAHA will search the Debts Owed to PHAs and Terminations module as part of the eligibility determination for new households and as part of the screening process for any household members added after the household is admitted to the program. If any information on debts or terminations is returned by the search, SAHA will determine if this information warrants a denial in accordance with the policies in Part III of this chapter. EIV Income Report For each new admission, the PHA is required to review income information in EIV to confirm and validate family reported income within 120 days after the admission information is transmitted to HUD. The PHA must print and maintain copies of the reports in the tenant file and resolve any discrepancies with the family. Page 3-20 Administrative Plan 7/l/2025 City Council 5 — 109 7/15/2025 EXHIBIT 1 PART III: DENIAL OF ASSISTANCE 3-III.A. OVERVIEW A family that does not meet the eligibility criteria discussed in Parts I and II, must be denied assistance. A PHA may deny assistance for an applicant because of the family's action or failure to act as described in 24 CFR 982.552 or 982.553. In this section we will discuss other situations and circumstances in which denial of assistance is mandatory for the PHA, and those in which denial of assistance is optional for the PHA. While the regulations state that the PHA must prohibit admission for certain types of criminal activity and give the PHA the option to deny for other types of previous criminal history, more recent HUD rules and OGC guidance must also be taken into consideration when determining whether a particular individual's criminal history merits denial of admission. When considering any denial of admission, PHAs may not use arrest records as the basis for the denial. Further, HUD does not require the adoption of "One Strike" policies and reminds PHAs of their obligation to safeguard the due process rights of applicants and tenants [Notice PIH 2O15-19]. HUD's Office of General Counsel issued a memo on April 4, 2016, regarding the application of Fair Housing Act standards to the use of criminal records. This memo states that a PHA violates the Fair Housing Act when their policy or practice has an unjustified discriminatory effect, even when the PHA had no intention to discriminate. Where a policy or practice that restricts admission based on criminal history has a disparate impact on a particular race, national origin, or other protected class, that policy or practice is in violation of the Fair Housing Act if it is not necessary to serve a substantial, legitimate, nondiscriminatory interest of the PHA, or if that interest could be served by another practice that has a less discriminatory effect [OGC Memo 4/4/16]. HUD codified this stance on disparate impact and discriminatory effects in a final rule dated March 31, 2023. In doing so, HUD also standardized its long -practiced three -step approach to assessing burdens of proof. PHAs who impose blanket prohibitions on any person with any conviction record, no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then will be unable to show that such policy or practice is necessary to achieve a substantial, legitimate, nondiscriminatory interest. Even a PHA with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary. To do this, the PHA must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not. Page 3-21 Administrative Plan 7/l/2025 City Council 5 —110 7/15/2025 EXHIBIT 1 Forms of Denial [24 CFR 982.552(a)(2); HCV GB, p. 5-35] Denial of assistance includes any of the following: • Not placing the family's name on the waiting list • Denying or withdrawing a voucher • Not approving a request for tenancy or refusing to enter into a HAP contract • Refusing to process a request for or to provide assistance under portability procedures Prohibited Reasons for Denial of Program Assistance [24 CFR 982.202(b), 24 CFR 5.2005(b)] HUD rules prohibit denial of program assistance to the program based on any of the following criteria: • Age, disability, race, color, religion, sex, or national origin (See Chapter 2 for additional information about fair housing and equal opportunity requirements.) • Where a family lives prior to admission to the program • Where the family will live with assistance under the program. Although eligibility is not affected by where the family will live, there may be restrictions on the family's ability to move outside the PHA's jurisdiction under portability. (See Chapter 10.) • Whether members of the family are unwed parents, recipients of public assistance, or children born out of wedlock • Whether the family includes children • Whether a family decides to participate in a family self-sufficiency program • Whether or not a qualified applicant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the applicant is otherwise qualified for assistance (See section 3-III.G.) Page 3-22 Administrative Plan 7/l/2025 City Council 5 —111 7/15/2025 EXHIBIT 1 3-III.B. MANDATORY DENIAL OF ASSISTANCE [24 CFR 982.553(a) and 24 CFR 982.552(b)(6)] HUD requires the PHA to deny assistance in the following cases: Any member of the household has been evicted from federally assisted housing in the last three years for drug -related criminal activity. HUD permits, but does not require, the PHA to admit an otherwise -eligible family if the household member has completed a PHA -approved drug rehabilitation program or the circumstances which led to eviction no longer exist (e.g., the person involved in the criminal activity no longer lives in the household). SAHA Policv SAHA will admit an otherwise -eligible family who was evicted from federally assisted housing within the past three years for drug -related criminal activity if SAHA is able to verify that the household member who engaged in the criminal activity has completed a supervised drug rehabilitation program approved by SAHA, or the person who committed the crime is no longer living in the household. The PHA determines that any household member is currently engaged in the use of illegal drugs. SAHA Policv Currently engaged in is defined as any use of illegal drugs during the previous three months from the date a criminal background check is conducted. This policy does not apply to the Veterans Affairs Supportive Housing program. • The PHA has reasonable cause to believe that any household member's current use or pattern of use of illegal drugs, or current abuse or pattern of abuse of alcohol, may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents. SAHA Policy In determining reasonable cause, SAHA will consider all credible evidence, including but not limited to, any record of convictions, arrests, or evictions of household members related to the use of illegal drugs or the abuse of alcohol within no more than the last three months from the date a criminal background check is conducted. A record or records of arrest will not be used as the sole basis of determining reasonable cause. SAHA will also consider evidence from treatment providers or community -based organizations providing services to household members. • Any household member has ever been convicted of drug -related criminal activity for the production or manufacture of methamphetamine on the premises of federally assisted housing. • Any household member is subject to a lifetime registration requirement under a state sex offender registration program. • Any member of the family fails to sign and submit consent forms for obtaining information. • The family does not meet the restrictions on net assets and real property ownership as required by 24 CFR 5.618. Page 3-23 Administrative Plan 7/l/2025 City Council 5 —112 7/15/2025 EXHIBIT 1 Upon the PHA's HOTMA 102/104 compliance date, the following section on the asset limitation is added. The asset limitation does not apply until the PHA's HOTMA compliance date. 3-III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS [24 CFR 5.6181 There are two circumstances under which a family is ineligible to receive assistance based on asset ownership. First, assistance may not be provided to any family if the family's net assets exceed the HUD - published asset limitation amount (adjusted annually by HUD). • This amount is listed in HUD's current year Inflation -Adjusted Values tables • $100,000 for 2024, $103,200 for 2025 Second, the family has real property that is suitable for occupancy by the family as a residence and the family has: • A present ownership interest in the real property; and • A legal right to reside in the real property; and • The effective legal authority to sell (based on state or local laws of the jurisdiction where the property is located) the real property. The PHA does not have the discretion not to enforce or provide limited enforcement of the asset limitation at admission. However, the real property restriction does not apply in the following circumstances: • Any property for which the family is receiving assistance for a manufactured home under 24 CFR 982.620 or under the HCV Homeownership program; • Any property that is jointly owned by a member of the family and at least one non -household member who does not live with the family, if the non -household member resides at the jointly owned property; • Any family that is offering the property for sale; or • Any person who is a victim of domestic violence, dating violence, sexual assault, or stalking. When a family asks for an exception because a family member is a victim of domestic violence, dating violence, sexual assault, or stalking, the PHA must comply with all the confidentiality requirements under VAWA. The PHA must accept a self -certification from the family member, and the restrictions on requesting documentation under VAWA apply. Page 3-24 Administrative Plan 7/l/2025 City Council 5 —113 7/15/2025 EXHIBIT 1 A property is considered suitable for occupancy unless the family demonstrates that it: Does not meet the disability -related needs for all members of the family (e.g., physical accessibility requirements, disability -related need for additional bedrooms, proximity to accessible transportation, etc.); • Is not sufficient for the size of the family; SAHA Policv SAHA defines not sufficient for the size of the family as being overcrowded based on space standards in Chapter 8 of this policy. • Is geographically located so as to be a hardship for the family (e.g., the distance or commuting time between the property and the family's place of work or school would be a hardship to the family, as determined by the PHA or owner); SAHA Policv In general, SAHA defines a geographic hardship to include when a family members' work, school, health care provider, or other necessary service is located an unreasonable distance from the real property or there is a lack of adequate transportation options for the family to access work, school, health care, or other necessary services. SAHA will consider circumstantial details a family faces when determining whether a geographic hardship is present. Is not safe to reside in because of the physical condition of the property (e.g., property's physical condition poses a risk to the family's health and safety and the condition of the property cannot be easily remedied); or • Is not a property that a family may reside in under the state or local laws of the jurisdiction where the property is located. If a family meets one of the above exceptions, the real property is not automatically excluded from the calculation of net family assets. Unless the real property is specifically excluded from net family assets as described in 24 CFR 5.603 and Chapter 6 of this policy, it will be included in net family assets. If the value of that real property brings the net family assets above the HUD - published asset limitation amount, the family is out of compliance with the asset limitation. See Chapter 7 for information on verifying net family assets for purposes of the asset limitation. Page 3-25 Administrative Plan 7/l/2025 City Council 5 —114 7/15/2025 EXHIBIT 1 3-III.D. OTHER PERMITTED REASONS FOR DENIAL OF ASSISTANCE HUD permits, but does not require, the PHA to deny assistance for the reasons discussed in this section. Criminal Activity [24 CFR 982.5531 HUD permits, but does not require, the PHA to deny assistance if the PHA determines that any household member is currently engaged in, or has engaged in during a reasonable time before the family would receive assistance, certain types of criminal activity. SAHA Policy SAHA will not implement any additional barrier that is not a statutorily mandated prohibition which would limit a vulnerable population from accessing the program. This policy is adopted in accordance with the Reentry Letter from Secretary Donovan to PHAs (June 17th, 2011), HUD's Office of General Counsel Memo (April 4th, 2016), PIH Notice 2013-15, PIH Notice 2015-19, Memo from Secretary Fudge to PHAs (April 12th, 2022), HUD's goal to "help ex -offenders gain access to one of the most fundamental building blocks of a stable life — a place to live," and California Assembly Bill 1814 (AB 1814) (Gov. Code, §53165.1) Prohibition on Penalties Against Tenants and Landlords for Law Enforcement Contact or Emergency Services. Page 3-26 Administrative Plan 7/l/2025 City Council 5 —115 7/15/2025 EXHIBIT 1 Previous Behavior in Assisted Housing [24 CFR 982.552(c)] HUD authorizes the PHA to deny assistance based on the family's previous behavior in assisted housing. PHAs are not permitted to deny assistance to a family because the family previously failed to meet its obligations under the Family Self -Sufficiency (FSS) program [24 CFR 984.101(d)]. SAHA Policy SAHA will deny assistance to an applicant family if: The family does not provide information that SAHA or HUD determines is necessary in the administration of the program. The family does not provide complete and true information to SAHA. Any family member has been evicted from federally assisted housing in the last three years. Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. The family owes rent or other amounts to any PHA in connection with Section 8 or other public housing assistance under the 1937 Act, unless the family repays the full amount of the debt prior to being selected from the waiting list. (This policy does not apply to the Veterans Supportive Housing program.) If the family has not reimbursed any PHA for amounts the PHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease, unless the family repays the full amount of the debt prior to being selected from the waiting list. The family has breached the terms of a repayment agreement entered into with SAHA, unless the family repays the full amount of the debt covered in the repayment agreement prior to being selected from the waiting list. When denying admission due to family debts as shown in HUD's EIV system, SAHA will provide the family with a copy of the EIV Debt Owed to PHA and Termination report. If the family wishes to dispute the information in the report, the family must contact the PHA that entered the information in EIV in writing, explaining why EIV information is disputed. The family must also provide a copy of the letter and all applicable verification to the PHA to support the family's claim. SAHA will consider the information provided by the family prior to issuing a notice of denial. A family member has engaged in or threatened violent or abusive behavior toward PHA personnel. Abusive or violent behavior towards PHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other Page 3-27 Administrative Plan 7/l/2025 City Council 5 —116 7/15/2025 EXHIBIT 1 language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to deny assistance, SAHA will consider the factors discussed in Section 3-III.F and 3-III.G. Upon consideration of such factors, SAHA may, on a case - by -case basis, decide not to deny assistance. Page 3-28 Administrative Plan 7/l/2025 City Council 5 —117 7/15/2025 EXHIBIT 1 3-III.E. SCREENING Screening for Eligibility PHAs are authorized to obtain criminal conviction records from law enforcement agencies to screen applicants for admission to the HCV program. This authority assists the PHA in complying with HUD requirements and PHA policies to deny assistance to applicants who are engaging in or have engaged in certain criminal activities. In order to obtain access to the records the PHA must require every applicant family to submit a consent form signed by each adult household member [24 CFR 5.903]. SAHA Policv SAHA will perform a criminal background check through local law enforcement for every adult household member. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. PHAs are required to perform criminal background checks necessary to determine whether any household member is subject to a lifetime registration requirement under a state sex offender program in the state where the housing is located, as well as in any other state where a household member is known to have resided [24 CFR 982.553(a)(2)(i)]. SAHA Policv SAHA will use the Dru Sjodin National Sex Offender database to screen applicants for admission. Additionally, PHAs must ask whether the applicant, or any member of the applicant's household, is subject to a lifetime registered sex offender registration requirement in any state [Notice PIH 2O12-28]. If the PHA proposes to deny assistance based on a criminal record or on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the applicant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to a denial of admission. [24 CFR 5.903(f) and 5.905(d)]. Page 3-29 Administrative Plan 7/l/2025 City Council 5 —118 7/15/2025 EXHIBIT 1 Screening for Suitability as a Tenant [24 CFR 982.3071 The PHA has no liability or responsibility to the owner for the family's behavior or suitability for tenancy. The PHA has the authority to conduct additional screening to determine whether an applicant is likely to be a suitable tenant. SAHA Policy SAHA will not conduct additional screening to determine an applicant family's suitability for tenancy. The owner is responsible for screening and selection of the family to occupy the owner's unit. The PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner. An owner may consider a family's history with respect to factors such as: payment of rent and utilities, caring for a unit and premises, respecting the rights of other residents to the peaceful enjoyment of their housing, criminal activity that is a threat to the health, safety or property of others, and compliance with other essential conditions of tenancy. HUD requires the PHA to provide prospective owners with the family's current and prior address (as shown in PHA records) and the name and address (if known) of the owner at the family's current and prior addresses. HUD permits the PHA to provide owners with additional information, as long as families are notified that the information will be provided, and the same type of information is provided to all owners. The PHA may not disclose to the owner any confidential information provided to the PHA by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking, except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(a)(4)]. SAHA Policy SAHA will inform owners of their responsibility to screen prospective tenants. If requested SAHA will provide owners with the last known owner's name and phone number, at the time of the initial inspection or before. SAHA will not provide any additional information to the owner, such as tenancy history or criminal history. Page 3-30 Administrative Plan 7/l/2025 City Council 5 —119 7/15/2025 EXHIBIT 1 3-III.F. CRITERIA FOR DECIDING TO DENY ASSISTANCE Evidence [24 CFR 982.553(c)] SAHA Policv SAHA will use the concept of the preponderance of the evidence as the standard for making all admission decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. Consideration of Circumstances [24 CFR 982.552(c)(2)] HUD authorizes the PHA to consider all relevant circumstances when deciding whether to deny assistance based on a family's past history except in the situations for which denial of assistance is mandatory (see Section 3-III3). SAHA Policv SAHA will consider the following facts and circumstances prior to making its decision: The seriousness of the case, especially with respect to how it would affect other residents' safety or property The effects that denial of assistance may have on other members of the family who were not involved in the action or failure to act The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities, or (as discussed further in section MILK) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family's recent history and the likelihood of favorable conduct in the future Page 3-31 Administrative Plan 7/l/2025 City Council 5 — 120 7/15/2025 EXHIBIT 1 While a record or records of arrest will not be used as the sole basis for denial, an arrest may trigger an investigation to determine whether the applicant actually engaged in disqualifying criminal activity. As part of its investigation, SAHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. SAHA may also consider: • Any statements made by witnesses or the applicant not included in the police report • Whether criminal charges were filed • Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal • Any other evidence relevant to determining whether or not the applicant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully SAHA will require the applicant to submit evidence of the household member's current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. Page 3-32 Administrative Plan 7/l/2025 City Council 5 — 121 7/15/2025 EXHIBIT 1 Removal of a Family Member's Name from the Application Should the PHA's screening process reveal that an applicant's household includes an individual subject to state lifetime registered sex offender registration, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must deny admission to the family [Notice PIH 2O12-28]. For other criminal activity, the PHA may permit the family to exclude the culpable family members as a condition of eligibility. [24 CFR 982.552(c)(2)(ii)]. SAHA Policv As a condition of receiving assistance, a family may agree to remove the culpable family member from the application. In such instances, the head of household must certify that the family member will not be permitted to visit, stay as a guest, or reside in the assisted unit. After admission to the program, the family must present evidence of the former family member's current address upon PHA request. Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA's decision concerning denial of admission is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. SAHA Policv If the family indicates that the behavior of a family member with a disability is the reason for the proposed denial of assistance, SAHA will determine whether the behavior is related to the stated disability. If so, upon the family's request, SAHA will determine whether admitting the family as a reasonable accommodation is appropriate. SAHA will only consider accommodations that can reasonably be expected to address the behavior that is the basis of the proposed denial of assistance. See Chapter 2 for a discussion of reasonable accommodation. Page 3-33 Administrative Plan 7/l/2025 City Council 5 — 122 7/15/2025 EXHIBIT 1 3-III.G. NOTICE OF ELIGIBILITY OR DENIAL If the family is eligible for assistance, the PHA will notify the family in writing and schedule an applicant briefing, as discussed in Chapter 5. If the PHA determines that a family is not eligible for the program for any reason, the family must be notified promptly. The notice must describe: (1) the reasons for which assistance has been denied, (2) the family's right to an informal review, and (3) the process for obtaining the informal review [24 CFR 982.554 (a)]. See Chapter 16, for informal review policies and procedures. SAHA Policv The family will be notified of a decision to deny assistance in writing within 14 calendar days of the determination. If a PHA uses a criminal record or sex offender registration information obtained under 24 CFR 5, Subpart J, as the basis of a denial, a copy of the record must precede the notice to deny, with an opportunity for the applicant to dispute the accuracy and relevance of the information before the PHA can move to deny the application. In addition, a copy of the record must be provided to the subject of the record [24 CFR 5.903(f) and 5.905(d)]. The PHA must give the family an opportunity to dispute the accuracy and relevance of that record, in the informal review process in accordance with program requirements [24 CFR 982.553(d)]. SAHA Policv If based on a criminal record or sex offender registration information, an applicant family appears to be ineligible SAHA will notify the family in writing of the proposed denial and provide a copy of the record to the applicant and to the subject of the record. The family will be given 14 calendar days to dispute the accuracy and relevance of the information. If the family does not contact SARA to dispute the information within that 14-day period, SAHA will proceed with issuing the notice of denial of admission. A family that does not exercise their right to dispute the accuracy of the information prior to issuance of the official denial letter will still be given the opportunity to do so as part of the informal review process. Notice requirements related to denying assistance to noncitizens are contained in Section 3-II.13. Notice policies related to denying admission to applicants who may be victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking are contained in Section 3-III.1-1. Page 3-34 Administrative Plan 7/l/2025 City Council 5 — 123 7/15/2025 EXHIBIT 1 3-III.H. PROHIBITION AGAINST DENIAL OF ASSISTANCE TO VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, AND HUMAN TRAFFICKING The Violence against Women Act (VAWA) and the HUD regulation at 24 CFR 5.2005(b) prohibit PHAs from denying an applicant admission to the HCV program on the basis or as a direct result of the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant otherwise qualifies for assistance or admission. Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2O22-06, PIH 2O22-22, and PIH 2O22-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD's recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. Definitions of key terms used in VAWA are provided in section 16-IX of this plan, where general VAWA requirements and policies pertaining to notification, documentation, and confidentiality are also located. Notification VAWA requires PHAs to provide applicants who are denied assistance with a VAWA Notice of Occupancy Rights (form HUD-5380) and a domestic violence certification form (HUD-5382) at the time the applicant is denied. SAHA Policy SAHA acknowledges that a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking may have an unfavorable history (e.g., a poor credit history, poor rental history, a record of previous damage to an apartment, a prior arrest record) due to adverse factors that would warrant denial under SAHA's policies. While SAHA is not required to identify whether adverse factors that resulted in the applicant's denial are a result of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the applicant may inform SAHA that their status as a victim is directly related to the grounds for the denial. SAHA will request that the applicant provide enough information to SAHA to allow SAHA to make an objectively reasonable determination, based on all circumstances, whether the adverse factor is a direct result of their status as a victim. SAHA will include in its notice of denial the VAWA information described in section 16- IX.0 of this plan as well as including a copy of the form HUD-5382. SAHA will request in writing that an applicant wishing to claim protection under VAWA notify SAHA within 14 calendar days. Page 3-35 Administrative Plan 7/l/2025 City Council 5 — 124 7/15/2025 EXHIBIT 1 Documentation Victim Documentation [24 CFR 5.2007] SAHA Policv If an applicant claims the protection against denial of assistance that VAWA provides to victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking, SAHA will request in writing that the applicant provide documentation supporting the claim in accordance with section 16-IX.D of this plan. Perpetrator Documentation SAHA Policv If the perpetrator of the abuse is a member of the applicant family, the applicant must provide additional documentation consisting of one of the following: A signed statement (1) requesting that the perpetrator be removed from the application and (2) certifying that the perpetrator will not be permitted to visit or to stay as a guest in the assisted unit. Documentation that the perpetrator has successfully completed, or is successfully undergoing, rehabilitation or treatment. The documentation must be signed by an employee or agent of a domestic violence service provider or by a medical or other knowledgeable professional from whom the perpetrator has sought or is receiving assistance in addressing the abuse. The signer must attest under penalty of perjury to their belief that the rehabilitation was successfully completed or is progressing successfully. The victim and perpetrator must also sign or attest to the documentation. Page 3-36 Administrative Plan 7/l/2025 City Council 5 — 125 7/15/2025 EXHIBIT 1 EXHIBIT 3-1: DETAILED DEFINITIONS RELATED TO DISABILITIES Person with Disabilities [24 CFR 5.4031 The term person with disabilities means a person who has any of the following types of conditions: Has a disability, as defined in 42 U.S.C. Section 423(d)(1)(A), which reads: Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months; or In the case of an individual who has attained the age of 55 and is blind (within the meaning of "blindness" as defined in section 416(i)(1) of this title), inability by reason of such blindness to engage in substantial gainful activity, requiring skills or ability comparable to those of any gainful activity in which he has previously engaged with some regularity and over a substantial period of time. • Has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act of 2000 [42 U.S.C.15002(8)], which defines developmental disability in functional terms as follows: (A) In General The term "developmental disability" means a severe, chronic disability of an individual that: (i) is attributable to a mental or physical impairment or combination of mental and physical impairments; (ii) is manifested before the individual attains age 22; (iii) is likely to continue indefinitely; (iv) results in substantial functional limitations in 3 or more of the following areas of major life activity: (I) Self -care, (II) Receptive and expressive language, (III) Learning, (IV) Mobility, (V) Self -direction, (VI) Capacity for independent living, (VII) Economic self-sufficiency; and (v) reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. Page 3-37 Administrative Plan 7/l/2025 City Council 5 — 126 7/15/2025 EXHIBIT 1 (B) Infants and Young Children An individual from birth to age 9, inclusive, who has a substantial developmental delay or specific congenital or acquired condition, may be considered to have a developmental disability without meeting 3 or more of the criteria described in clauses (i) through (v) of subparagraph (A) if the individual, without services and supports, has a high probability of meeting those criteria later in life. • Has a physical, mental, or emotional impairment that is expected to be of long -continued and indefinite duration; substantially impedes their ability to live independently, and is of such a nature that the ability to live independently could be improved by more suitable housing conditions. People with the acquired immunodeficiency syndrome (AIDS) or any conditions arising from the etiologic agent for AIDS are not excluded from this definition. A person whose disability is based solely on any drug or alcohol dependence does not qualify as a person with disabilities for the purposes of this program. For purposes of reasonable accommodation and program accessibility for persons with disabilities, the term person with disabilities refers to an individual with handicaps. Page 3-38 Administrative Plan 7/l/2025 City Council 5 — 127 7/15/2025 EXHIBIT 1 Individual with Handicaps [24 CFR 8.31 Individual with handicaps means any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such an impairment; or is regarded as having such an impairment. The term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents the individual from participating in the program or activity in question, or whose participation, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. As used in this definition, the phrase: (1) Physical or mental impairment includes: (a) Any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or (b) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities. The term physical or mental impairment includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental retardation, emotional illness, drug addiction and alcoholism. (2) Major life activities means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (3) Has a record of such an impairment means has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more major life activities. (4) Is regarded as having an impairment means: (a) Has a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by a recipient as constituting such a limitation; (b) Has a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or (c) Has none of the impairments defined in paragraph (1) of this section but is treated by a recipient as having such an impairment. Page 3-39 Administrative Plan 7/l/2025 City Council 5 — 128 7/15/2025 EXHIBIT 1 Page 3-40 Administrative Plan 7/l/2025 City Council 5 — 129 7/15/2025 EXHIBIT 1 EXHIBIT 3-2: DEFINITION OF INSTITUTION OF HIGHER EDUCATION [20 U.S.C. 1001 and 1002] Eligibility of Students for Assisted Housing Under Section 8 of the U.S. Housing Act of 1937; Supplementary Guidance; Notice [Federal Register, April 10, 2006] Institution of Higher Education shall have the meaning given this term in the Higher Education Act of 1965 in 20 U.S.C. 1001 and 1002. Definition of "Institution of Higher Education " From 20 U.S. C. 1001 (a) Institution of higher education. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term "institution of higher education" means an educational institution in any State that (1) Admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate; (2) Is legally authorized within such State to provide a program of education beyond secondary education; (3) Provides an educational program for which the institution awards a bachelor's degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree; (4) Is a public or other nonprofit institution; and (5) Is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time. (b) Additional institutions included. For purposes of this chapter, other than subchapter IV and part C of subchapter I of chapter 34 of Title 42, the term "institution of higher education" also includes— (1) Any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a) of this section; and (2) A public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1) of this section, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) List of accrediting agencies. For purposes of this section and section 1002 of this title, the Secretary shall publish a list of nationally recognized accrediting agencies or associations that the Secretary determines, pursuant to subpart 2 of part G of subchapter IV of this chapter, to be reliable authority as to the quality of the education or training offered. Page 3-41 Administrative Plan 7/l/2025 City Council 5 — 130 7/15/2025 EXHIBIT 1 Definition of "Institution of Higher Education " From 20 U.S.C. 1002 (a) Definition of institution of higher education for purposes of student assistance programs (1) Inclusion of additional institutions. Subject to paragraphs (2) through (4) of this subsection, the term "institution of higher education" for purposes of subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 includes, in addition to the institutions covered by the definition in section 1001 of this title — (A) A proprietary institution of higher education (as defined in subsection (b) of this section); (B) A postsecondary vocational institution (as defined in subsection (c) of this section); and (C) Only for the purposes of part B of subchapter IV of this chapter, an institution outside the United States that is comparable to an institution of higher education as defined in section 1001 of this title and that has been approved by the Secretary for the purpose of part B of subchapter IV of this chapter. (2) Institutions outside the United States (A) In general. For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in section 1001 of this title (except that a graduate medical school, or a veterinary school, located outside the United States shall not be required to meet the requirements of section 1001 (a)(4) of this title). Such criteria shall include a requirement that a student attending such school outside the United States is ineligible for loans made, insured, or guaranteed under part B of subchapter IV of this chapter unless (i) In the case of a graduate medical school located outside the United States— (I)(aa) At least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in section 1091(a)(5) of this title in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; and (bb) At least 60 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part B of subchapter IV of this chapter; or (II) The institution has a clinical training program that was approved by a State as of January 1, 1992; or Page 3-42 Administrative Plan 7/l/2025 City Council 5 — 131 7/15/2025 EXHIBIT 1 (ii) In the case of a veterinary school located outside the United States that does not meet the requirements of section 1001(a)(4) of this title, the institution's students complete their clinical training at an approved veterinary school located in the United States. (B) Advisory panel (i) In general. For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall — (I) Evaluate the standards of accreditation applied to applicant foreign medical schools; and (II) Determine the comparability of those standards to standards for accreditation applied to United States medical schools. (ii) Special rule if the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of section 1001 of this title. (C) Failure to release information. The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part B of subchapter IV of this chapter. (D) Special rule. If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part B while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred. (3) Limitations based on course of study or enrollment. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution — (A) Offers more than 50 percent of such institution's courses by correspondence, unless the institution is an institution that meets the definition in section 2471 (4)(C) of this title; (B) Enrolls 50 percent or more of the institution's students in correspondence courses, unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2-or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively; Page 3-43 Administrative Plan 7/l/2025 City Council 5 — 132 7/15/2025 EXHIBIT 1 (C) Has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a nonprofit institution that provides a 2-or 4-year program of instruction (or both) for which the institution awards a bachelor's degree, or an associate's degree or a postsecondary diploma, respectively; or (D) Has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does not provide a 2-or 4- year program of instruction (or both) for which the institution awards a bachelor's degree or an associate's degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent. (4) Limitations based on management. An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if (A) The institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under chapter 11 of title 11 between July 1, 1998, and December 1, 1998; or (B) The institution, the institution's owner, or the institution's chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, or has been judicially determined to have committed fraud involving funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42. (5) Certification. The Secretary shall certify an institution's qualification as an institution of higher education in accordance with the requirements of subpart 3 of part G of subchapter IV of this chapter. (6) Loss of eligibility. An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42 as a result of an action pursuant to part G of subchapter IV of this chapter. Page 3-44 Administrative Plan 7/l/2025 City Council 5 — 133 7/15/2025 EXHIBIT 1 (b) Proprietary institution of higher education (1) Principal criteria. For the purpose of this section, the term "proprietary institution of higher education" means a school that — (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1) and (2) of section 1001 (a) of this title; (C) Does not meet the requirement of paragraph (4) of section 1001 (a) of this title; (D) Is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part G of subchapter IV of this chapter; (E) Has been in existence for at least 2 years; and (F) Has at least 10 percent of the school's revenues from sources that are not derived from funds provided under subchapter IV of this chapter and part C of subchapter I of chapter 34 of title 42, as determined in accordance with regulations prescribed by the Secretary. (2) Additional institutions. The term "proprietary institution of higher education" also includes a proprietary educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. (c) Postsecondary vocational institution. (1) Principal criteria. For the purpose of this section, the term "postsecondary vocational institution" means a school that — (A) Provides an eligible program of training to prepare students for gainful employment in a recognized occupation; (B) Meets the requirements of paragraphs (1), (2), (4), and (5) of section 1001 (a) of this title; and (C) Has been in existence for at least 2 years. (2) Additional institutions. The term "postsecondary vocational institution" also includes an educational institution in any State that, in lieu of the requirement in paragraph (1) of section 1001 (a) of this title, admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located. Page 3-45 Administrative Plan 7/l/2025 City Council 5 — 134 7/15/2025 EXHIBIT 1 Chapter 4 APPLICATIONS, WAITING LIST AND TENANT SELECTION INTRODUCTION When a family wishes to receive assistance under the HCV program, the family must submit an application that provides the PHA with the information needed to determine the family's eligibility. HUD requires the PHA to place all families that apply for assistance on a waiting list. When HCV assistance becomes available, the PHA must select families from the waiting list in accordance with HUD requirements and PHA policies as stated in the administrative plan and the annual plan. The PHA is required to adopt clear policies and procedures for accepting applications, placing families on the waiting list, and selecting families from the waiting list, and must follow these policies and procedures consistently. The actual order in which families are selected from the waiting list can be affected if a family has certain characteristics designated by HUD or the PHA that justify their selection. Examples of this are the selection of families for income targeting and the selection of families that qualify for targeted funding. HUD regulations require that all families have an equal opportunity to apply for and receive housing assistance, and that the PHA affirmatively further fair housing goals in the administration of the program [24 CFR 982.53, HCV GB p. 4-1]. Adherence to the selection policies described in this chapter ensures that the PHA will be in compliance with all relevant fair housing requirements, as described in Chapter 2. This chapter describes HUD and PHA policies for taking applications, managing the waiting list and selecting families for HCV assistance. The policies outlined in this chapter are organized into three sections, as follows: Part I: The Application Process. This part provides an overview of the application process, and discusses how applicants can obtain and submit applications. It also specifies how the PHA will handle the applications it receives. Part II: Managing the Waiting List. This part presents the policies that govern how the PHA's waiting list is structured, when it is opened and closed, and how the public is notified of the opportunity to apply for assistance. It also discusses the process the PHA will use to keep the waiting list current. Part III: Selection for HCV Assistance. This part describes the policies that guide the PHA in selecting families for HCV assistance as such assistance becomes available. It also specifies how in -person interviews will be used to ensure that the PHA has the information needed to make a final eligibility determination. Page 4-1 Administrative Plan 7/1/2025 City Council 5 — 135 7/15/2025 EXHIBIT 1 PART I: THE APPLICATION PROCESS 4-I.A. OVERVIEW This part describes the PHA policies for making applications available, accepting applications making preliminary determinations of eligibility, and the placement of applicants on the waiting list. This part also describes the PHA's obligation to ensure the accessibility of the application process to elderly persons, people with disabilities, and people with limited English proficiency (LEP). 4-I.B. APPLYING FOR ASSISTANCE [HCV GB, pp. 4-11— 4-16, Notice PIH 2O09-361 Any family that wishes to receive HCV assistance must apply for admission to the program. HUD permits the PHA to determine the format and content of HCV applications, as well how such applications will be made available to interested families and how applications will be accepted by the PHA. The PHA must include Form HUD-92006, Supplement to Application for Federally Assisted Housing, as part of the PHA's application. SAHA Policy SAHA accepts applications in a variety of methods, including, but not limited to, online applications. Applicants who require assistance in completing a pre -application because of a disability, or because they require language translation services or communication in an alternate format may call our Waiting List Hotline at (714) 667- 2284, 1-800-855-7100 (TTY or TDD) or e-mail us at sahawaitinglist@santa-ana.org. Families may obtain application forms from the SAHA's office during normal business hours. Families may also request — by telephone, mail, or email — that an application be mailed to them via first class mail. Completed applications must be returned to SAHA by mail, email, fax, or submitted in person during normal business hours. Applications must be complete in order to be accepted by SAHA for processing. Incomplete or duplicate applications will be rejected without further notification. 4-I.C. ACCESSIBILITY OF THE APPLICATION PROCESS Elderly and Disabled Populations [24 CFR 8 and HCV GB, pp. 4-11— 4-13] The PHA must take steps to ensure that the application process is accessible to those people who might have difficulty complying with the normal, standard PHA application process. This could include people with disabilities, certain elderly individuals, as well as persons with limited English proficiency (LEP). The PHA must provide reasonable accommodation to the needs of individuals with disabilities. The application -taking facility and the application process must be fully accessible, or the PHA must provide an alternate approach that provides full access to the application process. Chapter 2 provides a full discussion of the PHA's policies related to providing reasonable accommodations for people with disabilities. Page 4-2 Administrative Plan 7/l/2025 City Council 5 — 136 7/15/2025 EXHIBIT 1 Limited English Proficiency PHAs are required to take reasonable steps to ensure equal access to their programs and activities by persons with limited English proficiency [24 CFR 1]. Chapter 2 provides a full discussion on the PHA's policies related to ensuring access to people with limited English proficiency (LEP). Page 4-3 Administrative Plan 7/l/2025 City Council 5 — 137 7/15/2025 EXHIBIT 1 4-I.D. PLACEMENT ON THE WAITING LIST The PHA must review each complete application received and make a preliminary assessment of the family's eligibility. The PHA must accept applications from families for whom the list is open unless there is good cause for not accepting the application (such as denial of assistance) for the grounds stated in the regulations [24 CFR 982.206(b)(2)]. Where the family is determined to be ineligible, the PHA must notify the family in writing [24 CFR 982.201(f)]. Where the family is not determined to be ineligible, the family will be placed on a waiting list of applicants. No applicant has a right or entitlement to be listed on the waiting list, or to any particular position on the waiting list [24 CFR 982.202(c)]. Ineligible for Placement on the Waiting List SAHA Policv If SAHA can determine from the information provided that a family is ineligible, the family will not be placed on the waiting list. Where a family is determined to be ineligible, SAHA will send written notification of the ineligibility determination. The notice will specify the reasons for ineligibility and will inform the family of its right to request an informal review and explain the process for doing so (see Chapter 16). Eligible for Placement on the Waiting List SAHA Policv SAHA will send written notification of the preliminary eligibility and placement on the waiting list. Placement on the waiting list does not indicate that the family is, in fact, eligible for assistance. A final determination of eligibility will be made when the family is selected from the waiting list. Applicants will be placed on the waiting list according to any preference(s) for which they claim and qualify. SAHA has the option of limiting the number of applications accepted and/or performing a lottery in preference categories. Page 4-4 Administrative Plan 7/l/2025 City Council 5 — 138 7/15/2025 EXHIBIT 1 PART II: MANAGING THE WAITING LIST 4-II.A. OVERVIEW The PHA must have policies regarding various aspects of organizing and managing the waiting list of applicant families. This includes opening the list to new applicants, closing the list to new applicants, notifying the public of waiting list openings and closings, updating waiting list information, purging the list of families that are no longer interested in or eligible for assistance, as well as conducting outreach to ensure a sufficient number of applicants. In addition, HUD imposes requirements on how a PHA may structure its waiting list and how families must be treated if they apply for assistance from a PHA that administers more than one assisted housing program. 4-II.11. ORGANIZATION OF THE WAITING LIST [24 CFR 982.204 and 2051 The PHA's HCV waiting list must be organized in such a manner to allow the PHA to accurately identify and select families for assistance in the proper order, according to the admissions policies described in this plan. The waiting list must contain the following information for each applicant listed: • Applicant name; • Family unit size; • Date and time of application; • Qualification for any local preference; • Racial or ethnic designation of the head of household. HUD requires the PHA to maintain a single waiting list for the HCV program unless it serves more than one county or municipality. Such PHAs are permitted, but not required, to maintain a separate waiting list for each county or municipality served. SAHA Policy SAHA maintains a single waiting list for the HCV program. However, a separate site - based waiting list may be established for project -based vouchers that are designated for a specific site. HUD directs that a family that applies for assistance from the HCV program must be offered the opportunity to be placed on the waiting list for any public housing, project -based voucher or moderate rehabilitation program the PHA operates if 1) the other programs' waiting lists are open, and 2) the family is qualified for the other programs. HUD permits, but does not require, that PHAs maintain a single merged waiting list for their public housing, Section 8, and other subsidized housing programs. A family's decision to apply for, receive, or refuse other housing assistance must not affect the family's placement on the HCV waiting list, or any preferences for which the family may qualify. Page 4-5 Administrative Plan 7/1/2025 City Council 5 — 139 7/15/2025 EXHIBIT 1 SAHA Poliey SAHA will not merge the HCV waiting list with the waiting list for any other program SAHA operates. Page 4-6 Administrative Plan 7/1/2025 City Council 5 — 140 7/15/2025 EXHIBIT 1 4-II.C. OPENING AND CLOSING THE WAITING LIST [24 CFR 982.2061 Closing the Waiting List A PHA is permitted to close the waiting list if it has an adequate pool of families to use its available HCV assistance. Alternatively, the PHA may elect to continue to accept applications only from certain categories of families that meet particular preferences or funding criteria. SAHA Policv Where SAHA has particular preferences or funding criteria that require a specific category of family, SAHA may elect to continue to accept applications from these applicants while closing the waiting list to others (e.g. Mainstream Voucher Program, Foster Youth to Independence Voucher Program, Non -Elderly Disabled Voucher Program, Veterans Affairs Supportive Housing Voucher Program, etc.). Reopening the Waiting List If the waiting list has been closed, it cannot be reopened until the PHA publishes a notice in local newspapers of general circulation, minority media, and other suitable media outlets. The notice must comply with HUD fair housing requirements and must specify who may apply, and where and when applications will be received. SAHA Policv SAHA will announce the reopening of the Waiting List through a public notice prior to the date applications will first be accepted. If the list is only being reopened for certain categories of families, this information will be contained in the notice. SAHA will give public notice by publishing the relevant information in suitable media outlets including, but not limited to: The Orange County Register, Miniondas, La Opinion, Unidos, and Nguoi Viet newspaper. Other publications may be used if it is determined that it would be beneficial in reaching specific populations. 4-II.D. FAMILY OUTREACH [HCV GB, pp. 4-2 to 4-41 The PHA must conduct outreach as necessary to ensure that the PHA has a sufficient number of applicants on the waiting list to use the HCV resources it has been allotted. Because HUD requires the PHA to admit a specified percentage of extremely low-income families to the program (see Chapter 4, Part III), the PHA may need to conduct special outreach to ensure that an adequate number of such families apply for assistance [HCV GB, p. 4-20 to 4-21]. PHA outreach efforts must comply with fair housing requirements. This includes: Analyzing the housing market area and the populations currently being served to identify underserved populations Ensuring that outreach efforts are targeted to media outlets that reach eligible populations that are underrepresented in the program • Avoiding outreach efforts that prefer or exclude people who are members of a protected class Page 4-7 Administrative Plan 7/1/2025 City Council 5 — 141 7/15/2025 EXHIBIT 1 PHA outreach efforts must be designed to inform qualified families about the availability of assistance under the program. These efforts may include, as needed, any of the following activities: • Submitting press releases to local newspapers, including minority newspapers • Developing informational materials and flyers to distribute to other agencies • Providing application forms to other public and private agencies that serve the low income population • Developing partnerships with other organizations that serve similar populations, including agencies that provide services for persons with disabilities SAHA Policy SAHA will monitor the characteristics of the population being served and the characteristics of the population as a whole in SAHA's jurisdiction. Targeted outreach efforts will be undertaken if a comparison suggests that certain populations are being underserved. Page 4-8 Administrative Plan 7/1/2025 City Council 5 — 142 7/15/2025 EXHIBIT 1 4-II.E. REPORTING CHANGES IN FAMILY CIRCUMSTANCES SAHA Policv While the family is on the Waiting List, the family must immediately inform SAHA of changes in mailing address and number of family members. The changes must be submitted in writing or online. Any requests to add additional family members to the application must be received prior to SAHA mailing an invitation for an orientation or the eligibility interview. The final approval will be determined at the eligibility interview. Failure to report address changes in writing or online that result in mail being returned will be cause for removal from the Waiting List. SAHA will not forward any returned mail to unreported addresses. 4-II.F. UPDATING THE WAITING LIST [24 CFR 982.2041 HUD requires the PHA to establish policies to use when removing applicant names from the waiting list. Purging the Waiting List The decision to withdraw an applicant family that includes a person with disabilities from the waiting list is subject to reasonable accommodation. If the applicant did not respond to a PHA request for information or updates, and the PHA determines that the family did not respond because of the family member's disability, the PHA must reinstate the applicant family to their former position on the waiting list [24 CFR 982.204(c)(2)]. SAHA Policv The Waiting List will be purged as necessary to ensure that all applicants and applicant information is current and timely. To purge the Waiting List, SAHA will send an update request via regular first-class mail to each family on the Waiting List to determine whether the family continues to be interested in, and to qualify for, the program. As a courtesy, SAHA may also send an update request via e-mail if the applicant has an e-mail address. This update request will be sent to the last address that SAHA has on record for the family. The update request will provide a deadline by which the family must respond and will state that failure to respond will result in the applicant's name being removed from the Waiting List. The family's response must be in writing and may be delivered in person, by mail, by email, or by fax. Responses should be postmarked or received by SAHA no later than the date specified on SAHA's letter. If the family fails to respond by the specified date on SAHA's letter, the family will be removed from the waiting list without further notice. If the notice is returned by the post office with a forwarding address, and the applicant has not notified SAHA of the address change, the applicant will be removed from the waiting list without further notice. If a family is removed from the waiting list for failure to respond, SAHA may reinstate the family if it is determined that the lack of response was due to SAHA error, or to Page 4-9 Administrative Plan 7/1/2025 City Council 5 — 143 7/15/2025 EXHIBIT 1 circumstances beyond the family's control, as a result of a family member's disability, or as a direct result of status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, including an adverse factor resulting from such abuse. SAHA may also reinstate an application on the Waiting List within no more than 12 months from the removal date due to various family circumstances. This only applies to a family being nonresponsive to a purge letter or orientation invitation. Removal from the Waiting List SAHA Policy If at any time an applicant family is on the waiting list, SAHA determines that the family is not eligible for assistance (see Chapter 3), the family will be removed from the waiting list. If a family is removed from the waiting list because SAHA has determined the family is not eligible for assistance, a notice will be sent to the family's address of record as well as to any alternate address provided on the initial application. The notice will state the reasons the family was removed from the waiting list and will inform the family how to request an informal review regarding SAHA's decision (see Chapter 16) [24 CFR 982.201(f)]. Page 4-10 Administrative Plan 7/l/2025 City Council 5 — 144 7/15/2025 EXHIBIT 1 PART III: SELECTION FOR HCV ASSISTANCE 4-III.A. OVERVIEW As vouchers become available, families on the waiting list must be selected for assistance in accordance with the policies described in this part. The order in which families are selected from the waiting list depends on the selection method chosen by the PHA and is impacted in part by any selection preferences for which the family qualifies. The availability of targeted funding also may affect the order in which families are selected from the waiting list. The PHA must maintain a clear record of all information required to verify that the family is selected from the waiting list according to the PHA's selection policies [24 CFR 982.204(b) and 982.207(e)]. 4-III.B. SELECTION AND HCV FUNDING SOURCES Special Admissions [24 CFR 982.2031 HUD may award funding for specifically -named families living in specified types of units (e.g., a family that is displaced by demolition of public housing; a non -purchasing family residing in a HOPE 1 or 2 projects). In these cases, the PHA may admit such families whether or not they are on the waiting list, and, if they are on the waiting list, without considering the family's position on the waiting list. These families are considered non -waiting list selections. The PHA must maintain records showing that such families were admitted with special program funding. Targeted Funding [24 CFR 982.204(e)] HUD may award a PHA funding for a specified category of families on the waiting list. The PHA must use this funding only to assist the families within the specified category. In order to assist families within a targeted funding category, the PHA may skip families that do not qualify within the targeted funding category. Within this category of families, the order in which such families are assisted is determined according to the policies provided in Section 4-III.C. SAHA Policy SAHA administers the following types of targeted funding: Foster Youth to Independence (FYI) Program Veterans Affairs Supportive Housing Program (VASH) Mainstream Voucher Program (MVP) Non -Elderly Disabled (NED) Emergency Housing Vouchers (EHV) Regular HCV Funding Regular HCV funding may be used to assist any eligible family on the waiting list. Families are selected from the waiting list according to the policies provided in Section 4-III.C. Page 4-11 Administrative Plan 7/l/2025 City Council 5 — 145 7/15/2025 EXHIBIT 1 4-III.C. SELECTION METHOD PHAs must describe the method for selecting applicant families from the waiting list, including the system of admission preferences that the PHA will use [24 CFR 982.202(d)]. Local Preferences [24 CFR 982.207; HCV p. 4-161 PHAs are permitted to establish local preferences, and to give priority to serving families that meet those criteria. HUD specifically authorizes and places restrictions on certain types of local preferences. HUD also permits the PHA to establish other local preferences, at its discretion. Any local preferences established must be consistent with the PHA plan and the consolidated plan, and must be based on local housing needs and priorities that can be documented by generally accepted data sources. SAHA Policy Local preferences will be numerically ranked, with number 1 being the highest preference, in the following order: United States Military Veteran Preference: A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Form DD-214 with a discharge status of other than dishonorable, or equivalent verification, must be provided at their eligibility interview appointment. 2. Residency Preference: Residency preference for applicants who live or work in the City of Santa Ana at the time of application. At least two pieces of evidence must be provided for applicants who live or work in the City of Santa Ana including but not limited to a lease, utility bills, bank statements, or paycheck stubs ("proof of the residency preference"). The residency preference claimed at the time of the applicant applied for the program will be verified when the applicant is selected off of the waiting list. Applicants who are unable to provide proof of the residency preference will be removed from the waiting list. Applicants who live or work in the unincorporated areas of Santa Ana will not receive the residency preference. a. Mainstream vouchers are intended to facilitate access to housing for individuals with disabilities, including for individuals who reside in institutional or other segregated settings that may not be located in the geographic area that is typically served by a PHA. Consequently, HUD waived 24 CFR 982.207(b)(1) and established an alternative requirement under which a PHA cannot apply a residency preference to Mainstream voucher applicants (excluding project -based vouchers). b. A PHA also cannot apply a resident preference to VASH voucher applicants. Families who have been terminated due to insufficient funding SAHA will offer an absolute preference to any family that has been terminated from its HCV program due to insufficient program funding. Special Purpose Vouchers will be the last to be terminated due to insufficient funding and first to be re -instated. Page 4-12 Administrative Plan 7/l/2025 City Council 5 — 146 7/15/2025 EXHIBIT 1 Homeless Individuals and Families Set Aside Preference In accordance with PIH Notice 2023-13, SAHA will accept direct referrals to the HCV program for the following target population: Homeless Individuals and Families: The number of homeless individuals and families who can qualify for this preference and successfully lease a unit with their voucher will be limited to 50% of the total number of vouchers that become available through annual turnover in the previous calendar year. To qualify for this preference, homeless individuals and families must be referred by agencies with a contract or Memorandum of Understanding (MOU) in place with the Housing Authority or City of Santa Ana. The referring agency must provide a certification of the family's homeless status. Additionally, families already registered on the Waiting List who declare themselves as homeless, but are not referred by a CBO must provide a certification of their homeless status from an agency that has an MOU in place with the Housing Authority. This set -aside preference has been documented by SAHA using generally accepted data sources. All homeless individuals and families must qualify for the Residency Preference. Families who have been involuntarily displaced: Families who have been involuntarily displaced due to a disaster (e.g., fire, flood, earthquake) or eminent domain. The preference depends on funding availability. If insufficient funds are available, then applicants will be prioritized based upon elderly and disabled families first. Foster Youth to Independence (FYI) Vouchers The waiting list for FYI vouchers is continually open for referrals from the Orange County Social Services Agency (Santa Ana's Public Child Welfare Agency) as long as there are FYI vouchers available. PHAs may choose to create a preference in their regular HCV program for persons whose FYI assistance is expiring and will lack adequate housing as a result of their termination ftom the program, or other similar category. As required by statute, an FYI voucher may only be used to provide housing assistance for youth for a maximum of 36 months. However, youth who first lease a unit with an FYI voucher after the date of enactment of the Fostering Stable Housing Opportunities (FSHO) amendments may receive an extension of the 36-month time limit of assistance for up to an additional 24 months if they meet the requirements of FSHO. FSHO applies to eligible youth who first leased or leases a unit after the date of enactment of FSHO, December 27, 2020, which includes youth who will be assisted with funding under this Notice. See HUD's FSHO implementation notice published in the Federal Register on January 24, 2022 (87 FR 3570). SAHA will provide a selection preference for FYI voucher holders who are terminated due to the time limit on assistance in accordance with this policy. Page 4-13 Administrative Plan 7/l/2025 City Council 5 — 147 7/15/2025 EXHIBIT 1 Emergency Housing Vouchers (EHV) In March 2025, HUD notified PHAs of their final allocation to obligate all EHV HAP funds that remain available to HUD under the American Rescue Plan Act of 2021 (P.L. 117-2). According to the notice: "After this final allocation, the Department will provide no additional EHV CY HAP Renewal funding allocations to PHAs." Therefore, SAHA is making the waiting list continually open for EHV vouchers that are subject to termination due to this final funding allocation by HUD. Specifically, SAHA will provide a preference in the regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program. In accordance with this policy, SAHA will provide a selection preference for EHV voucher holders who are terminated due to the lack of renewal funding from HUD. This preference is allowed under Question # 45 of the Emergency Housing Vouchers Frequently Asked Questions (FAQs) v.9 which states, "Funds appropriated for the EHV program are available for obligation by HUD until September 30, 2030. These funds will be cancelled as a matter of law on September 30, 2035, per 31 U.S.0 1552. Prior to 2030, PHAs may consider options to ensure continued assistance to EHV families including but not limited to issuing regular Housing Choice Vouchers (HCV) to the affected EHV households. Such families would need to be pulled from the waiting list. to facilitate this process, PHAs may choose to create a preference in their regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program, or other similar category." Page 4-14 Administrative Plan 7/1/2025 City Council 5 — 148 7/15/2025 EXHIBIT 1 Income Targeting Requirement [24 CFR 982.201(b)(2)] HUD requires that extremely low-income (ELI) families make up at least 75 percent of the families admitted to the HCV program during the PHA's fiscal year. ELI families are those with annual incomes at or below the federal poverty level or 30 percent of the area median income, whichever number is higher. To ensure this requirement is met, a PHA may skip non-ELI families on the waiting list in order to select an ELI family. Low-income families admitted to the program that are "continuously assisted" under the 1937 Housing Act [24 CFR 982.4(b)], as well as low-income or moderate -income families admitted to the program that are displaced as a result of the prepayment of the mortgage or voluntary termination of an insurance contract on eligible low-income housing, are not counted for income targeting purposes [24 CFR 982.201(b)(2)(v)]. SAHA Policy SAHA will monitor progress in meeting the income targeting requirement throughout the fiscal year. Extremely low-income families will be selected ahead of other eligible families on an as -needed basis to ensure the income targeting requirement is met. Order of Selection The PHA system of preferences may select families based on local preferences according to the date and time of application or by a random selection process (lottery) [24 CFR 982.207(c)]. If a PHA does not have enough funding to assist the family at the top of the waiting list, it is not permitted to skip down the waiting list to a family that it can afford to subsidize when there are not sufficient funds to subsidize the family at the top of the waiting list [24 CFR 982.204(d) and (e)]. SAHA Policy Families will be selected from the waiting list based on the targeted funding or selection preference(s) for which they qualify, and in accordance with the SAHA's hierarchy of preferences. Within each targeted funding or preference category, families will be selected by assigned lottery number (score), if lottery was performed when placed on the waiting list. Documentation will be maintained by SAHA as to whether families on the list qualify for and are interested in targeted funding. If a higher placed family on the waiting list is not qualified or not interested in targeted funding, there will be a notation maintained so that SAHA does not have to ask higher placed families each time targeted selections are made. Page 4-15 Administrative Plan 7/l/2025 City Council 5 — 149 7/15/2025 EXHIBIT 1 4-III.D. NOTIFICATION OF SELECTION When a family has been selected from the waiting list, the PHA must notify the family [24 CFR 982.554(a)]. SAHA Policy SAHA will notify the family when their application is selected from the waiting list. The notice will be sent by first class mail and will also be sent by email if the family has provided a valid email address to SAHA. The notice will inform the family of the following: • Date, time, and location of the scheduled application interview, including any procedures for rescheduling the interview • Who is required to attend the interview • All documents that must be provided at the interview, including information about what constitutes acceptable documentation • Other documents and information that should be brought to the interview. If a notification letter is returned to SAHA with no forwarding address from the US Postal Service, the family will be removed from the waiting list. 4-III.E. THE APPLICATION INTERVIEW HUD recommends that the PHA obtain the information and documentation needed to make an eligibility determination though a face-to-face interview with a PHA representative [HCV GB, pg. 4-16]. Being invited to attend an interview does not constitute admission to the program. Assistance cannot be provided to the family until all SSN documentation requirements are met. However, if the PHA determines that an applicant family is otherwise eligible to participate in the program, the family may retain its place on the waiting list for a period of time determined by the PHA [Notice PIH 2O18-24]. Reasonable accommodation must be made for persons with disabilities who are unable to attend an interview due to their disability. SAHA Policy SAHA may invite applicants to an orientation prior to the family's eligibility appointment. The purpose of the Orientation is to: Verify that the family meets the preference qualification. This means that the family is being called from the Waiting List in the proper order. If a family is invited to attend an Orientation based on a preference stated on the Waiting List application and the family no longer meets the preference, the family will be removed from the Waiting List. • Provide the family with information on documents and forms they will need to bring to the eligibility interview. • Explain the important features of the Housing Choice Voucher Program. Page 4-16 Administrative Plan 7/1/2025 City Council 5 — 150 7/15/2025 EXHIBIT 1 Schedule an appointment for the family to come back with all the required forms and information. This appointment is a one-on-one meeting with a Housing Specialist referred to as an Eligibility Interview. SAHA offers Orientations in three languages: English, Spanish, and Vietnamese. During the Orientation, SAHA provides several forms and documents for the family to review and/or sign and submit to SAHA. Families selected from the Waiting List are required to participate in an Eligibility interview. The head of household and the spouse/cohead will be strongly encouraged to attend the interview together. However, either the head of household or the spouse/cohead may attend the interview on behalf of the family. Verification of information pertaining to adult members of the household not present at the interview will not begin until signed release forms are returned to SAHA. The interview will be conducted only if the head of household or spouse/co-head provides appropriate documentation of legal identity. (Chapter 7 provides a discussion of proper documentation of legal identity). If the applicant does not provide the required documentation, the appointment will be rescheduled for a Second and Final appointment. The family must provide the information necessary to establish the family's eligibility and determine the appropriate level of assistance, as well as complete required forms, provide required signatures, and submit required documentation. If any materials are missing, SAHA will provide the family with a written list of items that must be submitted. Any required documents or information that the family is unable to provide at the interview must be provided within 14 calendar days of the interview (Chapter 7 provides details about longer submission deadlines for particular items, including documentation of Social Security numbers and eligible noncitizen status). If the required documents and information are not provided within the required time frame, the family will be sent a notice of denial (See Chapter 3). An advocate, interpreter, or other assistant may assist the family with the application and the interview process. Interviews may be conducted in English, Spanish or Vietnamese. If the family is unable to attend a scheduled interview, the family must contact SAHA in advance of the interview to schedule a new appointment. In all circumstances, if a family does not attend a second and final scheduled interview, SAHA will send another notification letter removing the family from the Waiting List. The family will have 14 calendar days to request an informal review if they do not agree with the decision. Applicants who fail to attend a scheduled eligibility interview without SAHA approval will be denied assistance based on the family's failure to supply information needed to determine eligibility. A notice of denial will be issued in accordance with policies contained in Chapter 3. Page 4-17 Administrative Plan 7/1/2025 City Council 5 — 151 7/15/2025 EXHIBIT 1 4-III.F. COMPLETING THE APPLICATION PROCESS The PHA must verify all information provided by the family (see Chapter 7). Based on verified information, the PHA must make a final determination of eligibility (see Chapter 3) and must confirm that the family qualified for any special admission, targeted funding admission, or selection preference that affected the order in which the family was selected from the waiting list. SAHA Policy If SAHA determines that the family is ineligible, SAHA will send written notification of the ineligibility determination within 14 calendar days of the determination. The notice will specify the reasons for ineligibility, and will inform the family of its right to request an informal review (Chapter 16). If SAHA determines that the family is eligible to receive assistance, SAHA will invite the family to attend a briefing in accordance with the policies in Chapter 5. Page 4-18 Administrative Plan 7/1/2025 City Council 5 — 152 7/15/2025 EXHIBIT 1 Chapter 5 BRIEFINGS AND VOUCHER ISSUANCE INTRODUCTION This chapter explains the briefing and voucher issuance process. When a family is determined to be eligible for the Housing Choice Voucher (HCV) program, the PHA must ensure that the family fully understands the way the program operates and the family's obligations under the program. This is accomplished through both an oral briefing and provision of a briefing packet containing the HUD -required documents and other information the family needs to know in order to lease a unit under the program. Once the family is fully informed of the program's requirements, the PHA issues the family a voucher. The voucher includes the unit size for which the family qualifies based on the PHA's subsidy standards, as well as the issue and expiration date of the voucher. The voucher is the document that authorizes the family to begin its search for a unit and limits the amount of time the family has to successfully locate an acceptable unit. This chapter describes HUD regulations and PHA policies related to these topics in two parts: Part I: Briefings and Family Obligations. This part details the program's requirements for briefing families orally, and for providing written materials describing the program and its requirements. It includes a particular focus on the family's obligations under the program. Part II: Subsidy Standards and Voucher Issuance. This part discusses the PHA's standards for determining how many bedrooms a family of a given composition qualifies for, which in turn affects the amount of subsidy the family can receive. It also discusses the policies that dictate how vouchers are issued, and how long families have to locate a unit. PART I: BRIEFINGS AND FAMILY OBLIGATIONS 5-I.A. OVERVIEW HUD regulations require the PHA to conduct mandatory briefings for applicant families who qualify for a voucher. The briefing provides a broad description of owner and family responsibilities, explains the PHA's procedures, and includes instructions on how to lease a unit. This part describes how oral briefings will be conducted, specifies what written information will be provided to families, and lists the family's obligations under the program. The PHA must take reasonable steps to ensure meaningful access by persons with Limited English proficiency. Page 5-1 Administrative Plan 7/1/2025 City Council 5 — 153 7/15/2025 EXHIBIT 1 5-I.B. BRIEFING [24 CFR 982.3011 Notification of Briefing Prior to issuance of a voucher, the PHA must give the family an oral briefing and provide the family with a briefing packet containing written information about the program. Families may be briefed in individual face-to-face meetings, through group briefing sessions, or via remote briefing sessions. SAHA Policv Families will be notified of their eligibility for assistance at the time they are invited to a briefing. The notice will be sent by first class mail and will also be sent by email if the family has provided a valid email address to SAHA. The notice will advise the family of the type of briefing, who is required to be present at the briefing, and the date and time of the briefing. The notice will also inform the family of any additional requirements for in -person or remote briefings as addressed in relevant policy elsewhere in this section. If the notice is returned by the post office, the applicant will be removed from the waiting list. Applicants who fail to attend a scheduled briefing will automatically be scheduled for a second and final briefing. SAHA will notify the family of the date and time of the second scheduled briefing with a minimum 14-day notice. Applicants who fail to attend two scheduled briefings, without SAHA approval, will be denied assistance (see Chapter 3) and removed from the waiting list. In -Person Briefings At the briefing, the PHA must ensure effective communication in accordance with Section 504 requirements (Section 504 of the Rehabilitation Act of 1973) and ensure that the briefing site is accessible to individuals with disabilities. For a more thorough discussion of accessibility requirements, refer to Chapter 2. SAHA Policv In -person briefings will generally be conducted in group meetings. At the family's written request, SAHA may conduct briefings individually as a reasonable accommodation if approved by the Reasonable Accommodation Committee. Generally, the head of household is required to attend the briefing. If the head of household is unable to attend, SAHA may approve another adult family member to attend the briefing. Families that attend group briefings and still need individual assistance will be referred to an appropriate SAHA staff person. Briefings will be conducted in English, Spanish, and Vietnamese. Page 5-2 Administrative Plan 7/1/2025 City Council 5 — 154 7/15/2025 EXHIBIT 1 Attendance SAHA Policv Applicants who fail to attend a scheduled in -person briefing will be scheduled for another briefing automatically. SAHA will notify the family of the date and time of the second scheduled briefing. Applicants who fail to attend two scheduled briefings, without prior SAHA approval, will be denied assistance (see Chapter 3). Remote Briefings [Notice PIH 2O20-321 Remote briefings may be conducted over the phone, via video conferencing, or through other virtual platforms. SAHA Policv SAHA has the sole discretion to require that briefings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. If SAHA schedules a remote briefing, SAHA will conduct a face-to-face briefing upon request of the applicant as a reasonable accommodation for a person with a disability if safety and health concerns can be reasonably addressed. In addition, SAHA will conduct a briefing remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have childcare or transportation that would enable them to attend the briefing, or if the applicant believes an in -person briefing would create an undue health risk. SAHA will consider other reasonable requests for a remote briefing on a case -by -case basis. Accessibility Requirements for Persons with Disabilities and LEP Individuals As with in -person briefings, the platform for conducting remote briefings must be accessible and the briefing conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. If no method of conducting a remote briefing is available that appropriately accommodates an individual's disability, the PHA may not hold against the individual their inability to participate in the remote briefing, and the PHA should consider whether postponing the remote briefing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances. Limited English Proficiency (LEP) requirements also apply to remote briefings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote briefings. Page 5-3 Administrative Plan 7/l/2025 City Council 5 — 155 7/15/2025 EXHIBIT 1 Conducting Remote Briefings The PHA must ensure that the lack of technology or inability to use technology for remote briefings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA must ensure that the family has appropriate technological access in order to fully participate in the remote briefing. SAHA Policy SAHA will conduct remote briefings via a video conferencing platform when available. If applicants are unable to adequately access the video conferencing platform, applicants will need to inform SAHA and the briefing will be conducted by telephone conferencing call -in. If the family is unable to adequately access the telephone conferencing call -in, the remote briefing will be postponed, and an in -person alternative or one-on-one briefing over the phone will be provided. SAHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2O20-32, including offering the family the opportunity to attend an in -person briefing or have a one-on-one briefing over the phone, as appropriate. SAHA will provide login information and/or conferencing call -in information and an electronic copy of the briefing packet via email at least two calendar days before the briefing. SAHA will provide a paper copy of the briefing packet at a minimum of seven calendar days before the scheduled briefing. SAHA will ensure that families who participate in remote briefings have the opportunity to ask questions as part of the briefing. If families lose connectivity during any remote briefing or otherwise feel they were unable to access information presented during the briefing, the family may request a one- on-one briefing over the phone or in person with SAHA. Page 5-4 Administrative Plan 7/1/2025 City Council 5 — 156 7/15/2025 EXHIBIT 1 Oral Briefing [24 CFR 982.301(a)] Each briefing must provide information on the following subjects: • How the Housing Choice Voucher program works; • Family and owner responsibilities; • Where the family can lease a unit, including renting a unit inside or outside the PHA's jurisdiction and any information on selecting a unit that HUD provides; • An explanation of how portability works; • The PHA must inform the family of how portability may affect the family's assistance through screening, subsidy standards, payment standards, and any other elements of the portability process which may affect the family's assistance; and • An explanation of the advantages of areas that do not have a high concentration of low-income families. The PHA may not discourage the family from choosing to live anywhere in the PHA's jurisdiction or outside the PHA's jurisdiction under portability, unless otherwise expressly authorized by statute, regulation, PIH Notice, or court order. The PHA must take appropriate steps to ensure effective communication in accordance with 24 CFR 8.6 and 28 CFR part 35, subpart E, and must provide information on the reasonable accommodation process. Page 5-5 Administrative Plan 7/l/2025 City Council 5 — 157 7/15/2025 EXHIBIT 1 Briefing Packet [24 CFR 982.301(b); New HCV GB, Housing Search and Leasing, p. 7] Documents and information provided in the briefing packet must include the following: • The term of the voucher, voucher suspensions, and the PHA's policies on any extensions of the term. If the PHA allows extensions, the packet must explain how the family can request an extension. • A description of the method used to calculate the housing assistance payment for a family, including how the PHA determines the payment standard for a family and how the PHA determines total tenant payment for a family. • An explanation of how the PHA determines the maximum allowable rent for an assisted unit. • Where the family may lease a unit and an explanation of how portability works, including information on how portability may affect the family's assistance through screening, subsidy standards, payment standards, and any other elements of the portability process that may affect the family's assistance. • The HUD -required tenancy addendum, which must be included in the lease. • The form the family must use to request approval of tenancy, and an explanation of how to request approval. • A statement of the PHA policy on providing information about families to prospective owners. • The PHA subsidy standards and when the PHA will consider granting exceptions as allowed by 24 CFR 982.402(b)(8), and when exceptions are required as a reasonable accommodation for persons with disabilities under Section 504, the Fair Housing Act, or the Americans with Disabilities Act (ADA). • Materials (e.g., brochures) on how to select a unit and any additional information on selecting a unit that HUD provides (e.g., HUD brochure entitled, "A Good Place to Live"). • Information on federal, state and local equal opportunity laws, the contact information for the Section 504 coordinator, a copy of the housing discrimination complaint form, and information on how to request a reasonable accommodation or modification (including information on requesting exception payment standards as a reasonable accommodation) under Section 504, the Fair Housing Act, or the Americans with Disabilities Act (ADA). • A list of landlords known to the PHA who may be willing to lease a unit to the family or other resources (e.g., newspapers, organizations, online search tools) known to the PHA that may assist the family in locating a unit. PHAs must ensure that the list of landlords or other resources covers areas outside of poverty or minority concentration. • Notice that if the family includes a person with disabilities, the PHA is subject to requirements under 24 CFR 8.28(a)(3) to provide a current listing of accessible units known to the PHA, and if necessary, other assistance in locating an available unit. Page 5-6 Administrative Plan 7/1/2025 City Council 5 — 158 7/15/2025 EXHIBIT 1 • The family obligations under the program. • PHA informal hearing procedures including when the PHA is required to offer a participant family the opportunity for an informal hearing, and how to request the hearing. • An explanation of the advantages of moving to an area that does not have a high concentration of low-income families, which may include access to accessible and high - quality housing, transit, employment opportunities, educational opportunities, recreational facilities, public safety stations, retail services, and health services. • The HUD pamphlet on lead -based paint entitled, "Protect Your Family from Lead in Your Home" [24 CFR 35.88]. If the PHA is located in a metropolitan area, the following additional information must be included in the briefing packet in order to receive full points under SEMAP Indicator 7, Expanding Housing Opportunities [24 CFR 985.3(g)]: • Maps showing areas with housing opportunities outside areas of poverty or minority concentration, both within its jurisdiction and its neighboring jurisdiction • Information about the characteristics of these areas including job opportunities, schools, transportation, and other services • An explanation of how portability works, including a list of portability contact persons for neighboring PHAs with names, addresses, and telephone numbers Page 5-7 Administrative Plan 7/1/2025 City Council 5 — 159 7/15/2025 EXHIBIT 1 Additional Items to Be Included in the Briefing Packet In addition to items required by the regulations, PHAs may wish to include supplemental materials to help explain the program to both participants and owners [HCV GB p. 8-7, Notice PIH 2O17-12]. SAHA Policy SAHA will provide the following additional materials in the briefing packet: The grounds on which the PHA may terminate assistance for a participant family because of family action or failure to act Requirements for notifying the PHA of any changes in income or family composition Information on how to fill out and file a housing discrimination complaint form The form HUD-5380 domestic violence certification form and the form HUD-5382 notice of occupancy rights, which contain information on VAWA protections for victims of domestic violence, dating violence, sexual assault, and stalking "Is Fraud Worth It?" (form HUD- 1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse "What You Should Know about EIV," a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2O17-12 Fair Housing and Source of Income Flyer Page 5-8 Administrative Plan 7/l/2025 City Council 5 — 160 7/15/2025 EXHIBIT 1 5-I.C. FAMILY OBLIGATIONS Obligations of the family are described in the housing choice voucher (HCV) regulations and on the voucher itself. These obligations include responsibilities the family is required to fulfill, as well as prohibited actions. The PHA must inform families of these obligations during the oral briefing, and the same information must be included in the briefing packet. When the family's unit is approved and the HAP contract is executed, the family must meet those obligations in order to continue participating in the program. Violation of any family obligation may result in termination of assistance, as described in Chapter 12. Time Frames for Reporting Changes Required by Family Obligations SAHA Policy The family is required to respond to a request or report a change within 14 calendar days of the change. Changes must be reported in writing using the Change Report Form. Family Obligations [24 CFR 982.5511 The family obligations of the voucher are listed as follows: • The family must supply any information that the PHA or HUD determines to be necessary, including submission of required evidence of citizenship or eligible immigration status. • The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition. • The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. • Any information supplied by the family must be true and complete. • The family may be held responsible for a breach of housing quality standards caused by the family's failure to pay tenant -provided utilities or appliances, or damages to the dwelling unit or premises beyond ordinary wear and tear caused by any member of the household or guest. • The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. Page 5-9 Administrative Plan 7/l/2025 City Council 5 — 161 7/15/2025 EXHIBIT 1 • The family must not commit any serious or repeated violation of the lease. SAHA Policv SAHA will determine if a family has committed serious or repeated violations of the lease based on available evidence, including but not limited to, a court -ordered eviction or an owner's notice to evict, notice of lease violation, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge. Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be construed as serious or repeated lease violations by the victim [see 24 CFR 5.2005(c)(1)]. The family must notify the PHA and the owner before moving out of the unit or terminating the lease. SAHA Policv The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to SAHA at the same time the owner is notified. • The family must promptly give the PHA a copy of any owner eviction notice. The family must use the assisted unit for residence by the family. The unit must be the family's only residence. • The composition of the assisted family residing in the unit must be approved by the PHA. The family must promptly notify the PHA in writing of the birth, adoption, or court -awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit. SAHA Policv The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. SAHA will determine eligibility of the new member in accordance with the policies in Chapter 3. The family must promptly notify the PHA in writing if any family member no longer lives in the unit. If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residency by a foster child or a live-in aide, and to define when PHA consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (sections I.K and I.M), and Chapter 11 (section I1.13). Page 5-10 Administrative Plan 7/l/2025 City Council 5 — 162 7/15/2025 EXHIBIT 1 • The family must not sublease the unit, assign the lease, or transfer the unit. SAHA Policv Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as a family member. • The family must supply any information requested by the PHA to verify that the family is living in the unit or information related to family absence from the unit. The family must promptly notify the PHA when the family is absent from the unit. SAHA Policv Notice is required under this provision only when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 14 calendar days. Written notice must be provided to SAHA at the start of the extended absence. • The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher]. • The family must not own or have any interest in the unit, (other than in a cooperative and owners of a manufactured home leasing a manufactured home space). • Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program. (See Chapter 14, Program Integrity for additional information). • Family members must not engage in drug -related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for HUD and PHA policies related to drug -related and violent criminal activity. • Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse. • An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program. • A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher] SAHA Policv The family may not receive mail for persons other than approved members of the assisted household. Page 5-H Administrative Plan 7/l/2025 City Council 5 — 163 7/15/2025 EXHIBIT 1 PART II: SUBSIDY STANDARDS AND VOUCHER ISSUANCE 5-II.A. OVERVIEW The PHA must establish subsidy standards that determine the number of bedrooms needed for families of different sizes and compositions. This part presents the policies that will be used to determine the family unit size (also known as the voucher size) a particular family should receive, and the policies that govern making exceptions to those standards. The PHA must also establish policies related to the issuance of the voucher, to the voucher term, and to any extensions of the voucher term. 5-II.B. DETERMINING FAMILY UNIT (VOUCHER) SIZE 124 CFR 982.4021 For each family, the PHA determines the appropriate number of bedrooms under the PHA subsidy standards and enters the family unit size on the voucher that is issued to the family. The family unit size does not dictate the size of unit the family must actually lease, nor does it determine who within a household will share a bedroom/sleeping room. The following requirements apply when the PHA determines family unit size: • The subsidy standards must provide for the smallest number of bedrooms needed to house a family without overcrowding. • The subsidy standards must be consistent with space requirements under 24 CFR 5.703. • The subsidy standards must be applied consistently for all families of like size and composition. • A child who is temporarily away from the home because of placement in foster care is considered a member of the family in determining the family unit size. • A family that consists of a pregnant woman (with no other persons) must be treated as a two - person family. • Any live-in aide (approved by the PHA to reside in the unit to care for a family member who is disabled or is at least 50 years of age) must be counted in determining the family unit size; • Unless a live -in -aide resides with a family, the family unit size for any family consisting of a single person must be either a zero- or one -bedroom unit, as determined under the PHA subsidy standards. SAHA Policy SAHA will assign one bedroom for each two persons within the household. Families will be allowed to lease units one bedroom smaller or one bedroom larger than their eligible voucher size except in the following circumstances: An approved live-in aide must be counted in determining the family unit size. If an approved live -in -aide has additional family members, the additional family members will not be counted in determining the family unit size. A single member household with an approved live -in -aide will be assigned a one - bedroom voucher. Page 5-12 Administrative Plan 7/1/2025 City Council 5 — 164 7/15/2025 EXHIBIT 1 SAHA will reference the following chart in determining the appropriate voucher size for a family: Voucher Size Persons in Household (Minimum — Maximum) 1 Bedroom 1-2 2 Bedrooms 2-4 3 Bedrooms 5-6 4 Bedrooms 7-8 5 Bedrooms 9-10 5-II.C. EXCEPTIONS TO SUBSIDY STANDARDS In determining family unit size for a particular family, the PHA may grant an exception to its established subsidy standards if the PHA determines that the exception is justified by the age, sex, health, handicap, or relationship of family members or other personal circumstances [24 CFR 982.402(b)(8)]. Reasons may include, but are not limited to: • A need for an additional bedroom for medical equipment • A need for a separate bedroom for reasons related to a family member's disability, medical or health condition For a single person who is not elderly, disabled, or a remaining family member, an exception cannot override the regulatory limit of a zero or one bedroom [24 CFR 982.402(b)(8)]. SAHA Policy The family must request any exception to the subsidy standards in writing, which will include email. The request must explain the need or justification for a larger family unit size and must include appropriate documentation. Requests based on health -related reasons must be verified by a knowledgeable professional source (e.g., doctor or health professional), unless the disability and the disability —related need for accommodation is readily apparent or otherwise known. The family's continued need for an additional bedroom due to special medical equipment must be re -verified at annual reexamination. SAHA will notify the family of its determination within 14 calendar days of receiving the family's request. If a participant family's request is denied, the notice will inform the family of their right to request an informal hearing. Page 5-13 Administrative Plan 7/l/2025 City Council 5 — 165 7/15/2025 EXHIBIT 1 5-ILD. VOUCHER ISSUANCE [24 CFR 982.302] When a family is selected from the waiting list (or as a special admission as described in Chapter 4), or when a participant family wants to move to another unit, the PHA issues a Housing Choice Voucher, form HUD-52646. This chapter deals only with voucher issuance for applicants. For voucher issuance associated with moves of program participants, please refer to Chapter 10. The voucher is the family's authorization to search for housing. It specifies the unit size for which the family qualifies and includes both the date of voucher issuance and date of expiration. It contains a brief description of how the program works and explains the family obligations under the program. The voucher is evidence that the PHA has determined the family to be eligible for the program, and that the PHA expects to have money available to subsidize the family if the family finds an approvable unit. However, the PHA does not have any liability to any party by the issuance of the voucher, and the voucher does not give the family any right to participate in the PHA's Housing Choice Voucher program [Voucher, Form HUD-52646]. The PHA must issue the family a voucher within 60 days of determining the family eligible [24 CFR 982.201(e)]. The income documentation must be dated within 120 days of when it was received by the PHA. However, for fixed -income sources, including Social Security benefits, the documentation must be dated within the appropriate benefit year. SAHA Policy Vouchers will be issued to eligible applicants immediately following the mandatory briefing. The PHA should have sufficient funds to house an applicant before issuing a voucher. If funds are insufficient to house the family at the top of the waiting list, the PHA must wait until it has adequate funds before it calls another family from the list [HCV GB p. 8-10]. SAHA Policy Prior to issuing any vouchers, SAHA will determine whether it has sufficient funding in accordance with the policies in Part VIII of Chapter 16. If the PHA determines that there is insufficient funding after a voucher has been issued, the PHA may rescind the voucher and place the affected family back on the waiting list. Page 5-14 Administrative Plan 7/1/2025 City Council 5 — 166 7/15/2025 EXHIBIT 1 5-II.E. VOUCHER TERM AND EXTENSIONS Voucher Term [24 CFR 982.303] The initial term of a voucher must be at least 60 calendar days. The initial term must be stated on the voucher [24 CFR 982.303(a)]. SAHA Policy The initial voucher term will be 120 calendar days. SAHA may determine to issue the voucher for a longer period of time for families exercising portability or if the market has a low vacancy rate. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless SAHA grants an extension. Extensions of Voucher Term [24 CFR 982.303(b)] The PHA has the authority to grant extensions of search time, to specify the length of an extension, and to determine the circumstances under which extensions will be granted. There is no limit on the number of extensions that the PHA can approve. Discretionary policies related to extension and expiration of search time must be described in the PHA's administrative plan [24 CFR 982.54]. PHAs must approve additional search time if needed as a reasonable accommodation to make the program accessible to and usable by a person with disabilities. The extension period must be reasonable for the purpose. The family must be notified in writing of the PHA's decision to approve or deny an extension. The PHA's decision to deny a request for an extension of the voucher term is not subject to informal review [24 CFR 982.554(c)(4)]. SAHA Policy SAHA will approve additional extensions only in the following circumstances: It is necessary as a reasonable accommodation for a person with disabilities. It is necessary due to reasons beyond the family's control, as determined by SAHA. Following is a list of extenuating circumstances that SAHA may consider in making its decision. The presence of these circumstances does not guarantee that an extension will be granted: Serious illness or death in the family Other family emergency Obstacles due to employment Whether the family has already submitted requests for tenancy approval that were not approved by SAHA Whether family size or other special circumstances make it difficult to find a suitable unit Page 5-15 Administrative Plan 7/1/2025 City Council 5 — 167 7/15/2025 EXHIBIT 1 Any request for an additional extension must include the reason(s) an additional extension is necessary and a completed search log form. All requests for extensions to the voucher term must be made in writing and submitted to SAHA prior to the expiration date of the voucher (or extended term of the voucher). SAHA will not accept or review any voucher extension requests received after the voucher expiration date. If the voucher expires on SAHA's non -working day or a holiday, the voucher will be valid until the next working day. SAHA will decide whether to approve or deny an extension request within 14 calendar days of the date the request is received and will immediately provide the family written notice of its decision. Suspensions of Voucher Term [24 CFR 982.303(c)] The PHA must provide for suspension of the initial or any extended term of the voucher from the date the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied. Expiration of Voucher Term Once a family's housing choice voucher term (including any extensions) expires, the family is no longer eligible to search for housing under the program. If the family still wishes to receive assistance, the PHA may require that the family reapply, or may place the family on the waiting list with a new application date but without requiring reapplication. Such a family does not become ineligible for the program on the grounds that it was unable to locate a unit before the voucher expired [HCV GB p. 8-13]. SAHA Policy If an applicant family's voucher term or extension expires before the family has submitted an RTA, SAHA will require the family to reapply for assistance. If an RTA that was submitted prior to the expiration date of the voucher is subsequently cancelled by the family (after the voucher term has expired), SAHA will require the family to reapply for assistance. Within 14 calendar days after the expiration of the voucher term or any extension, SAHA will notify the family in writing that the voucher term has expired and that the family must reapply when the waiting list is open in order to be placed on the waiting list. Page 5-16 Administrative Plan 7/l/2025 City Council 5 — 168 7/15/2025 EXHIBIT 1 Chapter 6.A. INCOME AND SUBSIDY DETERMINATIONS [24 CFR Part 5, Subparts E and F; 24 CFR 982] INTRODUCTION This chapter is applicable prior to the PHA's HOTMA 102/104 compliance date. After this date, the PHA will follow policies as outlined in Chapter 6.B. The program regulations in the current Code of Federal Regulations (CFRs) were updated for HOTMA on January 1, 2024. As a result, pre-HOTMA regulations from 2023 are no longer available on the electronic CFRs. However, since full HOTMA implementation is still pending, the pre-HOTMA regulations continue to apply to some elements of the program, and this chapter makes references to both pre-HOTMA and HOTMA regulations where applicable. Where HOTMA regulations apply, citations in this chapter have been provided indicating that current HOTMA CFRs are applicable. For all other citations, the pre-HOTMA CFRs apply. The federal government archives previous versions of the CFRs, and PHAs may access them here: https://www.2ovinfo.gov/app/collection/cfr/2023/title24. A family's income determines eligibility for assistance and is also used to calculate the family's payment and the PHA's subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows: Part I: Annual Income. HUD regulations specify the sources of income to include and exclude to arrive at a family's annual income. These requirements and PHA policies for calculating annual income are found in Part I. • Part II: Adjusted Income. Once annual income has been established HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies. These requirements and PHA policies for calculating adjusted income are found in Part II. • Part III: CalculatingFamily amily Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment. City Council 5 — 169 7/15/2025 EXHIBIT 1 PART I: ANNUAL INCOME 6-I.A. OVERVIEW 5.609 Annual income. (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph [5.609(c)]. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. In addition to this general definition, HUD regulations establish policies for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows: • Annual Income Inclusions (Exhibit 6-1) • Annual Income Exclusions (as updated for HOTMA per Notice PIH 2O24-38) (Exhibit 6-2) • Treatment of Family Assets (Exhibit 6-3) • The Effect of Welfare Benefit Reduction (Exhibit 6-4) Sections 6-I.B and 6-I.0 discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7.A. City Council 5 — 170 7/15/2025 EXHIBIT 1 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations. Summary of Income Included and Excluded by Person Live-in aides Income from all sources is excluded [24 CFR 5.609(b)(8) as updated for HOTMA]. Foster child or foster adult Income from all sources is excluded [24 CFR 5.609(b)(8) as updated for HOTMA]. Head, spouse, or cohead All sources of income not specifically excluded by the Other adult family members regulations are included [24 CFR 5.609(a)]. Minors Earned income of children under 18 years of age is excluded [24 CFR 5.609(b)(3) as updated for HOTMA]. All sources of income, except those specifically excluded by the regulations, are included. Full-time students 18 years of Earned income in excess of the dependent deduction is age or older (not head, spouse, excluded [24 CFR 5.609(b)(14) as updated for HOTMA]. or cohead) All sources of income, except those specifically excluded by the regulations, are included. City Council 5 — 171 7/15/2025 EXHIBIT 1 Temporarily Absent Family Members The income of family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit [HCV GB, p. 5-18]. SAHA Policv Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit. Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students SAHA Policv When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to SAHA indicating that the student has established a separate household or the family declares that the student has established a separate household. The student must be present at the annual recertification interview or they may be removed from the household. Absences Due to Placement in Foster Care Children temporarily absent from the home as a result of placement in foster care are considered members of the family [24 CFR 5.403]. SAHA Policy If a child has been placed in foster care, SAHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will be counted as a family member. Absent Head, Spouse, or Cohead SAHA Policv An employed head, spouse, or co-head absent from the unit more than 90 days due to employment will continue to be considered a family member. City Council 5 — 172 7/15/2025 EXHIBIT 1 Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV G13, p. 5-22]. SAHA Policv SAHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities. Joint Custody of Dependents SAHA Policv Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, SAHA will make the determination based on available documents such as court orders, school records, or an IRS return showing which family has claimed the child for income tax purposes. City Council 5 — 173 7/15/2025 EXHIBIT 1 Caretakers for a Child SAHA Policy The approval of a caretaker is at the owner and SAHA's discretion and subject to the owner and SAHA's screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, SAHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made. (2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker's role is temporary. In such cases SAHA will extend the caretaker's status as an eligible visitor. (3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income. City Council 5 — 174 7/15/2025 EXHIBIT 1 6-I.C. ANTICIPATING ANNUAL INCOME The PHA is required to count all income "anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date" [24 CFR 5.609(a)(2)]. Policies related to anticipating annual income are provided below. Basis of Annual Income Projection The PHA generally will use current circumstances to determine anticipated income for the coming 12-month period. HUD authorizes the PHA to use other than current circumstances to anticipate income when: • An imminent change in circumstances is expected [HCV GB, p. 5-17] • It is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income) [24 CFR 5.609(d)] The PHA believes that past income is the best available indicator of expected future income [24 CFR 5.609(d)] PHAs are required to use HUD's Enterprise Income Verification (EIV) system in its entirety as a third -party source to verify employment and income information, and to reduce administrative subsidy payment errors in accordance with HUD administrative guidance [24 CFR 5.233(a)(2)]. HUD allows PHAs to use tenant -provided documents (pay stubs) dated within 120 days of the date received by the PHA to project income once EIV data has been received in such cases where the family does not dispute the EIV employer data and where the PHA does not determine it is necessary to obtain additional third -parry data. The PHA may also accept a statement dated within the appropriate benefit year for fixed income sources. SAHA Policy When EIV is obtained and the family does not dispute the EIV employer data, SAHA will use current tenant -provided documents to project annual income. When the tenant - provided documents are pay stubs, SAHA will make every effort to obtain current and consecutive pay stubs dated within the last 120 days. SAHA will obtain written and/or oral third -party verification in accordance with the verification requirements and policy in Chapter 7 in the following cases: If EIV or other UIV data is not available, If the family disputes the accuracy of the EIV employer data, and/or If SAHA determines additional information is needed. In such cases, SAHA will review and analyze current data to anticipate annual income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how SAHA annualized projected income. City Council 5 — 175 7/15/2025 EXHIBIT 1 When SAHA cannot readily anticipate income based upon current circumstances (e.g., in the case of seasonal employment, unstable working hours, or suspected fraud), SAHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to SAHA to show why the historic pattern does not represent the family's anticipated income. Known Changes in Income If SAHA verifies an upcoming increase or decrease in income, annual income will be calculated by applying each income amount to the appropriate part of the 12-month period. Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour X 40 hours X 7 weeks) + ($8.25 X 40 hours X 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases SAHA will calculate annual income using current circumstances and then require an interim reexamination when the change actually occurs. This requirement will be imposed even if SAHA's policy on reexaminations does not require interim reexaminations for other types of changes. When tenant -provided third -party documents are used to anticipate annual income, they will be dated within 120 days of the date received by SAHA. Statements dated within the appropriate benefit year will be accepted for fixed income sources. Projecting Income In HUD's EIV webcast of January 2008, HUD made clear that PHAs are not to use EIV quarterly wages to project annual income. City Council 5 — 176 7/15/2025 EXHIBIT 1 6-I.D. EARNED INCOME Types of Earned Income Included in Annual Income Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-27, Notice PIH 2O24-38] The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24) as updated for HOTMA]. Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in -kind benefits [24 CFR 5.100 as updated for HOTMA]. A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b) as updated for HOTMA]. Income earned as a day laborer is not considered nonrecurring income. A seasonal worker is defined as an individual who is hired into a short-term position (e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b) as updated for HOTMA]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2O23- 27]. Income earned as a seasonal worker is not considered nonrecurring income. SAHA Policy SAHA will include in annual income the gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation. For persons who regularly receive bonuses or commissions, SAHA will verify and then average amounts received for the one year preceding admission or reexamination. In either case the family may provide, and SAHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, SAHA will count only the amount estimated by the employer. The file will be documented appropriately. Some Types of Military Pay All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA]. City Council 5 — 177 7/15/2025 EXHIBIT 1 Types of Earned Income Not Counted in Annual Income Earnings of a Minor [24 CFR 5.609(b)(3) as updated for HOTMAJ A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included. Earned Income of Full -Time Students [24 CFR 5.609(b)(14) as updated for HOTMAJ The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included. A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)]. Full-time status is defined by the educational or vocational institution the student is attending [New PH OCC G13, Lease Requirements, p. 5]. Income of a Live-in Aide Income earned by a live-in aide, as defined in [24 CFR 5.403], is not included in annual income [24 CFR 5.609(b)(8) as updated for HOTMA ]. (See Eligibility chapter for a full discussion of live-in aides.) City Council 5 — 178 7/15/2025 EXHIBIT 1 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SIR) Federal Register 3/8/16; Notice PIH 2O23-27] HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible for and participating in the program as of December 31, 2023, or before; no new families may be added on or after January 1, 2024. If a family is receiving the EID prior to or on the effective date of December 31, 2023, they are entitled to the full amount of the benefit for a full 24-month period. The policies below are applicable only to such families. No family will still be receiving the EID after December 31, 2025. The EID will sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of that date or when the last qualifying family exhausts their exclusion period, whichever is sooner. Calculation of the Disallowance Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member's current income with their "baseline income." The family member's baseline income is their income immediately prior to qualifying for the EID. The family member's baseline income remains constant throughout the period that they are participating in the EID. Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. SAHA Policy The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings. Second 12-Month Exclusion During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings. SAHA Policy During the second 12-month exclusion period, SAHA will exclude 100 percent of any increase in income attributable to new employment or increased earnings. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family member's exclusion period continue past January 1, 2026. City Council 5 — 179 7/15/2025 EXHIBIT 1 6-I.F. BUSINESS INCOME [24 CFR 5.609(b)(28) as updated for HOTMA; Notice PIH 2O23-27)] Annual income includes "the net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family". SAHA Policy To determine business expenses that may be deducted from gross income, SAHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described below. Independent Contractors Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 2.609 (b)(24) as updated for HOTMA]. An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code federal income tax requirements and whose earnings are consequently subject to the self-employment tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b) as updated for HOTMA]. This may include individuals such as third -party delivery and transportation service providers and "gig workers" like babysitters, landscapers, rideshare drivers, and house cleaners. Income earned as an independent contractor is not considered nonrecurring income. Business Expansion HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion. SAHA Policy Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion. City Council 5 — 180 7/15/2025 EXHIBIT 1 Capital Indebtedness HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness. SAHA Policy Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means SAHA will allow as a business expense interest, but not principal, paid on capital indebtedness. Negative Business Income If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income. Withdrawal of Cash or Assets from a Business HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family. SAHA Policy Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up -front loan of $2,000 to help a business get started, SAHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid. Investments do not include the value of labor contributed to the business without compensation. Co -owned Businesses SAHA Policy If a business is co -owned with someone outside the family, the family must document the share of the business it owns. If the family's share of the income is lower than its share of ownership, the family must document the reasons for the difference. City Council 5 — 181 7/15/2025 EXHIBIT 1 6-I.G. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] Introduction The treatment of student financial assistance depends on the HUD program, student/household characteristics, and the type of financial assistance received by the student. For public housing residents, all income received under Title IV of the HEA must be excluded from income. Other student financial assistance may be included depending on the students actual covered costs to For Section 8 programs, including HCV, however, for over 10 years HUD appropriations have included a provision that for Section 8 students who are age 23 and under and without dependent children, any amounts received in excess of tuition and any other required fees and charges must be considered income. Under HOTMA, HUD has interpreted this limitation to apply when the student is the head of household or spouse, but not when the student resides with their parents [71 FR 18146]. For any funds from a year where HUD's appropriations continue to include this Section 8 student financial assistance limitation, if the student does not reside with their parents is the head of household, cohead, or spouse, and is under the age of 23 or without dependent children, then both the assistance received under Title IV HEA and other student financial assistance received by the student is included as income to the extent that it exceeds the total of tuition and any other required fees and charges. In contrast, student financial assistance received by a Section 8 student who is the head of household, spouse, or cohead, and is over the age of 23 with dependent children, or a student who resides with their parents in a Section 8 unit, is governed by the HOTMA student rule, which is described below. During years in which an appropriations act does not contain this Section 8 student financial assistance limitation (or any other such limitation), then the determination of student financial assistance for all Section 8 students defaults to the methodology for public housing. HOTMA Student Financial Assistance Requirements [24 CFR 5.609(b)(9)] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. The first category is any assistance to students under section 479B of the Higher Education Act of 1965 (Title IV of the HEA) which must be excluded from the family's annual income [24 CFR 5.609(b)(9)(i)]. Examples of assistance under title IV of the HEA include: • Federal Pell Grants; • Teach Grants; • Federal Work Study Programs; • Federal Perkins Loans; • Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA); or City Council 5 — 182 7/15/2025 EXHIBIT 1 • Bureau of Indian Affairs/Education student assistance programs - The Higher Education Tribal Grant - The Tribally Controlled Colleges or Universities Grant Program The second category is any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education (not otherwise excluded by the Federally mandated income exclusions) [24 CFR 5.609(b)(9)(ii)]. Other student financial assistance received by the student that, either by itself or in combination with HEA assistance, exceeds the actual covered costs is included in income. Actual covered costs are defined as the actual costs of: • Tuition, books, and supplies; - Including supplies and equipment to support students with learning disabilities or other disabilities • Room and board; and • Other fees required and charged to a student by the education institution. For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. Further, to qualify, other student financial assistance must be expressly: • For tuition, book, supplies, room and board, or other fees required and charged to the student by the educational institution; • To assist a student with the costs of higher education; or To assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit. The student financial assistance may be paid directly to the student or to the educational institution on the student's behalf. However, any student financial assistance paid to the student must be verified by the PHA. The financial assistance must be a grant or scholarship received from: • The Federal government; • A state, tribal, or local government ; • A private foundation registered as a nonprofit; • A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or • An institution of higher education. City Council 5 — 183 7/15/2025 EXHIBIT 1 Student financial assistance, does not include: Financial support provided to the student in the form of a fee for services performed; (e.g., a work study or teaching fellowship that is not excluded under section 479B of the Higher Education Act HEA); • Gifts, including gifts from family or friends; or • Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student. Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2O23-271 There are two steps required as part of the calculation for Section 8 students. First, determine the student's relationship to the household, age, and whether they have dependent children. Second, calculate whether any excess student financial assistance should be included in the family's income. If the student does not live with their parents and is the head of household, cohead, or spouse, and is 23 or younger or does not have dependent children, then Title IV HEA assistance is considered when determining the student's total financial aid amount. Subtract the total tuition plus required fees and charges from the total student financial assistance (Title IV HEA assistance and any other student financial assistance). If the total tuition plus required fees and charges is zero or exceeds the amount of total financial assistance from all sources, then no student financial assistance is included in annual income. Any amount of student financial assistance that exceeds the total tuition plus required fees and charges must be included in annual III[bill 11W If the student either lives with their parents or is over 23 with dependent children, then the calculation will use the HOTMA methodology for calculating financial assistance, which always begins with deducting the assistance received under 479B of the HEA from the total actual covered costs, because the 479B assistance is intended to pay the student's actual covered costs. When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student's actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income. City Council 5 — 184 7/15/2025 EXHIBIT 1 SAHA Policy If the student does not live with their parents and is the head of household, cohead, or spouse, and is 23 or younger or does not have dependent children, then Title IV HEA assistance will be considered when determining the student's total financial assistance to be included in annual income. SAHA will use Notice PIH 2O15-21 as a guide to determine the total amount of the student's tuition plus required fees and charges. SAHA will subtract the total tuition plus required fees and charges from the total student financial assistance. If the result is zero or exceeds the amount of total financial assistance from all sources, then no student financial assistance will be included in annual income. Any amount of student financial assistance that exceeds the total tuition plus required fees and charges will be included in annual income. Example 1 • Tuition and required fees and charges: $20,000 • Title IV HEA assistance: $10,000 • Other student financial assistance: $15,000 • Total student financial assistance: $10,000 + $15,000 = $25,000 • Included income: $25,000 in financial assistance - $20,000 tuition and required fees = $5,000 If a student is head, spouse, or cohead, and is over 23 with dependent children or lives with their parents, the following applies: If a student only receives financial assistance under Title IV of the HEA and does not receive any other student financial assistance, SAHA will exclude the full amount of the assistance received under Title IV from the family's annual income. SAHA will not calculate actual covered costs in this case. City Council 5 — 185 7/15/2025 EXHIBIT 1 If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, SAHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). SAHA will then subtract the total amount of the student's financial assistance from the student's actual covered costs. SAHA will include any amount of financial assistance in excess of the student's actual covered costs in the family's annual income. Example 1 • Actual covered costs: $20,000 • Other student financial assistance: $25,000 • Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs) • Included income: $5,000 When a student receives assistance from both Title IV of the HEA and from other sources, SAHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student's actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs. If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance" would be excluded from income. Example 2 • Actual covered costs: $25,000 • Title IV HEA assistance: $26,000 • Title IV HEA assistance covers the students entire actual covered costs. • Other Student Financial Assistance: $5,000 • Excluded income: The entire Title IV HEA assistance of $26,000 • Included income: All other financial assistance of $5,000 City Council 5 — 186 7/15/2025 EXHIBIT 1 If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, SAHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs. Example 3 • Actual covered costs: $22,000 • Title IV HEA assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance). • Other Student Financial Assistance: $5,000 • $7,000 in remaining actual covered costs - $5,000 in other financial assistance • Excluded income: $15,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance • Included income: $0 Example 4 • Actual covered costs: $18,000 • Title IV HEA Assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance) • Other student Financial Assistance: $5,000 • When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance). • Included income: $2,000 (the amount by which the financial aid exceeds the student's actual covered costs). City Council 5 — 187 7/15/2025 EXHIBIT 1 6-I.H. PERIODIC PAYMENTS [Notice PIH 2O23-27] Periodic payments are forms of income received on a regular basis. Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date of the certification), based on information provided by the family, is considered nonrecurring income and is excluded from annual income. Income that has a discrete end date and will not be repeated beyond the coming year is excluded from a family's annual income because it is nonrecurring income. For example, a family receives income from a guaranteed income program in their city that has a discrete beginning and end date. While the guaranteed income will be repeated in the coming year, it will end before the family's next annual reexamination. This income is fully excluded from annual income. However, this does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly). Unemployment income and other types of periodic payments are not considered nonrecurring income, unless explicitly excluded from income under 25 CFR 5.609(b) as updated for HOTMA, and thus they are included in annual income. Insurance payments and settlements for personal or property losses, including but not limited to payments under health insurance, motor vehicle insurance, and workers' compensation, are excluded from annual income. Any workers' compensation is always excluded from annual income, regardless of the frequency or length of the payments. Lump -Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16) as updated for HOTMA] Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly amounts are excluded from annual income. SAHA Policy SAHA will include in annual income lump sums received as a result of delays in processing periodic payments (other than those specifically excluded by the regulation), such as unemployment or welfare assistance. When a delayed -start payment is received that is to be included and the family reports this during the period in which SAHA is processing an annual reexamination, SAHA will adjust the family's rent retroactively for the period the payment was intended to cover. If the delayed -start payment is received outside of the time SAHA is processing an annual reexamination, then SAHA will consider whether the amount meets the threshold to conduct an interim reexamination. If so, SAHA will conduct an interim in accordance with SAHA policies in Chapter 9. If not, SAHA will consider the amount when processing the family's next annual recertification. City Council 5 — 188 7/15/2025 EXHIBIT 1 Retirement Accounts [24 CFR 5.609(b)(26) as updated for HOTMA; Notice PIH 2O23-271 Income received from any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals is not considered actual income from assets. However, any distribution of periodic payments from such accounts is included in annual income at the time they are received by the family. An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value. Social Security Benefits [Notice PIH 2O23-27] The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits. Annually in October, the Social Security Administration (SSA) announces the cost -of -living adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the cost of living. The federal COLA does not apply to state -paid disability benefits. Effective the day after the SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH 2O23-27]. When a family member's benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family's annual income. SAHA Policy Annual income includes "all amounts received," not the amount that a family may be legally entitled to receive but which they do not receive. When the SSA overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full, SAHA must use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount. City Council 5 — 189 7/15/2025 EXHIBIT 1 6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24) as updated for HOTMA and Notice PIH 2O23-271 Nonrecurring income, which is income that will not be repeated beyond the coming year (e.g., 12 months following the effective date of the certification) based on information provided by the family, is excluded from annual income. The PHA may accept a self -certification from the family stating that the income will not be repeated in the coming year. See Chapter 7 for PHA policies related to verification of nonrecurring income. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income as nonrecurring income, even if the source, date, or amount of the income varies. Income that has a discrete end date and will not be repeated beyond the coming year during the family's upcoming annual reexamination period will be excluded from a family's annual income as nonrecurring income. This exclusion does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly). Income amounts excluded under this category may include, but are not limited to: • Nonrecurring payments made to the family or to a third party on behalf of the family to assist with utilities; • Payments for eviction prevention; • Security deposits to secure housing; • Payments for participation in research studies (depending on the duration); and • General one-time payments received by or on behalf of the family. Nonrecurring income that is excluded under the regulations includes: • Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment [24 CFR 5.609(b)(24)(i) as updated for HOTMA]. • Direct federal or state payments intended for economic stimulus or recovery [24 CFR 5.609(b)(24)(ii) as updated for HOTMA]. • Amounts directly received by the family as a result of state refundable tax credits or state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv) as updated for HOTMA]. • Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v) as updated for HOTMA]. City Council 5 — 190 7/15/2025 EXHIBIT 1 Non -monetary, in -kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization [24 CFR 5.609(b)(24)(vi) as updated for HOTMA]. When calculating annual income, PHAs are prohibited from assigning monetary value to such non - monetary in -kind donations received by the family [Notice PIH 2O23-27]. Non -recurring, non -monetary in -kind donations from friends and family are excluded as non -recurring income. However, the value of regular in -kind donations (such as the value of groceries) received by friends and family are included. • Lump -sum additions to net family assets, including but not limited to lottery or other contest winnings [24 CFR 5.609(b)(24)(vii) as updated for HOTMA]. 6-I.J. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19) as updated for HOTMA] Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family's assisted unit are excluded. Authorized payments may include payments to a member of the assisted family through state Medicaid -managed care systems, other state agencies, federal agencies, or other authorized entities. The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family's assisted unit. Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income. Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver's assisted family member would be excluded from income. 6-I.K. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25) as updated for HOTMA; FR Notice 2/14/231 Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement. While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family's net family assets (e.g., if the funds are deposited into the family's savings account or a revocable trust under the control of the family or some other asset that is not excluded from the definition of net family assets). Income generated on the settlement or judgment amount after it has become a net family City Council 5 — 191 7/15/2025 EXHIBIT 1 asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest -bearing savings account, the interest from that account would be income at the time the interest is received. Furthermore, if a civil rights settlement or judgment increases the family's net family assets such that they exceed the HUD -published threshold amount ($50,000 for 2024, and $51,600 for 2025), then income will be imputed on the net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the family's annual adjusted income by 10 percent or more, then an interim reexamination of income will be required unless the addition to the family's net family assets occurs within the last three months of the family's income certification period and the PHA or owner chooses not to conduct the examination. City Council 5 — 192 7/15/2025 EXHIBIT 1 6-I.L. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b) as updated for HOTMA; FR Notice 1/31/20241 Other exclusions contained in 24 CFR 5.609(b) as updated for HOTMA and FR Notice 1/31/2024 that have not been discussed earlier in this chapter include the following: • Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4) as updated for HOTMA]. • Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation [24 CFR 5.609(b)(5) as updated for HOTMA]. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages are included in annual income [Notice PIH 2O23-27]. • Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6) as updated for HOTMA]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7) as updated for HOTMA]. • Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10) as updated for HOTMA]. • Income earned by government contributions to, and distributions from, "baby bond" accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10) as updated for HOTMA]. • The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11) as updated for HOTMA]. • Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17) as updated for HOTMA]. This income exclusion applies only to veterans in need of regular aid and attendance and not to other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2O23-27]. • Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20) as updated for HOTMA]. The loan borrower or co -borrower must be a member of the family for this income exclusion to be applicable [Notice PIH 2O23-27]. City Council 5 — 193 7/15/2025 EXHIBIT 1 Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21) as updated for HOTMA]. Generally, payments received by tribal members in excess of the first $2,000 of per capita shares are included in a family's annual income for purposes of determining eligibility. However, as explained in Notice PIH 2O23-27, payments made under the Cobell Settlement, and certain per capita payments under the recent Tribal Trust Settlements, must be excluded from annual income. Replacement housing "gap" payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another federally subsidized housing unit. Such replacement housing "gap" payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing "gap" payments [24 CFR 5.609(b)(23) as updated for HOTMA]. • Income earned on amounts placed in a family's Family Self -Sufficiency account [24 CFR 5.609(b)(27) as updated for HOTMA]. • Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(c)(12)(ii) as updated for HOTMA]. • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self -Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i) as updated for HOTMA]. • Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development [24 CFR 5.600(b)(12)(iii) as updated for HOTMA]. City Council 5 — 194 7/15/2025 EXHIBIT 1 Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD or in qualifying federal, state, tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR 5.609(b)(12)(iv) as updated for HOTMA]. SAHA Policy SAHA defines training program as "a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual's ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education" [expired Notice PIH 98-2, p. 3]. SAHA defines incremental earnings and benefits as the difference between (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3-4]. In calculating the incremental difference, SAHA will use as the pre -enrollment income the total annualized amount of the family member's welfare assistance and earnings reported on the family's most recently completed HUD-50058. End of participation in a training program must be reported in accordance with SAHA's interim reporting requirements (see Chapter 9). • Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13) as updated for HOTMA]. • Adoption assistance payments for a child in excess of the amount of the dependent deduction per adopted child [24 CFR 5.609(b)(15) as updated for HOTMA]. Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20) as updated for HOTMA]. City Council 5 — 195 7/15/2025 EXHIBIT 1 Amounts that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) as updated for HOTMA apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary [24 CFR 5.609(b)(22) as updated for HOTMA]. HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on January 31, 2024. It includes: (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)). This exclusion also applies to assets. (b) Benefits under Section 1780 of the Richard B. Russell School Lunch Act and Child Nutrition Act of 1966, including WIC and reduced -price lunches. (c) Payments, including for supportive services and reimbursement of out-of-pocket expenses, to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058). The exclusion also applies to assets. Except, the exclusion does not apply when the Chief Executive Officer of the Corporation for National and Community Service determines that the value of all such payments, adjusted to reflect the number of hours such volunteers are serving, is equivalent to or greater than the minimum wage then in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) or the minimum wage, under the laws of the State where such volunteers are serving, whichever is the greater (42 U.S.C. 5044(f)(1)). (d) Certain payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)). (e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 5506). (f) Payments or allowances made under the Department of Health and Human Services' Low -Income Home Energy Assistance Program (42 U.S.C. 8624(f)(1)). (g) Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998 which was reauthorized as the Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. 3241(a)(2)). (h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts. (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Section 6). (j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)). City Council 5 — 196 7/15/2025 EXHIBIT 1 (k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010. (1) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408). This exclusion does not include proceeds of gaming operations regulated by the Commission (25 U.S.C. 1407-1408). (m) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056(f)). (n) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.). This exclusion also applies to assets. (o) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean and Thailand service veterans born with spinal bifida (42 U.S.C. 12637(d)). (p) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721). This exclusion also applies to assets. (q) The value of any childcare provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Childcare and Development Block Grant Act of 1990 (42 U.S.C. 9858q). (r) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 320)). This exclusion also applies to assets. (s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433). This exclusion also applies to assets. (t) Amounts of student financial assistance funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs only, any financial assistance in excess of amounts received by an individual for tuition and any other required fees and charges under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income if the individual is over the age of 23 with dependent children (Pub. L. 109-115, section 327 (as amended)). (u) Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)). City Council 5 — 197 7/15/2025 EXHIBIT 1 (v) Any amount of crime victim compensation that provides medical or other assistance (or payment or reimbursement of the cost of such assistance) under the Victims of Crime Act of 1984 received through a crime victim assistance program, unless the total amount of assistance that the applicant receives from all such programs is sufficient to fully compensate the applicant for losses suffered as a result of the crime (34 U.S.C. 20102(c)). (w) Any amounts in an "individual development account" are excluded from assets and any assistance, benefit, or amounts earned by or provided to the individual development account are excluded from income, as provided by the Assets for Independence Act, as amended (42 U.S.C. 604(h)(4)). (x) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations. This exclusion also applies to assets. (y) Distributions from an ABLE account, distributions from and certain contributions to an ABLE account established under the ABLE Act of 2014 (Pub. L. 113-295.), as described in Notice PIH 2O19-09 or subsequent or superseding notice is excluded from income and assets. (z) The amount of any refund (or advance payment with respect to a refundable credit) issued under the Internal Revenue Code is excluded from income and assets for a period of 12 months from receipt (26 U.S.C. 6409). (aa) Assistance received by a household under the Emergency Rental Assistance Program pursuant to the Consolidated Appropriations Act, 2021 (Pub. L. 116-260, section 5010)), and the American Rescue Plan Act of 2021. (ab) Per capita payments made from the proceeds of Indian Tribal Trust Settlements listed in IRS Notice 2013-1 and 2013-55 must be excluded from annual income unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe's private bank account in which the Tribe has deposited the settlement proceeds. Such amounts received in excess of the Tribal Trust Settlement are included in the gross income of the members of the Tribe receiving the per capita payments as described in IRS Notice 2013-1. The first $2,000 of per capita payments are also excluded from assets unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe's private bank account in which the Tribe has deposited the settlement proceeds (25 U.S.C. I I7b(a), 25 U.S.C. 1407). (ac) Any amounts (i) not actually received by the family, (ii) that would be eligible for exclusion under 42 U.S.C. 1382b(a)(7), and (iii) received for service -connected disability under 38 U.S.C. Chapter 11 or dependency and indemnity compensation under 38 U.S.C. Chapter 13 (25 U.S.C. 4103(9)(C)) as provided by an amendment by the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111-269 section 2) to the definition of income applicable to programs under the Native American Housing Assistance and Self -Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.). City Council 5 — 198 7/15/2025 EXHIBIT 1 6-I.M. ASSETS [24 CFR 5.609(b)(3); 24 CFR 5.603(b)] Overview There is no asset limitation for participation in the HCV program. However, HUD requires that the PHA include in annual income the anticipated "interest, dividends, and other net income of any kind from real or personal property" [24 CFR 5.609(b)(3)]. This section discusses how the income from various types of assets is determined. For most types of assets, the PHA must determine the value of the asset in order to compute income from the asset. Therefore, for each asset type, this section discusses: • How the value of the asset will be determined • How income from the asset will be calculated Exhibit 6-1 provides the regulatory requirements for calculating income from assets [24 CFR 5.609(b)(3)], and Exhibit 6-3 provides the regulatory definition of net family assets. This section begins with a discussion of general policies related to assets and then provides HUD rules and PHA policies related to each type of asset. Optional policies for family self -certification of assets are found in Chapter 7. General Policies Income from Assets The PHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. As is true for all sources of income, HUD authorizes the PHA to use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected (2) it is not feasible to anticipate a level of income over 12 months or (3) the PHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income but the property is currently vacant, the PHA can take into consideration past rental income along with the prospects of obtaining a new tenant. SAHA Policy Anytime current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases the family may present information and documentation to SAHA to show why the asset income determination does not represent the family's anticipated asset income. City Council 5 — 199 7/15/2025 EXHIBIT 1 Valuing Assets The calculation of asset income sometimes requires the PHA to make a distinction between an asset's market value and its cash value. • The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash. SAHA Policv Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions [HCV GB, p. 5-28]. Lump -Sum Additions to Net Family Assets [24 CFR 5.609(b)(24)(viii) as updated for HOTMA; Notice PIH 2023-27] The regulations exclude income from lump -sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income. In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income. Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income. However, these amounts may count toward net family assets. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination. In the case where the lump sum addition to assets would lead to imputed income, which is unearned income, that increases the family's annual adjusted income by 10 percent or more, then the addition of the lump sum to the family's assets will trigger an immediate interim reexamination of income in accordance with Chapter 9. This reexamination of income must take place as soon as the lump sum is added to the family's net family assets unless the addition takes place in the last three months of family's income certification period and the PHA chooses not to conduct the examination. For a discussion of lump -sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I. SAHA Policv Any lump -sum receipts are only counted as assets if they are retained by a family in a form recognizable as an asset [RHIIP FAQs]. For example, if the family receives a $1,000 lump sum for lottery winnings, and the family immediately spends the entire amount, the lump sum will not be counted toward net family assets. City Council 5 — 200 7/15/2025 EXHIBIT 1 Imputing Income from Assets [24 CFR 5.609(b)(3), Notice PIH 2O12-29] When net family assets are $5,000 or less, the PHA will include in annual income the actual income anticipated to be derived from the assets. When the family has net family assets in excess of $5,000, the PHA will include in annual income the greater of (1) the actual income derived from the assets or (2) the imputed income. Imputed income from assets is calculated by multiplying the total cash value of all family assets by an average passbook savings rate as determined by the PHA. Note: The HUD field office no longer provides an interest rate for imputed asset income. The "safe harbor" is now for the PHA to establish a passbook rate within 0.75 percent of a national average. • The PHA must review its passbook rate annually to ensure that it remains within 0.75 percent of the national average. SAHA Policy SAHA initially set the imputed asset passbook rate at the national rate established by the Federal Deposit Insurance Corporation (FDIC). SAHA will review the passbook rate annually on or around October I". The rate will not be adjusted unless the current SAHA rate is no longer within 0.75 percent of the national rate. If it is no longer within 0.75 percent of the national rate, the passbook rate will be set at the current national rate. Any adjustments to the passbook rate will be effective January I" of each year. Determining Actual Anticipated Income from Assets It may or may not be necessary for the PHA to use the value of an asset to compute the actual anticipated income from the asset. When the value is required to compute the anticipated income from an asset, the market value of the asset is used. For example, if the asset is a property for which a family receives rental income, the anticipated income is determined by annualizing the actual monthly rental amount received for the property; it is not based on the property's market value. However, if the asset is a savings account, the anticipated income is determined by multiplying the market value of the account by the interest rate on the account. Withdrawal of Cash or Liquidation of Investments Any withdrawal of cash or assets from an investment will be included in income except to the extent that the withdrawal reimburses amounts invested by the family. For example, when a family member retires, the amount received by the family from a retirement investment plan is not counted as income until the family has received payments equal to the amount the family member deposited into the retirement investment plan. City Council 5 — 201 7/15/2025 EXHIBIT 1 Jointly Owned Assets The regulation at 24 CFR 5.609(a)(4) specifies that annual income includes "amounts derived (during the 12-month period) from assets to which any member of the family has access." SAHA Policv If an asset is owned by more than one person and any family member has unrestricted access to the asset, SAHA will count the full value of the asset. A family member has unrestricted access to an asset when they can legally dispose of the asset without the consent of any of the other owners. If an asset is owned by more than one person, including a family member, but the family member does not have unrestricted access to the asset, SAHA will prorate the asset according to the percentage of ownership. If no percentage is specified or provided for by state or local law, SAHA will prorate the asset evenly among all owners. Assets Disposed of for Less than Fair Market Value [24 CFR 5.603(b)] HUD regulations require the PHA to count as a current asset any business or family asset that was disposed of for less than fair market value during the two years prior to the effective date of the examination/reexamination, except as noted below. Minimum Threshold The HCV Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV G13, p. 5-27]. SAHA Policv SAHA will not include the value of assets disposed of for less than fair market value by taking the difference between the market value and the disposed of value minus any costs. When the two-year period expires, the income assigned to the disposed asset(s) also expires. If the two-year period ends between annual recertifications, the family may request an interim recertification to eliminate consideration of the asset(s). The family's request must be made 60 days prior to the end of the two year period. Assets placed by the family in nonrevocable trusts are considered assets disposed of for less than fair market value except when the assets placed in trust were received through settlements or judgments. Separation or Divorce The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. SAHA Policv All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a City Council 5 — 202 7/15/2025 EXHIBIT 1 formal separation or divorce settlement agreement established through arbitration, mediation, or court order. City Council 5 — 203 7/15/2025 EXHIBIT 1 Foreclosure or Bankruptcy Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Family Declaration SAHA Policv Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. SAHA may verify the value of the assets disposed of if other information available to SAHA does not appear to agree with the information reported by the family. Types of Assets Checking and Savings Accounts For regular checking accounts and savings accounts, cash value has the same meaning as market value. If a checking account does not bear interest, the anticipated income from the account is zero. SAHA Policv In determining the value of a checking account, SAHA will use the average monthly balance for the last three months. In determining the value of a savings account, SAHA will use the current balance. In determining the anticipated income from an interest -bearing checking or savings account, SAHA will multiply the value of the account by the current rate of interest paid on the account. Checking and savings accounts will be counted in the total assets calculated if the total assets are $5,000 or greater. SAHA will use the actual or imputed interest, whichever is greater. ABLE Accounts [24 CFR S. 609(b)(10) as updated for HOTMA; Notice PIH 2O19-091 An Achieving a Better Life Experience (ABLE) account is a type of tax -advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual's ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary's eligibility and continued occupancy under certain federal means - tested programs. The PHA must exclude the entire value of the individual's ABLE account from the household's assets. Distributions from the ABLE account are also not considered income. However, all wage income received, regardless of which account the money is paid to, is included as income. City Council 5 — 204 7/15/2025 EXHIBIT 1 Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds Interest or dividends earned by investment accounts are counted as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash. SAHA Policv In determining the market value of an investment account, SAHA will use the value of the account on the most recent investment report. How anticipated income from an investment account will be calculated depends on whether the rate of return is known. For assets that are held in an investment account with a known rate of return (e.g., savings certificates), asset income will be calculated based on that known rate (market value multiplied by rate of earnings). When the anticipated rate of return is not known (e.g., stocks), SAHA will calculate asset income based on the earnings for the most recent reporting period. Equity in Real Property or Other Capital Investments Equity (cash value) in a property or other capital asset is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and reasonable costs (such as broker fees) that would be incurred in selling the asset [HCV G13, p. 5-25]. SAHA Policv In determining the equity, SAHA will determine market value by examining recent sales of at least three properties in the surrounding or similar neighborhood that possess comparable factors that affect market value. SAHA will first use the payoff amount for the loan (mortgage) as the unpaid balance to calculate equity. If the payoff amount is not available, SAHA will use the basic loan balance information to deduct from the market value in the equity calculation. Equity in real property and other capital investments is considered in the calculation of asset income except for the following types of assets: • Equity accounts in HUD homeownership programs [24 CFR5.603(b)] • The value of a home currently being purchased with assistance under the HCV program Homeownership Option for the first 10 years after the purchase date of the home [24 CFR 5.603(b), Notice PIH 2O12-3] • Equity in owner -occupied cooperatives and manufactured homes in which the family lives [HCV G13, p. 5-25] • Equity in real property when a family member's main occupation is real estate [HCV G13, p. 5-25]. This real estate is considered a business asset, and income related to this asset will be calculated as described in section 6-I.F. City Council 5 — 205 7/15/2025 EXHIBIT 1 • Interests in Indian Trust lands [24 CFR 5.603(b)] • Real property and capital assets that are part of an active business or farming operation [HCV G13, p. 5-25] The PHA must also deduct from the equity the reasonable costs for converting the asset to cash. Using the formula for calculating equity specified above, the net cash value of real property is the market value minus the balance of the loan (mortgage) minus the expenses to convert to cash [Notice PIH 2O12-3]. SAHA Policv For the purposes of calculating expenses to convert to cash for real property, SAHA will use ten percent of the market value of the home. A family may have real property as an asset in two ways: (1) owning the property itself and (2) holding a mortgage or deed of trust on the property. In the case of a property owned by a family member, the anticipated asset income generally will be in the form of rent or other payment for the use of the property. If the property generates no income, actual anticipated income from the asset will be zero. In the case of a mortgage or deed of trust held by a family member, the outstanding balance (unpaid principal) is the cash value of the asset. The interest portion only of payments made to the family in accordance with the terms of the mortgage or deed of trust is counted as anticipated asset income. SAHA Policv In the case of capital investments owned jointly with others not living in a family's unit, a prorated share of the property's cash value will be counted as an asset unless SAHA determines that the family receives no income from the property and is unable to sell or otherwise convert the asset to cash. Trusts [24 CFR 5.609(b)(2) as updated for HOTMAJ A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries). The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable. When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Typically, special needs trusts are considered irrevocable. Irrevocable trusts not under the control of any member of the family are excluded from net family assets. The value of the trust continues to be excluded from net family assets so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4) as updated for HOTMA]. Further, where an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income from the trust is not distributed. City Council 5 — 206 7/15/2025 EXHIBIT 1 A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account. A revocable trust that is under the control of the family is included in net family assets when the grantor is a member of the assisted family. If a revocable trust is included in the calculation of net family assets, then the actual income earned by the revocable trust is also included in the family's income. For example, interest earned or rental income if the property is held in the trust. The PHA must calculate imputed income on the revocable trust if net family assets are more than the HUD -published threshold amount, which is adjusted annually and listed in HUD's Inflation Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025), and actual income from the trust cannot be calculated (e.g., if the trust is comprised of farmland that is not in use). A revocable trust that is not under the control of the family is excluded from net family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. In this case the beneficiary does not "own" the revocable trust, and the value of the trust is excluded from net family assets. For the revocable trust to be considered excluded from net family assets, no family or household member may be the account's trustee. For both irrevocable and revocable trusts, if the value of the trust is not considered part of net family assets, then distributions from the trust are treated as follows: • All distributions from the trust's principal are excluded from income. • Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust's principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor. Retirement Accounts Company Retirement/Pension Accounts In order to correctly include or exclude as an asset any amount held in a company retirement or pension account by an employed person, the PHA must know whether the money is accessible before retirement [HCV GB, p. 5-26]. While a family member is employed, only the amount the family member can withdraw without retiring or terminating employment is counted as an asset [HCV GB, p. 5-26]. After a family member retires or terminates employment, any amount distributed to the family member is counted as a periodic payment or a lump -sum receipt, as appropriate [HCV GB, p. 5- 26], except to the extent that it represents funds invested in the account by the family member. (For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an asset only if it remains accessible to the family member. IRA, Keogh, and Similar Retirement Savings Accounts IRA, Keogh, and similar retirement savings accounts are counted as assets even though early withdrawal would result in a penalty [HCV GB, p. 5-25]. City Council 5 — 207 7/15/2025 EXHIBIT 1 Personal Property Personal property held as an investment, such as gems, jewelry, coin collections, antique cars, etc., is considered an asset [HCV G13, p. 5-25]. SAHA Policv In determining the value of personal property held as an investment, SAHA will use the family's estimate of the value. However, SAHA also may obtain an appraisal to confirm the value of the asset. The family must cooperate with the appraiser, but cannot be charged any costs related to the appraisal. Generally, personal property held as an investment generates no income until it is disposed of. If regular income is generated (e.g., income from renting the personal property), the amount that is expected to be earned in the coming year is counted as actual income from the asset. SAHA will consider limited access to an asset as having no access. Necessary items of personal property are not considered assets [24 CFR 5.603(b)]. SAHA Policv Necessary personal property consists of only those items not held as an investment, and may include clothing, furniture, household furnishings, jewelry, and vehicles, including those specially equipped for persons with disabilities. Life Insurance The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family's assets [HCV GB 5-25]. The cash value is the surrender value. If such a policy earns dividends or interest that the family could elect to receive, the anticipated amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. City Council 5 — 208 7/15/2025 EXHIBIT 1 6-I.N. WELFARE ASSISTANCE Overview Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments [24 CFR 5.603(b)]. Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.6151 The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-5. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed. Covered Families The families covered by 24 CFR 5.615 are those "who receive welfare assistance or other public assistance benefits (`welfare benefits') from a State or other public agency ('welfare agency') under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance" [24 CFR 5.615(b)] Imputed Income When a welfare agency imposes a sanction that reduces a family's welfare income because the family commits fraud or fails to comply with the agency's economic self-sufficiency program or work activities requirement, the PHA must include in annual income "imputed" welfare income. The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction. This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to End employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)]. Offsets The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)]. City Council 5 — 209 7/15/2025 EXHIBIT 1 6-I.0. PERIODIC AND DETERMINABLE ALLOWANCES [24 CFR 5.609(b)(7)] Annual income includes periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing with an assisted family. Alimony and Child Support The PHA must count alimony or child support amounts awarded as part of a divorce or separation agreement. SAHA Policy SAHA will count court -awarded amounts for alimony and child support unless SAHA verifies that: (1) the payments are not being made, and (2) the family has made reasonable efforts to collect amounts due, including filing with courts or agencies responsible for enforcing payments [HCV GB, pp. 5-23 and 5-47]. Families who do not have court -awarded alimony and child support awards are not required to seek a court award and are not required to take independent legal action to obtain collection. City Council 5 — 210 7/15/2025 EXHIBIT 1 PART II: ADJUSTED INCOME 6-II.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies. The resulting amount is the family's adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611(a) Mandatory deductions. In determining adjusted income, the responsible entity [PHA] must deduct the following amounts from annual income: (1) $480 for each dependent; (2) $400 for any elderly family or disabled family; (3) The sum of the following, to the extent the sum exceeds three percent of annual income: (i) Unreimbursed health and medical care expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed. This deduction may not exceed the earned income received by family members who are 18 years of age or older and who are able to work because of such attendant care or auxiliary apparatus; and (4) Any reasonable childcare expenses necessary to enable a member of the family to be employed or to further his or her education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. Anticipating Expenses SAHA Policy Generally, SAHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and non -school periods and cyclical medical expenses), SAHA will estimate costs based on historic data and known future costs. If a family has an accumulated debt for medical or disability assistance expenses, SAHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. SAHA may require the family to provide documentation of payments made in the preceding year. City Council 5 — 211 7/15/2025 EXHIBIT 1 6-II.B. DEPENDENT DEDUCTION An allowance of $480 is deducted from annual income for each dependent [24 CFR 5.611(a)(1)]. Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b) as updated for HOTMA]. 6-II.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of $400 is taken for any elderly or disabled family [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. City Council 5 — 212 7/15/2025 EXHIBIT 1 6-II.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i) and 5.603(b) as updated for HOTMA] Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed three percent of annual income. The health and medical care expense deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a health and medical care expense deduction, the medical expenses of all family members are counted [VG, p. 28]. Definition of Medical Expenses HUD regulations define health and medical care expenses at 24 CFR 5.603(b) (as updated for HOTMA) to mean "any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed." Health and medical care expenses may be deducted from annual income only if they are eligible under this definition and not otherwise reimbursed. Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their policies to IRS Publication 502. PHAs must review each expense to determine whether it is eligible in accordance with HUD's definition. While PHA policies may not specifically align with IRS Publication 502, HUD recommends PHAs use it as a standard for determining allowable expenses, and the PHA may list examples of allowable expenses in their policy provided they comply with HUD's definition at 24 CFR 5.603 as updated for HOTMA. The PHA may not define health and medical care expenses more narrowly than the regulation. SAHA Policy SAHA will use the most current IRS Publication 502 as a standard for determining if expenses claimed by eligible families qualify as health and medical care expenses. However, under no circumstances will SAHA deduct any expenses listed in IRS Publication 502 that do not conform with HUD's definition of health and medical care expenses. City Council 5 — 213 7/15/2025 EXHIBIT 1 Summary of Typical Allowable Health and Medical Care Expenses Services of medical professionals Substance abuse treatment programs Surgery and medical procedures that are Psychiatric treatment necessary, legal, and non -cosmetic Ambulance services and some costs of Services of medical facilities transportation related to medical Hospitalization, long-term care, and in- expenses. The PHA will use the most home nursing services current medical mileage rate listed in IRS Publication 502. Prescription medicines and insulin, but The cost and care of necessary not nonprescription medicines even if equipment related to a medical recommended by a doctor condition (e.g., eyeglasses/lenses, Improvements to housing directly related hearing aids, crutches, and artificial to medical needs (e.g., ramps for a teeth) wheelchair, handrails) The costs of buying, training, and Medical insurance premiums or the cost maintaining a guide dog or other service of a health maintenance organization animal to assist a visually impaired or (HMO) hearing disabled person, or a person Medicare Part B and Part D premiums with other physical disabilities. In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. Note: This chart provides a summary of eligible health and medical care expenses only. In all cases, the PHA will consider whether health and medical expenses care expenses claimed by the family are eligible under HUD's definition. Families That Qualify for Both Health and Medical Care and Disability Assistance Expenses SAHA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, SAHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. City Council 5 — 214 7/15/2025 EXHIBIT 1 6-II.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Reasonable expenses for attendant care and auxiliary apparatus for a disabled family member may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed three percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work. Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)]. The disability expense deduction is capped by the amount of "earned income received by family members who are 18 years of age or older and who are able to work" because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any income exclusions are applied. SAHA Policy The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family's request, SAHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work. When SAHA determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members' incomes. City Council 5 — 215 7/15/2025 EXHIBIT 1 Eligible Disability Expenses Examples of auxiliary apparatus are provided in the HCV Guidebook as follows: "Auxiliary apparatus are items such as wheelchairs, ramps, adaptations to vehicles, or special equipment to enable a blind person to read or type, but only if these items are directly related to permitting the disabled person or other family member to work" [HCV GB, p. 5-30]. HUD advises PHAs to further define and describe auxiliary apparatus [VG, p. 30]. Eligible Auxiliary Apparatus SAHA Policv Expenses incurred for maintaining or repairing an auxiliary apparatus are eligible. In the case of an apparatus that is specially adapted to accommodate a person with disabilities (e.g., a vehicle or computer), the cost to maintain the special adaptations (but not maintenance of the apparatus itself) is an eligible expense. The cost of service animals trained to give assistance to persons with disabilities, including the cost of acquiring the animal, veterinary care, food, grooming, and other continuing costs of care, will be included. Eligible Attendant Care The family determines the type of attendant care that is appropriate for the person with disabilities. SAHA Policv Attendant care includes, but is not limited to, reasonable costs for home medical care, nursing services, in -home or center -based care services, interpreters for persons with hearing impairments, and readers for persons with visual disabilities. Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible. If the care attendant also provides other services to the family, SAHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. City Council 5 — 216 7/15/2025 EXHIBIT 1 Payments to Family Members No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source. Necessary and Reasonable Expenses The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source. SAHA Policv SAHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, SAHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and SAHA will consider, the family's justification for costs that exceed typical costs in the area. Families That Qualify for Both Medical and Disability Assistance Expenses SAHA Policv This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either medical or disability assistance expenses, SAHA will consider them medical expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. City Council 5 — 217 7/15/2025 EXHIBIT 1 6-II.F. CHILDCARE EXPENSE DEDUCTION HUD defines childcare expenses at 24 CFR 5.603(b) as "amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income." Clarifying the Meaning of Child for This Deduction Childcare expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family's household [VG, p. 26]. However, childcare expenses for foster children that are living in the assisted family's household are included when determining the family's childcare expenses [HCV G13, p. 5-29]. Qualifying for the Deduction Determining Who Is Enabled to Pursue an Eligible Activity SAHA Policy The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a childcare deduction (seeking work, pursuing an education, or being gainfully employed). In evaluating the family's request, SAHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work SAHA Policy If the childcare expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member's efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member's job search efforts are not commensurate with the childcare expense being allowed by SAHA. City Council 5 — 218 7/15/2025 EXHIBIT 1 Furthering Education SAHA Policv If the childcare expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the childcare claimed. Being Gainfully Employed SAHA Policv If the childcare expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member's employment during the time that childcare is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. Earned Income Limit on Childcare Expense Deduction When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for childcare — although the care must still be necessary and reasonable. However, when childcare enables a family member to work, the deduction is capped by "the amount of employment income that is included in annual income" [24 CFR 5.603(b)]. The earned income used for this purpose is the amount of earned income verified after any income exclusions are applied. When the person who is enabled to work is a full-time student whose earned income above $480 is excluded, childcare costs related to enabling a family member to work may not exceed the portion of the person's earned income that actually is included in annual income. The PHA must not limit the deduction to the least expensive type of childcare. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV G13, p. 5-30]. SAHA Policy When the childcare expense being claimed is to enable a family member to work, only one family member's income will be considered for a given period of time. When more than one family member works during a given period, SAHA generally will limit allowable childcare expenses to the earned income of the lowest -paid member. The family may provide information that supports a request to designate another family member as the person enabled to work. City Council 5 — 219 7/15/2025 EXHIBIT 1 Eligible Childcare Expenses The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the childcare expense deduction because there is an adult family member in the household that may be available to provide childcare [VG, p. 26]. Allowable Childcare Activities SAHA Policy For school -age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after -school sports league) are allowable forms of childcare. The costs of general housekeeping and personal services are not eligible. Likewise, childcare expenses paid to a family member who lives in the family's unit are not eligible; however, payments for childcare to relatives who do not live in the unit are eligible. If a childcare provider also renders other services to a family or childcare is used to enable a family member to conduct activities that are not eligible for consideration, the SAHA will prorate the costs and allow only that portion of the expenses that is attributable to childcare for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the childcare provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Necessary and Reasonable Costs Childcare expenses will be considered necessary if. (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further their education, and (2) the family certifies, and the childcare provider verifies, that the expenses are not paid or reimbursed by any other source. SAHA Policy Childcare expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For childcare that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class. To establish the reasonableness of childcare costs, SAHA will use the schedule of childcare costs from a qualified local entity that either subsidizes childcare costs or licenses childcare providers. Families may present, and SAHA will consider, justification for costs that exceed typical costs in the area. City Council 5 — 220 7/15/2025 EXHIBIT 1 PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family's monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family's monthly gross income (annual income, as defined in Part I, divided by 12) • The welfare rent (in as -paid states only) • A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-III.13. The amount that a family pays for rent and utilities (the family share) will never be less than the family's TTP but may be greater than the TTP depending on the rent charged for the unit the family selects. Welfare Rent [24 CFR 5.628] SAHA Policy Welfare rent does not apply in this locality. Minimum Rent [24 CFR 5.6301 SAHA Policy The minimum rent for this locality is $50. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant -paid utilities) that exceeds the PHA's applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy the PHA may not approve the tenancy if it would require the family share to exceed 40 percent of the family's monthly adjusted income. (For a discussion of the application of payment standards, see section 6-III.C.) City Council 5 — 221 7/15/2025 EXHIBIT 1 PHA Subsidy [24 CFR 982.505(b)] The PHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of (1) the applicable payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. (For a discussion of the application of payment standards, see section 6-III.C.) Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] When the PHA subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider. SAHA Policv SAHA will make utility reimbursements to the family. The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar -year quarter and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship. SAHA Policv SAHA will issue all utility reimbursements monthly. SAHA reserves the right to issue utility reimbursements quarterly. City Council 5 — 222 7/15/2025 EXHIBIT 1 6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.6301 SAHA Policv The financial hardship rules described below apply in this jurisdiction because SAHA has established a minimum rent of $50. Overview If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship. The financial hardship exemption applies only to families required to pay the minimum rent. If a family's TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family's calculated TTP. HUD -Defined Financial Hardship Financial hardship includes the following situations: (1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996. SAHA Policv A hardship will be considered to exist only if the loss of eligibility has an impact on the family's ability to pay the minimum rent. For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following: (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent. SAHA Policy For a family to qualify under this provision, the cause of the potential eviction must be the family's failure to pay rent to the owner or tenant -paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment. City Council 5 — 223 7/15/2025 EXHIBIT 1 (4) A death has occurred in the family. SAHA Policv In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral -related expenses or the loss of the family member's income). (5) The family has experienced other circumstances determined by the PHA. SAHA Policv SAHA has not established any additional hardship criteria. Implementation of Hardship Exemption Determination of Hardship When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family's request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term. SAHA Policv SAHA defines temporary hardship as a hardship expected to last 90 days or less. Long- term hardship is defined as a hardship expected to last more than 90 days. When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption. Example: Impact of Minimum Rent Exemption Assume the PHA has established a minimum rent of $50. Family Share — No Hardship Family Share — With Hardship $0 30% of monthly adjusted income $0 30% of monthly adjusted income $15 10% of monthly gross income $15 10% of monthly gross income N/A Welfare rent N/A Welfare rent $50 Minimum rent $50 Minimum rent Minimum rent applies. Hardship exemption granted. TTP = $50 TTP = $15 SAHA Policv To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family's ability to pay the minimum rent. SAHA will make the determination of hardship within 30 calendar days. City Council 5 — 224 7/15/2025 EXHIBIT 1 No Financial Hardship If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended. SAHA Policv SAHA will require the family to repay the suspended amount within 30 calendar days of SAHA's notice that a hardship exemption has not been granted. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family's request for a hardship exemption. At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. SAHA Policv SAHA will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan. Long -Term Hardship If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family's request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. SAHA Policy The hardship period ends when any of the following circumstances apply: (1) At an interim or annual reexamination, the family's calculated TTP is greater than the minimum rent. (2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support. (3) For hardship conditions based upon hardship -related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred. City Council 5 — 225 7/15/2025 EXHIBIT 1 6-IH.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505(c) and Notice PIH 2O24- 34] Overview The PHA's schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the PHA's payment standards. The establishment and revision of the PHA's payment standard schedule are covered in Chapter 16. Payment standard is defined as "the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)" [24 CFR 982.4(b)]. The payment standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the PHA's subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family [24 CFR 982.505(c)(1)]. If the PHA has established an exception payment standard for a designated part of an FMR area in accordance with 24 CFR 982.503 and a family's unit is located in the designated area, the PHA must use the appropriate payment standard for the exception area [24 CFR 982.505(c)(2)]. The PHA is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of (1) the payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. If during the term of the HAP contract for a family's unit, the owner lowers the rent, the PHA will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV GB, p. 7-8]. Changes in Payment Standards When the PHA revises its payment standards during the term of the HAP contract for a family's unit, it will apply the new payment standards in accordance with HUD regulations. Regulations governing increases and decreases in the payment standard have changed, with a required compliance date of December 3, 2024. Decreases [24 CFR 982.505(c)(3) and Notice PIH 2O24-341 For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution. The PHA must administer decreases in the payment standard amount for the family in accordance with the PHA policy as described in the administrative plan and apply the policy consistently to all families. If a PHA changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, the PHA is not required to reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect. City Council 5 — 226 7/15/2025 EXHIBIT 1 Changes effective 12/2/24 and earlier: If the PHA does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than the effective date of the family's second regular reexamination following the effective date of the decrease in the payment standard amount. Changes effective 12/3/24 and later: If the PHA does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than two years following the effective date of the decrease in the payment standard and only with proper written notice to the family in accordance with 24 CFR 982.505(c)(3)(iii). At that point, the PHA may either reduce the payment standard to the current amount in effect on the PHA's payment standard schedule or may reduce the payment standard to another amount that is higher than the normally applicable amount on the schedule. The PHA may also establish different policies for designated areas within their jurisdiction (e.g., different zip code areas). In any case, the PHA must provide the family with at least 12 months' notice that the payment standard is being reduced before the effective date of the change. In the written notice, the PHA must state the new payment standard amount, explain that the family's new payment standard amount will be the greater of the amount listed in the current written notice or the new amount (if any) on the PHA's payment standard schedule at the end of the 12-month period, and make clear where the family will find the PHA's payment standard schedule. The PHA's policy on decreases in the payment standard during the term of the HAP contract apply to all families under HAP contract at the time of the effective date of the decrease in the payment standard within the designated area. SAHA Policy If SAHA changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, SAHA will apply the reduced payment standard at the family's second regular reexamination following the reduction in the payment standard amount. Increases [24 CFR 982.505(c)(4) and Notice PIH 2O24-341 For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution. Changes effective 12/2/24 and earlier: If the payment standard is increased during the term of the HAP contract, the increased payment standard will be used to calculate the monthly housing assistance payment for the family beginning on the effective date of the family's first regular reexamination on or after the effective date of the increase in the payment standard. Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV G13, p. 7-8]. City Council 5 — 227 7/15/2025 EXHIBIT 1 Changes effective 12/3/24 and later: If the payment standard is increased during the term of the HAP contract, the increased payment standard will be applied no later than the earliest of: The effective date of an increase in the gross rent that would result in an increase in the family share; • The family's first regular or interim reexamination; or • One year following the effective date of the increase in the payment standard amount. The PHA may adopt a policy to apply a payment standard increase at any time earlier than the date calculated above as long as the policy is included in the administrative plan and applied consistently to all families [24 CFR 982.505(c)(5)]. SAHA Policy SAHA will not adopt payment standard increases earlier than the date required by the regulations. Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6) and Notice PIH 2O24-341 Changes effective 12/2/24 and earlier: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size must be used to determine the payment standard for the family beginning at the family's first regular reexamination following the change in family unit size. Changes effective 12/3/24 and later: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size may be used to determine the payment standard immediately but no later than the family's first regular reexamination following the change in family unit size. SAHA Policy If the family unit size (voucher size) changes during the term of a HAP contract, the new family unit size will be used to determine the payment standard at the family's first regular reexamination following the change in family unit size. Moves If the family moves to a new unit, or a new HAP contract is executed due to changes in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new HAP contract is processed. Reasonable Accommodation [24 CFR 982.503(d)(5)] If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR without HUD approval or prior notification to HUD. A PHA may establish a payment standard greater than 120 percent of the applicable FMR as a reasonable accommodation in accordance with 24 CFR part 8, after requesting and receiving HUD approval. See Chapter 16 for more information. City Council 5 — 228 7/15/2025 EXHIBIT 1 6-III.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.5171 Overview A PHA -established utility allowance schedule is used in determining family share and PHA subsidy. A family's utility allowance is determined by the size of dwelling unit leased by a family or the voucher unit size for which the family qualifies using PHA subsidy standards, whichever is the lowest of the two. See Chapter 5 for information on the PHA's subsidy standards. For policies on establishing and updating utility allowances, see Chapter 16. Flat Fees [24 CFR 982.517(b)(2)(iii)] The PHA may base its utility allowance payments on actual flat fees charged by an owner for utilities that are billed directly by the owner, but only if the flat fee charged by the owner is no greater than the PHA's applicable utility allowance for the utilities covered by the fee. If the owner charges a flat fee for some but not all utilities, the PHA must pay a separate allowance for any tenant -paid utilities not covered in the flat fee. SAHA Policy SAHA will not base utility allowance payments on flat fees charged by the owner. PBV Developments [24 CFR 982.517(b)(2)(iv)] If a tenant -based voucher holder resides in a project with project -based voucher (PBV) units and the PBV units use a site -specific utility allowance in accordance with PBV regulations, the PHA must use the project -specific utility allowance schedule. Reasonable Accommodation and Individual Relief On request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [24 CFR 982.517(e)]. (See Chapter 2 for policies regarding the request and approval of reasonable accommodations.) Further, the PHA may grant requests for individual relief from charges in excess of the utility allowance on reasonable grounds, such as special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA an explanation of the need for individual relief and an explanation about the amount of additional allowance required [see HCV GB, p. 18-8]. PHAs should develop criteria for granting individual relief, notify residents about the availability of individual relief, and notify participants about the availability of individual relief programs (sometimes referred to as "Medical Baseline discounts") offered by the local utility company. City Council 5 — 229 7/15/2025 EXHIBIT 1 SAHA Policv The family must request the higher allowance and provide SAHA with information about the amount of additional allowance required. SAHA will consider the following criteria as valid reasons for granting individual relief: The family's consumption was mistakenly portrayed as excessive due to defects in the meter or errors in the meter reading. The excessive consumption is caused by a characteristic of the unit or owner - supplied equipment that is beyond the family's control, such as a particularly inefficient refrigerator or inadequate insulation. The allowance should be adjusted to reflect the higher consumption needs associated with the unit until the situation is remedied. The resident should be granted individual relief until the allowance is adjusted. The excessive consumption is due to special needs of the family that are beyond their control, such as the need for specialized equipment in the case of a family member who is ill, elderly, or who has a disability. In determining the amount of the reasonable accommodation or individual relief, SAHA will allow a reasonable measure of additional usage as necessary. To arrive at the amount of additional utility cost of specific equipment, the family may provide information ftom the manufacturer of the equipment, or the family or SAHA may conduct an internet search for an estimate of usage or additional monthly cost. Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all families at admission as part of the information on payment standards and utility allowances in the briefing packet. SAHA will also provide information on utility relief programs or medical discounts (sometimes referred to as "Medical Baseline discounts") that may be available through local utility providers. At its discretion, SAHA may reevaluate the need for the increased utility allowance at any regular reexamination. If the excessive consumption is caused by a characteristic of the unit or SAHA-supplied equipment that is beyond the family's control, such as a particularly inefficient refrigerator or inadequate insulation, the individual relief to the resident will cease when the situation is remedied. Utility Allowance Revisions At reexamination, the PHA must use the current utility allowance schedule [HCV GB, p. 18-8]. SAHA Policv Revised utility allowances will be applied to a family's rent and subsidy calculations at the first annual reexamination that is effective after the allowance is adopted. City Council 5 — 230 7/15/2025 EXHIBIT 1 6-III.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.5201 HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that actually are eligible. For example, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible, the PHA subsidy would be reduced to $250. City Council 5 — 231 7/15/2025 EXHIBIT 1 EXHIBIT 6-1: ANNUAL INCOME INCLUSIONS 24 CFR 5.609 (a) Annual income means all amounts, monetary or not, which: (1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or (2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access. (b) Annual income includes, but is not limited to: (1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD; (4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump - sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); City Council 5 — 232 7/15/2025 EXHIBIT 1 (6) Welfare assistance payments. (i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments: (A) Qualify as assistance under the TANF program definition at 45 CFR 260.311; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section) ' Text of 45 CFR 260.31 follows. (9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, "financial assistance" does not include loan proceeds for the purpose of determining income. HHS DEFINITION OF "ASSISTANCE" 45 CFR: GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 260.31 What does the term "assistance" mean? (a)(1) The term "assistance" includes cash, payments, vouchers, and other forms of benefits designed to meet a family's ongoing basic needs (i.e., for food, clothing, shelter, utilities, household goods, personal care items, and general incidental expenses). (2) It includes such benefits even when they are: (i) Provided in the form of payments by a TANF agency, or other agency on its behalf, to individual recipients; and (ii) Conditioned on participation in work experience or community service (or any other work activity under 261.30 of this chapter). City Council 5 — 233 7/15/2025 EXHIBIT 1 (3) Except where excluded under paragraph (b) of this section, it also includes supportive services such as transportation and childcare provided to families who are not employed. (b) [The definition of "assistance"] excludes: (1) Nonrecurrent, short-term benefits that: (i) Are designed to deal with a specific crisis situation or episode of need; (ii) Are not intended to meet recurrent or ongoing needs; and (iii) Will not extend beyond four months (2) Work subsidies (i.e., payments to employers or third parties to help cover the costs of employee wages, benefits, supervision, and training); (3) Supportive services such as childcare and transportation provided to families who are employed; (4) Refundable earned income tax credits; (5) Contributions to, and distributions from, Individual Development Accounts; (6) Services such as counseling, case management, peer support, childcare information and referral, transitional services, job retention, job advancement, and other employment -related services that do not provide basic income support; and (7) Transportation benefits provided under a Job Access or Reverse Commute project, pursuant to section 404(k) of [the Social Security] Act, to an individual who is not otherwise receiving assistance. City Council 5 — 234 7/15/2025 EXHIBIT 1 EXHIBIT 6-2: ANNUAL INCOME EXCLUSIONS 24 CFR 5.609(b) as updated for HOTMA (b)Annual income does not include the following (1) Any imputed return on an asset when net family assets are less than or equal to the HUD -published threshold amount (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and no actual income from the net family assets can be determined. (2) The following types of trust distributions: (i) For an irrevocable trust or a revocable trust outside the control of the family or household excluded from the definition of net family assets under § 5.603(b): (A) Distributions of the principal or corpus of the trust; and (B) Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor. (ii) For a revocable trust under the control of the family or household, any distributions from the trust; except that any actual income earned by the trust, regardless of whether it is distributed, shall be considered income to the family at the time it is received by the trust. (3) Earned income of children under the 18 years of age. (4) Payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments. (5) Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation. (6) Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member. (7) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled. (8) Income of a live-in aide, foster child, or foster adult as defined in §§ 5.403 and 5.603, respectively. (9) (i) Any assistance that section 479B of the Higher Education Act of 1965, as amended (20 U.S.C. 1087uu), requires be excluded from a family's income; and City Council 5 — 235 7/15/2025 EXHIBIT 1 (ii) Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. (A) Student financial assistance, for purposes of this paragraph (9)(ii), means a grant or scholarship received from— ( 1) The Federal government; (2) A State, Tribe, or local government; (3) A private foundation registered as a nonprofit under 26 U.S.C. 501(c)(3); (4) A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or (5) An institution of higher education. (B) Student financial assistance, for purposes of this paragraph (9)(ii), does not include— (1) Any assistance that is excluded pursuant to paragraph (b)(9)(i) of this section; (2) Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded pursuant to paragraph (b)(9)(i) of this section); ( 3) Gifts, including gifts from family or friends; or (4) Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under this paragraph or paragraph (b)(9)(i), exceeds the actual covered costs of the student. The actual covered costs of the student are the actual costs of tuition, books and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, or other fees required and charged to a student by the education institution, and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. This calculation is described further in paragraph (b)(9)(ii)€ of this section. (C) Student financial assistance, for purposes of this paragraph (b)(9)(ii) must be: (1) Expressly for tuition, books, room and board, or other fees required and charged to a student by the education institution; (2) Expressly to assist a student with the costs of higher education; or (3) Expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit. (D) Student financial assistance, for purposes of this paragraph (b)(9)(ii), may be paid directly to the student or to the educational institution on the student's behalf. Student financial assistance paid to the student must be verified by the responsible entity as student financial assistance consistent with this paragraph (b)(9)(ii). (E) When the student is also receiving assistance excluded under paragraph (b)(9)(i) of this section, the amount of student financial assistance under this paragraph (b)(9)(ii) is determined as follows: City Council 5 — 236 7/15/2025 EXHIBIT 1 (1) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is equal to or exceeds the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, none of the assistance described in this paragraph (b)(9)(ii) of this section is considered student financial assistance excluded from income under this paragraph (b)(9)(ii)(E). (2) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is less than the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, the amount of assistance described in paragraph (b)(9)(ii) of this section that is considered student financial assistance excluded under this paragraph is the lower of- (i) the total amount of student financial assistance received under this paragraph (b)(9)(ii) of this section, or (ii) the amount by which the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section exceeds the assistance excluded under paragraph (b)(9)(i) of this section. (10) Income and distributions from any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under section 529 of such Code; and income earned by government contributions to, and distributions from, "baby bond" accounts created, authorized, or funded by Federal, State, or local government. (11) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. (i) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self -Sufficiency (PASS); (ii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program; (iii) Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. (iv) Incremental earnings and benefits resulting to any family member from participation in training programs funded by HUD or in qualifying Federal, State, Tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employment training program unless those amounts are excluded under paragraph (b)(9)(i) of this section. (13) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. (14) Earned income of dependent falltime students in excess of the amount of the deduction for a dependent in § 5.611. (15) Adoption assistance payments for a child in excess of the amount of the deduction for a dependent in § 5.611. City Council 5 — 237 7/15/2025 EXHIBIT 1 (16) Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts. (17) Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance. (18) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit. (19) Payments made by or authorized by a State Medicaid agency (including through a managed care entity) or other State or Federal agency to a family to enable a family member who has a disability to reside in the family's assisted unit. Authorized payments may include payments to a member of the assisted family through the State Medicaid agency (including through a managed care entity) or other State or Federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family's assisted unit. (20) Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car). (21) Payments received by Tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other Federal law. (22) Amounts that HUD is required by Federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in paragraph (b) of this section apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. (23) Replacement housing "gap" payments made in accordance with 49 CFR part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another Federally subsidized housing unit. Such replacement housing "gap" payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing "gap" payments. (24) Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income under this paragraph, even if the source, date, or amount of the income varies. Nonrecurring income includes: (i) Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment. (ii) Direct Federal or State payments intended for economic stimulus or recovery. (iii) Amounts directly received by the family as a result of State refundable tax credits or State tax refunds at the time they are received. City Council 5 — 238 7/15/2025 EXHIBIT 1 (iv) Amounts directly received by the family as a result of Federal refundable tax credits and Federal tax refunds at the time they are received. (v) Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) (vi) Non -monetary, in -kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization. (vii) Lump -sum additions to net family assets, including but not limited to lottery or other contest winnings. (25) Civil rights settlements or judgments, including settlements or judgments for back pay. (26) Income received from any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; except that any distribution of periodic payments from such accounts shall be income at the time they are received by the family. (27) Income earned on amounts placed in a family's Family Self Sufficiency Account. (28) Gross income a family member receives through self-employment or operation of a business; except that the following shall be considered income to a family member: (i) Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations; and (ii) Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. City Council 5 — 239 7/15/2025 EXHIBIT 1 EXHIBIT 6-3: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. (2) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under Sec. 5.609. (3) In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. (4) For purposes of determining annual income under Sec. 5.609, the term "net family assets" does not include the value of a home currently being purchased with assistance under part 982, subpart M of this title. This exclusion is limited to the first 10 years after the purchase date of the home. City Council 5 — 240 7/15/2025 EXHIBIT 1 EXHIBIT 6-4: THE EFFECT OF WELFARE BENEFIT REDUCTION 24 CFR 5.615 Public housing program and Section 8 tenant -based assistance program: How welfare benefit reduction affects family income. (a) Applicability. This section applies to covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant -based assistance (part 982 of this title). (b) Definitions. The following definitions apply for purposes of this section: Covered families. Families who receive welfare assistance or other public assistance benefits ("welfare benefits") from a State or other public agency ("welfare agency") under a program for which Federal, State, or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance. Economic self-sufficiency program. See definition at Sec. 5.603. Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent. Specified welfare benefit reduction. (1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) "Specified welfare benefit reduction" does not include a reduction or termination of welfare benefits by the welfare agency: (i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self-sufficiency or work activities requirements; or (iii) because a family member has not complied with other welfare agency requirements. (c) Imputed welfare income. (1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the PHA by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609. (2) At the request of the PHA, the welfare agency will inform the PHA in writing of the amount and term of any specified welfare benefit reduction for a family member, and the reason for such reduction, and will also inform the PHA of any subsequent changes in the term or amount of such specified welfare benefit reduction. The PHA will use this information to determine the amount of imputed welfare income for a family. (3) A family's annual income includes imputed welfare income in family annual income, as determined at the PHA's interim or regular reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the PHA by the welfare agency). City Council 5 — 241 7/15/2025 EXHIBIT 1 (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed (5) The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of PHA decision. (1) Public housing. If a public housing tenant claims that the PHA has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the tenant written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. The PHA notice shall also state that if the tenant does not agree with the PHA determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the PHA determination. The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55(e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the PHA determination. (2) Section 8 participant. A participant in the Section 8 tenant -based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the PHA determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the family written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the PHA determination, the family may request an informal hearing on the determination under the PHA hearing procedure. (e) PHA relation with welfare agency. (1) The PHA must ask welfare agencies to inform the PHA of any specified welfare benefits reduction for a family member, the reason for such reduction, the term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the PHA written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction. (2) The PHA is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency, and specified in the notice by the welfare agency to the PHA. However, the PHA is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The PHA shall be entitled to rely on the welfare agency notice to the PHA of the welfare agency's determination of a specified welfare benefits reduction. City Council 5 — 242 7/15/2025 EXHIBIT 1 Chapter 6.B. INCOME AND SUBSIDY DETERMINATIONS UNDER HOTMA 102/104 [24 CFR Part 5, Subparts E and F; 24 CFR 982] INTRODUCTION This chapter is applicable upon the PHA's HOTMA 102/104 compliance date. Prior to this date, the PHA will follow policies as outlined in Chapter 6.A. of the model policy. A family's income determines eligibility for assistance and is also used to calculate the family's payment and the PHA's subsidy. The PHA will use the policies and methods described in this chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations. This chapter describes HUD regulations and PHA policies related to these topics in three parts as follows: Part I: Annual Income. HUD regulations specify the sources of income which are excluded from the family's annual income. These requirements and PHA policies for calculating annual income are found in Part I. Part II: Assets. HUD regulations specify the types of assets which are excluded from a family's annual income. These requirements and PHA policies for calculating income from assets are found in Part II. Part III: Adjusted Income. Once annual income has been established, HUD regulations require the PHA to subtract from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to adopt additional permissive deductions. These requirements and PHA policies for calculating adjusted income are found in Part III. Part IV: CalculatingFamily amily Share and PHA Subsidy. This part describes the statutory formula for calculating total tenant payment (TTP), the use of utility allowances, and the methodology for determining PHA subsidy and required family payment. - 025 City Council 5 — 243 5 2 25 EXHIBIT 1 PART I: ANNUAL INCOME 6-I.A. OVERVIEW [24 CFR 5.6091 Annual income includes: • All amounts, not specifically excluded in 24 CFR 5.609(b); • All amounts received from all sources (other than those specifically excluded in 24 CFR 5.609(b)) by each member of the family who is 18 years of age or older or is the head of household or spouse; • Unearned income (other than those sources specifically excluded in 24 CFR 5.609(b)) by or on behalf of each dependent who is under 18 years of age; and • Imputed returns of an asset based on the current passbook savings rate, as determined by HUD, when the value of net family assets exceeds the HUD -published threshold amount (adjusted annually and published in HUD's Inflation -Adjusted Values tables) and the actual returns from a given asset cannot be calculated. In addition to this general definition, the regulations at 24 CFR 5.609(b) provide a comprehensive listing of all sources of income that are excluded from annual income. Note, unlike in previous versions of the regulations, the current regulations governing annual income do not list sources of income that are to be included. Instead, HUD relies on the definition of excluded income under 24 CFR 5.609(b) to provide the scope of what is included. To that end, generally, all income is included unless it is specifically excluded by regulation. Annual income includes "all amounts received," not the amount that a family may be legally entitled to receive but did not receive. For example, a family's child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders. However, when a family member's wages or benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other applicable debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family's annual income [Notice PIH 2O23-27]. Annual income also includes all actual anticipated income from assets (provided the income is not otherwise excluded) even if the asset itself is excluded from net family assets [Notice PIH 2023-27]. 24 CFR 5.603(b)(1) describes HUD regulations for treating specific types of income and assets. The full texts of those portions of the regulations are provided in exhibits at the end of this chapter as follows: • Annual Income Full Definition (Exhibit 6-1) • Treatment of Family Assets (Exhibit 6-2) • The Effect of Welfare Benefit Reduction (Exhibit 6-3) Sections 6-I.B and 6-I.0 discuss general requirements and methods for calculating annual income. The rest of this section describes how each source of income is treated for the purposes of determining annual income. Verification requirements for annual income are discussed in Chapter 7. Page - 025 City Council 5 — 244 5 2 25 EXHIBIT 1 6-I.B. HOUSEHOLD COMPOSITION AND INCOME Overview Income received by all family members must be counted unless specifically excluded by the regulations. It is the responsibility of the head of household to report changes in family composition in accordance with HUD regulations and PHA policies in Chapter 11. The rules on which sources of income are counted vary somewhat by family member. The chart below summarizes how family composition affects income determinations. Summary of Income Included and Excluded by Person Live-in aides Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)]. Foster child or foster adult Income from all sources (both earned and unearned) is excluded [24 CFR 5.609(b)(8)]. Head, spouse, or cohead All sources of income not specifically excluded by the Other adult family members regulations are included [24 CFR 5.609(a)]. Minors Earned income of children under 18 years of age is excluded [24 CFR 5.609(b)(3)]. All sources of unearned income, except those specifically excluded by the regulations, are included [24 CFR 5.609(a)]. Full-time students 18 years of Earned income in excess of the dependent deduction is age or older (not head, spouse, excluded [24 CFR 5.609(b)(14)]. or cohead) All sources of unearned income, except those specifically excluded by the regulations, are included. - 025 City Council 5 — 245 5 2 25 EXHIBIT 1 Temporarily Absent Family Members The current regulations governing annual income do not specifically address temporarily absent family members. The regulations also do not define "temporarily" or "permanently" absent or specify a timeframe associated with a temporary versus a permanent absence. SAHA Policy Unless specifically excluded by the regulations, the income of all family members approved to live in the unit will be counted, even if the family member is temporarily absent from the unit. Generally, an individual who is or is expected to be absent from the assisted unit for 90 consecutive days or less is considered temporarily absent and continues to be considered a family member. Generally, an individual who is or is expected to be absent from the assisted unit for more than 90 consecutive days is considered permanently absent and no longer a family member. Exceptions to this general policy are discussed below. Absent Students SAHA Policy When someone who has been considered a family member attends school away from home, the person will continue to be considered a family member unless information becomes available to SAHA indicating that the student has established a separate household, or the family declares that the student has established a separate household. The student must be present at the annual recertification interview or they may be removed from the household. Absences Due to Placement in Foster Care Children temporarily absent from the home as a result of placement in foster care (as confirmed by the state child welfare agency) are considered members of the family [24 CFR 5.403]. SAHA Policy If a child has been placed in foster care, SAHA will verify with the appropriate agency whether and when the child is expected to be returned to the home. Unless the agency confirms that the child has been permanently removed from the home, the child will continue to be counted as a family member. Absent Head, Spouse, or Cohead SAHA Policy An employed head, spouse, or co-head absent from the unit more than 90 days due to employment will continue to be considered a family member. - 025 City Council 5 — 246 5 2 25 EXHIBIT 1 Family Members Permanently Confined for Medical Reasons If a family member is confined to a nursing home or hospital on a permanent basis, that person is no longer considered a family member and the income of that person is not counted [HCV G13, p. 5-22]. SAHA Policv SAHA will request verification from a responsible medical professional and will use this determination. If the responsible medical professional cannot provide a determination, the person generally will be considered temporarily absent. The family may present evidence that the family member is confined on a permanent basis and request that the person not be considered a family member. When an individual who has been counted as a family member is determined permanently absent, the family is eligible for the medical expense deduction only if the remaining head, spouse, or cohead qualifies as an elderly person or a person with disabilities. Joint Custody of Dependents SAHA Policv Dependents that are subject to a joint custody arrangement will be considered a member of the family, if they live with the applicant or participant family 51 percent or more of the time. When more than one applicant or participant family is claiming the same dependents as family members, the family with primary custody at the time of the initial examination or reexamination will be able to claim the dependents. If there is a dispute about which family should claim them, SAHA will make the determination based on available documents such as court orders, school records, or an IRS return showing which family has claimed the child for income tax purposes. - 025 City Council 5 — 247 5 2 25 EXHIBIT 1 Caretakers for a Child SAHA Policy The approval of a caretaker is at the owner and SAHA's discretion and subject to the owner and SAHA's screening criteria. If neither a parent nor a designated guardian remains in a household receiving HCV assistance, SAHA will take the following actions. (1) If a responsible agency has determined that another adult is to be brought into the assisted unit to care for a child for an indefinite period, the designated caretaker will not be considered a family member until a determination of custody or legal guardianship is made. (2) If a caretaker has assumed responsibility for a child without the involvement of a responsible agency or formal assignment of custody or legal guardianship, the caretaker will be treated as a visitor for 90 days. After the 90 days has elapsed, the caretaker will be considered a family member unless information is provided that would confirm that the caretaker's role is temporary. In such cases SAHA will extend the caretaker's status as an eligible visitor. (3) At any time that custody or guardianship legally has been awarded to a caretaker, the housing choice voucher will be transferred to the caretaker. (4) During any period that a caretaker is considered a visitor, the income of the caretaker is not counted in annual income and the caretaker does not qualify the family for any deductions from income. - 025 City Council 5 — 248 5 2 25 EXHIBIT 1 6-I.C. CALCULATING ANNUAL INCOME The methodology used for calculating income differs depending on whether income is being calculated at initial occupancy, interim reexamination, or at annual reexamination. However, income from assets is always anticipated regardless of certification type. Anticipating Annual Income [24 CFR 5.609(c)(1)] At initial occupancy and for an interim reexamination of family income, the PHA is required to use anticipated income (current income) for the upcoming 12-month period following the new admission or interim reexamination effective date. Policies related to verifying income are found in Chapter 7. SAHA Policy When SAHA cannot readily anticipate income based upon current circumstances (e.g., in the case of temporary, sporadic, or variable employment, seasonal employment, unstable working hours, or suspected fraud), SAHA will review and analyze historical data for patterns of employment, paid benefits, and receipt of other income and use the results of this analysis to establish annual income. Any time current circumstances are not used to project annual income, a clear rationale for the decision will be documented in the file. In all such cases the family may present information and documentation to SAHA to show why the historic pattern does not represent the family's anticipated income. In all cases, the family file will be documented with a clear record of the reason for the decision, and a clear audit trail will be left as to how SAHA annualized projected income. Known Changes in Income If SAHA verifies an upcoming increase or decrease in income at admission or interim reexamination, annual income will be projected by applying each income amount to the appropriate part of the 12-month period. Example: An employer reports that a full-time employee who has been receiving $8/hour will begin to receive $8.25/hour in the eighth week after the effective date of the new admission or interim reexamination. In such a case the PHA would calculate annual income as follows: ($8/hour x 40 hours x 7 weeks) + ($8.25 x 40 hours x 45 weeks). The family may present information that demonstrates that implementing a change before its effective date would create a hardship for the family. In such cases SAHA will calculate annual income using current circumstances and then, should the change in income require SAHA to conduct an interim reexamination, conduct an interim reexamination in accordance with SAHA policy in Chapter 11. - 025 City Council — 249 5 2 25 EXHIBIT 1 Calculating Annual Income at Annual Reexamination [24 CFR.609(c)(2); Notice PIH 2O23-271 At annual reexamination, except where the PHA uses a streamlined income determination, PHAs must first determine the family's income for the previous 12-month period and use this amount as the family income for annual reexaminations; however, adjustments to reflect current income must be made. Any change of income since the family's last annual reexamination, including those that did not meet the threshold to process an interim reexamination of family income in accordance with PHA policies in Chapter 11 and HUD regulations, must be considered. If, however, there have been no changes to income, then the amount of income calculated for the previous 12-month period is the amount that will be used to determine the family's rental assistance. Income from assets is always anticipated, irrespective of the income examination type. Policies related to conducting annual reexaminations are located in Chapter 11. - 025 City Council 5 — 250 5 2 25 EXHIBIT 1 6-I.D. EARNED INCOME Wages and Related Compensation [24 CFR 5.609(a); Notice PIH 2023-271 The earned income of each member of the family who is 18 years of age or older, or who is the head of household or spouse/cohead regardless of age, is included in annual income. Income received as a day laborer or seasonal worker is also included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)]. Earned income means income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in -kind benefits [24 CFR 5.100]. A day laborer is defined as an individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future [24 CFR 5.603(b)]. Income earned as a day laborer is not considered nonrecurring income. A seasonal worker is defined as an individual who is hired into a short-term position ( e.g., for which the customary employment period for the position is six months or fewer) and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry [24 CFR 5.603(b)]. Some examples of seasonal work include employment limited to holidays or agricultural seasons. Seasonal work may include but is not limited to employment as a lifeguard, ballpark vendor, or snowplow driver [Notice PIH 2O23-27]. Income earned as a seasonal worker is not considered nonrecurring income. SAHA Policy SAHA will include in annual income the full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation. For persons who regularly receive bonuses or commissions, SAHA will verify and then average amounts received for one year preceding admission or interim reexamination. In either case the family may provide, and SAHA will consider, a credible justification for not using this history to anticipate future bonuses or commissions. If a new employee has not yet received any bonuses or commissions, SAHA will count only the amount estimated by the employer. The file will be documented appropriately. Military Pay All regular pay, special pay and allowances of a member of the Armed Forces are counted except for the special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)]. - 025 City Council 5 — 251 5 2 25 EXHIBIT 1 Earnings of a Minor [24 CFR 5.609(b)(3)J A minor is a member of the family, other than the head of household or spouse, who is under 18 years of age. Employment income earned by minors is not included in annual income. All other sources of unearned income, except those specifically excluded by the regulations, are included. Earned Income of Full -Time Students [24 CFR 5.609(b)(14)J The earned income of a dependent full-time student in excess of the amount of the dependent deduction is excluded from annual income. All sources of unearned income, except those specifically excluded by the regulations, are included. A family member other than the head of household or spouse/cohead is considered a full-time student if they are attending school or vocational training on a full-time basis [24 CFR 5.603(b)]. To be considered "full-time," a student must be considered "full-time" by an educational institution with a degree or certificate program [HCV GB, p. 5-29]. - 025 City Council 5 — 252 5 2 25 EXHIBIT 1 6-I.E. EARNED INCOME DISALLOWANCE FOR PERSONS WITH DISABILITIES [24 CFR 5.617; Streamlining Final Rule (SIR) Federal Register 3/8/16; Notice PIH 2O23-27] HOTMA removed the statutory authority for the EID. The EID is available only to families that are eligible for and participating on the program as of December 31, 2023, or before; no new families may be added on or after January 1, 2024. If a family is receiving the EID prior to or on the effective date of December 31, 2023, they are entitled to the full amount of the benefit for a full 24-month period. The policies below are applicable only to such families. No family will still be receiving the EID after December 31, 2025. The EID will sunset on January 1, 2026, and the PHA policies below will no longer be applicable as of that date or when the last qualifying family exhausts their exclusion period, whichever is sooner. Calculation of the Disallowance Calculation of the earned income disallowance for an eligible member of a qualified family begins with a comparison of the member's current income with their "baseline income." The family member's baseline income is their income immediately prior to qualifying for the EID. The family member's baseline income remains constant throughout the period that they are participating in the EID. Calculation Method Initial 12-Month Exclusion During the initial exclusion period of 12 consecutive months, the full amount (100 percent) of any increase in income attributable to new employment or increased earnings is excluded. SAHA Policy The initial EID exclusion period will begin on the first of the month following the date an eligible member of a qualified family is first employed or first experiences an increase in earnings. Second 12-Month Exclusion During the second exclusion period of 12 consecutive months, the PHA must exclude at least 50 percent of any increase in income attributable to employment or increased earnings. SAHA Policy During the second 12-month exclusion period, SAHA will exclude 100 percent of any increase in income attributable to new employment or increased earnings. Lifetime Limitation The EID has a two-year (24-month) lifetime maximum. The two-year eligibility period begins at the same time that the initial exclusion period begins and ends 24 months later. During the 24- month period, an individual remains eligible for EID even if they begin to receive assistance from a different housing agency, move between public housing and Section 8 assistance, or have breaks in assistance. The EID will sunset on January 1, 2026. In no circumstances will a family member's exclusion period continue past January 1, 2026. - 025 City Council 5 — 253 5 2 25 EXHIBIT 1 6-I.F. BUSINESS AND SELF-EMPLOYMENT INCOME [24 CFR 5.609(b)(28); Notice PIH 2O23-271 Annual income includes "net income from the operation of a business or profession. Net income is gross income minus business expenses that allows the business to operate. Gross income is all income amounts received into the business, prior to the deduction of business expenses. Expenditures for business expansion or amortization of capital indebtedness may not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family." SAHA Policy To determine business expenses that may be deducted from gross income, SAHA will use current applicable Internal Revenue Service (IRS) rules for determining allowable business expenses [see IRS Publication 535], unless a topic is addressed by HUD regulations or guidance as described herein. Independent Contractors Income received as an independent contractor is included in annual income, even if the source, date, or amount of the income varies [24 CFR 5.609 (b)(24)]. An independent contractor is defined as an individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self -Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done [24 CFR 5.603(b)]. This may include individuals such as third -party delivery and transportation service providers and "gig workers" like babysitters, landscapers, rideshare drivers, and house cleaners. Income earned as an independent contractor is not considered nonrecurring income. Business Expansion HUD regulations do not permit the PHA to deduct from gross income expenses for business expansion. SAHA Policy Business expansion is defined as any capital expenditures made to add new business activities, to expand current facilities, or to operate the business in additional locations. For example, purchase of a street sweeper by a construction business for the purpose of adding street cleaning to the services offered by the business would be considered a business expansion. Similarly, the purchase of a property by a hair care business to open at a second location would be considered a business expansion. 025 City Council 5 — 254 5 2 25 EXHIBIT 1 Capital Indebtedness HUD regulations do not permit the PHA to deduct from gross income the amortization of capital indebtedness. SAHA Policv Capital indebtedness is defined as the principal portion of the payment on a capital asset such as land, buildings, and machinery. This means SAHA will allow as a business expense interest, but not principal, paid on capital indebtedness. Negative Business Income If the net income from a business is negative, no business income will be included in annual income; a negative amount will not be used to offset other family income. Withdrawal of Cash or Assets from a Business HUD regulations require the PHA to include in annual income the withdrawal of cash or assets from the operation of a business or profession unless the withdrawal reimburses a family member for cash or assets invested in the business by the family. SAHA Policv Acceptable investments in a business include cash loans and contributions of assets or equipment. For example, if a member of an assisted family provided an up -front loan of $2,000 to help a business get started, SAHA will not count as income any withdrawals from the business up to the amount of this loan until the loan has been repaid. Investments do not include the value of labor contributed to the business without compensation. Co -owned Businesses SAHA Policy If a business is co -owned with someone outside the family, the family must document the share of the business it owns. If the family's share of the income is lower than its share of ownership, the family must document the reasons for the difference. Assets Owned by a Business Entity If a business entity (e.g., limited liability company or limited partnership) owns the asset, then the family's asset is their ownership stake in the business, not some portion of the business's assets. However, if the family holds the assets in their own name (e.g., they own one-third of a restaurant) rather than in the name of a business entity, then the percentage value of the asset owned by the family is what is counted toward net family assets (e.g., one-third of the value of the restaurant) [Notice PIH 2O23-27]. - 025 City Council 5 — 255 5 2 25 EXHIBIT 1 6-I.G. STUDENT FINANCIAL ASSISTANCE [FR Notice 2/14/23 and Notice PIH 2O23-27] Introduction The treatment of student financial assistance depends on the HUD program, student/household characteristics, and the type of financial assistance received by the student. For public housing residents, all income received under Title IV of the HEA must be excluded from income. Other student financial assistance may be included depending on the students actual covered costs to For Section 8 programs, including HCV, however, for over 10 years HUD appropriations have included a provision that for Section 8 students who are age 23 and under and without dependent children, any amounts received in excess of tuition and any other required fees and charges must be considered income. Under HOTMA, HUD has interpreted this limitation to apply when the student is the head of household or spouse, but not when the student resides with their parents [71 FR 18146]. For any funds from a year where HUD's appropriations continue to include this Section 8 student financial assistance limitation, if the student does not reside with their parents is the head of household, cohead, or spouse, and is under the age of 23 or without dependent children, then both the assistance received under Title IV HEA and other student financial assistance received by the student is included as income to the extent that it exceeds the total of tuition and any other required fees and charges. In contrast, student financial assistance received by a Section 8 student who is the head of household, spouse, or cohead, and is over the age of 23 with dependent children, or a student who resides with their parents in a Section 8 unit, is governed by the HOTMA student rule, which is described below. During years in which an appropriations act does not contain this Section 8 student financial assistance limitation (or any other such limitation), then the determination of student financial assistance for all Section 8 students defaults to the methodology for public housing. HOTMA Student Financial Assistance Requirements [24 CFR 5.609(b)(9)] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. The first category is any assistance to students under section 479B of the Higher Education Act of 1965 (Title IV of the HEA) which must be excluded from the family's annual income [24 CFR 5.609(b)(9)(i)]. Examples of assistance under title IV of the HEA include: • Federal Pell Grants; • Teach Grants; • Federal Work Study Programs; • Federal Perkins Loans; • Income earned in employment and training programs under section 134 of the Workforce Innovation and Opportunity Act (WIOA); or - 025 City Council 5 — 256 5 2 25 EXHIBIT 1 • Bureau of Indian Affairs/Education student assistance programs - The Higher Education Tribal Grant - The Tribally Controlled Colleges or Universities Grant Program The second category is any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education (not otherwise excluded by the Federally mandated income exclusions)[24 CFR 5.609(b)(9)(ii)]. Other student financial assistance received by the student that, either by itself or in combination with HEA assistance, exceeds the actual covered costs is included in income. Actual covered costs are defined as the actual costs of: • Tuition, books, and supplies; - Including supplies and equipment to support students with learning disabilities or other disabilities • Room and board; and • Other fees required and charged to a student by the education institution. For a student who is not the head of household or spouse/cohead, actual covered costs also include the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. Further, to qualify, other student financial assistance must be expressly: • For tuition, book, supplies, room and board, or other fees required and charged to the student by the educational institution; • To assist a student with the costs of higher education; or • To assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the educational institution and not residing in an assisted unit. The student financial assistance may be paid directly to the student or to the educational institution on the student's behalf. However, any student financial assistance paid to the student must be verified by the PHA. The financial assistance must be a grant or scholarship received from: • The Federal government; • A state, tribal, or local government ; • A private foundation registered as a nonprofit; • A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or • An institution of higher education. - 025 City Council 5 — 257 7MW2b25 EXHIBIT 1 Student financial assistance, does not include: Financial support provided to the student in the form of a fee for services performed; (e.g., a work study or teaching fellowship that is not excluded under section 479B of the Higher Education Act HEA); • Gifts, including gifts from family or friends; or • Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under the HEA, exceeds the actual covered costs of the student. Calculating Income from Student Financial Assistance [HOTMA Student Financial Assistance Resource Sheet; Notice PIH 2O23-271 There are two steps required as part of the calculation for Section 8 students. First, determine the student's relationship to the household, age, and whether they have dependent children. Second, calculate whether any excess student financial assistance should be included in the family's income. If the student does not live with their parents and is the head of household, cohead, or spouse, and is 23 or younger or does not have dependent children, then Title IV HEA assistance is considered when determining the student's total financial aid amount. Subtract the total tuition plus required fees and charges from the total student financial assistance (Title IV HEA assistance and any other student financial assistance). If the total tuition plus required fees and charges is zero or exceeds the amount of total financial assistance from all sources, then no student financial assistance is included in annual income. Any amount of student financial assistance that exceeds the total tuition plus required fees and charges must be included in annual III[bill 11W If the student either lives with their parents or is over 23 with dependent children, then the calculation will use the HOTMA methodology for calculating financial assistance, which always begins with deducting the assistance received under 479B of the HEA from the total actual covered costs, because the 479B assistance is intended to pay the student's actual covered costs. When a student receives assistance from both Title IV of the HEA and from other sources, the assistance received under Title IV of the HEA must be applied to the student's actual covered costs first and then other student financial assistance is applied to any remaining actual covered costs. Once actual costs are covered, any remaining student financial assistance is considered income. - 025 City Council 5 — 258 5 2 25 EXHIBIT 1 SAHA Policy If the student does not live with their parents and is the head of household, cohead, or spouse, and is 23 or younger or does not have dependent children, then Title IV HEA assistance will be considered when determining the student's total financial assistance to be included in annual income. SAHA will use Notice PIH 2O15-21 as a guide to determine the total amount of the student's tuition plus required fees and charges. SAHA will subtract the total tuition plus required fees and charges from the total student financial assistance. If the result is zero or exceeds the amount of total financial assistance from all sources, then no student financial assistance will be included in annual income. Any amount of student financial assistance that exceeds the total tuition plus required fees and charges will be included in annual income. Example 1 • Tuition and required fees and charges: $20,000 • Title IV HEA assistance: $10,000 • Other student financial assistance: $15,000 • Total student financial assistance: $10,000 + $15,000 = $25,000 • Included income: $25,000 in financial assistance - $20,000 tuition and required fees = $5,000 If a student is head, spouse, or cohead, and is over 23 with dependent children or lives with their parents, the following applies: If a student only receives financial assistance under Title IV of the HEA and does not receive any other student financial assistance, SAHA will exclude the full amount of the assistance received under Title IV from the family's annual income. SAHA will not calculate actual covered costs in this case. - 025 City Council — 259 M5 2 25 EXHIBIT 1 If the student does not receive any assistance under Title IV of the HEA but does receive assistance from another source, SAHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). SAHA will then subtract the total amount of the student's financial assistance from the student's actual covered costs. SAHA will include any amount of financial assistance in excess of the student's actual covered costs in the family's annual income. Example 1 • Actual covered costs: $20,000 • Other student financial assistance: $25,000 • Excluded income: $20,000 ($25,000 in financial assistance - $20,000 in actual covered costs) • Included income: $5,000 When a student receives assistance from both Title IV of the HEA and from other sources, SAHA will first calculate the actual covered costs to the student in accordance with 24 CFR 5.609(b)(ii). The assistance received under Title IV of the HEA will be applied to the student's actual covered costs first and then the other student financial assistance will be applied to any remaining actual covered costs. If the amount of assistance excluded under Title IV of the HEA equals or exceeds the actual covered costs, none of the assistance included under other student financial assistance" would be excluded from income. Example 2 • Actual covered costs: $25,000 • Title IV HEA assistance: $26,000 • Title IV HEA assistance covers the students entire actual covered costs. • Other Student Financial Assistance: $5,000 • Excluded income: The entire Title IV HEA assistance of $26,000 • Included income: All other financial assistance of $5,000 - 025 City Council 5 — 260 5 2 25 EXHIBIT 1 If the amount of assistance excluded under Title IV of the HEA is less than the actual covered costs, SAHA will exclude the amount of other student financial assistance up to the amount of the remaining actual covered costs. Example 3 • Actual covered costs: $22,000 • Title IV HEA assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $7,000 ($22,000 in actual covered costs - $15,000 in Title IV HEA assistance). • Other Student Financial Assistance: $5,000 • $7,000 in remaining actual covered costs - $5,000 in other financial assistance • Excluded income: $15,000 entire amount of the Title IV HEA Assistance + $5,000 in other financial assistance • Included income: $0 Example 4 • Actual covered costs: $18,000 • Title IV HEA Assistance: $15,000 • The remaining amount not covered by Title IV HEA assistance is $3,000 ($18,000 in actual covered costs - $15,000 in Title IV HEA Assistance) • Other student Financial Assistance: $5,000 • When other student financial assistance is applied, financial assistance exceeds actual covered costs by $2,000 ($3,000 in actual covered costs - $5,000 in other financial assistance). • Included income: $2,000 (the amount by which the financial aid exceeds the student's actual covered costs). - 025 City Council 5 — 261 5 2 25 EXHIBIT 1 6-I.H. PERIODIC PAYMENTS Periodic payments are forms of income received on a regular basis. Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date of the certification), based on information provided by the family, is considered nonrecurring income and is excluded from annual income. Income that has a discrete end date and will not be repeated beyond the coming year is excluded from a family's annual income because it is nonrecurring income. For example, a family receives income from a guaranteed income program in their city that has a discrete beginning and end date. While the guaranteed income will be repeated in the coming year, it will end before the family's next annual reexamination. This income is fully excluded from annual income. However, this does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly). Unemployment income and other types of periodic payments are not considered nonrecurring income, unless explicitly excluded from income under 25 CFR 5.609(b), and thus they are included in annual income. Insurance payments and settlements for personal or property losses, including but not limited to payments under health insurance, motor vehicle insurance, and workers' compensation, are excluded from annual income. Any workers' compensation is always excluded from annual income, regardless of the frequency or length of the payments. Lump -Sum Payments for the Delayed Start of a Periodic Payment [24 CFR 5.609(b)(16)] Deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum amount or in prospective monthly amounts are excluded from annual income. SAHA Polic SAHA will include in annual income lump sums received as a result of delays in processing periodic payments (other than those specifically excluded by the regulation), such as unemployment or welfare assistance. When a delayed -start payment is received that is to be included and the family reports this during the period in which SAHA is processing an annual reexamination, SAHA will adjust the family's rent retroactively for the period the payment was intended to cover. If the delayed -start payment is received outside of the time SAHA is processing an annual reexamination, then SAHA will consider whether the amount meets the threshold to conduct an interim reexamination. If so, SAHA will conduct an interim in accordance with SAHA policies in Chapter 11. If not, SAHA will consider the amount when processing the family's next annual recertification. - 025 City Council 5 — 262 5 2 25 EXHIBIT 1 Retirement Accounts [24 CFR 5.609(b)(26); Notice PIH 2O23-271 Income received from any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals is not considered actual income from assets. However, any distribution of periodic payments from such accounts is included in annual income at the time they are received by the family. An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value. Social Security Benefits [Notice PIH 2O18-241 The PHA is required to use the gross benefit amount to calculate annual income from Social Security benefits. Annually in October, the Social Security Administration (SSA) announces the cost -of -living adjustment (COLA) by which federal Social Security and SSI benefits are adjusted to reflect the increase, if any, in the cost of living. The federal COLA does not apply to state -paid disability benefits. Effective the day after the SSA has announced the COLA, PHAs are required to factor in the COLA when determining Social Security and SSI annual income for all annual reexaminations and interim reexaminations of family income that have not yet been completed and will be effective January 1 or later of the upcoming year [Notice PIH 2O23-27]. When a family member's benefits are garnished, levied, or withheld to pay restitution, child support, tax debt, student loan debt, or other debts, the PHA must use the gross amount of the income, prior to the reduction, to determine a family's annual income. SAHA Policy Annual income includes "all amounts received," not the amount that a family may be legally entitled to receive but which they do not receive. When the SSA overpays an individual, resulting in a withholding or deduction from their benefit amount until the overpayment is paid in full, SAHA will use the reduced benefit amount after deducting only the amount of the overpayment withholding from the gross benefit amount. - 025 City Council 5 — 263 5 2 25 EXHIBIT 1 Alimony and Child Support SAHA Policy SAHA will count all regular payments of alimony or child support awarded as part of a divorce or separation agreement unless the family certifies and SAHA verifies that the payments are not being made. In order to verify that payments are not being made, SAHA will review child support payments over the last three months. If no payments have been made in the past three months and there are no lump sums, SAHA will not include alimony or child support in annual income. If payments are being made regularly, SAHA will use the amount received during the last 12 months (excluding any lump sums received). If payments have been made for a period less than 12 months, SAHA will average all payments that have been made. At new admission or interim recertification, if any lump sum payments were made in the past 12 months, SAHA will determine the likelihood of the family receiving another similar payment within the next 12 months before deciding whether or not this amount will be included in the calculation of annual income. If SAHA determines and can appropriately verify that the family in all likelihood will not receive a similar payment, then the amount will not be considered when projecting annual income. If SAHA determines that it is likely that the family will receive a similar payment and can appropriately verify it, the amount will be included when projecting annual income. - 025 City Council 5 — 264 5 2 25 EXHIBIT 1 6-I.I. NONRECURRING INCOME [24 CFR 5.609(b)(24) and Notice PIH 2O23-27] Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income as nonrecurring income, even if the source, date, or amount of the income varies. Income that has a discrete end date and will not be repeated beyond the coming year during the family's upcoming annual reexamination period will be excluded from a family's annual income as nonrecurring income. This exclusion does not include unemployment income and other types of periodic payments that are received at regular intervals (such as weekly, monthly, or yearly). Income amounts excluded under this category may include, but are not limited to: • Nonrecurring payments made to the family or to a third party on behalf of the family to assist with utilities; • Payments for eviction prevention; • Security deposits to secure housing; • Payments for participation in research studies (depending on the duration); and • General one-time payments received by or on behalf of the family. Nonrecurring income that is excluded under the regulations includes: • Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment [24 CFR 5.609(b)(24)(i)]. • Direct federal or state payments intended for economic stimulus or recovery [24 CFR 5.609(b)(24)(ii)]. • Amounts directly received by the family as a result of state refundable tax credits or state or federal tax refunds at the time they are received [24 CFR 5.609(b)(24)(iii) and (iv)]. • Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) [24 CFR 5.609(b)(24)(v)]. • Non -monetary, in -kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization [24 CFR 5.609(b)(24)(vi)]. When calculating annual income, PHAs are prohibited from assigning monetary value to such non -monetary in -kind donations received by the family [Notice PIH 2O23-27]. Non -recurring, non -monetary in -kind donations from friends and family are excluded as non -recurring income. However, the value of regular in -kind donations (such as the value of groceries) received by friends and family are included. • Lump -sum additions to net family assets, including but not limited to lottery or other contest winnings [24 CFR 5.609(b)(24)(vii)]. - 025 City Council 5 — 265 5 2 25 EXHIBIT 1 6-I.J. WELFARE ASSISTANCE Overview Welfare assistance is counted in annual income. Welfare assistance includes Temporary Assistance for Needy Families (TANF) and any payments to individuals or families based on need that are made under programs funded separately or jointly by federal, state, or local governments. Sanctions Resulting in the Reduction of Welfare Benefits [24 CFR 5.6151 The PHA must make a special calculation of annual income when the welfare agency imposes certain sanctions on certain families. The full text of the regulation at 24 CFR 5.615 is provided as Exhibit 6-3. The requirements are summarized below. This rule applies only if a family was receiving HCV assistance at the time the sanction was imposed. Covered Families The families covered by 24 CFR 5.615 are those "who receive welfare assistance or other public assistance benefits (`welfare benefits') from a State or other public agency ('welfare agency') under a program for which Federal, State or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance" [24 CFR 5.615(b)] Imputed Income When a welfare agency imposes a sanction that reduces a family's welfare income because the family commits fraud or fails to comply with the agency's economic self-sufficiency program or work activities requirement, the PHA must include in annual income "imputed" welfare income. The PHA must request that the welfare agency provide the reason for the reduction of benefits and the amount of the reduction of benefits. The imputed welfare income is the amount that the benefits were reduced as a result of the sanction. This requirement does not apply to reductions in welfare benefits: (1) at the expiration of the lifetime or other time limit on the payment of welfare benefits, (2) if a family member is unable to End employment even though the family member has complied with the welfare agency economic self-sufficiency or work activities requirements, or (3) because a family member has not complied with other welfare agency requirements [24 CFR 5.615(b)(2)]. Offsets The amount of the imputed welfare income is offset by the amount of additional income the family begins to receive after the sanction is imposed. When the additional income equals or exceeds the imputed welfare income, the imputed income is reduced to zero [24 CFR 5.615(c)(4)]. - 025 City Council 5 — 266 5 2 25 EXHIBIT 1 6-I.K. STATE PAYMENTS TO ALLOW INDIVIDUALS WITH DISABILITIES TO LIVE AT HOME [24 CFR 5.609(b)(19)] Payments made by or authorized by a state Medicaid agency (including through a managed care entity) or other state or federal agency to an assisted family to enable a member of the assisted family who has a disability to reside in the family's assisted unit are excluded. Authorized payments may include payments to a member of the assisted family through state Medicaid -managed care systems, other state agencies, federal agencies or other authorized entities. The payments must be received for caregiving services a family member provides to enable another member of the assisted family who has a disability to reside in the family's assisted unit. Payments to a family member for caregiving services for someone who is not a member of the assisted family (such as for a relative that resides elsewhere) are not excluded from income. Furthermore, if the agency is making payments for caregiving services to the family member for an assisted family member and for a person outside of the assisted family, only the payments attributable to the caregiving services for the caregiver's assisted family member would be excluded from income. 6-I.L. CIVIL RIGHTS SETTLEMENTS [24 CFR 5.609(b)(25); FR Notice 2/14/231 Regardless of how the settlement or judgment is structured, civil rights settlements or judgments, including settlements or judgments for back pay, are excluded from annual income. This may include amounts received because of litigation or other actions, such as conciliation agreements, voluntary compliance agreements, consent orders, other forms of settlement agreements, or administrative or judicial orders under the Fair Housing Act, Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act (Section 504), the Americans with Disabilities Act, or any other civil rights or fair housing statute or requirement. While these civil rights settlement or judgment amounts are excluded from income, the settlement or judgment amounts will generally be counted toward the family's net family assets (e.g., if the funds are deposited into the family's savings account or a revocable trust under the control of the family or some other asset that is not excluded from the definition of net family assets). Income generated on the settlement or judgment amount after it has become a net family asset is not excluded from income. For example, if the family received a settlement or back pay and deposited the money in an interest -bearing savings account, the interest from that account would be income at the time the interest is received. Furthermore, if a civil rights settlement or judgment increases the family's net family assets such that they exceed the HUD -published threshold amount ($50,000 for 2024, and $51,600 for 2025), then income will be imputed on the net family assets pursuant to 24 CFR 5.609(a)(2). If the imputed income, which HUD considers unearned income, increases the family's annual adjusted income by 10 percent or more, then an interim reexamination of income will be required unless the addition to the family's net family assets occurs within the last three months of the family's income certification period and the PHA or owner chooses not to conduct the examination. - 025 City Council 5 — 267 5 2 25 EXHIBIT 1 6-I.M. ADDITIONAL EXCLUSIONS FROM ANNUAL INCOME [24 CFR 5.609(b); FR Notice 1/31/20241 Other exclusions contained in 24 CFR 5.609(b) and FR Notice 1/31/24 that have not been discussed earlier in this chapter include the following: • Payments received for the care of foster children or foster adults or state or tribal kinship or guardianship care payments [24 CFR 5.609(b)(4)]. • Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation [24 CFR 5.609(b)(5)]. However, periodic payments paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year that are received in lieu of wages are included in annual income [Notice PIH 2O23-27]. • Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member [24 CFR 5.609(b)(6)]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled [24 CFR 5.609(b)(7)]. • Income and distributions from any Coverdell education savings account under Section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under Section 529 of such Code [24 CFR 5.609(b)(10)]. • Income earned by government contributions to, and distributions from, "baby bond" accounts created, authorized, or funded by federal, state, or local government [24 CFR 5.609(b)(10)]. • The special pay to a family member serving in the Armed Forces who is exposed to hostile fire [24 CFR 5.609(b)(11)]. • Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance [24 CFR 5.609(b)(17)]. This income exclusion applies only to veterans in need of regular aid and attendance and not to other beneficiaries of the payments, such as a surviving spouse [Notice PIH 2O23-27]. • Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car) [24 CFR 5.609(b)(20)]. The loan borrower or co -borrower must be a member of the family for this income exclusion to be applicable [Notice PIH 2O23-27]. - 025 City Council 5 — 268 5 2 25 EXHIBIT 1 Payments received by tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other federal law [24 CFR 5.609(b)(21)]. Generally, payments received by tribal members in excess of the first $2,000 of per capita shares are included in a family's annual income for purposes of determining eligibility. However, as explained in Notice PIH 2O23-27, payments made under the Cobell Settlement, and certain per capita payments under the recent Tribal Trust Settlements, must be excluded from annual income. Replacement housing "gap" payments made in accordance with 49 CFR Part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another federally subsidized housing unit. Such replacement housing "gap" payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing "gap" payments [24 CFR 5.609(b)(23)]. • Income earned on amounts placed in a family's Family Self -Sufficiency account [24 CFR 5.609(b)(27)]. • Amounts received by participants in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program [24 CFR 5.609(i)(12)(ii)]. • Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self -Sufficiency (PASS) [(24 CFR 5.609(b)(12)(i)]. • Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development [24 CFR 5.609 I(12)(ii)]. - 025 City Council — 269 5 2 25 EXHIBIT 1 Incremental earnings and benefits to any family member resulting from participation in qualifying training program funded by HUD or in qualifying federal, state, tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff are excluded from annual income. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the training program unless those amounts are excluded under 24 CFR 5.609(b)(9)(i) [24 CFR 5.609(b)(12)(iv)]. SAHA Polic SAHA defines training program as "a learning process with goals and objectives, generally having a variety of components, and taking place in a series of sessions over a period of time. It is designed to lead to a higher level of proficiency, and it enhances the individual's ability to obtain employment. It may have performance standards to measure proficiency. Training may include but is not limited to: (1) classroom training in a specific occupational skill, (2) on-the-job training with wages subsidized by the program, or (3) basic education" [expired Notice PIH 98-2, p. 3]. SAHA defines incremental earnings and benefits as the difference between (1) the total amount of welfare assistance and earnings of a family member prior to enrollment in a training program and (2) the total amount of welfare assistance and earnings of the family member after enrollment in the program [expired Notice PIH 98-2, pp. 3-4]. In calculating the incremental difference, SAHA will use as the pre -enrollment income the total annualized amount of the family member's welfare assistance and earnings reported on the family's most recently completed HUD-50058. End of participation in a training program must be reported in accordance with SAHA's interim reporting requirements (see Chapter 11). • Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era [24 CFR 5.609(b)(13)]. • Adoption assistance payments for a child in excess of the amount of the dependent deduction per adopted child [24 CFR 5.609(b)(15)]. • Refunds or rebates on property taxes paid on the dwelling unit [24 CFR 5.609(b)(20)]. • Amounts that HUD is required by federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(b) apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. - 025 City Council 5 — 270 5 2 25 EXHIBIT 1 HUD publishes an updated list of these exclusions periodically. The most recent list of exclusions was published in the Federal Register on January 31, 2024. It includes: (a) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977 (7 U.S.C. 2017 (b)). This exclusion also applies to assets. (b) Benefits under Section 1780 of the Richard B. Russell School Lunch Act and Child Nutrition Act of 1966, including WIC and reduced -price lunches. (c) Payments, including for supportive services and reimbursement of out-of-pocket expenses, to volunteers under the Domestic Volunteer Services Act of 1973 (42 U.S.C. 5044(g), 5058). The exclusion also applies to assets. Except, the exclusion does not apply when the Chief Executive Officer of the Corporation for National and Community Service determines that the value of all such payments, adjusted to reflect the number of hours such volunteers are serving, is equivalent to or greater than the minimum wage then in effect under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) or the minimum wage, under the laws of the State where such volunteers are serving, whichever is the greater (42 U.S.C. 5044(f)(1)). (d) Certain payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626(c)). (e) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 5506). (f) Payments or allowances made under the Department of Health and Human Services' Low -Income Home Energy Assistance Program (42 U.S.C. 8624(f)(1)). (g) Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998 which was reauthorized as the Workforce Innovation and Opportunity Act of 2014 (29 U.S.C. 3241(a)(2)). (h) Deferred disability benefits from the Department of Veterans Affairs, whether received as a lump sum or in monthly prospective amounts. (i) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, 90 Section 6). (j) Payments, funds, or distributions authorized, established, or directed by the Seneca Nation Settlement Act of 1990 (25 U.S.C. 1774f(b)). (k) A lump sum or periodic payment received by an individual Indian pursuant to the Class Action Settlement Agreement in the United States District Court case entitled Elouise Cobell et al. v. Ken Salazar et al., for a period of one year from the time of receipt of that payment as provided in the Claims Resolution Act of 2010. - 025 City Council 5 — 271 5 2 25 EXHIBIT 1 (1) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U. S. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands (25 U.S.C. 1407-1408). This exclusion does not include proceeds of gaming operations regulated by the Commission (25 U.S.C. 1407-1408). (m) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056(f)). (n) Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.). This exclusion also applies to assets. (o) Payments received under 38 U.S.C. 1833(c) to children of Vietnam veterans born with spinal bifida, children of women Vietnam veterans born with certain birth defects, and children of certain Korean and Thailand service veterans born with spinal bifida (42 U.S.C. 12637(d)). (p) Payments received under the Maine Indian Claims Settlement Act of 1980 (25 U.S.C. 1721). This exclusion also applies to assets. (q) The value of any childcare provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Childcare and Development Block Grant Act of 1990 (42 U.S.C. 9858q). (r) Earned income tax credit (EITC) refund payments received on or after January 1, 1991 (26 U.S.C. 320)). This exclusion also applies to assets. (s) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation (Pub. L. 95-433) This exclusion also applies to assets. (t) Amounts of student financial assistance funded under Title IV of the Higher Education Act of 1965j, including awards under federal work-study programs or under the Bureau of Indian Affairs student assistance programs (20 U.S.C. 1087uu). For Section 8 programs, only, any financial assistance in excess of amounts received by an individual for tuition and any other required fees and charges under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income if the individual is over the age of 23 with dependent children (Pub. L. 109-115, section 327 (as amended)). (u) Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990 (42 U.S.C. 12637(d)). (v) Any amount of crime victim compensation that provides medical or other assistance (or payment or reimbursement of the cost of such assistance) under the Victims of Crime Act of 1984 received through a crime victim assistance program, unless the total amount of assistance that the applicant receives from all such programs is sufficient to fully compensate the applicant for losses suffered as a result of the crime (34 U.S.C. 20102(c)). - 025 City Council 5 — 272 5 2 25 EXHIBIT 1 (w) Any amounts in an "individual development account" are excluded from assets and any assistance, benefit, or amounts earned by or provided to the individual development account are excluded from income, as provided by the Assets for Independence Act, as amended (42 U.S.C. 604(h)(4)). (x) Major disaster and emergency assistance received under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and comparable disaster assistance provided by states, local governments, and disaster assistance organizations. This exclusion also applies to assets. (y) Distributions from an ABLE account, distributions from and certain contributions to an ABLE account established under the ABLE Act of 2014 (Pub. L. 113-295.), as described in Notice PIH 2O19-09 or subsequent or superseding notice is excluded from income and assets. (z) The amount of any refund (or advance payment with respect to a refundable credit) issued under the Internal Revenue Code is excluded from income and assets for a period of 12 months from receipt (26 U.S.C. 6409). (aa) Assistance received by a household under the Emergency Rental Assistance Program pursuant to the Consolidated Appropriations Act, 2021 (Pub. L. 116-260, section 5010)), and the American Rescue Plan Act of 2021. (ab) Per capita payments made from the proceeds of Indian Tribal Trust Settlements listed in IRS Notice 2013-1 and 2013-55 must be excluded from annual income unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe's private bank account in which the Tribe has deposited the settlement proceeds. Such amounts received in excess of the Tribal Trust Settlement are included in the gross income of the members of the Tribe receiving the per capita payments as described in IRS Notice 2013-1. The first $2,000 of per capita payments are also excluded from assets unless the per capita payments exceed the amount of the original Tribal Trust Settlement proceeds and are made from a Tribe's private bank account in which the Tribe has deposited the settlement proceeds (25 U.S.C. 117b(a), 25 U.S.C. 1407). (ac) Any amounts (i) not actually received by the family, (ii) that would be eligible for exclusion under 42 U.S.C. 1382b(a)(7), and (iii) received for service -connected disability under 38 U.S.C. Chapter 11 or dependency and indemnity compensation under 38 U.S.C. Chapter 13 (25 U.S.C. 4103(9)(C)) as provided by an amendment by the Indian Veterans Housing Opportunity Act of 2010 (Pub. L. 111-269 section 2) to the definition of income applicable to programs under the Native American Housing Assistance and Self -Determination Act (NAHASDA) (25 U.S.C. 4101 et seq.). - 025 City Council 5 — 273 7HW2b25 EXHIBIT 1 Page - 025 City Council 5 — 274 5 2 5 EXHIBIT 1 PART II: ASSETS 6-II.A. OVERVIEW Annual income includes all actual anticipated income from assets (unless otherwise excluded by the regulations) even if the asset itself is excluded from net family assets [Notice PIH 2O23-27]. The regulation at 24 CFR 5.603(b)(3) provides a list of items that are excluded from the calculation of net family assets. Note, unlike previous versions of the regulations, the current regulations do not list types of assets that are included in annual income. Instead, HUD relies on the definition of items excluded from assets to provide the scope of what is included. Exhibit 6-2 provides the regulatory definition of net family assets. Optional policies for family self -certification of assets are found in Chapter 7. Policies related to the asset limitation may be found in Chapters 3 and 12. Income from assets is always anticipated, irrespective of the income examination type. SAHA Policy SAHA generally will use current circumstances to determine both the value of an asset and the anticipated income from the asset. SAHA will use other than current circumstances to anticipate income when (1) an imminent change in circumstances is expected, (2) it is not feasible to anticipate a level of income over 12 months, or (3) SAHA believes that past income is the best indicator of anticipated income. For example, if a family member owns real property that typically receives rental income, but the property is currently vacant, SAHA can take into consideration past rental income along with the prospects of obtaining a new tenant. Any time current circumstances are not used to determine asset income, a clear rationale for the decision will be documented in the file. In such cases the family may present information and documentation to SAHA to show why the asset income determination does not represent the family's anticipated asset income. - 025 City Council 5 — 275 5 2 25 EXHIBIT 1 6-II.B. ASSETS DISPOSED OF FOR LESS THAN FAIR MARKET VALUE [24 CFR 5.603(b)(2)] PHAs must include the value of any business or family assets disposed of by an applicant or participant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application or reexamination, as applicable, in excess of the consideration received for the asset. An asset moved to a retirement account held by a member of the family is not considered to be an asset disposed of for less than fair market value [Notice PIH 2O23-27]. The family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. Minimum Threshold The HCV Guidebook permits the PHA to set a threshold below which assets disposed of for less than fair market value will not be counted [HCV GB, p. 5-27]. SAHA Policv SAHA will not include the value of assets disposed of for less than fair market value unless the cumulative fair market value of all assets disposed of during the past two years exceeds the gross amount received for the assets by more than $1,000. Separation or Divorce The regulation also specifies that assets are not considered disposed of for less than fair market value if they are disposed of as part of a separation or divorce settlement and the applicant or tenant receives important consideration not measurable in dollar terms. SAHA Policv All assets disposed of as part of a separation or divorce settlement will be considered assets for which important consideration not measurable in monetary terms has been received. In order to qualify for this exemption, a family member must be subject to a formal separation or divorce settlement agreement established through arbitration, mediation, or court order. Foreclosure or Bankruptcy Assets are not considered disposed of for less than fair market value when the disposition is the result of a foreclosure or bankruptcy sale. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. Family Declaration SAHA Policv Families must sign a declaration form at initial certification and each annual recertification identifying all assets that have been disposed of for less than fair market value or declaring that no assets have been disposed of for less than fair market value. SAHA may verify the value of the assets disposed of if other information available to SAHA does not appear to agree with the information reported by the family. - 025 City Council 5 — 276 7HW2b25 EXHIBIT 1 6-II.C. ASSET INCLUSIONS AND EXCLUSIONS Necessary and Non Necessary Personal Property [24 CFR 5.603(b)(3)(i)J All assets are categorized as either real property (e.g., land, a home) or personal property. Personal property includes tangible items, like boats, as well as intangible items, like bank accounts. The value of necessary items of personal property is excluded from the calculation of net family assets. Necessary items of personal property include a car used for commuting or medical devices. HUD defines necessary personal property as items essential to the family for the maintenance, use, and occupancy of the premises as a home; or they are necessary for employment, education, or health and wellness. Necessary personal property includes more than merely items that are indispensable to the bare existence of the family. It may include personal effects (such as items that are ordinarily worn or utilized by the individual), items that are convenient or useful to a reasonable existence, and items that support and facilitate daily life within the family's home. Necessary personal property also includes items that assist a household member with a disability, including any items related to disability -related needs, or that may be required for a reasonable accommodation for a person with a disability. Necessary personal property does not include bank accounts, other financial investments, or luxury items. Items of personal property that do not qualify as necessary personal property are classified as non -necessary personal property. The combined value of all non -necessary items of personal property is only included in annual income when the combined total value exceeds the HUD -published threshold amount (adjusted annually and published in HUD's current year Inflation -Adjusted Values tables). When the combined value of all non -necessary personal property does not exceed the HUD -published threshold amount, all non -necessary personal property is excluded from net family assets. • The threshold amount is $50,000 for 2024, and $51,600 for 2025. While not an exhaustive list, the following table from Notice PIH 2O23-27 provides examples of necessary and non -necessary personal property. - 025 City Council 5 — 277 7MW2b25 EXHIBIT 1 Necessary Personal Property Non -Necessary Personal Property Car(s)/vehicle(s) that a family relies on for Recreational car/vehicle not needed for day -to - transportation for personal or business use day transportation for personal or business use (e.g., bike, motorcycle, skateboard, scooter) (campers, motorhomes, traveling trailers, all - Furniture, carpets, linens, kitchenware terrain vehicles (ATVs)) Common appliances Bank accounts or other financial investments (e.g., checking account, savings account, Common electronics (e.g., radio, television, stocks/bonds) DVD player, gaming system) Recreational boat/watercraft Clothing Expensive jewelry without religious or cultural Personal effects that are not luxury items value, or which does not hold family (e.g., toys, books) significance Wedding and engagement rings Collectibles (e.g., coins/stamps) Jewelry used in religious/cultural celebrations Equipment/machinery that is not used to and ceremonies generate income for a business Religious and cultural items Items such as gems/precious metals, antique Medical equipment and supplies cars, artwork, etc. Health care —related supplies Musical instruments used by the family Personal computers, phones, tablets, and related equipment Professional tools of trade of the family, for example professional books Educational materials and equipment used by the family, including equipment to accommodate persons with disabilities Equipment used for exercising (e.g., treadmill, stationary bike, kayak, paddleboard, ski equipment) SAHA Policy In determining the value of non -necessary, non -financial personal property, SAHA will use the family's estimate of the value. SAHA may obtain an appraisal if there is reason to believe that the family's estimated value is off. The family must cooperate with the appraiser but cannot be charged any costs related to the appraisal. - 025 City Council 5 — 278 7HW2b25 EXHIBIT 1 Checking and Savings Accounts [Notice PIH 2023-27] HUD considers bank accounts as non -necessary items of personal property. Whether or not non -necessary personal property is counted toward net family assets depends on the combined value of all of the family's assets. • When the combined value of net family assets is greater than the HUD -published threshold amount, which is adjusted annually and listed in HUD's current year Inflation Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025), checking and/or savings accounts would be counted toward net family assets. When the combined value of all non -necessary personal property does not exceed the HUD - published threshold amount, all non -necessary personal property is excluded from net family assets. In this case, the value of the family's checking and/or savings accounts would not be considered when calculating net family assets. However, actual income from checking and savings accounts is always included in a family's annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded. ABLE Accounts [24 CFR 5.609(b)(10); Notice PIH 2O19-091 An Achieving a Better Life Experience (ABLE) account is a type of tax -advantaged savings account that an eligible individual can use to pay for qualified disability expenses. Section 103 of the ABLE Act mandates that an individual's ABLE account (specifically, its account balance, contributions to the account, and distributions from the account) is excluded when determining the designated beneficiary's eligibility and continued occupancy under certain federal means - tested programs. The PHA must exclude the entire value of the individual's ABLE account from the household's assets. Distributions from the ABLE account are also not considered income. However, all wage income received, regardless of which account the money is paid to, is included as income. - 025 City Council — 279 5 2 25 EXHIBIT 1 Investment Accounts Such as Stocks, Bonds, Saving Certificates, and Money Market Funds [24 CFR 5.603(b)(1)J HUD considers financial investments such as stocks and bonds non -necessary items of personal property. Whether non -necessary personal property is counted toward net family assets depends on the combined value of all of the family's assets. • When the combined value of net family assets is greater than the HUD -published threshold amount, which is adjusted annually and listed in HUD's Inflation Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025), financial investments such as stocks and bonds are considered part of net family assets. In this case, the value of the family's financial investments such as stocks and bonds would be counted toward net family assets. When the combined value of all non -necessary personal property does not exceed the HUD - published threshold amount, all non -necessary personal property is excluded from net family assets. In this case, the value of the family's financial investments such as stocks and bonds would not be considered when calculating net family assets. However, actual income from financial accounts is always included in a family's annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, but when no dividend is issued, the actual return is $0. When the stock never issues dividends, the actual return is $0. SAHA Polic SAHA will include interest or dividends earned by investment accounts as actual income from assets even when the earnings are reinvested. The cash value of such an asset is determined by deducting from the market value any broker fees, penalties for early withdrawal, or other costs of converting the asset to cash. In determining the market value of an investment account, SAHA will use the value of the account on the most recent investment report dated within 120-days from the recertification date. - 025 City Council 5 — 280 5 2 25 EXHIBIT 1 Lump -Sum Additions to Net Family Assets [24 CFR 5.609(b)(24(viii); Notice PIH 2O23-27J The regulations exclude income from lump -sum additions to family assets, including lottery or other contest winnings as a type of nonrecurring income. In addition, lump sums from insurance payments, settlements for personal or property losses, and recoveries from civil actions or settlements based on claims of malpractice, negligence, or other breach of duty owed to a family member arising out of law that resulted in a member of the family becoming a family member with a disability are excluded from income. Further, deferred periodic amounts from Supplemental Security Income (SSI) and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts are also excluded from income. However, these amounts may count toward net family assets. The PHA must consider any actual or imputed returns from assets as income at the next applicable income examination. In the case where the lump sum addition to assets would lead to imputed income, which is unearned income, that increases the family's annual adjusted income by 10 percent or more, then the addition of the lump sum to the family's assets will trigger an immediate interim reexamination of income in accordance with Chapter 11. This reexamination of income must take place as soon as the lump sum is added to the family's net family assets unless the addition takes place in the last three months of family's income certification period and the PHA chooses not to conduct the examination. For a discussion of lump -sum payments that represent the delayed start of a periodic payment, most of which are counted as income, see sections 6-I.H and 6-I.I. SAHA Policy Any lump -sum receipts are only counted as assets if they are retained by a family in a form recognizable as an asset. [RHIIP FAQs]. For example, if the family receives a $1,000 lump sum for lottery winnings, and the family immediately spends the entire amount, the lump sum will not be counted toward net family assets. - 025 City Council 5 — 281 5 2 25 EXHIBIT 1 Jointly Owned Assets [Notice PIH 2023-271 For assets owned jointly by the family and one or more individuals outside of the assisted family, the PHA must include the total value of the asset in the calculation of net family assets, unless: • The asset is otherwise excluded; • The family can demonstrate that the asset is inaccessible to them; or • The family cannot dispose of any portion of the asset without the consent of another owner who refuses to comply. If the family demonstrates that they can only access a portion of an asset, then only that portion's value is included in the calculation of net family assets for the family. Any income from a jointly owned asset must be included in annual income, unless: • The income is specifically excluded; • The family demonstrates that they do not have access to the income from that asset; or • The family only has access to a portion of the income from that asset. If the family demonstrates that they can only access a portion of the income from an asset, then only that portion's value is included in the calculation of income from assets. If an individual is a beneficiary who is entitled to access the account's funds only upon the death of the account's owner, and may not otherwise withdraw funds from an account, then the account is not an asset to the assisted family, and the family should provide proper documentation demonstrating that they are only a beneficiary on the account. Trusts [24 CFR 5.609(b)(2) and 5.603(b)(4)J A trust is a legal arrangement generally regulated by state law in which one party (the creator or grantor) transfers property to a second party (the trustee) who holds the property for the benefit of one or more third parties (the beneficiaries). The basis for determining how to treat trusts relies on information about who has access to either the principal in the account or the income from the account. There are two types of trusts, revocable and irrevocable. When the creator sets up an irrevocable trust, the creator has no access to the funds in the account. Typically, special needs trusts are considered irrevocable. Irrevocable trusts not under the control of any member of the family are excluded from net family assets. The value of the trust continues to be excluded from net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household [24 CFR 5.603(b)(4)]. Further, where an irrevocable trust is excluded from net family assets, the PHA must not consider actual income earned by the trust (e.g., interest earned, rental income if property is held in the trust) for so long as the income from the trust is not distributed. - 025 City Council 5 — 282 5 2 25 EXHIBIT 1 A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is a revocable trust, the creator has access to the funds in the trust account. • A revocable trust that is under the control of the family is included in net family assets when the grantor is a member of the assisted family. If a revocable trust is included in the calculation of net family assets, then the actual income earned by the revocable trust is also included in the family's income. For example, interest earned or rental income if the property is held in the trust. The PHA must calculate imputed income on the revocable trust if net family assets are more than the HUD -published threshold amount, which is adjusted annually and listed in HUD's Inflation Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025), and actual income from the trust cannot be calculated (e.g., if the trust is comprised of farmland that is not in use). A revocable trust that is not under the control of the family is excluded from net family assets. This happens when a member of the assisted family is the beneficiary of a revocable trust, but the grantor is not a member of the assisted family. In this case the beneficiary does not "own" the revocable trust, and the value of the trust is excluded from net family assets. For the revocable trust to be considered excluded from net family assets, no family or household member may be the account's trustee. For both irrevocable and revocable trusts, if the value of the trust is not considered part of net family assets, then distributions from the trust are treated as follows: • All distributions from the trust's principal are excluded from income. • Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other earnings on the trust's principal), are included as income unless the distribution is used to pay for the health and medical expenses for a minor. Life Insurance [FR Notice 2114123 and Notice PIH 2023-271 Net family assets do not include the value of term life insurance, which has no cash value to the individual before death. The cash value of a life insurance policy available to a family member before death, such as a whole life or universal life policy, is included in the calculation of the value of the family's assets. The cash value is the surrender value. While the cash value of an insurance policy is considered an asset, the face value of any policy is not. If such a policy earns dividends or interest that the family could elect to receive, the amount of dividends or interest is counted as income from the asset whether or not the family actually receives it. Tax Refunds [24 CFR 5.603(b) (3) (xi) and Notice PIH 2023-271 All amounts received by a family in the form of federal tax refunds or refundable tax credits are excluded from a family's net family assets for a period of 12 months after receipt by the family. At the time of an annual or interim reexamination of income, if the federal tax refund was received during the 12 months preceding the effective date of the reexamination, then the amount of the refund that was received by the family is subtracted from the total value of net family assets. When the subtraction results in a negative number, then net family assets are considered $0. - 025 City Council 5 — 283 5 2 25 EXHIBIT 1 Asset Exclusions [24 CFR 5.603(b)l The following are excluded from the calculations of net family assets: • The value of any account under a retirement plan recognized as such by the IRS, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals [24 CFR 5.603(b)(3)(iii)]. • The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located [24 CFR 5.603(b)(3)(iv)]. - Real property as used in this part has the same meaning as that provided under the law of the state in which the property is located [24 CFR 5.100]. - Examples of this include but are not limited to co -ownership situations (including situations where one owner is a victim of domestic violence), where one party cannot unilaterally sell the real property; property that is tied up in litigation; and inherited property in dispute [Notice PIH 2O23-27]. • Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability [24 CFR 5.603(b)(3)(v)]; • The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 [24 CFR 5.603(b)(3)(vi)]; • The value of any qualified tuition program under Section 529 of such Code [24 CFR 5.603(b)(3)(vi)]; • The value of any "baby bond" account created, authorized, or funded by federal, state, or local government [24 CFR 5.603(b)(3)(vi)]; • Interests in Indian trust land [24 CFR 5.603(b)(3)(vii)]; • Equity in a manufactured home where the family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(viii)]; • Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982 [24 CFR 5.603(b)(3)(ix)]; • Family Self -Sufficiency accounts [24 CFR 5.603(b)(3)(x)]; • Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family [24 CFR 5.603(b)(3)(xi)]. • The full amount of assets held in an irrevocable trust [Notice PIH 2O23-27]; and • The full amount of assets held in a revocable trust where a member of the family is the beneficiary, but the grantor/owner and trustee of the trust is not a member of the participant family or household [Notice PIH 2O23-27]. Page 6-4-2 025 City Council 5 — 284 5 2 25 EXHIBIT 1 6-II.D. DETERMINING INCOME FROM ASSETS In some cases, amounts that are excluded from net family assets may be included as annual income when disbursements are made to a family from an asset. In other cases, amounts are excluded from annual income as a lump -sum addition to net family assets, but those funds are then considered a net family asset if held in an account or other investment that is considered part of net family assets [Notice PIH 2O23-27]. Net Family Assets Net family assets are defined as the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. SAHA Policy Reasonable costs that would be incurred when disposing of an asset include, but are not limited to, penalties for premature withdrawal, broker and legal fees, and settlement costs incurred in real estate transactions such as settlement costs and transfer taxes [New PH OCC G13, Income Determinations, p. 24]. The calculation of asset income sometimes requires the PHA to make a distinction between an asset's market value and its cash value. • The market value of an asset is its worth in the market (e.g., the amount a buyer would pay for real estate or the total value of an investment account). • The cash value of an asset is its market value less all reasonable amounts that would be incurred when converting the asset to cash. The cash value of real property or other assets with negative equity would be considered $0 for the purposes of calculating net family assets. Negative equity in real property or other investments does not prohibit the family from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets [Notice PIH 2O23-27]. - 025 City Council 5 — 285 5 2 25 EXHIBIT 1 Actual Income from Assets Income from assets must be included on the Form HUD-50058 regardless of the amount of income. Actual income from assets is always included in a family's annual income, regardless of the total value of net family assets or whether the asset itself is included or excluded from net family assets, unless that income is specifically excluded by 24 CFR 5.609(b). Income or returns from assets are generally considered to be interest, dividend payments, and other actual income earned on the asset, and not the increase in market value of the asset. The increase in market value is relevant to the cash value of the asset for the purpose of determining total net family assets and imputing income. The PHA may determine the net assets of a family based on a self -certification by the family that the net family assets do not exceed the HUD -published threshold amount, which is adjusted annually and listed in HUD's Inflation Adjusted Values tables, without taking additional steps to verify the accuracy of the declaration [24 CFR 5.618(b)]. Policies related to verification of assets are found in Chapter 7 of this policy. • The threshold amount is $50,000 for 2024, and $51,600 for 2025. The PHA may not calculate or include any imputed income from assets when net family assets are less than or equal to the HUD -published threshold amount [24 CFR 5.609(b)(1)]. The actual income from assets must be included on the Form HUD-50058. Imputed Income from Assets When net family assets exceed the HUD -published threshold amount, which is adjusted annually and listed in HUD's Inflation Adjusted Values tables, the PHA may not rely on self -certification. If actual returns can be calculated, the PHA must include actual income from the asset on the Form HUD-50058 (for example, a savings account or CD where the rate of return is known). If actual returns cannot be calculated, the PHA must calculate imputed returns using the HUD - determined passbook rate (for example, real property or a non -necessary item of personal property such as a recreational boat). Imputed income is calculated by multiplying the net cash value of the asset (found by deducting reasonable costs that would be incurred in disposing of the asset from the market value) by the HUD -published passbook rate. If the PHA can compute actual income from some but not all assets, the PHA must compute actual returns where possible and use the HUD -determined passbook rate for assets where actual income cannot be calculated [24 CFR 5.609(a)(2)]. An asset with an actual return of $0 (such as a non -interest -bearing checking account), is not the same as an asset for which an actual return cannot be computed (such as non -necessary personal property). If the asset is a financial asset and there is no income generated (for example, a bank account with a zero percent interest rate or a stock that does not issue cash dividends), then the asset generates zero actual asset income, and imputed income is not calculated. When a stock issues dividends in some years but not others (e.g., due to market performance), the dividend is counted as the actual return when it is issued, and when no dividend is issued, the actual return is $0. When the stock never issues dividends, the actual return is consistently $0. - 025 City Council 5 — 286 5 2 25 EXHIBIT 1 PART III: ADJUSTED INCOME 6-III.A. INTRODUCTION Overview HUD regulations require PHAs to deduct from annual income any of five mandatory deductions for which a family qualifies and allow the PHA to deduct other permissive deductions in accordance with PHA policy. The resulting amount is the family's adjusted income. Mandatory deductions are found in 24 CFR 5.611. 5.611 Adjusted income means annual income (as determined under § 5.609) of the members of the family residing or intending to reside in the dwelling unit, after making the following deductions: (a) Mandatory deductions (1) $480 for each dependent (adjusted annually by HUD, rounded to the next lowest multiple of $25); (2) $525 for any elderly family or disabled family (adjusted annually by HUD, rounded to the next lowest multiple of $25); (3) The sum of the following, to the extent the sum exceeds ten percent of annual income: (i) Unreimbursed health and medical care expenses of any elderly family or disabled family; (ii) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each member of the family who is a person with disabilities, to the extent necessary to enable any member of the family (including the member who is a person with disabilities) to be employed; and (4) Any reasonable childcare expenses necessary to enable a member of the family to be employed or to further his or her education. This part covers policies related to these mandatory deductions. Verification requirements related to these deductions are found in Chapter 7. - 025 City Council 5 — 287 7HW2b25 EXHIBIT 1 Anticipating Expenses SAHA Policy Generally, SAHA will use current circumstances to anticipate expenses. When possible, for costs that are expected to fluctuate during the year (e.g., childcare during school and non -school periods and cyclical medical expenses), SAHA will estimate costs based on historic data and known future costs. If a family has an accumulated debt for medical or disability assistance expenses, SAHA will include as an eligible expense the portion of the debt that the family expects to pay during the period for which the income determination is being made. However, amounts previously deducted will not be allowed even if the amounts were not paid as expected in a preceding period. SAHA may require the family to provide documentation of payments made in the preceding year. When calculating health and medical care expenses, SAHA will include those expenses anticipated to be incurred during the 12 months following the certification date which are not covered by an outside source, such as insurance. The allowance is not intended to give a family an allowance equal to last year's expenses, but to anticipate regular ongoing and anticipated expenses during the coming year. Since these expenses are anticipated, the PH Occupancy Guidebook states "it is likely that actual expenses will not match what was anticipated. Typically, this would not be considered an underpayment as long as at the time of the annual reexamination, the expenses were calculated based on the appropriate verification" [New PH OCC GB, Income Determinations, p. 30]. For annual reexaminations, SAHA will use information for the previous 12-month period. 6-III.B. DEPENDENT DEDUCTION An allowance of $480 is deducted from annual income for each dependent (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [24 CFR 5.61l(a)(1)]. Dependent is defined as any family member other than the head, spouse, or cohead who is under the age of 18 or who is 18 or older and is a person with disabilities or a full-time student. Foster children, foster adults, and live-in aides are never considered dependents [24 CFR 5.603(b)]. 6-III.C. ELDERLY OR DISABLED FAMILY DEDUCTION A single deduction of $525 is taken for any elderly or disabled family (which amount will be adjusted by HUD annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers, rounded to the next lowest multiple of $25) [24 CFR 5.611(a)(2)]. An elderly family is a family whose head, spouse, cohead, or sole member is 62 years of age or older, and a disabled family is a family whose head, spouse, cohead, or sole member is a person with disabilities [24 CFR 5.403]. - 025 City Council 5 — 288 5 2 25 EXHIBIT 1 6-III.D. HEALTH AND MEDICAL CARE EXPENSES DEDUCTION [24 CFR 5.611(a)(3)(i) and 5.603(b)] Unreimbursed health and medical care expenses may be deducted to the extent that, in combination with any disability assistance expenses, they exceed ten percent of annual income. This deduction is permitted only for families in which the head, spouse, or cohead is at least 62 or is a person with disabilities. If a family is eligible for a health and medical care expense deduction, the unreimbursed health and medical care expenses of all family members are included. The PHA calculates health and medical care expenses based on the family's past expenses, but accounting for any anticipated changes in expenses during the certification period. Definition of Medical Expenses HUD regulations define health and medical care expenses at 24 CFR 5.603(b) to mean "any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed." Health and medical care expenses may be deducted from annual income only if they are eligible under this definition and not otherwise reimbursed. Although HUD revised the definition of health and medical care expenses to reflect the Internal Revenue Service (IRS) general definition of medical expenses, HUD is not permitting PHAs to specifically align their policies to IRS Publication 502. PHAs must review each expense to determine whether it is eligible in accordance with HUD's definition. While PHA policies may not specifically align with IRS Publication 502, HUD recommends PHAs use it as a standard for determining allowable expenses, and the PHA may list examples of allowable expenses in their policy provided they comply with HUD's definition at 24 CFR 5.603. The PHA may not define health and medical care expenses more narrowly than the regulation. SAHA Policy SAHA will use the most current IRS Publication 502 as a standard for determining if expenses claimed by eligible families qualify as health and medical care expenses. However, under no circumstances will SAHA deduct any expenses listed in IRS Publication 502 that do not conform with HUD's definition of health and medical care expenses. - 025 City Council — 289 5 2 25 EXHIBIT 1 Summary of Typical Allowable Health and Medical Care Expenses Services of medical professionals Substance abuse treatment programs Surgery and medical procedures that are Psychiatric treatment necessary, legal, and non -cosmetic Ambulance services and some costs of Services of medical facilities transportation related to medical Hospitalization, long-term care, and in- expenses. The PHA will use the most home nursing services current medical mileage rate listed in IRS Publication 502. Prescription medicines and insulin, but The cost and care of necessary not nonprescription medicines even if equipment related to a medical recommended by a doctor condition (e.g., eyeglasses/lenses, Improvements to housing directly related hearing aids, crutches, and artificial to medical needs (e.g., ramps for a teeth) wheelchair, handrails) The costs of buying, training, and Medical insurance premiums or the cost maintaining a guide dog or other service of a health maintenance organization animal to assist a visually impaired or (HMO) hearing disabled person, or a person Medicare Part B and Part D premiums with other physical disabilities. In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. Note: This chart provides a summary of eligible health and medical care expenses only. In all cases, the PHA will consider whether health and medical expenses care expenses claimed by the family are eligible under HUD's definition. Families That Qualify for Both Health and Medical and Disability Assistance Expenses SAHA Policy This policy applies only to families in which the head, spouse, or cohead is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either a health and medical care or disability assistance expenses, SAHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. - 025 City Council 5 — 290 5 2 25 EXHIBIT 1 6-III.E. DISABILITY ASSISTANCE EXPENSES DEDUCTION [24 CFR 5.603(b) and 24 CFR 5.611(a)(3)(ii)] Unreimbursed reasonable expenses for attendant care and auxiliary apparatus for each member of the family who is a person with disabilities may be deducted if they: (1) are necessary to enable a family member 18 years or older to work, (2) are not paid to a family member or reimbursed by an outside source, (3) in combination with any medical expenses, exceed ten percent of annual income, and (4) do not exceed the earned income received by the family member who is enabled to work. Earned Income Limit on the Disability Assistance Expense Deduction A family can qualify for the disability assistance expense deduction only if at least one family member (who may be the person with disabilities) is enabled to work [24 CFR 5.603(b)]. The disability expense deduction is capped by the amount of "earned income received by family members who are 18 years of age or older and who are able to work" because of the expense [24 CFR 5.611(a)(3)(ii)]. The earned income used for this purpose is the amount verified before any earned income disallowances or income exclusions are applied. SAHA Policy The family must identify the family members enabled to work as a result of the disability assistance expenses. In evaluating the family's request, SAHA will consider factors such as how the work schedule of the relevant family members relates to the hours of care provided, the time required for transportation, the relationship of the family members to the person with disabilities, and any special needs of the person with disabilities that might determine which family members are enabled to work. When SAHA determines that the disability assistance expenses enable more than one family member to work, the expenses will be capped by the sum of the family members' incomes. Eligible Auxiliary Apparatus [Notice PIH 2023-271 Auxiliary apparatus items may include expenses for wheelchairs, ramps, adaptations to vehicles, guide dogs, assistance animals, or special equipment to enable a person who is blind or has low vision to read or type or special equipment to assist a person who is deaf or hard of hearing. Page- 025 City Council 5 — 291 5 2 25 EXHIBIT 1 Eligible Attendant Care [Notice PIH 2023-271 Examples of attendant care expenses can include teaching a person with disabilities how to perform day-to-day tasks independently like cleaning, bathing, doing laundry, and cooking. Attendant care can be 24-hour care, or care during sporadic periods throughout the day. The family determines the type of attendant care that is appropriate for the person with disabilities. SAHA Policy Attendant care expenses will be included for the period that the person enabled to work is employed plus reasonable transportation time. The cost of general housekeeping and personal services is not an eligible attendant care expense. However, if the person enabled to work is the person with disabilities, personal services necessary to enable the person with disabilities to work are eligible. If the care attendant also provides other services to the family, SAHA will prorate the cost and allow only that portion of the expenses attributable to attendant care that enables a family member to work. For example, if the care provider also cares for a child who is not the person with disabilities, the cost of care must be prorated. Unless otherwise specified by the care provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Payments to Family Members No disability assistance expenses may be deducted for payments to a member of an assisted family [24 CFR 5.603(b)]. However, expenses paid to a relative who is not a member of the assisted family may be deducted if they are not reimbursed by an outside source. Necessary and Reasonable Expenses The family determines the type of care or auxiliary apparatus to be provided and must describe how the expenses enable a family member to work. The family must certify that the disability assistance expenses are necessary and are not paid or reimbursed by any other source. SAHA Policy SAHA determines the reasonableness of the expenses based on typical costs of care or apparatus in the locality. To establish typical costs, SAHA will collect information from organizations that provide services and support to persons with disabilities. A family may present, and SAHA will consider, the family's justification for costs that exceed typical costs in the area. Families That Qualify for Both Health and Medical and Disability Assistance Expenses SAHA Policy This policy applies only to families in which the head or spouse is 62 or older or is a person with disabilities. When expenses anticipated by a family could be defined as either health and medical care or disability assistance expenses, SAHA will consider them health and medical care expenses unless it is clear that the expenses are incurred exclusively to enable a person with disabilities to work. - 025 City Council 5 — 292 5 2 25 EXHIBIT 1 6-IILF. CHILDCARE EXPENSE DEDUCTION HUD defines childcare expenses at 24 CFR 5.603(b) as "amounts anticipated to be paid by the family for the care of children under 13 years of age (age 12 and younger) (including foster children) during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further his or her education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income." Clarifying the Meaning of Child for This Deduction Childcare expenses do not include child support payments made to another on behalf of a minor who is not living in an assisted family's household [VG, p. 26]. However, childcare expenses for foster children that are living in the assisted family's household are included when determining the family's childcare expenses [HCV G13, p. 5-29]. Qualifying for the Deduction Determining Who Is Enabled to Pursue an Eligible Activity SAHA Policy The family must identify the family member(s) enabled to pursue an eligible activity. The term eligible activity in this section means any of the activities that may make the family eligible for a childcare deduction (seeking work, pursuing an education, or being gainfully employed). In evaluating the family's request, SAHA will consider factors such as how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work SAHA Policy If the childcare expense being claimed is to enable a family member to seek employment, the family must provide evidence of the family member's efforts to obtain employment at each reexamination. The deduction may be reduced or denied if the family member's job search efforts are not commensurate with the childcare expense being allowed by SAHA. - 025 City Council 5 — 293 5 2 25 EXHIBIT 1 Furthering Education SAHA Policv If the childcare expense being claimed is to enable a family member to further their education, the member must be enrolled in school (academic or vocational) or participating in a formal training program. The family member is not required to be a full-time student, but the time spent in educational activities must be commensurate with the childcare claimed. Being Gainfully Employed SAHA Policv If the childcare expense being claimed is to enable a family member to be gainfully employed, the family must provide evidence of the family member's employment during the time that childcare is being provided. Gainful employment is any legal work activity (full- or part-time) for which a family member is compensated. Earned Income Limit on Childcare Expense Deduction When a family member looks for work or furthers their education, there is no cap on the amount that may be deducted for childcare — although the care must still be necessary and reasonable. However, when childcare enables a family member to work, the deduction is capped by "the amount of employment income that is included in annual income" [24 CFR 5.603(b)]. The earned income used for this purpose is the amount of earned income verified after any earned income disallowances or income exclusions are applied. The PHA must not limit the deduction to the least expensive type of childcare. If the care allows the family to pursue more than one eligible activity, including work, the cap is calculated in proportion to the amount of time spent working [HCV G13, p. 5-30]. SAHA Policv When the childcare expense being claimed is to enable a family member to work, only one family member's income will be considered for a given period of time. When more than one family member works during a given period, SAHA generally will limit allowable childcare expenses to the earned income of the lowest -paid member. The family may provide information that supports a request to designate another family member as the person enabled to work. - 025 City Council 5 — 294 5 2 25 EXHIBIT 1 Eligible Childcare Expenses The type of care to be provided is determined by the assisted family. The PHA may not refuse to give a family the childcare expense deduction because there is an adult family member in the household that may be available to provide childcare [VG, p. 26]. Allowable Childcare Activities SAHA Policy For school -age children, costs attributable to public or private school activities during standard school hours are not considered. Expenses incurred for supervised activities after school or during school holidays (e.g., summer day camp, after -school sports league) are allowable forms of childcare. The costs of general housekeeping and personal services are not eligible. Likewise, childcare expenses paid to a family member who lives in the family's unit are not eligible; however, payments for childcare to relatives who do not live in the unit are eligible. If a childcare provider also renders other services to a family or childcare is used to enable a family member to conduct activities that are not eligible for consideration, SAHA will prorate the costs and allow only that portion of the expenses that is attributable to childcare for eligible activities. For example, if the care provider also cares for a child with disabilities who is 13 or older, the cost of care will be prorated. Unless otherwise specified by the childcare provider, the calculation will be based upon the number of hours spent in each activity and/or the number of persons under care. Necessary and Reasonable Costs Childcare expenses will be considered necessary if. (1) a family adequately explains how the care enables a family member to work, actively seek employment, or further their education, and (2) the family certifies, and the childcare provider verifies, that the expenses are not paid or reimbursed by any other source. SAHA Policy Childcare expenses will be considered for the time required for the eligible activity plus reasonable transportation time. For childcare that enables a family member to go to school, the time allowed may include not more than one study hour for each hour spent in class. To establish the reasonableness of childcare costs, SAHA will use the schedule of childcare costs from a qualified local entity that either subsidizes childcare costs or licenses childcare providers. Families may present, and SAHA will consider, justification for costs that exceed typical costs in the area. - 025 City Council 5 — 295 5 2 25 EXHIBIT 1 6-III.G. HARDSHIP EXEMPTIONS [24 CFR 5.611(c), (d), and (e)] Health and Medical Care and Disability Assistance Expenses [24 CFR 5.611(c); Notice PIH 2O23-27] The regulations provide for two types of hardship exemption categories for families that qualify for unreimbursed health and medical care expenses and/or disability assistance expenses. A family will benefit from this hardship exemption only if the family has eligible expenses that can be deducted in excess of five percent of annual income. In order to claim unreimbursed health and medical care expenses, the family must have a head, cohead, or spouse that is elderly or a person with a disability. In order to claim unreimbursed reasonable attendant care and auxiliary apparatus expenses, the family must include a person with a disability, and the expenses must enable any member of the family (including the member who is a person with a disability) to be employed. Families may be eligible for relief under one of two categories; phased -in relief or general relief, as defined below. Phased -In Relief The first category is applicable to all families who received a deduction for unreimbursed health and medical care and/or reasonable attendant care or auxiliary apparatus expenses based on their most recent income review prior to January 1, 2024. The family must receive phased -in relief if they are determined to be eligible. These families will begin receiving a 24-month phased -in relief at their next annual or interim reexamination, whichever occurs first, after the date on which the PHA implements phased -in relief. For these families, the threshold amount is phased -in as follows: • The family is eligible for a deduction totaling the sum of expenses that exceeds 5 percent of annual income for the first 12 months. • At the conclusion of 12 months, the family is eligible for a deduction totaling the sum of their expenses that exceed 7.5 percent of annual income for another 12 months. • At the conclusion of 24 months, the standard threshold amount of 10 percent would be used, unless the family qualifies for relief under the general hardship relief category. When an eligible family's phased -in relief begins at an interim reexamination, the PHA must process another transaction (either an interim reexamination or non -interim transaction, as applicable) one year later to move the family to the next phase. Prior to the end of the 24-month period, the family may request a hardship exemption under the second category as described below. If the family is found eligible under the second category, the hardship exemption under the first category ends, and the family's hardship is administered in accordance with the requirements listed below. Once a family requests general relief, the family may no longer receive phased -in relief. - 025 City Council 5 — 296 5 2 25 EXHIBIT 1 PHAs must track the 24-month phase -period for each eligible family, even if a family's expenses go below the appropriate phase -in percentage, during the first or second 12-month phase -in period. The phase -in must continue for families who move to another housing unit at the same PHA. When the family is treated as a new admission under a different property/program (e.g., the family moves from public housing to the HCV program), unless the PHA has a written policy to continue the phased -in relief upon admission, the family's expense deduction will be calculated using the 10-percent threshold unless request for general relief is approved by the PHA. When a family moves with continued assistance or ports to a new PHA, the family must continue to receive the phased -in relief. The family must receive the remaining calendar months of the percentage phase -in. The PHA must use the existing phase -in documentation to determine the remaining calendar months and the percentage phase -in. SAHA Policy SAHA will not continue the phased -in relief for families who move from public housing to HCV. These families will be treated as new admissions and the sum of expenses that exceeds 10 percent of annual income will be used to calculate their adjusted income. General Relief The second category is for families that can demonstrate: Their health and medical and/or disability assistance expenses increased (other than the transition to the higher threshold); or • The family's financial hardship is a result of a change in circumstances (as defined in PHA policy) that would not otherwise trigger an interim reexamination. The family may request a hardship exemption under the second category regardless of whether the family previously received the health and medical and/or disability assistance deductions or are currently or were previously receiving relief under the phased -in relief category above. HUD requires that PHAs develop policies defining what constitutes a hardship for purposes of this exemption. - 025 City Council 5 — 297 5 2 25 EXHIBIT 1 The PHA must obtain third -party verification of the hardship or must document in the file the reason third -party verification was not available. PHAs must attempt to obtain third -party verification prior to the end of the 90-day hardship exemption period. SAHA Policy To qualify for a hardship exemption, a family must submit a request in writing. The request must show that the family's health and medical and/or disability assistance expenses have increased (other than the transition to the higher threshold) and that the family's financial hardship is a result of a change in circumstances. SAHA defines a change in circumstances as a decrease in income or increase in other expenses that has resulted in the family's financial hardship but does not, on its own, trigger an interim reexamination in accordance with SAHA policies. Examples of circumstances constituting a financial hardship may include the following situations: The family is awaiting an eligibility determination for a federal, state, or local assistance program, such as a determination for unemployment compensation or disability benefits; The family's income decreased because of a loss of employment, death of a family member, or due to a natural or federal/state declared disaster; or Other circumstances as determined by SAHA. The family must provide third -party verification of the hardship with the request. If third - party verification is not available, SAHA will document the file with the reason and will attempt to obtain third -party verification prior to the end of the 90-day hardship exemption period. The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family's rent resulting from hardship exemptions. The notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. SAHA Policy SAHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result within 14 calendar days of the determination. If SAHA denies the hardship exemption request, SAHA notice will also state that if the family does not agree with SAHA determination, the family may request a hearing. If the family qualifies for an exemption, SAHA will include the date the hardship exemption will begin and the date it will expire as well as information on how to request a 90-day extension based on family circumstances. If the family qualifies, the family will receive a deduction for the sum of eligible expenses that exceed five percent of annual income. - 025 City Council 5 — 298 5 2 25 EXHIBIT 1 The family's hardship relief ends when the circumstances that made the family eligible for the relief are no longer applicable or after 90 days, whichever is earlier. However, the PHA may, at its discretion, extend the relief for one or more additional 90-day periods while the family's hardship condition continues. PHAs are not limited to a maximum number of 90-day extensions. PHAs must establish written policies regarding the types of circumstances that will allow a family to qualify for a financial hardship and when such deductions may be eligible for additional 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. SAHA Policy The family may request an extension either orally or in writing prior to the end of the hardship exemption period. SAHA will extend relief for an additional 90-days if the family demonstrates to SAHA's satisfaction that the family continues to qualify for the hardship exemption based on circumstances described above. SAHA will require updated verification based on the family's current circumstances. Additional extension(s) may be granted on a case -by -case basis provided the family continues to request extensions prior to the end of each hardship exemption period. Families must report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. At any time, SAHA may terminate the hardship exemption if SAHA determines that the family no longer qualifies for the exemption. Childcare Expense Hardship Exemption [24 CFR 5.611(d) and Notice PIH 2O23-271 A family whose eligibility for the childcare expense deduction is ending may request a financial hardship exemption to continue receiving the deduction. If the family demonstrates to the PHA's satisfaction that the family is unable to pay their rent because of the loss of the childcare expense deduction, and that the childcare expense is still necessary even though the family member is not working, looking for work, or seeking to further their education, the PHA must recalculate the family's adjusted income and continue the childcare deduction. The PHA must develop a policy to define what constitutes a hardship, which includes the family's inability to pay rent. The PHA must obtain third -party verification of the hardship or must document in the file the reason third -party verification was not available. PHAs must attempt to obtain third -party verification prior to the end of the 90-day hardship exemption period. - 025 City Council — 299 5 2 25 EXHIBIT 1 SAHA Polic For a family to qualify, they must demonstrate that their inability to pay rent would be as a result of the loss of this deduction. SAHA defines this hardship as a potential decrease in income or increase in other expenses that would result from the loss of the childcare expense and such loss would impact the family's ability to pay their rent. Some factors to consider when determining if the family is unable to pay rent may include determining that the rent, utility payment, and applicable expenses (childcare expenses or health and medical expenses) are more than 40 percent of the family's adjusted income, or verifying whether the family has experienced unanticipated expenses, such as large medical bills, that have affected their ability to pay their rent. The family must also demonstrate that the childcare expense is still necessary even though the family member is no longer employed or furthering their education. SAHA will consider qualification under this criterion on a case -by case basis. The family must provide third -party verification of the hardship with the request. If third - party verification is not available, SAHA will document the file with the reason and will attempt to obtain third -party verification prior to the end of the 90-day hardship exemption period. The PHA must promptly notify the family in writing of the change in the determination of adjusted income and the family's rent resulting from hardship exemptions. If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must provide families 30 days' notice of any increase in rent. If the PHA approves the request, the notice must inform the family of when the hardship exemption will begin and expire [24 CFR 5.611(e)(2)]. The notice must also state the requirement for the family to report to the PHA if the circumstances that made the family eligible for relief are no longer applicable and that the family's adjusted income and tenant rent will be recalculated upon expiration of the hardship exemption [Notice PIH 2O23-27]. SAHA Policy SAHA will make a determination of whether the family qualifies within 30 calendar days and will notify the family in writing of the result. If SAHA denies the hardship exemption request, SAHA notice will also state that if the family does not agree with SAHA determination, the family may request an informal hearing. - 025 City Council 5 — 300 5 2 25 EXHIBIT 1 If the family qualifies, the hardship exemption and the resulting alternative adjusted income calculation must remain in place for a period of up to 90 days. The PHA may, at its discretion, extend the hardship exemptions for additional 90-day periods based on family circumstances and as stated in PHA policies. PHAs are not limited to a maximum number of 90-day extensions. PHAs must develop policies requiring families to report if the circumstances that made the family eligible for the hardship exemption are no longer applicable. PHAs must promptly notify families in writing if they are denied either an initial hardship exemption or an additional 90-day extension of the exemption. If the PHA denies the request, the notice must specifically state the reason for the denial. PHAs must notify the family if the hardship exemption is no longer necessary and the hardship exemption will be terminated because the circumstances that made the family eligible for the exemption are no longer applicable. The notice must state the termination date and provide 30 days' notice of rent increase, if applicable. SAHA Policy SAHA will not offer an additional 90-day extension of the Childcare Expense Hardship Exemption. - 025 City Council 5 — 301 5 2 25 EXHIBIT 1 6-III.H. PERMISSIVE DEDUCTIONS [24 CFR 5.611(b)(1)(ii)] The PHA may adopt additional permissive deductions from annual income if they establish a policy in the administrative plan. Permissive deductions are additional, optional deductions that may be applied to annual income. As with mandatory deductions, permissive deductions must be based on need or family circumstance and deductions must be designed to encourage self- sufficiency or other economic purpose. If the PHA offers permissive deductions, they must be granted to all families that qualify for them and should complement existing income exclusions and deductions [PH Occ GB, p. 128]. Permissive deductions may be used to incentivize or encourage self-sufficiency and economic mobility. A PHA that adopts such deductions must have sufficient funding to cover the increased housing assistance payment cost of the deductions. A PHA will not be eligible for an increase in HCV renewal funding for subsidy costs resulting from such deductions. SAHA Policy SAHA has opted not to use permissive deductions. - Pl 025 City Council 5 — 302 5 2 25 EXHIBIT 1 PART IV: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-IV.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family's monthly adjusted income (adjusted income is defined in Part II) • 10 percent of the family's monthly gross income (annual income, as defined in Part I, divided by 12) • The welfare rent (in as -paid states only) • A minimum rent between $0 and $50 that is established by the PHA The PHA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-IV.B. The amount that a family pays for rent and utilities (the family share) will never be less than the family's TTP but may be greater than the TTP depending on the rent charged for the unit the family selects. Welfare Rent [24 CFR 5.628] SAHA Policy Welfare rent does not apply in this locality. Minimum Rent [24 CFR 5.6301 SAHA Policy The minimum rent established by SAHA is $50. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant -paid utilities) that exceeds the PHA's applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy the PHA may not approve the tenancy if it would require the family share to exceed 40 percent of the family's monthly adjusted income. (For a discussion of the application of payment standards, see section 6-IV.C.) - Pl 025 City Council 5 — 303 5 2 25 EXHIBIT 1 PHA Subsidy [24 CFR 982.505(b)] The PHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of (1) the applicable payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. (For a discussion of the application of payment standards, see section 6-IV.C.) Utility Reimbursement [24 CFR 982.514(b); 982.514(c)] When the PHA subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits the PHA to pay the reimbursement to the family or directly to the utility provider. SAHA Policv SAHA will make utility reimbursements to the family. The PHA may make all utility reimbursement payments to qualifying families on a monthly basis or may make quarterly payments when the monthly reimbursement amount is $15.00 or less. Reimbursements must be made once per calendar -year quarter and must be prorated if the family leaves the program in advance of its next quarterly reimbursement. The PHA must also adopt hardship policies for families for whom receiving quarterly reimbursement would create a financial hardship. SAHA Policv SAHA will issue all utility reimbursements monthly. SAHA reserves the right to issue utility reimbursements quarterly. - 025 City Council 5 — 304 5 2 25 EXHIBIT 1 6-IV.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.6301 SAHA Policv The financial hardship rules described below apply because SAHA has established a minimum rent of $50. Overview If the PHA establishes a minimum rent greater than zero, the PHA must grant an exemption from the minimum rent if a family is unable to pay the minimum rent because of financial hardship. The financial hardship exemption applies only to families required to pay the minimum rent. If a family's TTP is higher than the minimum rent, the family is not eligible for a hardship exemption. If the PHA determines that a hardship exists, the family share is the highest of the remaining components of the family's calculated TTP. HUD -Defined Financial Hardship Financial hardship includes the following situations: (1) The family has lost eligibility for or is awaiting an eligibility determination for a federal, state, or local assistance program. This includes a family member who is a noncitizen lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for Title IV of the Personal Responsibility and Work Opportunity Act of 1996. SAHA Policv A hardship will be considered to exist only if the loss of eligibility has an impact on the family's ability to pay the minimum rent. For a family waiting for a determination of eligibility, the hardship period will end as of the first of the month following: (1) implementation of assistance, if approved, or (2) the decision to deny assistance. A family whose request for assistance is denied may request a hardship exemption based upon one of the other allowable hardship circumstances. (2) The family would be evicted because it is unable to pay the minimum rent. SAHA Policy For a family to qualify under this provision, the cause of the potential eviction must be the family's failure to pay rent to the owner or tenant -paid utilities. (3) Family income has decreased because of changed family circumstances, including the loss of employment. - 025 City Council 5 — 305 5 2 25 EXHIBIT 1 (4) A death has occurred in the family. SAHA Policv In order to qualify under this provision, a family must describe how the death has created a financial hardship (e.g., because of funeral -related expenses or the loss of the family member's income). (5) The family has experienced other circumstances determined by the PHA. SAHA Policv SAHA has not established any additional hardship criteria. Implementation of Hardship Exemption Determination of Hardship When a family requests a financial hardship exemption, the PHA must suspend the minimum rent requirement beginning the first of the month following the family's request. The PHA then determines whether the financial hardship exists and whether the hardship is temporary or long-term. SAHA Policv SAHA defines temporary hardship as a hardship expected to last 90 days or less. Long- term hardship is defined as a hardship expected to last more than 90 days. When the minimum rent is suspended, the family share reverts to the highest of the remaining components of the calculated TTP. The example below demonstrates the effect of the minimum rent exemption. Example: Impact of Minimum Rent Exemption Assume the PHA has established a minimum rent of $50. Family Share — No Hardship Family Share — With Hardship $0 30% of monthly adjusted income $0 30% of monthly adjusted income $15 10% of monthly gross income $15 10% of monthly gross income N/A Welfare rent N/A Welfare rent $50 Minimum rent $50 Minimum rent Minimum rent applies. Hardship exemption granted. TTP = $50 TTP = $15 SAHA Policv To qualify for a hardship exemption, a family must submit a request for a hardship exemption in writing. The request must explain the nature of the hardship and how the hardship has affected the family's ability to pay the minimum rent. SAHA will make the determination of hardship within 30 calendar days. - 025 City Council 5 — 306 5 2 25 EXHIBIT 1 No Financial Hardship If the PHA determines there is no financial hardship, the PHA will reinstate the minimum rent and require the family to repay the amounts suspended. SAHA Policv SAHA will require the family to repay the suspended amount within 30 calendar days of SAHA's notice that a hardship exemption has not been granted. Temporary Hardship If the PHA determines that a qualifying financial hardship is temporary, the PHA must suspend the minimum rent for the 90-day period beginning the first of the month following the date of the family's request for a hardship exemption. At the end of the 90-day suspension period, the family must resume payment of the minimum rent and must repay the PHA the amounts suspended. HUD requires the PHA to offer a reasonable repayment agreement, on terms and conditions established by the PHA. The PHA also may determine that circumstances have changed and the hardship is now a long-term hardship. SAHA Policv SAHA will enter into a repayment agreement in accordance with the procedures found in Chapter 16 of this plan. Long -Term Hardship If the PHA determines that the financial hardship is long-term, the PHA must exempt the family from the minimum rent requirement for so long as the hardship continues. The exemption will apply from the first of the month following the family's request until the end of the qualifying hardship. When the financial hardship has been determined to be long-term, the family is not required to repay the minimum rent. SAHA Policy The hardship period ends when any of the following circumstances apply: (1) At an interim or annual reexamination, the family's calculated TTP is greater than the minimum rent. (2) For hardship conditions based on loss of income, the hardship condition will continue to be recognized until new sources of income are received that are at least equal to the amount lost. For example, if a hardship is approved because a family no longer receives a $60/month child support payment, the hardship will continue to exist until the family receives at least $60/month in income from another source or once again begins to receive the child support. (3) For hardship conditions based upon hardship -related expenses, the minimum rent exemption will continue to be recognized until the cumulative amount exempted is equal to the expense incurred. - 025 City Council 5 — 307 5 2 25 EXHIBIT 1 6-IV.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505(c) and Notice PIH 2O24-341 Overview The PHA's schedule of payment standards is used to calculate housing assistance payments for HCV families. This section covers the application of the PHA's payment standards. The establishment and revision of the PHA's payment standard schedule are covered in Chapter 16. Payment standard is defined as "the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)" [24 CFR 982.4(b)]. The payment standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under the PHA's subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family [24 CFR 982.505(c)(1)]. If the PHA has established an exception payment standard for a designated part of a an FMR area in accordance with 24 CFR 982.503 and a family's unit is located in the designated area, the PHA must use the appropriate payment standard for the exception area [24 CFR 982.505(c)(2)]. The PHA is required to pay a monthly housing assistance payment (HAP) for a family that is the lower of (1) the payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. If during the term of the HAP contract for a family's unit, the owner lowers the rent, the PHA will recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit [HCV G13, p. 7-8]. Changes in Payment Standards When the PHA revises its payment standards during the term of the HAP contract for a family's unit, it will apply the new payment standards in accordance with HUD regulations. Regulations governing increases and decreases in the payment standard have changed, with a required compliance date of December 3, 2024. Decreases [24 CFR 982.505(c)(3) and Notice PIH 2O24-341 For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution. The PHA must administer decreases in the payment standard amount for the family in accordance with the PHA policy as described in the administrative plan and apply the policy consistently to all families. If a PHA changes its payment standard schedule, resulting in a lower payment standard amount, during the term of a HAP contract, the PHA is not required to reduce the payment standard used to calculate subsidy for families under HAP contract as long as the HAP contract remains in effect. The PHA must administer decreases in the payment standard amount for the family in accordance with the PHA policy as described in the administrative plan. - 025 City Council 5 — 308 5 2 25 EXHIBIT 1 Changes effective 12/2/24 and earlier: If the PHA does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than the effective date of the family's second regular reexamination following the effective date of the decrease in the payment standard amount. Changes effective 12/3/24 and later: If the PHA does choose to reduce the payment standard for families currently under HAP contract, the initial reduction to the payment standard may not be applied any earlier than two years following the effective date of the decrease in the payment standard and only with proper written notice to the family in accordance with 24 CFR 982.505(c)(3)(iii). At that point, the PHA may either reduce the payment standard to the current amount in effect on the PHA's payment standard schedule or may reduce the payment standard to another amount that is higher than the normally applicable amount on the schedule. The PHA may also establish different policies for designated areas within their jurisdiction (e.g., different zip code areas). In any case, the PHA must provide the family with at least 12 months' notice that the payment standard is being reduced before the effective date of the change. In the written notice, the PHA must state the new payment standard amount, explain that the family's new payment standard amount will be the greater of the amount listed in the current written notice or the new amount (if any) on the PHA's payment standard schedule at the end of the 12-month period, and make clear where the family will find the PHA's payment standard schedule. The PHA's policy on decreases in the payment standard during the term of the HAP contract apply to all families under HAP contract at the time of the effective date of the decrease in the payment standard within the designated area. SAHA Policy If SAHA changes its payment standard schedule resulting in a lower payment standard amount, during the term of a HAP contract, SAHA will apply the reduced payment standard at the family's second regular reexamination following the reduction in the payment standard amount.. Increases [24 CFR 982.505(c)(4) and Notice PIH 2O24-34] For new HAP contracts, the PHA applies the payment standard in effect at the time of HAP contract execution. Changes effective 12/2/24 and earlier: If the payment standard is increased during the term of the HAP contract, the increased payment standard will be used to calculate the monthly housing assistance payment for the family beginning on the effective date of the family's first regular reexamination on or after the effective date of the increase in the payment standard. Families requiring or requesting interim reexaminations will not have their HAP payments calculated using the higher payment standard until their next annual reexamination [HCV GB, p. 7-8]. - 025 City Council — 309 5 2 25 EXHIBIT 1 Changes effective 12/3/24 and later: If the payment standard is increased during the term of the HAP contract, the increased payment standard will be applied no later than the earliest of: • The effective date of an increase in the gross rent that would result in an increase in the family share; • The family's first regular or interim reexamination; or • One year following the effective date of the increase in the payment standard amount. The PHA may adopt a policy to apply a payment standard increase at any time earlier than the date calculated above as long as the policy is included in the administrative plan and applied consistently to all families [24 CFR 982.505(c)(5)]. SAHA Policy SAHA will not adopt payment standard increases earlier than the date required by the regulations. Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6) and Notice PIH 2O24-341 Changes effective 12/2/24 and earlier: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size must be used to determine the payment standard for the family beginning at the family's first regular reexamination following the change in family unit size. Changes effective 12/3/24 and later: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size may be used to determine the payment standard immediately but no later than the family's first regular reexamination following the change in family unit size. SAHA Policy If the family unit size (voucher size) changes during the term of a HAP contract, the new family unit size will be used to determine the payment standard at the family's first regular reexamination following the change in family unit size. Moves If the family moves to a new unit, or a new HAP contract is executed due to changes in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new HAP contract is processed. Reasonable Accommodation [24 CFR 982.503(d)(5)] If a family requires a higher payment standard as a reasonable accommodation for a family member who is a person with disabilities, the PHA is allowed to establish a higher payment standard for the family of not more than 120 percent of the published FMR without HUD approval or prior notification to HUD. A PHA may establish a payment standard greater than 120 percent of the applicable FMR as a reasonable accommodation in accordance with 24 CFR part 8, after requesting and receiving HUD approval. See Chapter 16 for more information. - 025 City Council 5 — 310 5 2 25 EXHIBIT 1 6-IV.D. APPLYING UTILITY ALLOWANCES [24 CFR 982.5171 Overview A PHA -established utility allowance schedule is used in determining family share and PHA subsidy. A family's utility allowance is determined by the size of dwelling unit leased by a family or the voucher unit size for which the family qualifies using PHA subsidy standards, whichever is the lowest of the two. See Chapter 5 for information on the PHA's subsidy standards. For policies on establishing and updating utility allowances, see Chapter 16. Flat Fees [24 CFR 982.517(b)(2)(iii)] The PHA may base its utility allowance payments on actual flat fees charged by an owner for utilities that are billed directly by the owner, but only if the flat fee charged by the owner is no greater than the PHA's applicable utility allowance for the utilities covered by the fee. If the owner charges a flat fee for some but not all utilities, the PHA must pay a separate allowance for any tenant -paid utilities not covered in the flat fee. SAHA Policv SAHA will not base utility allowance payments on flat fees charged by the owner. PBV Developments [24 CFR 982.517(b)(2)(iv)] If a tenant -based voucher holder resides in a project with project -based voucher (PBV) units and the PBV units use a site -specific utility allowance in accordance with PBV regulations, the PHA must use the project -specific utility allowance schedule. Reasonable Accommodation and Individual Relief On request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [24 CFR 982.517(e)]. (See Chapter 2 for policies regarding the request and approval of reasonable accommodations.) Further, the PHA may grant requests for individual relief from charges in excess of the utility allowance on reasonable grounds, such as special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA an explanation of the need for individual relief and an explanation about the amount of additional allowance required [see HCV GB, p. 18-8]. PHAs should develop criteria for granting individual relief, notify residents about the availability of individual relief, and notify participants about the availability of individual relief programs (sometimes referred to as "Medical Baseline discounts") offered by the local utility company. - 025 City Council 5 — 311 5 2 25 EXHIBIT 1 SAHA Policv The family must request the higher allowance and provide SAHA with information about the amount of additional allowance required. SAHA will consider the following criteria as valid reasons for granting individual relief: The family's consumption was mistakenly portrayed as excessive due to defects in the meter or errors in the meter reading. The excessive consumption is caused by a characteristic of the unit or owner - supplied equipment that is beyond the family's control, such as a particularly inefficient refrigerator or inadequate insulation. The allowance should be adjusted to reflect the higher consumption needs associated with the unit until the situation is remedied. The resident should be granted individual relief until the allowance is adjusted. The excessive consumption is due to special needs of the family that are beyond their control, such as the need for specialized equipment in the case of a family member who is ill, elderly, or who has a disability. In determining the amount of the reasonable accommodation or individual relief, SAHA will allow a reasonable measure of additional usage as necessary. To arrive at the amount of additional utility cost of specific equipment, the family may provide information from the manufacturer of the equipment, or the family or SAHA may conduct an internet search for an estimate of usage or additional monthly cost. Information on reasonable accommodation and individual relief for charges in excess of the utility allowance will be provided to all families at admission as part of the information on payment standards and utility allowances in the briefing packet. SAHA will also provide information on utility relief programs or medical discounts (sometimes referred to as "Medical Baseline discounts") that may be available through local utility providers. At its discretion, SAHA may reevaluate the need for the increased utility allowance at any regular reexamination. If the excessive consumption is caused by a characteristic of the unit or SAHA-supplied equipment that is beyond the family's control, such as a particularly inefficient refrigerator or inadequate insulation, the individual relief to the resident will cease when the situation is remedied. Utility Allowance Revisions At reexamination, the PHA must use the current utility allowance schedule [HCV GB, p. 18-8]. SAHA Policv Revised utility allowances will be applied to a family's rent and subsidy calculations at the first annual reexamination that is effective after the allowance is adopted. - 025 City Council 5 — 312 5 2 25 EXHIBIT 1 6-IV.E. PRORATED ASSISTANCE FOR MIXED FAMILIES [24 CFR 5.520] HUD regulations prohibit assistance to ineligible family members. A mixed family is one that includes at least one U.S. citizen or eligible immigrant and any number of ineligible family members. The PHA must prorate the assistance provided to a mixed family. The PHA will first determine assistance as if all family members were eligible and then prorate the assistance based upon the percentage of family members that actually are eligible. For example, if the PHA subsidy for a family is calculated at $500 and two of four family members are ineligible, the PHA subsidy would be reduced to $250. - 025 City Council 5 — 313 5 2 25 EXHIBIT 1 Page 6-72 Administrative Plan 7/1/2025 City Council 5 — 314 7/15/2025 EXHIBIT 1 EXHIBIT 6-1: ANNUAL INCOME FULL DEFINITION 24 CFR 5.609 (a) Annual income includes, with respect to the family: (1) All amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and (2) When the value of net family assets exceeds the HUD -published threshold amount (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD. (b)Annual income does not include the following: (1) Any imputed return on an asset when net family assets are less than or equal to the HUD -published threshold amount (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and no actual income from the net family assets can be determined. (2) The following types of trust distributions: (i) For an irrevocable trust or a revocable trust outside the control of the family or household excluded from the definition of net family assets under § 5.603(b): (A) Distributions of the principal or corpus of the trust; and (B) Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor. (ii) For a revocable trust under the control of the family or household, any distributions from the trust; except that any actual income earned by the trust, regardless of whether it is distributed, shall be considered income to the family at the time it is received by the trust. (3) Earned income of children under the 18 years of age. (4) Payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments. (5) Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation. (6) Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member. (7) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled. (8) Income of a live-in aide, foster child, or foster adult as defined in §§ 5.403 and 5.603, respectively. (9) (i) Any assistance that section 479B of the Higher Education Act of 1965, as amended (20 U.S.C. 1087uu), requires be excluded from a family's income; and Page 6-73 Administrative Plan 7/l/2025 City Council 5 — 315 7/15/2025 EXHIBIT 1 (ii) Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. (A) Student financial assistance, for purposes of this paragraph (9)(ii), means a grant or scholarship received from— ( 1) The Federal government; (2) A State, Tribe, or local government; (3) A private foundation registered as a nonprofit under 26 U.S.C. 501(c)(3); (4) A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or (5) An institution of higher education. (B) Student financial assistance, for purposes of this paragraph (9)(ii), does not include— (1) Any assistance that is excluded pursuant to paragraph (b)(9)(i) of this section; (2) Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded pursuant to paragraph (b)(9)(i) of this section); ( 3) Gifts, including gifts from family or friends; or (4) Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under this paragraph or paragraph (b)(9)(i), exceeds the actual covered costs of the student. The actual covered costs of the student are the actual costs of tuition, books and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, or other fees required and charged to a student by the education institution, and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. This calculation is described further in paragraph (b)(9)(ii)€ of this section. (C) Student financial assistance, for purposes of this paragraph (b)(9)(ii) must be: (1) Expressly for tuition, books, room and board, or other fees required and charged to a student by the education institution; (2) Expressly to assist a student with the costs of higher education; or (3) Expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit. (D) Student financial assistance, for purposes of this paragraph (b)(9)(ii), may be paid directly to the student or to the educational institution on the student's behalf. Student financial assistance paid to the student must be verified by the responsible entity as student financial assistance consistent with this paragraph (b)(9)(ii). (E) When the student is also receiving assistance excluded under paragraph (b)(9)(i) of this section, the amount of student financial assistance under this paragraph (b)(9)(ii) is determined as follows: Page 6-74 Administrative Plan 7/l/2025 City Council 5 — 316 7/15/2025 EXHIBIT 1 (1) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is equal to or exceeds the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, none of the assistance described in this paragraph (b)(9)(ii) of this section is considered student financial assistance excluded from income under this paragraph (b)(9)(ii)(E). (2) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is less than the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, the amount of assistance described in paragraph (b)(9)(ii) of this section that is considered student financial assistance excluded under this paragraph is the lower of- (i) the total amount of student financial assistance received under this paragraph (b)(9)(ii) of this section, or (ii) the amount by which the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section exceeds the assistance excluded under paragraph (b)(9)(i) of this section. (10) Income and distributions from any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under section 529 of such Code; and income earned by government contributions to, and distributions from, "baby bond" accounts created, authorized, or funded by Federal, State, or local government. (11) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. (i) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self -Sufficiency (PASS); (ii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of- pocket expenses incurred (e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program; (iii) Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. (iv) Incremental earnings and benefits resulting to any family member from participation in training programs funded by HUD or in qualifying Federal, State, Tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employment training program unless those amounts are excluded under paragraph (b)(9)(i) of this section. (13) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. (14) Earned income of dependent falltime students in excess of the amount of the deduction for a dependent in § 5.611. (15) Adoption assistance payments for a child in excess of the amount of the deduction for a dependent in § 5.611. Page 6-75 Administrative Plan 7/l/2025 City Council 5 — 317 7/15/2025 EXHIBIT 1 (16) Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts. (17) Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance. (18) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit. (19) Payments made by or authorized by a State Medicaid agency (including through a managed care entity) or other State or Federal agency to a family to enable a family member who has a disability to reside in the family's assisted unit. Authorized payments may include payments to a member of the assisted family through the State Medicaid agency (including through a managed care entity) or other State or Federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family's assisted unit. (20) Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car). (21) Payments received by Tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other Federal law. (22) Amounts that HUD is required by Federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in paragraph (b) of this section apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary. (23) Replacement housing "gap" payments made in accordance with 49 CFR part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another Federally subsidized housing unit. Such replacement housing "gap" payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing "gap" payments. (24) Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income under this paragraph, even if the source, date, or amount of the income varies. Nonrecurring income includes: (i) Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment. (ii) Direct Federal or State payments intended for economic stimulus or recovery. (iii) Amounts directly received by the family as a result of State refundable tax credits or State tax refunds at the time they are received. Page 6-76 Administrative Plan 7/l/2025 City Council 5 — 318 7/15/2025 EXHIBIT 1 (iv) Amounts directly received by the family as a result of Federal refundable tax credits and Federal tax refunds at the time they are received. (v) Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries) (vi) Non -monetary, in -kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization. (vii) Lump -sum additions to net family assets, including but not limited to lottery or other contest winnings. (25) Civil rights settlements or judgments, including settlements or judgments for back pay. (26) Income received from any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; except that any distribution of periodic payments from such accounts shall be income at the time they are received by the family. (27) Income earned on amounts placed in a family's Family Self Sufficiency Account. (28) Gross income a family member receives through self-employment or operation of a business; except that the following shall be considered income to a family member: (i) Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations; and (ii) Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. Page 6-77 Administrative Plan 7/l/2025 City Council 5 — 319 7/15/2025 EXHIBIT 1 EXHIBIT 6-2: TREATMENT OF FAMILY ASSETS 24 CFR 5.603(b) Net Family Assets (1) Net family assets is the net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. (2) In determining net family assets, PHAs or owners, as applicable, must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. (3) Excluded from the calculation of net family assets are: (i) The value of necessary items of personal property; (ii) The combined value of all nonnecessary items of personal property if the combined total value does not exceed the HUD -published threshold amount (which amount will be adjusted by HUD in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers); (iii) The value of any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self- employed individuals; (iv) The value of real property that the family does not have the effective legal authority to sell in the jurisdiction in which the property is located; (v) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a family member being a person with a disability; (vi) The value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986, the value of any qualified tuition program under section 529 of such Code, the value of any Achieving a Better Life Experience (ABLE) account authorized under Section 529A of such Code, and the value of any "baby bond" account created, authorized, or funded by Federal, State, or local government. (vii) Interests in Indian trust land; (viii) Equity in a manufactured home where the family receives assistance under 24 CFR part 982; (ix) Equity in property under the Homeownership Option for which a family receives assistance under 24 CFR part 982; (x) Family Self - Sufficiency Accounts; and (xi) Federal tax refunds or refundable tax credits for a period of 12 months after receipt by the family. (4) In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the trust fund is not a family asset and the value of the trust is not included in the calculation of net family assets, so long as the fund continues to be held in a trust that is not revocable by, or under the control of, any member of the family or household. Page 6-78 Administrative Plan 7/l/2025 City Council 5 — 320 7/15/2025 EXHIBIT 1 EXHIBIT 6-3: THE EFFECT OF WELFARE BENEFIT REDUCTION 24 CFR 5.615 Public housing program and Section 8 tenant -based assistance program: How welfare benefit reduction affects family income. (a) Applicability. This section applies to covered families who reside in public housing (part 960 of this title) or receive Section 8 tenant -based assistance (part 982 of this title). (b) Definitions. The following definitions apply for purposes of this section: Covered families. Families who receive welfare assistance or other public assistance benefits ("welfare benefits") from a State or other public agency ("welfare agency") under a program for which Federal, State, or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for such assistance. Economic self-sufficiency program. See definition at Sec. 5.603. Imputed welfare income. The amount of annual income not actually received by a family, as a result of a specified welfare benefit reduction, that is nonetheless included in the family's annual income for purposes of determining rent. Specified welfare benefit reduction. (1) A reduction of welfare benefits by the welfare agency, in whole or in part, for a family member, as determined by the welfare agency, because of fraud by a family member in connection with the welfare program; or because of welfare agency sanction against a family member for noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. (2) "Specified welfare benefit reduction" does not include a reduction or termination of welfare benefits by the welfare agency: (i) at expiration of a lifetime or other time limit on the payment of welfare benefits; (ii) because a family member is not able to obtain employment, even though the family member has complied with welfare agency economic self-sufficiency or work activities requirements; or (iii) because a family member has not complied with other welfare agency requirements. (c) Imputed welfare income. (1) A family's annual income includes the amount of imputed welfare income (because of a specified welfare benefits reduction, as specified in notice to the PHA by the welfare agency), plus the total amount of other annual income as determined in accordance with Sec. 5.609. (2) At the request of the PHA, the welfare agency will inform the PHA in writing of the amount and term of any specified welfare benefit reduction for a family member, and the reason for such reduction, and will also inform the PHA of any subsequent changes in the term or amount of such specified welfare benefit reduction. The PHA will use this information to determine the amount of imputed welfare income for a family. (3) A family's annual income includes imputed welfare income in family annual income, as determined at the PHA's interim or regular reexamination of family income and composition, during the term of the welfare benefits reduction (as specified in information provided to the PHA by the welfare agency). Page 6-79 Administrative Plan 7/l/2025 City Council 5 — 321 7/15/2025 EXHIBIT 1 (4) The amount of the imputed welfare income is offset by the amount of additional income a family receives that commences after the time the sanction was imposed. When such additional income from other sources is at least equal to the imputed (5) The PHA may not include imputed welfare income in annual income if the family was not an assisted resident at the time of sanction. (d) Review of PHA decision. (1) Public housing. If a public housing tenant claims that the PHA has not correctly calculated the amount of imputed welfare income in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the tenant written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. The PHA notice shall also state that if the tenant does not agree with the PHA determination, the tenant may request a grievance hearing in accordance with part 966, subpart B of this title to review the PHA determination. The tenant is not required to pay an escrow deposit pursuant to Sec. 966.55(e) for the portion of tenant rent attributable to the imputed welfare income in order to obtain a grievance hearing on the PHA determination. (2) Section 8 participant. A participant in the Section 8 tenant -based assistance program may request an informal hearing, in accordance with Sec. 982.555 of this title, to review the PHA determination of the amount of imputed welfare income that must be included in the family's annual income in accordance with this section. If the family claims that such amount is not correctly calculated in accordance with HUD requirements, and if the PHA denies the family's request to modify such amount, the PHA shall give the family written notice of such denial, with a brief explanation of the basis for the PHA determination of the amount of imputed welfare income. Such notice shall also state that if the family does not agree with the PHA determination, the family may request an informal hearing on the determination under the PHA hearing procedure. (e) PHA relation with welfare agency. (1) The PHA must ask welfare agencies to inform the PHA of any specified welfare benefits reduction for a family member, the reason for such reduction, the term of any such reduction, and any subsequent welfare agency determination affecting the amount or term of a specified welfare benefits reduction. If the welfare agency determines a specified welfare benefits reduction for a family member, and gives the PHA written notice of such reduction, the family's annual incomes shall include the imputed welfare income because of the specified welfare benefits reduction. (2) The PHA is responsible for determining the amount of imputed welfare income that is included in the family's annual income as a result of a specified welfare benefits reduction as determined by the welfare agency, and specified in the notice by the welfare agency to the PHA. However, the PHA is not responsible for determining whether a reduction of welfare benefits by the welfare agency was correctly determined by the welfare agency in accordance with welfare program requirements and procedures, nor for providing the opportunity for review or hearing on such welfare agency determinations. (3) Such welfare agency determinations are the responsibility of the welfare agency, and the family may seek appeal of such determinations through the welfare agency's normal due process procedures. The PHA shall be entitled to rely on the welfare agency notice to the PHA of the welfare agency's determination of a specified welfare benefits reduction. Page 6-80 Administrative Plan 7/l/2025 City Council 5 — 322 7/15/2025 EXHIBIT 1 Chapter 7.A. VERIFICATION [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2O18-18] INTRODUCTION Prior to the PHA's HOTMA compliance date, the PHA will follow policies as outlined in this chapter. Upon the PHA's HOTMA compliance date, the PHA will follow policies as outlined in Chapter 7.13. The PHA must verify all information that is used to establish the family's eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family. The PHA will follow the verification guidance provided by HUD in Notice PIH 2O18-18 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies. Part I describes the general verification process. Part II provides more detailed requirements related to family information. Part III provides information on income and assets, and Part IV covers mandatory deductions. Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies of the PHA. PART I: GENERAL VERIFICATION REQUIREMENTS 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; and Notice PIH 2O23-27] Consent Forms The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 982.551]. All adult family members must sign consent forms as needed to collect information relevant to the family's eligibility and level of assistance. While PHAs must use form HUD- 9886-A, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information. Page 7-1 Administrative Plan 7/l/2025 City Council 5 — 323 7/15/2025 EXHIBIT 1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5); and Notice PIH 2O23-271 All adult applicants and participants sign form HUD-9886-A, Authorization for Release of Information. All adult family members (and the head and spouse/cohead, regardless of age) are required to sign the Form HUD-9886-A at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886-A be signed only once. On or after January 1, 2024 (regardless of the PHA's HOTMA compliance date), current program participants must sign and submit a new Form HUD-9886-A at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886-A will not be submitted to the PHA except under the following circumstances: • When any person 18 years or older becomes a member of the family; • When a current member of the family turns 18; or • As required by HUD or the PHA in administrative instructions. The PHA has the discretion to establish policies around when family members must sign consent forms when they turn 18. PHAs must establish these policies stating when family members will be required to sign consent forms at intervals other than at reexamination. SAHA Policy Family members turning 18 years of age between annual recertifications will be notified in writing that they are required to sign the required Consent to the Release of Information Form HUD-9886-A at the family's next annual or interim reexamination, whichever is sooner. The purpose of form HUD-9886-A is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant's or participant's eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)]. The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent. Penalties for Failing to Consent [24 CFR 5.2321 If any family member who is required to sign a consent form fails to do so, the PHA will deny admission to applicants and terminate assistance of participants. The family may request an informal review (applicants) or informal hearing (participants) in accordance with PHA procedures. However, this does not apply if the applicant, participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial Page 7-2 Administrative Plan 7/l/2025 City Council 5 — 324 7/15/2025 EXHIBIT 1 institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family's executed consent forms. SAHA Policy SAHA has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with SAHA policy. In order for a family to revoke their consent, the family must provide written notice to SAHA. Within 14 calendar days of the date the family provides written notice, SAHA will send the family a notice acknowledging receipt of the request and explaining that revocation of consent will result in denial or termination of assistance, as applicable. At the same time, SAHA will notify their local HUD office. Page 7-3 Administrative Plan 7/l/2025 City Council 5 — 325 7/15/2025 EXHIBIT 1 7-I.B. OVERVIEW OF VERIFICATION REQUIREMENTS Use of Other Programs' Income Determinations 124 CFR 5.609(c)(3) and Notice PIH 2O23-271 PHAs may, but are not required to, determine a family's annual income, including income from assets, prior to the application of any deductions, based on income determinations made within the previous 12-month period, using income determinations from means -tested federal public assistance programs. PHAs are not required to accept or use determinations of income from other federal means -tested forms of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in policy when they will accept Safe Harbor income determinations and from which programs. PHAs must also create policies that outline the course of action when families present multiple verifications from the same or different acceptable Safe Harbor programs. Means -tested federal public assistance programs include: • Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.); • Medicaid (42 U.S.C. 1396 et seq.); • Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.); • Earned Income Tax Credit (EITC) (26 U.S.C. 32); • Low -Income Housing Tax Credit (LIHTC) program (26 U.S.C. 42); • Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786); • Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); • Other programs administered by the HUD Secretary; • Other means -tested forms of federal public assistance for which HUD has established a memorandum of understanding; and • Other federal benefit determinations made in other forms of means -tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register. Page 7-4 Administrative Plan 7/l/2025 City Council 5 — 326 7/15/2025 EXHIBIT 1 If the PHA elects to use the annual income determination from one of the above -listed forms of means -tested federal public assistance, then they must obtain the income information by means of a third -party verification. The third -party verification must state the family size, must be for the entire family, and must state the amount of the family's annual income. The annual income need not be broken down by family member or income type. Annual income includes income earned from assets, therefore when using Safe Harbor to verify a family's income, PHAs will neither further inquire about a family's net family assets, nor about the income earned from those assets, except with respect to whether or not the family owns assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of the documentation by the PHA: • Income determination effective date; • Program administrator's signature date; • Family's signature date; • Report effective date; or • Other report -specific dates that verify the income determination date. The only information that PHAs are permitted to use to determine income under this method is the total income determination made by the federal means -tested program administrator. Other federal programs may provide additional information about income inclusions and exclusions in their award letters; however, these determinations and any other information must not be considered by the PHA. PHAs are not permitted to mix and match Safe Harbor income determinations and other income verifications. If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program's income determination, the PHA must calculate the family's annual income using traditional methods as outlined in Notice PIH 2O23-27 and this chapter. If the PHA uses a Safe Harbor determination to determine the family's income, the family is obligated to report changes in income that meet the PHA's reporting requirement and occur after the effective date of the transaction. Page 7-5 Administrative Plan 7/l/2025 City Council 5 — 327 7/15/2025 EXHIBIT 1 The amounts of unreimbursed reasonable attendant care expenses and childcare expenses deducted from a family's annual income, except for when a family is approved for a childcare expense hardship exemption, must still be capped by the amount earned by any family member who is enabled to work as a result of the expense. PHAs are therefore required to obtain third - party verification of the applicable employment income and cap the respective expense deductions accordingly. SAHA Policy SAHA will not accept verification from other federal assistance programs. All income will be verified in accordance with the requirements of HUD's verification hierarchy and SAHA policies in this chapter. Page 7-6 Administrative Plan 7/l/2025 City Council 5 — 328 7/15/2025 EXHIBIT 1 HUD's Verification Hierarchy [Notice PIH 2O18-181 HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification. In order of priority, the forms of verification that the PHA will use are: • Up -front Income Verification (UIV) using HUD's Enterprise Income Verification (EIV) system • Up -front Income Verification (UIV) using a non -HUD system • Written Third -Party Verification (may be provided by applicant or participant) • Written Third -party Verification Form • Oral Third -party Verification • Self -Certification Each of the verification methods is discussed in subsequent sections below. Requirements for Acceptable Documents SAHA Policy Any documents used for verification must be the original (not photocopies) and generally must be dated within 120 days of receipt by SAHA. Statements dated within the appropriate benefit year are acceptable for fixed sources of income. The documents must not be damaged, altered or in any way illegible. Printouts from webpages are considered original documents. SAHA staff member who views the original document must make a photocopy. Any family self -certifications must be made in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. Page 7-7 Administrative Plan 7/l/2025 City Council 5 — 329 7/15/2025 EXHIBIT 1 File Documentation The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family's file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached. SAHA Policy SAHA will document, in the family file, the following: Reported family annual income Value of assets Expenses related to deductions from annual income Other factors influencing adjusted income When the PHA is unable to obtain third -party verification, the PHA will document in the family file the reason that third -party verification was not available [24 CFR 982.516(a)(2); Notice PIH 2O18-18]. 7-I.C. UP -FRONT INCOME VERIFICATION (UIV) Up -front income verification (UIV) refers to the PHA's use of the verification tools available from independent sources that maintain computerized information about earnings and benefits. UIV will be used to the extent that these systems are available to the PHA. There may be legitimate differences between the information provided by the family and UIV- generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted an opportunity to contest any adverse findings through the informal review/hearing process of the PHA. See Chapter 6 for the PHA's policy on the use of UIV/EIV to project annual income. Page 7-8 Administrative Plan 7/l/2025 City Council 5 — 330 7/15/2025 EXHIBIT 1 Upfront Income Verification Using HUD's Enterprise Income Verification (EIV) System (Mandatory) PHAs must use HUD's EIV system in its entirety as a third -party source to verify tenant employment and income information during mandatory reexaminations or recertifications of family composition and income in accordance with 24 CFR 5.236 and administrative guidance issued by HUD. However, the PHA is not required to verify income information in EIV at annual reexam when Safe Harbor verification is used to determine a family's income [Notice PIH 2O23- 27]. The EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families. The following policies apply to the use of HUD's EIV system. EIV Income and IVT Reports The data shown on income and income validation tool (IVT) reports is updated quarterly. Data may be between 3 and 6 months old at the time reports are generated. SAHA Policy SAHA will obtain income and IVT reports for annual reexaminations on a monthly basis. Reports will be generated as part of the regular reexamination process. Income and IVT reports will be compared to family -provided information as part of the annual reexamination process. Income reports may be used in the calculation of annual income, as described in Chapter 6-I.C. Income reports may also be used to meet the regulatory requirement for third party verification, as described above. Policies for resolving discrepancies between income reports and family -provided information will be resolved as described in Chapter 6-I.C. and in this chapter. Income and IVT reports will be used in interim reexaminations to identify any discrepancies between reported income and income shown in the EIV system, and as necessary to verify earned income, and to verify and calculate unemployment benefits, Social Security and/or SSI benefits. EIV will also be used to verify that families claiming zero income are not receiving income from any of these sources. Income and IVT reports will be retained in participant files with the applicable annual or interim reexamination documents. When SAHA determines through EIV reports and third -party verification that a family has concealed or under -reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity. Page 7-9 Administrative Plan 7/l/2025 City Council 5 — 331 7/15/2025 EXHIBIT 1 EIV Identity Verification The EIV system verifies tenant identities against SSA records. These records are compared to PIC data for a match on social security number, name, and date of birth. PHAs are required to use EIV's Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2O18-18]. When identity verification for a participant fails, a message will be displayed within the EIV system and no income information will be displayed. SAHA Policv SAHA will identify participants whose identity verification has failed by reviewing EIV's Identity Verification Report on a monthly basis. SAHA will attempt to resolve PIC/SSA discrepancies by obtaining appropriate documentation from the participant. When SAHA determines that discrepancies exist due to SAHA errors such as spelling errors or incorrect birth dates, the errors will be corrected promptly. Upfront Income Verification Using Non -HUD Systems (Optional) In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. SAHA Policv SAHA will inform all applicants and participants of its use of other up -front income verification sources, such as The Work Number (an automated verification system) and state government databases, to validate tenant -reported income. Page 7-10 Administrative Plan 7/l/2025 City Council 5 — 332 7/15/2025 EXHIBIT 1 7-LD. THIRD -PARTY WRITTEN AND ORAL VERIFICATION HUD's current verification hierarchy defines two types of written third -party verification. The more preferable form, "written third -party verification," consists of an original document generated by a third -party source, which may be received directly from a third -party source or provided to the PHA by the family. If written third -party verification is not available, the PHA must attempt to obtain a "written third -party verification form." This is a standardized form used to collect information from a third party. Written Third -Party Verification [Notice PIH 2O18-181 Written third -party verification documents must be original and authentic and may be supplied by the family or received from a third -party source. Examples of acceptable tenant -provided documents include, but are not limited to: pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. The PHA is required to obtain, at minimum, two current and consecutive pay stubs for determining annual income from wages. The PHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. Written, third -party verification includes an original or authentic document generated by a third - party source dated within 120 days of the date received by the PHA [Notice PIH 2O23-27]. PHAs may accept a statement dated within the appropriate benefit year for fixed income sources [Notice PIH 2O23-27]. SAHA Policy Third -party documents provided by the family must be dated within 120 days of receipt by SAHA. SAHA will accept a statement dated within the appropriate benefit year for fixed income sources. If SAHA determines that third -party documents provided by the family are not acceptable, SAHA will explain the reason to the family and request additional documentation. As verification of earned income, SAHA will require the family to provide the two most current, consecutive pay stubs. At SAHA's discretion, if additional paystubs are needed due to the family's circumstances (e.g., sporadic income, fluctuating schedule, etc.), SAHA may request additional paystubs or a payroll record. Page 7-1 1 Administrative Plan 7/l/2025 City Council 5 — 333 7/15/2025 EXHIBIT 1 Written Third -Party Verification Form When upfront verification is not available and the family is unable to provide written third -party documents, the PHA must request a written third -party verification form. HUD's position is that this traditional third -party verification method presents administrative burdens and risks which may be reduced through the use of family -provided third -party documents. PHAs may mail or email third -party written verification form requests to third -party sources. SAHA Policv SAHA may mail, fax, e-mail third -party written verification requests and will accept third -party responses using any of these methods. SAHA will send a written request for verification as needed to each required source within 7 days of securing a family's authorization for the release of the information. If a response has not been received by the 15th day, SAHA will request third -party oral verification. Oral Third -Party Verification [Notice PIH 2O18-18] For third -party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person. Oral third -party verification is mandatory if neither form of written third -party verification is available. Third -party oral verification may be used when requests for written third -party verification forms have not been returned within a reasonable time—e.g., 10 business days. PHAs should document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed. SAHA Policv In collecting third -party oral verification, SAHA staff will record in the family's file the name and title of the person contacted, the date and time of the conversation (or attempt), the telephone number used, and the facts provided. When any source responds verbally to the initial written request for verification SAHA will accept the verbal response as oral verification but will also request that the source complete and return any verification forms that were provided. Page 7-12 Administrative Plan 7/l/2025 City Council 5 — 334 7/15/2025 EXHIBIT 1 When Third -Party Verification is Not Required [Notice PIH 2O18-181 Third -party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third -party verification of income, assets, or expenses when these items would have a minimal impact on the family's total tenant payment. SAHA Policv If the family cannot provide original documents, SAHA will pay the service charge required to obtain third -party verification, unless it is not cost effective in which case a self -certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family. The cost of postage and envelopes to obtain third -party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18]. Primary Documents Third -party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth. Imputed Assets HUD permits PHAs to accept a self -certification from a family as verification of assets disposed of for less than fair market value [HCV G13, p. 5-28]. SAHA Policv SAHA will not accept a self -certification from a family as verification of assets disposed of for less than fair market value. Value of Assets and Asset Income [24 CFR 982.516(a)] For families with net assets totaling $5,000 or less, the PHA may accept the family's declaration of asset value and anticipated asset income. However, the PHA is required to obtain third -party verification of all assets regardless of the amount during the intake process and at least every three years thereafter. SAHA Policv SAHA will not accept family's self -certification for assets. SAHA will require third - party verification regardless of value of asset. Page 7-13 Administrative Plan 7/l/2025 City Council 5 — 335 7/15/2025 EXHIBIT 1 7-I.E. SELF -CERTIFICATION When HUD requires third -party verification, self -certification or "tenant declaration," is used as a last resort when the PHA is unable to obtain third -party verification. Self -certification, however, is an acceptable form of verification when: • A source of income is fully excluded Net family assets total $5,000 or less and the PHA has adopted a policy to accept self certification at annual recertification, when applicable • The PHA has adopted a policy to implement streamlined annual recertifications for fixed sources of income (See Chapter 11) When the PHA was required to obtain third -party verification but instead relies on a tenant declaration for verification of income, assets, or expenses, the family's file must be documented to explain why third -party verification was not available. SAHA Policy When information cannot be verified by a third party or by review of documents, family members will be required to submit self -certifications attesting to the accuracy of the information they have provided to SAHA. SAHA staff must document the family's file to explain why third -party verification was not available when SAHA relies on tenant declaration for verification of income, assets, or expenses SAHA may require a family to certify that a family member does not receive a particular type of income or benefit. The self -certification must be made in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. Page 7-14 Administrative Plan 7/l/2025 City Council 5 — 336 7/15/2025 EXHIBIT 1 PART II: VERIFYING FAMILY INFORMATION 7-II.A. VERIFICATION OF LEGAL IDENTITY SAHA Policy SAHA will require families to furnish verification of legal identity for each household member. Verification of Legal Identity for Adults Verification of Legal Identity for Children Certificate of birth, naturalization papers Certificate of birth Church issued baptismal certificate Adoption papers Current, valid driver's license or Custody agreement Department of Motor Vehicles Health and Human Services ID identification card U.S. military discharge (DD 214) Certified school records Current U.S. passport Current government employer identification card with picture If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required. If none of these documents can be provided and at SAHA's discretion, a third party who knows the person may attest to the person's identity. The certification must be provided in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. Legal identity will be verified for all applicants at the time of eligibility determination and in cases where SAHA has reason to doubt the identity of a person representing themselves to be a participant. Page 7-15 Administrative Plan 7/l/2025 City Council 5 — 337 7/15/2025 EXHIBIT 1 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2O18-24] The family must provide documentation of a valid social security number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. Exemptions also include existing program participants who were at least 62 years of age as of January 31, 2010, and had not previously disclosed an SSN. Note that an individual who previously declared to have eligible immigration status may not change their declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose. The PHA must accept the following documentation as acceptable evidence of the social security number: • An original SSN card issued by the Social Security Administration (SSA) An original SSA -issued document, which contains the name and SSN of the individual • An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual While PHAs must attempt to gather third -party verification of SSNs prior to admission as listed above, PHAs also have the option of accepting a self -certification and a third -party document (such as a bank statement, utility or cell phone bill, or benefit letter) with the applicant's name printed on it to satisfy the SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required documentation. If verifying an individual's SSN using this method, the PHA must document why the other SSN documentation was not available [Notice PIH 2O23-27]. SAHA Policy SAHA will verify an individual's SSN in the situations described above using the method described above as a last resort when no other forms of verification of the individual's SSN are available. The PHA may only reject documentation of an SSN provided by an applicant or participant if the document is not an original document or if the original document has been altered, mutilated, is illegible, or appears to be forged. SAHA Policy SAHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to SAHA within 90 days. Page 7-16 Administrative Plan 7/l/2025 City Council 5 — 338 7/15/2025 EXHIBIT 1 In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90-day extension if it determines that the applicant's failure to comply was due to circumstances that were beyond the applicant's control and could not have been reasonably foreseen. SAHA Policv SAHA will grant one additional 90-day extension if needed for reasons beyond the participant's control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. If the individual fails to comply with SSN disclosure and documentation requirements upon expiration of the provided time period, SAHA will terminate the individual's assistance. If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of voucher issuance, an otherwise eligible family may be admitted to the program and the family must provide documentation of the child's SSN within 90 days of the effective date of the initial HAP contract. A 90-day extension will be granted if the PHA determines that the participant's failure to comply was due to unforeseen circumstances and was outside of the participant's control. SAHA Policv SAHA will grant one additional 90-day extension if needed for reasons beyond the applicant's control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. When a participant requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the participant must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided. When a participant requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90-day extension will be granted if the PHA determines that the participant's failure to comply was due to unforeseen circumstances and was outside of the participant's control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household. SAHA Policv SAHA will grant one additional 90-day extension if needed for reasons beyond the participant's control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Page 7-17 Administrative Plan 7/l/2025 City Council 5 — 339 7/15/2025 EXHIBIT 1 Social security numbers must be verified only once during continuously -assisted occupancy. SAHA Policv SAHA will verify each disclosed SSN by: Obtaining documentation from applicants and participants that is acceptable as evidence of social security numbers Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder Once the individual's verification status is classified as "verified," the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual's SSN. SAHA Policv Once an individual's status is classified as "verified" in HUD's EIV system, SAHA will remove and destroy copies of documentation accepted as evidence of social security numbers. 7-II.C. DOCUMENTATION OF AGE A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable. SAHA Policv If an official record of birth or evidence of social security retirement benefits cannot be provided, SAHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self -certification. Age must be verified only once during continuously assisted occupancy. 7-II.D. FAMILY RELATIONSHIPS Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter. SAHA Policv Family relationships are verified only to the extent necessary to determine a family's eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships. Page 7-18 Administrative Plan 7/l/2025 City Council 5 — 340 7/15/2025 EXHIBIT 1 Marriage SAHA Policv Certification by the head of household is normally sufficient verification. If SAHA has reasonable doubts about a marital relationship, SAHA will require the family to document the marriage. A marriage certificate generally is required to verify that a couple is married. In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns). Separation or Divorce SAHA Policv Certification by the head of household is normally sufficient verification. If SAHA has reasonable doubts about a separation or divorce, SAHA will require the family to provide documentation of the divorce or separation. A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is divorced. A copy of a court -ordered maintenance or other court record is required to document a separation. If no court document is available, documentation from a community -based agency will be accepted. Absence of Adult Member SAHA Policv If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill), if SAHA so requests. Foster Children and Foster Adults SAHA Policv Third -party verification from the state or local government agency responsible for the placement of the individual with the family is required. Page 7-19 Administrative Plan 7/l/2025 City Council 5 — 341 7/15/2025 EXHIBIT 1 7-II.E. VERIFICATION OF STUDENT STATUS General Requirements SAHA Policy SAHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if: The family reports full-time student status for an adult other than the head, spouse, or cohead. The family reports childcare expenses to enable a family member to further their education. The family includes a student enrolled in an institution of higher education. Verification of full-time student status includes all of the following: Written verification from the registrar's office or other school official School records indicating enrolment in sufficient credits to qualify as full-time by the educational institution Final report of units completed will be required at the family's annual reexamination or as requested by SAHA staff. Full-time students that are eighteen (18) years of age or older and are employed are required to provide an unofficial transcript from each institution of higher education at the time of the family's annual reexamination or as requested by SAHA staff. Restrictions on Assistance to Students Enrolled in Institutions of Higher Education This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance. SAHA Policy In accordance with the verification hierarchy described in section 7-1.13, SAHA will determine whether the student is exempt from the restrictions in 24 CFR 5.612 by verifying any one of the following exemption criteria: The student is enrolled at an educational institution that does not meet the definition of institution of higher education in the Higher Education Act of 1965 (see section Exhibit 3-2). The student is at least 24 years old. The student is a veteran, as defined in section 341.E. The student is married. The student has at least one dependent child, as defined in section 3-II.E. Page 7-20 Administrative Plan 7/l/2025 City Council 5 — 342 7/15/2025 EXHIBIT 1 The student is a person with disabilities, as defined in section 3-ILE, and was receiving assistance prior to November 30, 2005. If SAHA cannot verify at least one of these exemption criteria, SAHA will conclude that the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to verifying the student's income eligibility, SAHA will then proceed to verify either the student's parents' income eligibility (see section 7-III.J) or the student's independence from their parents (see below). Page 7-21 Administrative Plan 7/l/2025 City Council 5 — 343 7/15/2025 EXHIBIT 1 Independent Student SAHA Policy SAHA will verify a student's independence from their parents to determine that the student's parents' income is not relevant for determining the student's eligibility by doing all of the following: Either reviewing and verifying previous address information to determine whether the student has established a household separate from their parents for at least one year, or reviewing and verifying documentation relevant to determining whether the student meets the U.S. Department of Education's definition of independent student (see section 3-II.E) Reviewing the student's prior year income tax returns to verify the student is independent or verifying the student meets the U.S. Department of Education's definition of independent student (see section 3-II.E) Requesting and obtaining written certification directly from the student's parents identifying the amount of support they will be providing to the student, even if the amount of support is $0, except in cases in which SAHA determines that the student is a vulnerable youth (see section 3-II.E) 7-II.F. DOCUMENTATION OF DISABILITY The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person's disability [24 CFR 100.202(c)]. The PHA may not inquire about a person's diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant's medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services' website at http://www.hhs.gov/ocr/privacy/. The above cited regulation does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]: • Inquiry into an applicant's ability to meet the requirements of ownership or tenancy • Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability • Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability • Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance • Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance Page 7-22 Administrative Plan 7/l/2025 City Council 5 — 344 7/15/2025 EXHIBIT 1 Family Members Receiving SSA Disability Benefits Verification of the receipt of disability benefits from the Social Security Administration (SSA) is sufficient verification of disability for the purpose of qualifying for waiting list preferences (if applicable) or certain income disallowances and deductions [VG, p. 23]. SAHA Policv For family members claiming disability who receive disability benefits from the SSA, SAHA will attempt to obtain information about disability benefits through the HUD Enterprise Income Verification (EIV) system. If documentation from HUD's EIV System is not available, SAHA will request a current (dated within the appropriate benefit year) SSA benefit verification letter from each family member claiming disability status. If the family is unable to provide the document(s), SAHA will ask the family to request a benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it from www.ssa.jzov. Once the applicant or participant receives the benefit verification letter they will be required to provide it to SAHA. Family Members Not Receiving SSA Disability Benefits Receipt of veteran's disability benefits, worker's compensation, or other non -SSA benefits based on the individual's claimed disability are not sufficient verification that the individual meets HUD's definition of disability in 24 CFR 5.403. SAHA Policv For family members claiming disability who do not receive disability benefits from the SSA, a knowledgeable professional must provide third -party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition. Page 7-23 Administrative Plan 7/l/2025 City Council 5 — 345 7/15/2025 EXHIBIT 1 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.5081 Overview Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter. This verifications chapter discusses HUD and PHA verification requirements related to citizenship status. The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously assisted occupancy. [24 CFR 5.508(g)(5)] U.S. Citizens and Nationals HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors. The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation. SAHA Policy Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless SAHA receives information indicating that an individual's declaration may not be accurate. Page 7-24 Administrative Plan 7/l/2025 City Council 5 — 346 7/15/2025 EXHIBIT 1 Eligible Immigrants Documents Required All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals. The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD -funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide. PHA Verification [HCV GB, pp. 5-3 and 5-7] For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this plan. No further verification of eligible immigration status is required. For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the United States Citizenship and Immigration Services (USCIS). The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.11. VERIFICATION OF PREFERENCE STATUS The PHA must verify any preferences claimed by an applicant that determined placement on the waiting list. SAHA Policy 1. United States Military Veteran Preference: A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Form DD-214 with a discharge status of other than dishonorable, or equivalent verification, must be provided at their eligibility interview appointment. 2. Residency Preference: Residency preference for applicants who live or work in the City of Santa Ana at the time of application. At least two pieces of evidence must be provided for applicants who live or work in the City of Santa Ana including but not limited to a lease, utility bills, bank statements, or paycheck stubs ("proof of the residency preference"). The residency preference claimed at the time of the applicant applied for the program will be verified when the applicant is selected off of the waiting list. Applicants who are unable to provide proof of the residency preference will be removed from the waiting list. Applicants who live or work in the unincorporated areas of Santa Ana will not receive the residency preference. a. Mainstream vouchers are intended to facilitate access to housing for individuals with disabilities, including for individuals who reside in institutional or other segregated settings that may not be located in the geographic area that is typically served by a PHA. Consequently, HUD waived 24 CFR 982.207(b)(1) and established an alternative Page 7-25 Administrative Plan 7/l/2025 City Council 5 — 347 7/15/2025 EXHIBIT 1 requirement under which a PHA cannot apply a residency preference to Mainstream voucher applicants (excluding project -based vouchers). b. A PHA also cannot apply a resident preference to VASH voucher applicants. Families who have been terminated due to insufficient funding SAHA will offer an absolute preference to any family that has been terminated from its HCV program due to insufficient program funding. Special Purpose Vouchers will be the last to be terminated due to insufficient funding and first to be re -instated. Homeless Individuals and Families Set Aside Preference In accordance with PIH Notice 2023-13, SAHA will accept direct referrals to the HCV program for the following target population: Homeless Individuals and Families: The number of homeless individuals and families who can qualify for this preference and successfully lease a unit with their voucher will be limited to 50% of the total number of vouchers that become available through annual turnover in the previous calendar year. To qualify for this preference, homeless individuals and families must be referred by agencies with a contract or Memorandum of Understanding (MOU) in place with the Housing Authority or City of Santa Ana. The referring agency must provide a certification of the family's homeless status. Additionally, families already registered on the Waiting List who declare themselves as homeless, but are not referred by a CBO must provide a certification of their homeless status from an agency that has an MOU in place with the Housing Authority. This set -aside preference has been documented by SAHA using generally accepted data sources. All homeless individuals and families must qualify for the Residency Preference. Families who have been involuntarily displaced: Families who have been involuntarily displaced due to a disaster (e.g., fire, flood, earthquake) or eminent domain. The preference depends on funding availability. If insufficient funds are available, then applicants will be prioritized based upon elderly and disabled families first. Foster Youth to Independence (FYI) Vouchers The waiting list for FYI vouchers is continually open for referrals from the Orange County Social Services Agency (Santa Ana's Public Child Welfare Agency) as long as there are FYI vouchers available. PHAs may choose to create a preference in their regular HCV program for persons whose FYI assistance is expiring and will lack adequate housing as a result of their termination from the program, or other similar category. As required by statute, an FYI voucher may only be used to provide housing assistance for youth for a maximum of 36 months. However, youth who first lease a unit with an FYI voucher after the date of enactment of the Fostering Stable Housing Opportunities (FSHO) amendments may receive an extension Page 7-26 Administrative Plan 7/l/2025 City Council 5 — 348 7/15/2025 EXHIBIT 1 of the 36-month time limit of assistance for up to an additional 24 months if they meet the requirements of FSHO. FSHO applies to eligible youth who first leased or leases a unit after the date of enactment of FSHO, December 27, 2020, which includes youth who will be assisted with funding under this Notice. See HUD's FSHO implementation notice published in the Federal Register on January 24, 2022 (87 FR 3570). SAHA will provide a selection preference for FYI voucher holders who are terminated due to the time limit on assistance in accordance with this policy. Emergency Housing Vouchers (EHV) In March 2025, HUD notified PHAs of their final allocation to obligate all EHV HAP funds that remain available to HUD under the American Rescue Plan Act of 2021 (P.L. 117-2). According to the notice: "After this final allocation, the Department will provide no additional EHV CY HAP Renewal funding allocations to PHAs." Therefore, SAHA is making the waiting list continually open for EHV vouchers that are subject to termination due to this final funding allocation by HUD. Specifically, SAHA will provide a preference in the regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program. In accordance with this policy, SAHA will provide a selection preference for EHV voucher holders who are terminated due to the lack of renewal funding from HUD. This preference is allowed under Question # 45 of the Emergency Housing Vouchers Frequently Asked Questions (FAQs) v.9 which states, "Funds appropriated for the EHV program are available for obligation by HUD until September 30, 2030. These funds will be cancelled as a matter of law on September 30, 2035, per 31 U.S.0 1552. Prior to 2030, PHAs may consider options to ensure continued assistance to EHV families including but not limited to issuing regular Housing Choice Vouchers (HCV) to the affected EHV households. Such families would need to be pulled from the waiting list. to facilitate this process, PHAs may choose to create a preference in their regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program, or other similar category." Page 7-27 Administrative Plan 7/l/2025 City Council 5 — 349 7/15/2025 EXHIBIT 1 PART III: VERIFYING INCOME AND ASSETS Chapter 6, Part I of this plan describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any assets and income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter. 7-III.A. EARNED INCOME Tips Wages SAHA Policv Unless tip income is included in a family member's W-2 by the employer, persons who work in industries where tips are standard will be required to sign a certified estimate of tips received for the previous two pay periods and tips anticipated to be received in the coming year. SAHA Policv For wages other than tips, the family must provide originals for the past three months of consecutive pay stubs for initial eligibility and two most recent consecutive pay stubs for reexaminations. SAHA may request additional verification as needed. 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME SAHA Policv Business owners and self-employed persons will be required to provide: • A statement of income and expenses must be submitted and the business owner or self-employed person must certify to its accuracy. • All schedules completed for filing federal and local taxes in the preceding year. • If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules. • SAHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self-employed person will be required to submit the information requested and to certify to its accuracy at all future reexaminations. • At any reexamination, SAHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements. • If the family member has been self-employed for three (3) to twelve (12) months SAHA will require the family to provide documentation of income and expenses for this period and use that information to project income. Page 7-28 Administrative Plan 7/l/2025 City Council 5 — 350 7/15/2025 EXHIBIT 1 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 11. Social Security/SSI Benefits Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ for applicants and participants. For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to provide a copy of their current SS and/or SSI benefit letter (dated within the appropriate benefit year) for each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the applicant request a benefit verification letter from SSA's website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the applicant, make a photocopy of the document for the file, and return the original to the family. For participants, the PHA must obtain information through the HUD EIV system and confirm with the participants that the current listed benefit amount is correct. If the participant agrees with the amount reported in EIV, the PHA must use the EIV- reported gross benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV-reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the participant disputes the amount. If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in EIV, the PHA must request a current SSA benefit verification letter (dated within the appropriate benefit year) from each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the participant request a benefit verification letter from SSA's website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the participant, make a photocopy of the document for the file, and return the original to the family. Photocopies of social security checks or bank statements are not acceptable forms of verification for SS/SSI benefits. Page 7-29 Administrative Plan 7/l/2025 City Council 5 — 351 7/15/2025 EXHIBIT 1 7-III.D. ALIMONY OR CHILD SUPPORT SAHA Policy The methods SAHA will use to verify alimony and child support payments differ depending on whether the family declares that it receives regular payments. If the family declares that it receives regular payments, verification will be obtained in the following order of priority: Copies of the receipts and/or payment stubs for the 60 days prior to PHA request Third -party verification form from the state or local child support enforcement agency for payment record for the last 12 months and requests that the entity disclose any known information about the likelihood of future payments. Third -party verification form from the person paying the support Family's self -certification of amount received and the likelihood of support payments being received in the future, or that support payments are not being received. A separation or settlement agreement or a divorce decree stating the amount and type of support and payment schedules. Note: Families are not required to undertake independent enforcement action. Page 7-30 Administrative Plan 7/l/2025 City Council 5 — 352 7/15/2025 EXHIBIT 1 7-III.E. ASSETS AND INCOME FROM ASSETS Assets Disposed of for Less than Fair Market Value The family must certify whether any assets have been disposed of for less than fair market value in the preceding two years. The PHA needs to verify only those certifications that warrant documentation [HCV GB, p. 5-28]. SAHA Policv SAHA will verify the value of assets disposed of only if: SAHA does not already have a reasonable estimation of its value from previously collected information, or The amount reported by the family in the certification appears obviously in error. Example 1: An elderly participant reported a $10,000 certificate of deposit at the last annual reexamination and the PHA verified this amount. Now the person reports that she has given this $10,000 to her son. The PHA has a reasonable estimate of the value of the asset; therefore, reverification of the value of the asset is not necessary. Example 2: A family member has disposed of its 1/4 share of real property located in a desirable area and has valued her share at approximately $5,000. Based upon market conditions, this declaration does not seem realistic. Therefore, the PHA will verify the value of this asset. 7-III.F. NET INCOME FROM RENTAL PROPERTY SAHA Policv The family must provide: A current executed lease for the property that shows the rental amount or certification from the current tenant A self -certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with Schedule E (Rental Income). If Schedule E was not prepared, SAHA will require the family members involved in the rental of property to provide a self -certification of income and expenses for the previous year and may request documentation to support the statement including: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. Page 7-31 Administrative Plan 7/l/2025 City Council 5 — 353 7/15/2025 EXHIBIT 1 7-III.G. RETIREMENT ACCOUNTS SAHA Policy SAHA will accept written third -party documents supplied by the family as evidence of the status of retirement accounts. The type of original document that will be accepted depends upon the family member's retirement status. Before retirement, SAHA will accept a copy of document provided from the entity holding the account with a date that shows it is the most recently scheduled statement for the account but in no case earlier than 120 days from the effective date of the re-examination. SAHA will send third party verification to determine if family has access to the account to determine penalties, early withdrawal fees, and any related fees. SAHA will consider limited access as having no access. Upon retirement, SAHA will accept a copy of document provided from the entity holding the account that reflects any distributions of the account balance, any lump sums taken and any regular payments. After retirement, SAHA will accept a copy of document provided from the entity holding the account dated no earlier than 120 days from the effective date of the re- examination that reflects any distributions of the account balance, any lump sums taken and any regular payments. Page 7-32 Administrative Plan 7/l/2025 City Council 5 — 354 7/15/2025 EXHIBIT 1 7-III.H. INCOME FROM EXCLUDED SOURCES A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded. For fully excluded income, the PHA is not required to follow the verification hierarchy, document why third -party verification is not available, or report the income on the 50058. Fully excluded income is defined as income that is entirely excluded from the annual income determination (for example, food stamps, earned income of a minor, or foster care funds) [Notice PIH 2O13-04]. PHAs may accept a family's signed application or reexamination form as self -certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification. For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058. Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student). SAHA Policy SAHA will accept the family's self -certification as verification of fully excluded income. SAHA may request additional documentation if necessary to document the income source. SAHA will verify the source and amount of partially excluded income as described in Part 1 of this chapter. Page 7-33 Administrative Plan 7/l/2025 City Council 5 — 355 7/15/2025 EXHIBIT 1 7-III.I. ZERO INCOME FAMILIES [Notice PIH 2O23-27] PHAs have discretion to establish reasonable procedures to manage the risk of unreported income, such as asking families to complete a zero -income worksheet at admission or periodically after admission to determine if they have any sources of unreported income or searching any UIV sources for unreported income. In calculating annual income, PHAs must not assign monetary value to nonmonetary in -kind donations from a food bank or similar organization received by the family [24 CFR 5.609(b)(24)(vi)]. PHAs may accept a self -certification of zero income from the family without taking any additional steps to verify zero reported income. HUD does not require such self -certifications be notarized. PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms. Families who begin receiving income which does not trigger an interim reexamination should no longer be considered zero income even though the family's income is not reflected on the Form HUD-50058. SAHA Policy SAHA will require a self -certification statement of zero income from all adult family members that are not attending school or any type of training. For zero income families SAHA requires these families to undergo a file review every 90 days. Page 7-34 Administrative Plan 7/l/2025 City Council 5 — 356 7/15/2025 EXHIBIT 1 7-III.J. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9) as updated for HOTMA] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the federally mandated income exclusions are included [24 CFR 5.609(b)(9)(ii)]. SAHA Policy SAHA will request written third -party verification of both the source and the amount of student financial assistance. Family -provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student. In addition, unless the student's only source of assistance is assistance under Title IV of the HEA, SAHA will request written verification of the cost of the student's tuition, books, supplies, room and board, and other required fees and charges to the student from the educational institution. If SAHA is unable to obtain third -party written verification of the requested information, SAHA will pursue other forms of verification following the verification hierarchy in section 7-I.B. Page 7-35 Administrative Plan 7/l/2025 City Council 5 — 357 7/15/2025 EXHIBIT 1 7-III.K. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the income of the student's parents must be considered when determining income eligibility, unless the student is determined independent from their parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612, FR Notice 4/10/06, p. 18146, and FR Notice 9/21/16]. This provision does not apply to students residing with parents who are seeking or receiving HCV assistance. It is limited to students who are seeking or receiving assistance on their own, separately from their parents. SAHA Policy If SAHA is required to determine the income eligibility of a student's parents, SAHA will request an income declaration and certification of income from the appropriate parent(s) (as determined in section 3-II.E). SAHA will send the request directly to the parents, who will be required to certify to their income under penalty of perjury. The parents will be required to submit the information directly to SAHA. The required information must be submitted (postmarked) within 14 calendar days of the date of SAHA's request or within any extended timeframe approved by SAHA. SAHA reserves the right to request and review supporting documentation at any time if it questions the declaration or certification. Supporting documentation may include, but is not limited to, Internal Revenue Service (IRS) tax returns, consecutive and original pay stubs, bank statements, pension benefit statements, benefit award letters, and other official and authentic documents from a federal, state, or local agency. Page 7-36 Administrative Plan 7/l/2025 City Council 5 — 358 7/15/2025 EXHIBIT 1 PART IV: VERIFYING MANDATORY DEDUCTIONS 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required. Dependent Deduction See Chapter 6 (6-II.13.) for a full discussion of this deduction. The PHA must verify that: • Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or cohead of the family and is not a foster child • Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide, and is a person with a disability or a full time student Elderly/Disabled Family Deduction See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 (641.C.) for a discussion of the deduction. The PHA must verify that the head, spouse, or cohead is 62 years of age or older or a person with disabilities. Page 7-37 Administrative Plan 7/l/2025 City Council 5 — 359 7/15/2025 EXHIBIT 1 7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION Policies related to health and medical care expenses are found in 6-II.D. The amount of the deduction will be verified following the standard verification procedures described in Part I. Amount of Expense SAHA Policy Health and medical care expenses will be verified through: Written third -parry documents provided by the family, such as pharmacy printouts or receipts. SAHA will make a best effort to determine what expenses from the past are likely to continue to occur in the future. SAHA will also accept evidence of monthly payments or total payments that will be due for health and medical care expenses during the upcoming 12 months. SAHA will use monthly payments or total balance, whichever is less. In addition, the PHA must verify that: • The household is eligible for the deduction. • The costs to be deducted are qualified medical expenses. • The expenses are not paid for or reimbursed by any other source. • Costs incurred in past years are counted only once. Page 7-38 Administrative Plan 7/l/2025 City Council 5 — 360 7/15/2025 EXHIBIT 1 Eligible Household The health and medical care expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62, or a person with disabilities. The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7-IV.A.) of this plan. Qualified Expenses To be eligible for the health and medical care expenses deduction, the costs must qualify as health and medical care expenses. See Chapter 6 (6-II.D.) for the PHA's policy on what counts as a health and medical care expense. Unreimbursed Expenses To be eligible for the health and medical care expenses deduction, the costs must not be reimbursed by another source. SAHA Policy The family will be required to certify that the health and medical care expenses are not paid or reimbursed to the family from any source. If health and medical care are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source. Expenses Incurred in Past Years SAHA Policy When anticipated costs are related to on -going payment of medical bills incurred in past years, SAHA will verify: The anticipated repayment schedule The amounts paid in the past, and Whether the amounts to be repaid have been deducted from the family's annual income in past years Page 7-39 Administrative Plan 7/l/2025 City Council 5 — 361 7/15/2025 EXHIBIT 1 7-IV.C. DISABILITY ASSISTANCE EXPENSES Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I. Amount of Expense Attendant Care SAHA Policv SAHA will accept written third -party documents provided by the family. If family -provided documents are not available, SAHA will provide a third -party verification form directly to the care provider requesting the needed information. Expenses for attendant care will be verified through: Written third -party documents provided by the family, such as receipts or cancelled checks. Third -party verification form signed by the provider, if family -provided documents are not available. Auxiliary Apparatus SAHA Policv Expenses for auxiliary apparatus will be verified through: Written third -party documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months. Third -party verification form signed by the provider, if family -provided documents are not available. In addition, the PHA must verify that: • The family member for whom the expense is incurred is a person with disabilities (as described in 7-II.17 above). • The expense permits a family member, or members, to work (as described in 6-II.E.). • The expense is not reimbursed from another source (as described in 6-II.E.). Page 7-40 Administrative Plan 7/l/2025 City Council 5 — 362 7/15/2025 EXHIBIT 1 Family Member is a Person with Disabilities To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.17.). Family Member(s) Permitted to Work The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work. SAHA Policv SAHA will request third -party verification from a rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family. If third -party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance), to work. Unreimbursed Expenses To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source. SAHA Policv The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source. Page 7-41 Administrative Plan 7/l/2025 City Council 5 — 363 7/15/2025 EXHIBIT 1 7-IV.D. CHILDCARE EXPENSES Policies related to childcare expenses are found in Chapter 6 (6-II.17). The amount of the deduction will be verified following the standard verification procedures described in Part I of this chapter. In addition, the PHA must verify that: • The child is eligible for care (12 or younger). • The costs claimed are not reimbursed. • The costs enable a family member to work, actively seek work, or further their education. • The costs are for an allowable type of childcare. • The costs are reasonable. Eligible Child To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.). Unreimbursed Expense To be eligible for the childcare deduction, the costs must not be reimbursed by another source. SAHA Policy The family (and the care provider) will be required to certify that the childcare expenses are not paid or reimbursed to the family from any source. Page 7-42 Administrative Plan 7/l/2025 City Council 5 — 364 7/15/2025 EXHIBIT 1 Pursuing an Eligible Activity The PHA must verify that the family member(s) that the family has identified as being enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those activities. SAHA Policy Information to be Gathered SAHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work Whenever possible SAHA will use documentation from a state or local agency that monitors work -related requirements (e.g., welfare or unemployment). In such cases SAHA will request family -provided verification from the agency of the member's job seeking efforts to date, and require the family to submit to SAHA any reports provided to the other agency. In the event third -party verification is not available, SAHA will provide the family with a form on which the family member must record job search efforts. SAHA will review this information at each subsequent reexamination for which this deduction is claimed. Furthering Education SAHA will request third -party documentation to verify that the person permitted to further their education by the childcare is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family. Gainful Employment SAHA will seek third -party verification of the work schedule of the person who is permitted to work by the childcare. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified. The documentation may be provided by the family. Page 7-43 Administrative Plan 7/l/2025 City Council 5 — 365 7/15/2025 EXHIBIT 1 Allowable Type of Childcare The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6. SAHA Policv SAHA will verify that the type of childcare selected by the family is allowable, as described in Chapter 6 (6-II.17). SAHA will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible family members). SAHA will verify that the childcare provider is not an assisted family member. Verification will be made through the head of household's declaration of family members who are expected to reside in the unit. Reasonableness of Expenses Only reasonable childcare costs can be deducted. SAHA Policv The actual costs the family incurs will be compared with SAHA's established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable. If the family presents a justification for costs that exceed typical costs in the area, SAHA will request additional documentation, as required, to support a determination that the higher cost is appropriate. Page 7-44 Administrative Plan 7/l/2025 City Council 5 — 366 7/15/2025 EXHIBIT 1 EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-101 • All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA. • Except for persons 62 or older, all noncitizens must sign a verification consent form • Additional documents are required based upon the person's status. Elderly Noncitizens • A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old -age benefits. All other Noncitizens • Noncitizens that claim eligible immigration status also must present the applicable USCIS document. Acceptable USCIS documents are listed below. • Form I-551 Alien Registration Receipt • Form I-94 Arrival -Departure Record with Card (for permanent resident aliens) no annotation accompanied by: • Form I-94 Arrival -Departure Record • A final court decision granting asylum annotated with one of the following: (but only if no appeal is taken); • "Admitted as a Refugee Pursuant to • A letter from a USCIS asylum officer Section 207" granting asylum (if application is filed • "Section 208" or "Asylum" on or after 10/1/90) or from a USCIS district director granting asylum • "Section 243(h)" or "Deportation (application filed before 10/l/90); stayed by Attorney General" • A court decision granting withholding • "Paroled Pursuant to Section 221 (d)(5) of deportation; or of the USCIS" . A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/l/90). • Form I-688 Temporary Resident Card Form I-688B Employment Authorization Card annotated "Section 245A" or Section 210". annotated "Provision of Law 274a. 12(11)" or "Provision of Law 274a.12". • A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant's entitlement to the document has been verified; or • Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register Page 7-45 Administrative Plan 7/l/2025 City Council 5 — 367 7/15/2025 EXHIBIT 1 Chapter 7.B. VERIFICATION UNDER HOTMA 102/104 [24 CFR 982.516, 24 CFR 982.551, 24 CFR 5.230, Notice PIH 2O23-27] INTRODUCTION This chapter is applicable upon the PHA's HOTMA 102/104 compliance date. Prior to this date, the PHA will follow policies as outlined in Chapter 7.A. The PHA must verify all information that is used to establish the family's eligibility and level of assistance and is required to obtain written authorization from the family in order to collect the information. Applicants and program participants must cooperate with the verification process as a condition of receiving assistance. The PHA must not pass on the cost of verification to the family. The PHA must follow the verification guidance provided by HUD in Notice PIH 2O23-27 and any subsequent guidance issued by HUD. This chapter summarizes those requirements and provides supplementary PHA policies. Part I describes the general verification process. Part II provides more detailed requirements related to family information. Part III provides information on income and assets, and Part IV covers mandatory deductions. Verification policies, rules and procedures will be modified as needed to accommodate persons with disabilities. All information obtained through the verification process will be handled in accordance with the records management policies of the PHA. PART I: GENERAL VERIFICATION REQUIREMENTS 7-I.A. FAMILY CONSENT TO RELEASE OF INFORMATION [24 CFR 982.516; 24 CFR 982.551; 24 CFR 5.230; and Notice PIH 2O23-271 Consent Forms The family must supply any information that the PHA or HUD determines is necessary to the administration of the program and must consent to PHA verification of that information [24 CFR 982.551]. All adult family members must sign consent forms as needed to collect information relevant to the family's eligibility and level of assistance. While PHAs must use form HUD- 9886-A, this form does not release all the information necessary to the administration of the program. The PHA must also develop its own release forms to cover all other necessary information. 025 City Council — 368 5 2 25 EXHIBIT 1 Form HUD-9886-A [24 CFR 5.230(b)(1), b(2), (c)(4), and (c)(5); and Notice PIH 2O23-271 All adult applicants and participants sign form HUD-9886-A, Authorization for Release of Information. All adult family members (and the head and spouse/cohead, regardless of age) are required to sign the Form HUD-9886-A at admission. Participants, prior to January 1, 2024, signed and submitted Form HUD-9886 at each annual reexamination. HOTMA eliminated this requirement and instead required that the Form HUD-9886-A be signed only once. On or after January 1, 2024 (regardless of the PHA's HOTMA compliance date), current program participants must sign and submit a new Form HUD-9886-A at their next interim or annual reexamination. This form will only be signed once. Another Form HUD-9886-A will not be submitted to the PHA except under the following circumstances: • When any person 18 years or older becomes a member of the family; • When a current member of the family turns 18; or • As required by HUD or the PHA in administrative instructions. The PHA has the discretion to establish policies around when family members must sign consent forms when they turn 18. PHAs must establish these policies stating when family members will be required to sign consent forms at intervals other than at reexamination. SAHA Policy Family members turning 18 years of age between annual recertifications will be notified in writing that they are required to sign the required Consent to the Release of Information Form HUD-9886-A The purpose of form HUD-9886-A is to facilitate automated data collection and computer matching from specific sources and provides the family's consent only for the specific purposes listed on the form. HUD and the PHA may collect information from State Wage Information Collection Agencies (SWICAs) and current and former employers of adult family members. Only HUD is authorized to collect information directly from the Internal Revenue Service (IRS) and the Social Security Administration (SSA). The PHA may obtain any financial record from any financial institution, as the terms financial record and financial institution are defined in the Right to Financial Privacy Act (12 U.S.C. 3401), whenever the PHA determines the record is needed to determine an applicant's or participant's eligibility for assistance or level of benefits [24 CFR 5.230(c)(4)]. The executed form will remain effective until the family is denied assistance, assistance is terminated, or the family provides written notification to the PHA to revoke consent. 025 City Council — 369 M5 2 25 EXHIBIT 1 Penalties for Failing to Consent [24 CFR 5.232] If any family member who is required to sign a consent form fails to do so, the PHA must deny admission to applicants and terminate assistance of participants. The family may request an informal review (applicants) or informal hearing (participants) in accordance with PHA procedures. However, this does not apply if the applicant, participant, or any member of their family, revokes their consent with respect to the ability of the PHA to access financial records from financial institutions, unless the PHA establishes a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance [24 CFR 5.232(c)]. PHAs may not process interim or annual reexaminations of income without the family's executed consent forms. SAHA Polic SAHA has established a policy that revocation of consent to access financial records will result in denial of admission or termination of assistance in accordance with SAHA policy. In order for a family to revoke their consent, the family must provide written notice to SAHA. Within 14 calendar days of the date the family provides written notice, SAHA will send the family a notice acknowledging receipt of the request and explaining that revocation of consent will result in denial or termination of assistance, as applicable. At the same time, SAHA will notify their local HUD office. 025 City Council — 370 M5 2 25 EXHIBIT 1 7-I.B. USE OF OTHER PROGRAMS' INCOME DETERMINATIONS [24 CFR 5.609(c)(3) and Notice PIH 2O23-271 PHAs may, but are not required to, determine a family's annual income, including income from assets, prior to the application of any deductions, based on income determinations made within the previous 12-month period, using income determinations from means -tested federal public assistance programs. PHAs are not required to accept or use determinations of income from other federal means -tested forms of assistance. If the PHA adopts a policy to accept this type of verification, the PHA must establish in policy when they will accept Safe Harbor income determinations and from which programs. PHAs must also create policies that outline the course of action when families present multiple verifications from the same or different acceptable Safe Harbor programs. Means -tested federal public assistance programs include: • Temporary Assistance for Needy Families (TANF) (42 U.S.C. 601, et seq.); • Medicaid (42 U.S.C. 1396 et seq.); • Supplemental Nutrition Assistance Program (SNAP) (42 U.S.C. 2011 et seq.); • Earned Income Tax Credit (EITC) (26 U.S.C. 32); • Low -Income Housing Tax Credit (LIHTC) program (26 U.S.C. 42); • Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC) (42 U.S.C. 1786); • Supplemental Security Income (SSI) (42 U.S.C. 1381 et seq.); • Other programs administered by the HUD Secretary; • Other means -tested forms of federal public assistance for which HUD has established a memorandum of understanding; and • Other federal benefit determinations made in other forms of means -tested federal public assistance that the Secretary determines to have comparable reliability and announces through the Federal Register. 025 City Council — 371 5 2 25 EXHIBIT 1 If the PHA elects to use the annual income determination from one of the above -listed forms of means -tested federal public assistance, then they must obtain the income information by means of a third -party verification. The third -party verification must state the family size, must be for the entire family, and must state the amount of the family's annual income. The annual income need not be broken down by family member or income type. Annual income includes income earned from assets, therefore when using Safe Harbor to verify a family's income, PHAs will neither further inquire about a family's net family assets, nor about the income earned from those assets, except with respect to whether or not the family owns assets that exceed the asset limitation in 24 CFR 5.618. The Safe Harbor documentation will be considered acceptable if any of the following dates fall into the 12-month period prior to the receipt of the documentation by the PHA: • Income determination effective date; • Program administrator's signature date; • Family's signature date; • Report effective date; or • Other report -specific dates that verify the income determination date. The only information that PHAs are permitted to use to determine income under this method is the total income determination made by the federal means -tested program administrator. Other federal programs may provide additional information about income inclusions and exclusions in their award letters; however, these determinations and any other information must not be considered by the PHA. PHAs are not permitted to mix and match Safe Harbor income determinations and other income verifications. If the PHA is unable to obtain Safe Harbor documentation or if the family disputes the other program's income determination, the PHA must calculate the family's annual income using traditional methods as outlined in Notice PIH 2O23-27 and this chapter. If the PHA uses a Safe Harbor determination to determine the family's income, the family is obligated to report changes in income that meet the PHA's reporting requirement and occur after the effective date of the transaction. 025 City Council — 372 5 2 25 EXHIBIT 1 The amounts of unreimbursed reasonable attendant care expenses and childcare expenses deducted from a family's annual income, except for when a family is approved for a childcare expense hardship exemption, must still be capped by the amount earned by any family member who is enabled to work as a result of the expense. PHAs are therefore required to obtain third - party verification of the applicable employment income and cap the respective expense deductions accordingly. SAHA Policy SAHA will not accept verification from other federal assistance programs. All income will be verified in accordance with the requirements of HUD's verification hierarchy and PHA policies in this chapter. - 025 City Council — 373 5 2 25 EXHIBIT 1 7-I.C. STREAMLINED INCOME DETERMINATIONS [24 CFR 960.257(c); Notice PIH 2O23-27] HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third -party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years, the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or other inflationary adjustment factor. Streamlining policies are optional. The PHA may, however, obtain third -party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third -party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non -fixed sources. Two streamlining options are available, depending upon the percentage of the family's income that is received from fixed sources. When 90 percent or more of a family's unadjusted income is from fixed sources, the PHA may apply the inflationary adjustment factor to the family's fixed -income sources, provided that the family certifies both that 90 percent or more of their unadjusted income is fixed and that their sources of fixed income have not changed from the previous year. Sources of non -fixed income are not required to be adjusted and must not be adjusted by a COLA, but PHAs may choose to adjust sources of non -fixed income based on third -party verification. PHAs have the discretion to either adjust the non -fixed income or carry over the calculation of non -fixed income from the first year to years two and three. 025 City Council — 374 5 2 25 EXHIBIT 1 When less than 90 percent of a family's unadjusted income consists of fixed income, PHAs may apply a COLA to each of the family's sources of fixed income. PHAs must determine all other income using standard verification requirements as outlined in Notice PIH 2O23-27. SAHA Policy SAHA chooses not to streamline the annual reexamination process for fixed -income sources. The PHA will obtain third -party verification, where applicable, of all sources of income annually in accordance with PHA policies in the chapter and HUD regulations. - 025 City Council — 375 M5 2 25 EXHIBIT 1 7-I.D. VERIFICATION HIERARCHY [Notice PIH 2O23-27] When the PHA does not use a streamlined determination of income or an income determination from a means -tested federal assistance program, HUD requires the PHA to obtain third -party verification of: • Reported family annual income; • The value of net family assets when the net value exceeds the HUD -published threshold, as listed in HUD's Inflation -Adjusted Values tables ($50,000 for 2024, and $51,600 for 2025); • Expenses related to deductions from annual income; and • Other factors that affect the determination of adjusted income. HUD mandates the use of the EIV system and offers administrative guidance on the use of other methods to verify family information and specifies the circumstances in which each method will be used. In general HUD requires the PHA to use the most reliable form of verification that is available and to document the reasons when the PHA uses a lesser form of verification. In order of priority, the forms of verification that the PHA will use are: HUD developed a hierarchy that described verification documentation from most acceptable to least acceptable. The PHA must demonstrate efforts to obtain third party verification prior to accepting self -certification except instances when self -certification is explicitly allowed. In order of priority, the hierarchy is: • Highest: Level 6: Up -front Income Verification (UIV) using HUD's Enterprise Income Verification (EIV) system • Highest: Level 5: Up -front Income Verification (UIV) using a non-EIV system • High: Level 4: - Written third -party verification from the source, also known as "family -provided verification" - Or EIV plus self -certification • Medium: Level 3: Written third -party verification form • Medium: Level 2: Oral third -party verification • Low: Level 1: Self -certification (not third -party verification) Each of the verification methods is discussed in subsequent sections below. File Documentation The PHA must document in the file how the figures used in income and rent calculations were determined. All verification attempts, information obtained, and decisions reached during the verification process will be recorded in the family's file in sufficient detail to demonstrate that the PHA has followed all of the verification policies set forth in this plan. The record should be sufficient to enable a staff member or HUD reviewer to understand the process followed and conclusions reached. 025 City Council — 376 H5 2 25 EXHIBIT 1 7-I.E. LEVEL 5 AND 6 VERIFICATIONS: UP -FRONT INCOME VERIFICATION (UIV) Up -front income verification (UIV) refers to the PHA's use of the verification tools available from independent sources that maintain computerized information about earnings and benefits for a number of individuals. PHAs may use UIV sources before or during a family reexamination. UIV will be used to the extent that these systems are available to the PHA. There may be legitimate differences between the information provided by the family and UIV- generated information. If the family disputes the accuracy of UIV data, no adverse action can be taken until the PHA has independently verified the UIV information and the family has been granted an opportunity to contest any adverse findings through the informal review/hearing process of the PHA. HUD's Enterprise Income Verification (EIV) System (Mandatory) PHAs must use HUD's EIV system in its entirety as a third -party source to verify tenant employment and income information during annual and streamlined reexaminations of family composition and income in accordance with 24 CFR 5.236 and Notice PIH 2O23-27. HUD's EIV system contains data showing earned income, unemployment benefits, social security benefits, and SSI benefits for participant families. The income validation tool (IVT) in EIV provides projections of discrepant income for wages, unemployment compensation, and SSA benefits pursuant to HUD's data sharing agreements with other departments. The following policies apply to the use of HUD's EIV system. EIV Income Report PHAs are required to obtain an EIV Income Report for each family any time the PHA conducts an annual reexamination. However, PHAs are not required to use the EIV Income Report: • At annual reexamination if the PHA used Safe Harbor verification from another means -tested federal assistance program to determine the family's income; or • During any interim reexaminations. The EIV Income Report is also not available for program applicants at admission. When required to use the EIV Income Report, in order for the report to be considered current, the PHA must pull the report within 120 days of the effective date of the annual reexamination. 025 City Council — 377 5 2 25 EXHIBIT 1 The EIV Income Report may be used to verify and calculate income at annual reexamination if the family self -certifies that the amount is accurate and representative of current income. The family must be provided with the information in EIV. SAHA Policy SAHA will obtain an EIV Income Report for all annual reexaminations for all families on a monthly basis. Reports will be generated as part of the regular reexamination process. SAHA will ensure that all EIV Income Reports are pulled within 120 days of the effective date of the annual reexamination. Income reports will only be used for interim reexaminations as necessary. EIV may be used to verify that families claiming zero income are not receiving income from any of these sources listed in EIV. Income reports will be retained in participant files with the applicable annual documents or interim reexamination documents (if applicable) for the duration of tenancy. When SAHA determines through EIV reports and third -party verification that a family has concealed or under -reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity. New Hires Report [Notice PIH 2023-27] The New Hires Report identifies participant families who have new employment within the last six months. The report is updated monthly. PHAs must review this information at annual reexamination except when the PHA uses Safe Harbor verification from another means -tested federal assistance program to determine the family's income. PHAs that do not require families to undergo interim reexaminations for earned income increases after an interim decrease are not required to review this report between a family's annual reexamination. If the PHA requires an interim for increases in earned income after an interim decrease, then the PHA must review the report quarterly after the family's interim decrease. SAHA Policy All families must report all changes in family and household composition that occur between annual reexaminations within 14 calendar days of the change. In accordance with SAHA policies in Chapter 11, SAHA does not process interim reexaminations for families who have increases in earned income. SAHA will only review the New Hires Report at annual reexamination. ftgv 025 City Council — 378 7M5 2 25 EXHIBIT 1 No Income Reported by HHS or SSA Report This report is a tool for PHAs to identify participants who passed the SSA identity test, but no income information was reported by either HHS or SSA records. This scenario does not mean that the participant does not have any income. PHAs obtain written, third -party verification of any income reported by the participant. The PHA must identify in its policies and procedures when this report will be pulled [Notice PIH 2O23-27]. SAHA Polic SAHA will generate the No Income Reported by HHS or SSA Report quarterly and will retain the report. SAHA will re -verify the status of participants identified on the report quarterly. Based on the information provided by the family and in EIV, SAHA may require that family members provide verifications or sign release forms in order to obtain additional verification. When SAHA determines through this report and third -party verification that a family has concealed or under -reported income, corrective action will be taken pursuant to the policies in Chapter 14, Program Integrity EIV identity Verification Report The EIV system verifies tenant identities against SSA records. These records are compared to HUD data for a match on social security number, name, and date of birth. PHAs are required to use EIV's Identity Verification Report on a monthly basis to improve the availability of income information in EIV [Notice PIH 2O23-27]. When identity verification for a participant fails, a message will be displayed within the EIV system and no income information will be displayed. SAHA Policy SAHA will identify participants whose identity verification has failed by reviewing EIV's Identity Verification Report on a monthly basis. SAHA will attempt to resolve discrepancies by obtaining appropriate documentation from the participant. When SAHA determines that discrepancies exist as a result of PHA errors such as spelling errors or incorrect birth dates, it will correct the errors promptly. 025 City Council — 379 5 2 25 EXHIBIT 1 Deceased Tenants Reports [Notice PIH 2O12-4 and Notice PIH 2023-27] The Deceased Tenant Report identifies residents that have been reported by the SSA as deceased. SAHA is required to review the report at least quarterly. SAHA Policv SAHA will review the Deceased Tenants Report on a monthly basis. When the Deceased Tenants Report identifies an individual as being deceased, PHAs must immediately send a letter to the head of household or emergency contact person (if the head of household is deceased and there is no other adult household member) to confirm the death of the listed household member. The PHA must notify the owner in writing of the deceased head of household. PHAs may list the EOP as the last day of the month in which the death occurred. The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred. SAHA Policv SAHA will list the EOP as the last day of the month in which the death occurred. The landlord is entitled to receive the full HAP amount for the month in which the tenant death occurred. When the only remaining household member is the live-in aide, the live-in aide is not entitled or eligible for any rental assistance or continued occupancy. The PHA may not designate the live-in aide as the new head of household or change the relation code on the Form HUD-50058. Other EIV Reports [Notice PIH 2023-271 The PHA is required to review the Multiple Subsidy Report at least quarterly and the Failed EIV Pre -Screening and Failed Verification (Failed SSA Identity Test) reports at least monthly. Upfront Income Verification Using Non -HUD Systems In addition to mandatory use of the EIV system, HUD encourages PHAs to utilize other upfront verification sources. SAHA Policv SAHA will inform all applicants and participants of its use of other up -front income verification sources, such as The Work Number (an automated verification system) and state government databases, to validate tenant -reported income. 025 City Council — 380 7H5 2 25 EXHIBIT 1 7-I.F. LEVEL 4 VERIFICATION [Notice PIH 2O23-271 HUD identifies two types of Level 4 verification: written -third party verification from the source and EIV + self -certification. EIV + Self -Certification EIV may be used as written third -party verification and may be used to calculate income if the family agrees with the information in EIV and self -certifies that the amount is accurate and representative of current income. This practice is known as EIV + self -certification. When calculating income using this method, the PHA may use its discretion to determine which method of calculation is reasonable: the last four quarters combined or an average of any number of quarters. The family must be provided with the information from EIV. SAHA Polic If there are no reported changes to an income source, SAHA may use EIV + self - certification as verification of employment income, provided the family agrees with the amounts listed in EIV. SAHA will use an average of the last two quarters of income listed in EIV to determine income from employment. SAHA will provide the family with the information in EIV. The family will be required to sign a self -certification stating that the amount listed in EIV is accurate and representative of current income. If the family disagrees with using only the last two quarters of income listed in EIV, because of the seasonal or otherwise fluctuating nature of a particular family member's employment, SAHA will permit the family to sign a self -certification stating that the average of all four quarters of income listed in EIV is accurate and representative of current annual income and use that amount for calculating annual income. If the family disagrees and contends that the amount listed in EIV is not reflective of current income, or if less than two quarters are available in EIV, SAHA will use written third -party verification from the source as outlined below. SAHA will not use this method of verification at new admission since EIV is not available for applicant families or at interim reexamination since the income information in EIV is not current. Written Third -Party Verification from the Source Written, third -party verification from the source is also known as "tenant -provided verification." In order to qualify as written -third party verification from the source, the documents must be original or authentic and (generally) dated within 120 days of the date received by the PHA. For fixed -income sources, a statement dated within the appropriate benefit year is acceptable documentation. The PHA may use the verification obtained during an interim reexamination for an annual reexamination if there have been no other changes to annual income since the interim reexamination. Documents may be supplied by the family or received from a third -party source. 025 City Council — 381 5 2 25 EXHIBIT 1 Examples of acceptable tenant -provided documents include, but are not limited to pay stubs, payroll summary reports, employer notice or letters of hire and termination, SSA benefit verification letters, bank statements, child support payment stubs, welfare benefit letters and/or printouts, and unemployment monetary benefit notices. Income tax returns with corresponding official tax forms and schedules attached and including third -party receipt of transmission for income tax return filed (i.e., tax preparer's transmittal receipt, summary of transmittal from online source, etc.) are an acceptable form of written, third -party verification. The PHA is required to obtain, at minimum, two current and consecutive pay stubs when calculating income using third -party verification from the source. For new income sources or when two pay stubs are not available, the PHA should determine income based on the information from a traditional written, third -party verification form or the best available information. When the family disputes EIV-reported employment income, the PHA uses written third -party verification. When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts. SAHA Policy In general, SAHA will use third -party verification from the source in the following circumstances: At annual reexamination when EIV + self -certification is not used; For all new admissions; and For all interim reexaminations. SAHA will not use this method if SAHA is able to use an income determination from a means -tested federal assistance program or if SAHA uses EIV + self -certification as outlined above. In general, third -party documents provided by the family or the source must be dated within 120 days of the date received by SAHA. However, for fixed -income sources, a statement dated within the appropriate benefit year is acceptable documentation. SAHA may reject documentation provided by the family if the document is not an original, if the document appears to be forged, or if the document is altered, mutilated, or illegible. If SAHA determines that third -party documents provided by the family are not acceptable, SAHA will explain the reason to the family and request additional documentation from the family or will use a lower form of verification such as a written third -party verification form. When verification of assets held by a banking or financial institution is required, SAHA will obtain the three most current, consecutive months statements that reflect the current balance of the account. When pay stubs are used, SAHA will require the family to provide the two most current, consecutive pay stubs. At SAHA's discretion, if additional paystubs are needed due to the 025 City Council — 382 7M5 2 25 EXHIBIT 1 family's circumstances (e.g., sporadic income, fluctuating schedule, etc.), SAHA may request additional paystubs or a payroll record. 025 City Council Pap— 383 5 2 5 EXHIBIT 1 7-I.G. LEVEL 3 VERIFICATION: WRITTEN, THIRD -PARTY FORM [Notice PIH 2O23 -271 This type of verification is a form developed by the PHA and used uniformly for all families when needed to collect information from a third -party source. This is known as "traditional third - party verification." PHAs send a PHA -developed form directly to the third -party source by mail, fax, or email and the source completes the form by hand (in writing or typeset). The PHA may use this method when higher forms are unavailable or are rejected by the PHA or when the family is unable to provide acceptable verification. The PHA may skip this level of verification and may instead substitute oral third -party verification before moving to self - certification. SAHA Policy Typically, SAHA will attempt to send written third -party verification forms to the verification source whenever higher forms of verification are unavailable. However, on a case -by -case basis, SAHA may choose to obtain oral third -party verification without first attempting, and in lieu of, a written -third party verification form. 7.I.H. LEVEL 2: ORAL THIRD -PARTY VERIFICATION [Notice PIH 2O23-271 For third -party oral verification, PHAs contact sources, identified by UIV techniques or by the family, by telephone or in person. Third -party oral verification may be used when requests for written third -party verification forms have not been returned within a reasonable timee.g., 10 business days. PHAs must document in the file the date and time of the telephone call or visit, the name of the person contacted, the telephone number, as well as the information confirmed. The PHA may skip this level of verification if they attempted written third -party verification via a form and the source did not respond and move directly to self -certification. SAHA Policy In general, SAHA will attempt to obtain written third -party verification via a form from the verification source. If written third -party verification forms are not returned within 14 calendar days, SAHA will accept self -certification from the family without attempting to obtain oral third -party verification. However, if SAHA chooses to obtain oral third -party verification, SAHA will document in the file the date and time of the telephone call or visit, the name of the person contacted and the telephone number, as well as the information confirmed. 025 City Council — 384 5 2 25 EXHIBIT 1 When Third -Party Verification is Not Required [Notice PIH 2O23-271 Third -party verification may not be available in all situations. HUD has acknowledged that it may not be cost-effective or reasonable to obtain third -party verification of income, assets, or expenses when these items would have a minimal impact on the family's total tenant payment. SAHA Policy If the family cannot provide original documents, SAHA will pay the service charge required to obtain third -party verification, unless it is not cost effective in which case a self -certification will be acceptable as the only means of verification. The cost of verification will not be passed on to the family. The cost of postage and envelopes to obtain third -party verification of income, assets, and expenses is not an unreasonable cost [VG, p. 18]. Primary Documents Third -party verification is not required when legal documents are the primary source, such as a birth certificate or other legal documentation of birth. 025 City Council — 385 5 2 25 EXHIBIT 1 7-I.I. LEVEL 1: NON -THIRD -PARTY VERIFICATION: SELF -CERTIFICATION [Notice PIH 2O23-27] Non -third -party verification consists of a signed statement of reported income and/or expenses. This verification method should be used as a last resort when the PHA has not been successful in obtaining information via all other required verification techniques. Self -certification, however, is an acceptable form of verification when: • A source of income is fully excluded • Net family assets are less than or equal to the HUD -published threshold ($50,000 for 2024, and $51,600 for 2025) and the PHA has adopted a policy to accept self certification • The family declares that they do not have any present ownership in any real property • A family reports zero income; • A family states that they have non -recurring income that will not be repeated in the coming year; and/or • The PHA has adopted a policy to implement streamlined verification for fixed sources of income (See Chapter 11) When the PHA was required to obtain third -party verification but instead relies on self - certification, the family's file must be documented to explain why third -party verification was not available. HUD does not require that a self -certification be notarized; however, HUD recommends including language on any self -certification to ensure the certifier understands the consequences of knowingly providing false information. SAHA Polic When information cannot be verified by a third party or by review of documents, family members will be required to submit self -certifications attesting to the accuracy of the information they have provided to SAHA. SAHA may require a family to certify that a family member does not receive a particular type of income or benefit. The self -certification must be made in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. SAHA will not adopt self -certification of assets. All self -certifications will include the following language: "I/We, the undersigned, certify under penalty of perjury that the information provided here is true and correct, to the best of my knowledge and recollection. WARNING: Anyone who knowingly submits a false claim or knowingly makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties (18 U.S.C. 287, 1001, 1010, 1012; 31 U.S.C. 3279, 3802)." 025 City Council — 386 7M5 2 25 EXHIBIT 1 PART II: VERIFYING FAMILY INFORMATION 7-II.A. VERIFICATION OF LEGAL IDENTITY SAHA Policy SAHA will require families to furnish verification of legal identity for each household member. Verification of Legal Identity for Adults Verification of Legal Identity for Children Certificate of birth, naturalization papers Certificate of birth Church issued baptismal certificate Adoption papers Current, valid driver's license or Custody agreement Department of Motor Vehicles Health and Human Services ID identification card U.S. military discharge (DD 214) Certified school records Current U.S. passport Current government employer identification card with picture If a document submitted by a family is illegible for any reason or otherwise questionable, more than one of these documents may be required. If none of these documents can be provided and at SAHA's discretion, a third party who knows the person may attest to the person's identity. The certification must be provided in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. Legal identity will be verified for all applicants at the time of eligibility determination and in cases where SAHA has reason to doubt the identity of a person representing themselves to be a participant. 025 City Council — 387 5 2 25 EXHIBIT 1 7-II.B. SOCIAL SECURITY NUMBERS [24 CFR 5.216, Notice PIH 2O23-27] The family must provide documentation of a valid Social Security number (SSN) for each member of the household, with the exception of individuals who do not contend eligible immigration status. Exemptions also include existing program participants who were at least 62 years of age as of January 31, 2010, and had not previously disclosed an SSN. Note that an individual who previously declared to have eligible immigration status may not change their declaration for the purpose of avoiding compliance with the SSN disclosure and documentation requirements or penalties associated with noncompliance with these requirements. Nor may the head of household opt to remove a household member from the family composition for this purpose. The PHA must accept the following documentation as acceptable evidence of the social security number: • An original SSN card issued by the Social Security Administration (SSA) An original SSA -issued document, which contains the name and SSN of the individual An original document issued by a federal, state, or local government agency, which contains the name and SSN of the individual While PHAs must attempt to gather third -party verification of SSNs prior to admission as listed above, PHAs also have the option of accepting a self -certification and a third -party document (such as a bank statement, utility or cell phone bill, or benefit letter) with the applicant's name printed on it to satisfy the SSN disclosure requirement if the PHA has exhausted all other attempts to obtain the required documentation. If verifying an individual's SSN using this method, the PHA must document why the other SSN documentation was not available. If the tenant's SSN becomes verified in EIV, then no further verification is required. If the tenant's SSN fails the SSA identity match, then the PHA must obtain a valid SSN card issued by the SSA or an original document issued by a federal or state government agency that contains the name of the individual and the SSN of the individual, along with other identifying information of the individual. The tenant's assistance must be terminated if they fail to provide the required documentation. SAHA Policy SAHA will verify an individual's SSN in the situations described above using the method described above as a last resort when no other forms of verification of the individual's SSN are available. Pagv 025 — 388 City Council 5 2 25 EXHIBIT 1 The PHA may only reject documentation of an SSN provided by an applicant or participant if the document is not an original document or if the original document has been altered, mutilated, is illegible, or appears to be forged. SAHA Policv SAHA will explain to the applicant or participant the reasons the document is not acceptable and request that the individual obtain and submit acceptable documentation of the SSN to SAHA within 90 days. In the case of Moderate Rehabilitation Single Room Occupancy (SRO) individuals, the required documentation must be provided within 90 calendar days from the date of admission into the program. The PHA must grant one additional 90-day extension if it determines that the applicant's failure to comply was due to circumstances that were beyond the applicant's control and could not have been reasonably foreseen. SAHA Policv SAHA does not operate Moderate Rehabilitation Single Room Occupancy (SRO). If an applicant family includes a child under 6 years of age who joined the household within the 6 months prior to the date of voucher issuance, an otherwise eligible family may be admitted to the program and the family must provide documentation of the child's SSN within 90 days of the effective date of the initial HAP contract. A 90-day extension will be granted if the PHA determines that the participant's failure to comply was due to unforeseen circumstances and was outside of the participant's control. SAHA Policv SAHA will grant one additional 90-day extension if needed for reasons beyond the applicant's control, such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. When a participant requests to add a new household member who is at least 6 years of age, or who is under the age of 6 and has an SSN, the participant must provide the complete and accurate SSN assigned to each new member at the time of reexamination or recertification, in addition to the documentation required to verify it. The PHA may not add the new household member until such documentation is provided. 025 City Council — 389 5 2 25 EXHIBIT 1 When a participant requests to add a new household member who is under the age of 6 and has not been assigned an SSN, the participant must provide the SSN assigned to each new child and the required documentation within 90 calendar days of the child being added to the household. A 90-day extension will be granted if the PHA determines that the participant's failure to comply was due to unforeseen circumstances and was outside of the participant's control. During the period the PHA is awaiting documentation of the SSN, the child will be counted as part of the assisted household. SAHA Policv SAHA will grant one additional 90-day extension if needed for reasons beyond the participant's control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency. Social security numbers must be verified only once during continuously assisted occupancy. SAHA Policv SAHA will verify each disclosed SSN by: Obtaining documentation from applicants and participants that is acceptable as evidence of social security numbers Making a copy of the original documentation submitted, returning it to the individual, and retaining a copy in the file folder Once the individual's verification status is classified as "verified," the PHA may, at its discretion, remove and destroy copies of documentation accepted as evidence of social security numbers. The retention of the EIV Summary Report or Income Report is adequate documentation of an individual's SSN. SAHA Policy Once an individual's status is classified as "verified" in HUD's EIV system, SAHA will remove and destroy copies of documentation accepted as evidence of social security numbers. 7-II.C. DOCUMENTATION OF AGE A birth certificate or other official record of birth is the preferred form of age verification for all family members. For elderly family members an original document that provides evidence of the receipt of social security retirement benefits is acceptable. SAHA Policv If an official record of birth or evidence of social security retirement benefits cannot be provided, SAHA will require the family to submit other documents that support the reported age of the family member (e.g., school records, driver's license if birth year is recorded) and to provide a self -certification. Age must be verified only once during continuously assisted occupancy. 025 City Council — 390 5 2 25 EXHIBIT 1 7-ILD. FAMILY RELATIONSHIPS Applicants and program participants are required to identify the relationship of each household member to the head of household. Definitions of the primary household relationships are provided in the Eligibility chapter. SAHA Policv Family relationships are verified only to the extent necessary to determine a family's eligibility and level of assistance. Certification by the head of household normally is sufficient verification of family relationships. Marriage SAHA Policv Certification by the head of household is normally sufficient verification. If SAHA has reasonable doubts about a marital relationship, SAHA will require the family to document the marriage. A marriage certificate generally is required to verify that a couple is married. In the case of a common law marriage, the couple must demonstrate that they hold themselves to be married (e.g., by telling the community they are married, calling each other husband and wife, using the same last name, filing joint income tax returns). Separation or Divorce SAHA Policv Certification by the head of household is normally sufficient verification. If SAHA has reasonable doubts about a separation or divorce, SAHA will require the family to provide documentation of the divorce or separation. A certified copy of a divorce decree, signed by a court officer, is required to document that a couple is divorced. A copy of a court -ordered maintenance or other court record is required to document a separation. If no court document is available, documentation from a community -based agency will be accepted. Absence of Adult Member SAHA Policy If an adult member who was formerly a member of the household is reported to be permanently absent, the family must provide evidence to support that the person is no longer a member of the family (e.g., documentation of another address at which the person resides such as a lease or utility bill), if SAHA so requests. Foster Children and Foster Adults SAHA Policv Third -party verification from the state or local government agency responsible for the placement of the individual with the family is required. 025 City Council — 391 5 2 25 EXHIBIT 1 7-II.E. VERIFICATION OF STUDENT STATUS General Requirements SAHA Policy SAHA requires families to provide information about the student status of all students who are 18 years of age or older. This information will be verified only if: The family reports full-time student status for an adult other than the head, spouse, or cohead. The family reports childcare expenses to enable a family member to further their education. The family includes a student enrolled in an institution of higher education. Verification of full-time student status includes all of the following: Written verification from the registrar's office or other school official. School records indicating enrollment in sufficient credits to qualify as full-time by the educational institution (e.g. class schedule). Full-time students that are eighteen (18) years of age or older are required to provide an unofficial transcript from each institution of higher education at the time of the family's annual reexamination or as requested by SAHA staff. Final report of units completed will be required at the family's annual reexamination or as requested by SAHA staff. Full-time students that are eighteen (18) years of age or older and are employed are required to provide an unofficial transcript from each institution of higher education at the time of the family's annual reexamination or as requested by SAHA staff. Restrictions on Assistance to Students Enrolled in Institutions of Higher Education This section applies only to students who are seeking assistance on their own, separately from their parents. It does not apply to students residing with parents who are seeking or receiving HCV assistance. SAHA Policy In accordance with the verification hierarchy described in section 7-I.13, SAHA will determine whether the student is exempt from the restrictions in 24 CFR 5.612 by verifying any one of the following exemption criteria: The student is enrolled at an educational institution that does not meet the definition of institution of higher education in the Higher Education Act of 1965 (see section Exhibit 3-2). The student is at least 24 years old. The student is a veteran, as defined in section 3-II.E. The student is married. 025 City Council — 392 5 2 25 EXHIBIT 1 The student has at least one dependent child, as defined in section 3-II.E. The student is a person with disabilities, as defined in section 3-II.E, and was receiving assistance prior to November 30, 2005. If SAHA cannot verify at least one of these exemption criteria, SAHA will conclude that the student is subject to the restrictions on assistance at 24 CFR 5.612. In addition to verifying the student's income eligibility, SAHA will then proceed to verify either the student's parents' income eligibility (see section 7-III.M) or the student's independence from their parents (see below). 025 City Council — 393 5 2 25 EXHIBIT 1 Independent Student SAHA Policy SAHA will verify a student's independence from their parents to determine that the student's parents' income is not relevant for determining the student's eligibility by doing all of the following: Either reviewing and verifying previous address information to determine whether the student has established a household separate from their parents for at least one year, or reviewing and verifying documentation relevant to determining whether the student meets the U.S. Department of Education's definition of independent student (see section 3-II.E) Reviewing the student's prior year income tax returns to verify the student is independent or verifying the student meets the U.S. Department of Education's definition of independent student (see section 3-II.E) Requesting and obtaining written certification directly from the student's parents identifying the amount of support they will be providing to the student, even if the amount of support is $0, except in cases in which SAHA determines that the student is a vulnerable youth (see section 3-II.E) 7-II.F. DOCUMENTATION OF DISABILITY The PHA must verify the existence of a disability in order to allow certain income disallowances and deductions from income. The PHA is not permitted to inquire about the nature or extent of a person's disability [24 CFR 100.202(c)]. The PHA may not inquire about a person's diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA will not place this information in the tenant file. Under no circumstances will the PHA request a participant's medical record(s). For more information on health care privacy laws, see the Department of Health and Human Services' website at http://www.hhs.gov/ocr/privacy/. The above cited regulation does not prohibit the following inquiries, provided these inquiries are made of all applicants, whether or not they are persons with disabilities [VG, p. 24]: Inquiry into an applicant's ability to meet the requirements of ownership or tenancy Inquiry to determine whether an applicant is qualified for a dwelling available only to persons with disabilities or to persons with a particular type of disability Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to persons with disabilities or to persons with a particular type of disability Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled substance Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled substance 025 City Council — 394 5 2 25 EXHIBIT 1 Family Members Receiving SSA Disability Benefits Verification of the receipt of disability benefits from the Social Security Administration (SSA) is sufficient verification of disability for the purpose of qualifying for waiting list preferences (if applicable) or certain income disallowances and deductions [VG, p. 23]. SAHA Policv For family members claiming disability who receive disability benefits from the SSA, SAHA will attempt to obtain information about disability benefits through the HUD Enterprise Income Verification (EIV) system. If documentation from HUD's EIV System is not available, SAHA will request a current (dated within the same benefit year) SSA benefit verification letter from each family member claiming disability status. If the family is unable to provide the document(s), SAHA will ask the family to request a benefit verification letter by either calling SSA at 1-800-772-1213, or by requesting it from www.ssa.jzov. Once the applicant or participant receives the benefit verification letter they will be required to provide it to SAHA. Family Members Not Receiving SSA Disability Benefits Receipt of veteran's disability benefits, worker's compensation, or other non -SSA benefits based on the individual's claimed disability are not sufficient verification that the individual meets HUD's definition of disability in 24 CFR 5.403. SAHA Policv For family members claiming disability who do not receive disability benefits from the SSA, a knowledgeable professional must provide third -party verification that the family member meets the HUD definition of disability. See the Eligibility chapter for the HUD definition of disability. The knowledgeable professional will verify whether the family member does or does not meet the HUD definition. 025 City Council — 395 5 2 25 EXHIBIT 1 7-II.G. CITIZENSHIP OR ELIGIBLE IMMIGRATION STATUS [24 CFR 5.5081 Overview Housing assistance is not available to persons who are not citizens, nationals, or eligible immigrants. Prorated assistance is provided for "mixed families" containing both eligible and ineligible persons. A detailed discussion of eligibility requirements is in the Eligibility chapter. This verifications chapter discusses HUD and PHA verification requirements related to citizenship status. The family must provide a certification that identifies each family member as a U.S. citizen, a U.S. national, an eligible noncitizen or an ineligible noncitizen and submit the documents discussed below for each family member. Once eligibility to receive assistance has been verified for an individual it need not be collected or verified again during continuously -assisted occupancy. [24 CFR 5.508(g)(5)] U.S. Citizens and Nationals HUD requires a declaration for each family member who claims to be a U.S. citizen or national. The declaration must be signed personally by any family member 18 or older and by a guardian for minors. The PHA may request verification of the declaration by requiring presentation of a birth certificate, United States passport or other appropriate documentation. SAHA Policy Family members who claim U.S. citizenship or national status will not be required to provide additional documentation unless SAHA receives information indicating that an individual's declaration may not be accurate. 025 City Council — 396 5 2 25 EXHIBIT 1 Eligible Immigrants Documents Required All family members claiming eligible immigration status must declare their status in the same manner as U.S. citizens and nationals. The documentation required for eligible noncitizens varies depending upon factors such as the date the person entered the U.S., the conditions under which eligible immigration status has been granted, age, and the date on which the family began receiving HUD -funded assistance. Exhibit 7-1 at the end of this chapter summarizes documents family members must provide. PHA Verification [HCV GB, pp. 5-3 and 5-7] For family members age 62 or older who claim to be eligible immigrants, proof of age is required in the manner described in 7-II.C. of this plan. No further verification of eligible immigration status is required. For family members under the age of 62 who claim to be eligible immigrants, the PHA must verify immigration status with the United States Citizenship and Immigration Services (USCIS). The PHA will follow all USCIS protocols for verification of eligible immigration status. 7-II.11. VERIFICATION OF PREFERENCE STATUS The PHA must verify any preferences claimed by an applicant that determined placement on the waiting list. SAHA Policy 1. United States Military Veteran Preference: A veteran is a person who served in the active military, naval, or air service and who was discharged or released from such service under conditions other than dishonorable. Form DD-214 with a discharge status of other than dishonorable, or equivalent verification, must be provided at their eligibility interview appointment. 2. Residency Preference: Residency preference for applicants who live or work in the City of Santa Ana at the time of application. At least two pieces of evidence must be provided for applicants who live or work in the City of Santa Ana including but not limited to a lease, utility bills, bank statements, or paycheck stubs ("proof of the residency preference"). The residency preference claimed at the time of the applicant applied for the program will be verified when the applicant is selected off of the waiting list. Applicants who are unable to provide proof of the residency preference will be removed from the waiting list. Applicants who live or work in the unincorporated areas of Santa Ana will not receive the residency preference. a. Mainstream vouchers are intended to facilitate access to housing for individuals with disabilities, including for individuals who reside in institutional or other segregated settings that may not be located in the geographic area that is typically served by a PHA. Consequently, HUD waived 24 CFR 982.207(b)(1) and established an alternative 025 City Council — 397 5 2 25 EXHIBIT 1 requirement under which a PHA cannot apply a residency preference to Mainstream voucher applicants (excluding project -based vouchers). b. A PHA also cannot apply a resident preference to VASH voucher applicants. Families who have been terminated due to insufficient funding SAHA will offer an absolute preference to any family that has been terminated from its HCV program due to insufficient program funding. Special Purpose Vouchers will be the last to be terminated due to insufficient funding and first to be re -instated. Homeless Individuals and Families Set Aside Preference In accordance with PIH Notice 2023-13, SAHA will accept direct referrals to the HCV program for the following target population: Homeless Individuals and Families: The number of homeless individuals and families who can qualify for this preference and successfully lease a unit with their voucher will be limited to 50% of the total number of vouchers that become available through annual turnover in the previous calendar year. To qualify for this preference, homeless individuals and families must be referred by agencies with a contract or Memorandum of Understanding (MOU) in place with the Housing Authority or City of Santa Ana. The referring agency must provide a certification of the family's homeless status. Additionally, families already registered on the Waiting List who declare themselves as homeless, but are not referred by a CBO must provide a certification of their homeless status from an agency that has an MOU in place with the Housing Authority. This set -aside preference has been documented by SAHA using generally accepted data sources. All homeless individuals and families must qualify for the Residency Preference. Families who have been involuntarily displaced: Families who have been involuntarily displaced due to a disaster (e.g., fire, flood, earthquake) or eminent domain. The preference depends on funding availability. If insufficient funds are available, then applicants will be prioritized based upon elderly and disabled families first. Foster Youth to Independence (FYI) Vouchers The waiting list for FYI vouchers is continually open for referrals from the Orange County Social Services Agency (Santa Ana's Public Child Welfare Agency) as long as there are FYI vouchers available. PHAs may choose to create a preference in their regular HCV program for persons whose FYI assistance is expiring and will lack adequate housing as a result of their termination from the program, or other similar category. As required by statute, an FYI voucher may only be used to provide housing assistance for youth for a maximum of 36 months. However, youth who first lease a unit with an FYI voucher after the date of enactment of the Fostering Stable Housing Opportunities (FSHO) amendments may receive an extension 025 City Council — 398 5 2 25 EXHIBIT 1 of the 36-month time limit of assistance for up to an additional 24 months if they meet the requirements of FSHO. FSHO applies to eligible youth who first leased or leases a unit after the date of enactment of FSHO, December 27, 2020, which includes youth who will be assisted with funding under this Notice. See HUD's FSHO implementation notice published in the Federal Register on January 24, 2022 (87 FR 3570). SAHA will provide a selection preference for FYI voucher holders who are terminated due to the time limit on assistance in accordance with this policy. Emergency Housing Vouchers (EHV) In March 2025, HUD notified PHAs of their final allocation to obligate all EHV HAP funds that remain available to HUD under the American Rescue Plan Act of 2021 (P.L. 117-2). According to the notice: "After this final allocation, the Department will provide no additional EHV CY HAP Renewal funding allocations to PHAs." Therefore, SAHA is making the waiting list continually open for EHV vouchers that are subject to termination due to this final funding allocation by HUD. Specifically, SAHA will provide a preference in the regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program. In accordance with this policy, SAHA will provide a selection preference for EHV voucher holders who are terminated due to the lack of renewal funding from HUD. This preference is allowed under Question # 45 of the Emergency Housing Vouchers Frequently Asked Questions (FAQs) v.9 which states, "Funds appropriated for the EHV program are available for obligation by HUD until September 30, 2030. These funds will be cancelled as a matter of law on September 30, 2035, per 31 U.S.0 1552. Prior to 2030, PHAs may consider options to ensure continued assistance to EHV families including but not limited to issuing regular Housing Choice Vouchers (HCV) to the affected EHV households. Such families would need to be pulled from the waiting list. to facilitate this process, PHAs may choose to create a preference in their regular HCV program for persons whose EHV assistance is expiring and will lack adequate housing as a result of their termination from the program, or other similar category." 025 City Council — 399 5 2 25 EXHIBIT 1 PART III: VERIFYING INCOME AND ASSETS Chapter 6 of this plan describes in detail the types of income that are included and excluded and how assets and income from assets are handled. Any income reported by the family must be verified. This part provides PHA policies that supplement the general verification procedures specified in Part I of this chapter. 7-III.A. EARNED INCOME Tips Wages SAHA Policv Unless tip income is included in a family member's W-2 by the employer or in UIV verification sources, persons who work in industries where tips are standard will be required to sign a certified form of tips received for the previous two pay periods to anticipate tips in the coming year. SAHA Policv When SAHA requires third -party verification of wages, for wages other than tips, the family must provide originals of the two most current, consecutive pay stubs. 025 City Council — 400 5 2 25 EXHIBIT 1 7-III.B. BUSINESS AND SELF EMPLOYMENT INCOME The PHA must obtain written, third -party verification when the income type is not available in EIV. This includes income from self-employment. SAHA Policy Business owners and self-employed persons will be required to provide one or more of the following forms of verification: A statement of business income and expenses verified for accuracy by the business owner(s) or self-employed person(s). SAHA will provide a format for any person who is unable to provide such a statement to record income and expenses for at least the last three months — including receipts, or other approved verification of the expense. The business owner/self-employed person will be required to submit the information requested and to certify to its accuracy at all future reexaminations. If the receipts or other approved verification of the expense is not provided, then SAHA will not allow the expense deduction. Income tax returns with corresponding official tax forms and schedules attached and including third -party receipt of transmission for income tax return filed (i.e., tax preparer's transmittal receipt, summary of transmittal from online source, etc.). If accelerated depreciation was used on the tax return or financial statement, an accountant's calculation of depreciation expense, computed using straight-line depreciation rules. IRS Transcript For self-employed individuals who claim they do not have to file tax returns, SAHA will obtain a completed copy of IRS Form 4506-T to verify that no return has been filed. For those employed in "gig employment" (i.e., those in formal agreements with on - demand companies such as Uber, Lyft, or DoorDash), SAHA will review the printed statement of monthly income from the applicable app for all hours worked and pay received as well as the Schedule C of the individual's tax return and the corresponding IRS Form 1099 or 1099k. SAHA may also provide a format for the individual to declare their income and expenses for at least the last three months, including receipts or verification of the expenses. If the receipts or verification of the expenses is not provided, then SAHA will not allow the expense deduction. SAHA will provide a format for any person who is unable to provide such a statement to record income and expenses for the coming year. The business owner/self-employed person will be required to submit the information requested and to certify to its accuracy at all future reexaminations. At any reexamination SAHA may request documents that support submitted financial statements such as manifests, appointment books, cash books, or bank statements. 025 City Council — 401 5 2 25 EXHIBIT 1 If a family member has been self-employed less than three (3) months, SAHA will accept the family member's certified estimate of income and schedule an interim reexamination in three (3) months. If the family member has been self-employed for three (3) to twelve (12) months SAHA will require the family to provide documentation of income and expenses for this period and use that information to project income. 025 City Council — 402 5 2 25 EXHIBIT 1 7-III.C. PERIODIC PAYMENTS AND PAYMENTS IN LIEU OF EARNINGS For policies governing streamlined income determinations for fixed sources of income, please see Chapter 11. Social Security/SSI Benefits [Notice PIH 2O23-271 Verification requirements for Social Security (SS) and Supplemental Security Income (SSI) benefits differ for applicants and participants. For applicants, since EIV does not contain SS or SSI benefit information, the PHA must ask applicants to provide a copy of their current SS and/or SSI benefit letter (dated within the appropriate benefit year) for each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the applicant request a benefit verification letter from SSA's website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the applicant, make a photocopy of the document for the file, and return the original to the family. For participants, the PHA must obtain information through the HUD EIV system and confirm with the participants that the current listed benefit amount is correct. If the participant agrees with the amount reported in EIV, the PHA must use the EIV- reported gross benefit amount to calculate annual income from Social Security. PHAs are required to use the EIV-reported SS and SSI benefit amounts when calculating income unless the tenant disputes the EIV-reported amount. For example, an SSA benefit letter may list the monthly benefit amount as $450.80 and EIV displays the amount as $450.00. The PHA must use the EIV-reported amount unless the participant disputes the amount. If the participant disputes the EIV-reported benefit amount, or if benefit information is not available in EIV, the PHA must request a current SSA benefit verification letter (dated within the appropriate benefit year) from each family member that receives SS and/or SSI benefits. If the family is unable to provide the document or documents, the PHA should help the participant request a benefit verification letter from SSA's website at www.ssa.gov or ask the family to request one by calling SSA at 1-800-772-1213. The PHA must obtain the original benefit letter from the participant, make a photocopy of the document for the file, and return the original to the family. Photocopies of social security checks or bank statements are not acceptable forms of verification for SS/SSI benefits. 025 City Council — 403 5 2 25 EXHIBIT 1 7-III.D. ALIMONY OR CHILD SUPPORT [Notice PIH 2O23-27] Annual income includes "all amounts received," not the amount that a family may be legally entitled to receive but which they do not receive. For example, a family's child support or alimony income must be based on payments received, not the amounts to which the family is entitled by court or agency orders. A copy of a court order or other written payment agreement alone may not be sufficient verification of amounts received by a family. SAHA Policv Verification will be obtained in the following order of priority: Copies of the receipts and/or payment stubs for the three- months prior to PHA request Third -party verification form from the state or local child support enforcement agency Third -party verification form from the person paying the support Family's self -certification of amount received SAHA reserves the right to request additional verification if needed. Note: Families are not required to undertake independent enforcement action. 7-III.E. NONRECURRING INCOME [Notice PIH 2O23-271 Income that will not be repeated beyond the coming year (i.e., the 12 months following the effective date of the certification), based on information provided by the family, is considered nonrecurring income and is excluded from annual income. PHAs may accept a self -certification from the family stating that the income will not be repeated in the coming year. SAHA Policv SAHA will accept self -certification from the family stating that income will not be repeated in the coming year. However, SAHA may choose, on a case -by -case basis, to require third -party verification that income sources will not be repeated in the coming year. 025 City Council — 404 5 2 25 EXHIBIT 1 7-III.F. ASSETS AND INCOME FROM ASSETS Net Family Assets [24 CFR 5.6031 At admission and reexam, for families with net assets less than or equal to the HUD -published threshold listed in HUD's current year Inflation -Adjusted Values tables ($50,000 for 2024, $51,600 for 2025), the PHA may, but is not required to, accept the family's self -certification that the family's assets do not exceed the HUD -published threshold without taking any additional steps to verify the accuracy of the declaration. The declaration must include the amount of income the family expects to receive from assets which must be included in the family's income. This includes declaring income from checking and savings accounts which, although excluded from the calculation of net family assets (because the combined value of non -necessary personal property does not exceed the HUD -published threshold), may generate asset income. PHAs must clarify during the self -certification process which assets are included/excluded from net family assets. For PHAs that choose to accept self -certification, the PHA is required to obtain third -party verification of all assets, regardless of the amount, at least once every three years. PHAs who choose not to accept self -certifications of assets must verify all families' assets on an annual basis. When net family assets have a total value over the HUD -published threshold, the PHA may not rely on the family's self -certification. Third -party verification of assets is required when net family assets exceed the HUD -published threshold. When verification of assets is required, PHAs are required to obtain a minimum of one statement that reflects the current balance of banking/financial accounts. SAHA Policv SAHA will obtain third -party verification of assets regardless of the amount. 025 City Council — 405 5 2 25 EXHIBIT 1 Self -Certification of Real Property Ownership [24 CFR 5.618(b)(2); Notice PIH 2O23-27] The PHA must determine whether a family has present ownership in real property that is suitable for occupancy for purposes of determining whether the family is compliant with the asset limitation described in Chapters 3. The PHA may accept a self -certification from the family stating that the family does not have any present ownership in any real property. If the family certifies that they do not have any present ownership interest in real property, the PHA may take that as sufficient to determine the family is not out of compliance with the real property restriction. If the family declares they have present ownership in real property, the PHA must obtain third -party verification of the family's legal right to reside in the property, the effective legal authority to sell the property, and whether the property is suitable for occupancy by the family as a residence. SAHA Policy SAHA will accept self -certification from the family stating that the family does not have any present ownership in any real property. The certification must be signed by all family members 18 years of age and older. SAHA reserves the right to require additional verification in situations where the accuracy of the declaration is in question. If the family declares they have a present ownership in real property, SAHA will obtain third -party verification of the following factors: whether the family has the legal right to reside in the property; whether the family has effective legal authority to sell the property; and whether the property is suitable for occupancy by the family as a residence. However, in cases where a family member is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, SAHA will comply with confidentiality requirements under 24 CFR 5.2007 and will accept a self -certification. 025 City Council — 406 5 2 25 EXHIBIT 1 7-III.G. NET INCOME FROM RENTAL PROPERTY SAHA Policv The family must provide: A current executed lease for the property that shows the rental amount or certification from the current tenant A self -certification from the family members engaged in the rental of property providing an estimate of expenses for the coming year and the most recent IRS Form 1040 with Schedule E (Rental Income). If Schedule E was not prepared, SAHA will require the family members involved in the rental of property to provide a self -certification of income and expenses for the previous year and may request documentation to support the statement including: tax statements, insurance invoices, bills for reasonable maintenance and utilities, and bank statements or amortization schedules showing monthly interest expense. 7-III.11. FEDERAL TAX REFUNDS OR REFUNDABLE TAX CREDITS [Notice PIH 2O23-271 PHAs are not required to verify the amount of the family's federal tax refund or refundable tax credit(s) if the family's net assets are less than or equal to the HUD -published threshold listed in HUD's current year Inflation -Adjusted Values tables ($50,000 for 2024, $51,600 for 2025), even in years when full verification of assets is required or if the PHA does not accept self - certification of assets. PHAs must verify the amount of the family's federal tax refund or refundable tax credits if the family's net assets are greater than the HUD -published threshold. 7-III.I. RETIREMENT ACCOUNTS SAHA Policv SAHA will accept an original document from the entity holding the account dated no earlier than 12 months before that reflects any distributions of the account balance, any lump sums taken, and any regular payments. 025 City Council — 407 5 2 25 EXHIBIT 1 7-III.J. INCOME FROM EXCLUDED SOURCES [Notice PIH 2O23-27] A detailed discussion of excluded income is provided in Chapter 6, Part I. HUD guidance on verification of excluded income draws a distinction between income which is fully excluded and income which is only partially excluded. For fully excluded income, the PHA is not required to follow the verification hierarchy, For fully excluded income, the PHA is not required to document why third -party verification is not available, or report the income on the 50058. Fully excluded income is defined as income where the entire amount qualifies to be excluded from the annual income determination in accordance with 24 CFR 5.609(b) and any Federal Register notice on mandatory exclusions issued by HUD (for example, food stamps, earned income of a minor, or foster care funds). PHAs may accept a family's signed application or reexamination form as self -certification of fully excluded income. They do not have to require additional documentation. However, if there is any doubt that a source of income qualifies for full exclusion, PHAs have the option of requiring additional verification. For partially excluded income, the PHA is required to follow the verification hierarchy and all applicable regulations, and to report the income on the 50058. Partially excluded income is defined as income where only a certain portion of what is reported by the family qualifies to be excluded and the remainder is included in annual income (for example, the income of an adult full-time student). SAHA Policy SAHA may accept the family's self -certification as verification of fully excluded income. SAHA may request additional documentation if necessary to document the income source. SAHA may verify the source and amount of partially excluded income as described in Part 1 of this chapter. 025 City Council — 408 7H5 2 25 EXHIBIT 1 7-III.K. ZERO INCOME FAMILIES [Notice PIH 2O23-271 PHAs have discretion to establish reasonable procedures to manage the risk of unreported income, such as asking families to complete a zero -income worksheet at admission or periodically after admission to determine if they have any sources of unreported income or searching any UIV sources for unreported income. In calculating annual income, PHAs must not assign monetary value to nonmonetary in -kind donations from a food bank or similar organization received by the family [24 CFR § 5.609(b)(24)(vi)]. PHAs may accept a self -certification of zero income from the family without taking any additional steps to verify zero reported income. HUD does not require such self -certifications be notarized. PHAs that perform zero income reviews must update local discretionary policies, procedures, and forms. Families who begin receiving income which does not trigger an interim reexamination should no longer be considered zero income even though the family's income is not reflected on the Form HUD-50058. SAHA Policy SAHA will check UIV sources and/or may request information from third -party sources to verify that certain forms of income such as unemployment benefits, TANF, SS, SSI, earned income, child support, etc., are not being received by families claiming to have zero annual income. SAHA will also require that each family member who claims zero income status complete a zero -income form. If any sources of income are identified on the form, SAHA will verify the income in accordance with the policies in this chapter prior to including the income in the family's annual income. SAHA will only conduct interims in accordance with PHA policy in Chapter 11. For zero income families, SAHA may require a file review every 90 days. 025 City Council — 409 5 2 25 EXHIBIT 1 7-III.L. STUDENT FINANCIAL ASSISTANCE [24 CFR 5.609(b)(9)] The regulations under HOTMA distinguish between two categories of student financial assistance paid to both full-time and part-time students. Any other grant-in-aid, scholarship, or other assistance amounts an individual receives for the actual covered costs charged by the institute of higher education not otherwise excluded by the federally mandated income exclusions are included [24 CFR 5.609(b)(9)(ii)]. SAHA Polic SAHA will request written third -party verification of both the source and the amount of student financial assistance. Family -provided documents from the educational institution attended by the student will be requested, as well as documents generated by any other person or entity providing such assistance, as reported by the student. In addition, unless the student's only source of assistance is assistance under Title IV of the HEA, SAHA will request written verification of the cost of the student's tuition, books, supplies, room and board, and other required fees and charges to the student from the educational institution. If SAHA is unable to obtain third -party written verification of the requested information, SAHA will pursue other forms of verification following the verification hierarchy in section 7-I.13. 025 City Council — 410 7M5 2 25 EXHIBIT 1 7-III.M. PARENTAL INCOME OF STUDENTS SUBJECT TO ELIGIBILITY RESTRICTIONS If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the income of the student's parents must be considered when determining income eligibility, unless the student is determined independent from their parents or a vulnerable youth in accordance with PHA policy [24 CFR 5.612, FR Notice 4/10/06, p. 18146, and FR Notice 9/21/16]. This provision does not apply to students residing with parents who are seeking or receiving HCV assistance. It is limited to students who are seeking or receiving assistance on their own, separately from their parents. SAHA Policy If SAHA is required to determine the income eligibility of a student's parents, SAHA will request an income declaration and certification of income from the appropriate parent(s) (as determined in section 3-II.E). SAHA will send the request directly to the parents, who will be required to certify to their income under penalty of perjury. The parents will be required to submit the information directly to SAHA. The required information must be submitted (postmarked) within 14 calendar days of the date of SAHA's request or within any extended timeframe approved by SAHA. SAHA reserves the right to request and review supporting documentation at any time if it questions the declaration or certification. Supporting documentation may include, but is not limited to, Internal Revenue Service (IRS) tax returns, consecutive and original pay stubs, bank statements, pension benefit statements, benefit award letters, and other official and authentic documents from a federal, state, or local agency. 025 City Council — 411 5 2 25 EXHIBIT 1 PART IV: VERIFYING MANDATORY DEDUCTIONS 7-IV.A. DEPENDENT AND ELDERLY/DISABLED HOUSEHOLD DEDUCTIONS The dependent and elderly/disabled family deductions require only that the PHA verify that the family members identified as dependents or elderly/disabled persons meet the statutory definitions. No further verifications are required. Dependent Deduction See Chapter 6 for a full discussion of this deduction. The PHA must verify that: • Any person under the age of 18 for whom the dependent deduction is claimed is not the head, spouse, or cohead of the family and is not a foster child • Any person age 18 or older for whom the dependent deduction is claimed is not a foster adult or live-in aide, and is a person with a disability or a full time student Elderly/Disabled Family Deduction See Eligibility chapter for a definition of elderly and disabled families and Chapter 6 for a discussion of the deduction. The PHA must verify that the head, spouse, or cohead is 62 years of age or older or a person with disabilities. 025 City Council — 412 7H5 2 25 EXHIBIT 1 7-IV.B. HEALTH AND MEDICAL CARE EXPENSE DEDUCTION Policies related to medical expenses are found in Chapter 6. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-191, 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed health and medical care expenses. The PHA may not request documentation beyond what is sufficient to determine anticipated health and medical care costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/14/23]. Amount of Expense SAHA Policv Medical expenses will be verified through: Written third -party documents provided by the family, such as pharmacy printouts or receipts. When income is projected at new admission or interim, SAHA will make a best effort to determine what expenses from the past are likely to continue to occur in the future. SAHA will also accept evidence of monthly payments or total payments that will be due for medical expenses during the upcoming 12 months. Written third -party verification forms if the family is unable to provide acceptable documentation. When income is projected at new admission or interim, if third -party or document review is not possible, written family certification as to costs anticipated to be incurred during the upcoming 12 months. Before placing bills and documentation in the tenant file, SAHA will redact all personally identifiable information. If SAHA receives documentation from a verification source that contains the individual's specific diagnosis, information regarding the individual's treatment, and/or information regarding the nature or severity of the person's disability, SAHA will immediately dispose of this confidential information; this information will never be maintained in the individual's file. If the information needs to be disposed of, SAHA will note in the individual's file that verification was received, the date received, and the name and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant's or resident's medical records in the file [Notice PIH 2010-26]. If items are recommended by a knowledgeable professional, the family must provide verification from the knowledgeable professional that such item is needed (e.g. acupuncture, herbal supplements.) 025 City Council — 413 7H5 2 25 EXHIBIT 1 In addition, the PHA must verify that: • The household is eligible for the deduction. • The costs to be deducted are qualified health and medical care expenses. • The expenses are not paid for or reimbursed by any other source. • Costs incurred in past years are counted only once. Eligible Household The health and medical care expense deduction is permitted only for households in which the head, spouse, or cohead is at least 62, or a person with disabilities. The PHA must verify that the family meets the definition of an elderly or disabled family provided in the Eligibility chapter and as described in Chapter 7 (7-IV.A.) of this plan. Qualified Expenses To be eligible for the health and medical care expense deduction, the costs must qualify as medical expenses. See Chapter 6 for the PHA's policy on what counts as a medical expense. Unreimbursed Expenses To be eligible for the health and medical care expense deduction, the costs must not be reimbursed by another source. SAHA Policy The family will be required to certify that the medical expenses are not paid or reimbursed to the family from any source. If expenses are verified through a third party, the third party must certify that the expenses are not paid or reimbursed from any other source. Expenses Incurred in Past Years SAHA Policy At new admission and interim reexam, when anticipated costs are related to on -going payment of medical bills incurred in past years, the PHA will verify: The anticipated repayment schedule The amounts paid in the past. However, medical expenses that are paid in full without an outstanding balance will not be considered for anticipated medical deduction and Whether the amounts to be repaid have been deducted from the family's annual income in past years 025 City Council — 414 5 2 25 EXHIBIT 1 7-IV.C. DISABILITY ASSISTANCE EXPENSES Policies related to disability assistance expenses are found in 6-II.E. The amount of the deduction will be verified following the standard verification procedures described in Part I. The PHA must comply with the Health Insurance Portability and Accountability Act (HIPAA) (Pub. L. 104-1913 110 Stat. 1936) and the Privacy Act of 1974 (Pub. L. 93-579, 88 Stat. 1896) when requesting documentation to determine unreimbursed auxiliary apparatus or attendance care costs. The PHA may not request documentation beyond what is sufficient to determine anticipated reasonable attendant care and auxiliary apparatus costs. Before placing bills and documentation in the tenant file, the PHA must redact all personally identifiable information [FR Notice 2/ 14/23 ] . Amount of Expense Attendant Care SAHA Policy Expenses for attendant care will be verified through: Written third -party documents provided by the family, such as receipts or cancelled checks. Third -party verification form signed by the provider, if family -provided documents are not available. When income is projected at new admission or interim, if third -party verification is not possible, written family certification as to costs anticipated to be incurred for the upcoming 12 months. Before placing bills and documentation in the tenant file, SAHA will redact all personally identifiable information. If SAHA receives documentation from a verification source that contains the individual's specific diagnosis, information regarding the individual's treatment, and/or information regarding the nature or severity of the person's disability, SAHA will immediately dispose of this confidential information; this information will never be maintained in the individual's file. If the information needs to disposed of, SAHA will note in the individual's file that verification was received, the date received, and the name, email, and address of the person/organization that provided the verification. Under no circumstances will PHA include an applicant's or resident's medical records in the file [Notice PIH 2O10-26]. 025 City Council — 415 5 2 25 EXHIBIT 1 Auxiliary Apparatus SAHA Policy Expenses for auxiliary apparatus will be verified through: Written third -parry documents provided by the family, such as billing statements for purchase of auxiliary apparatus, or other evidence of monthly payments or total payments that will be due for the apparatus during the upcoming 12 months. Third -party verification form signed by the provider, if family -provided documents are not available. If third -party verification is not possible, written family certification of estimated apparatus costs for the upcoming 12 months. In addition, the PHA must verify that: • The family member for whom the expense is incurred is a person with disabilities (as described in 7-II.17 above). • The expense permits a family member, or members, to work (as described in Chapter 6.). • The expense is not reimbursed from another source (as described in Chapter 6.). 025 City Council — 416 7M5 2 25 EXHIBIT 1 Family Member is a Person with Disabilities To be eligible for the disability assistance expense deduction, the costs must be incurred for attendant care or auxiliary apparatus expense associated with a person with disabilities. The PHA will verify that the expense is incurred for a person with disabilities (See 7-II.17.). Family Member(s) Permitted to Work The PHA must verify that the expenses claimed actually enable a family member, or members, (including the person with disabilities) to work. SAHA Policv SAHA will request third -party verification from a rehabilitation agency or knowledgeable medical professional indicating that the person with disabilities requires attendant care or an auxiliary apparatus to be employed, or that the attendant care or auxiliary apparatus enables another family member, or members, to work (See 6-II.E.). This documentation may be provided by the family. If third -party verification has been attempted and is either unavailable or proves unsuccessful, the family must certify that the disability assistance expense frees a family member, or members (possibly including the family member receiving the assistance), to work. Unreimbursed Expenses To be eligible for the disability expenses deduction, the costs must not be reimbursed by another source. SAHA Policv The family will be required to certify that attendant care or auxiliary apparatus expenses are not paid by or reimbursed to the family from any source. 025 City Council — 417 5 2 25 EXHIBIT 1 7-IV.D. CHILDCARE EXPENSES Policies related to childcare expenses are found in Chapter 6. The amount of the deduction will be verified following the standard verification procedures described in Part I of this chapter. In addition, the PHA must verify that: • The child is eligible for care (12 or younger). • The costs claimed are not reimbursed. • The costs enable a family member to work, actively seek work, or further their education. • The costs are for an allowable type of childcare. • The costs are reasonable. Eligible Child To be eligible for the childcare deduction, the costs must be incurred for the care of a child under the age of 13. The PHA will verify that the child being cared for (including foster children) is under the age of 13 (See 7-II.C.). Unreimbursed Expense To be eligible for the childcare deduction, the costs must not be reimbursed by another source. SAHA Policy The family (and the care provider) will be required to certify that the childcare expenses are not paid or reimbursed to the family from any source. 025 City Council — 418 7M5 2 25 EXHIBIT 1 Pursuing an Eligible Activity The PHA must verify that the family member(s) that the family has identified as being enabled to seek work, pursue education, or be gainfully employed, are actually pursuing those activities. SAHA Policy Information to be Gathered SAHA will verify information about how the schedule for the claimed activity relates to the hours of care provided, the time required for transportation, the time required for study (for students), the relationship of the family member(s) to the child, and any special needs of the child that might help determine which family member is enabled to pursue an eligible activity. Seeking Work Whenever possible SAHA will use documentation from a state or local agency that monitors work -related requirements (e.g., welfare or unemployment). In such cases SAHA will request family -provided verification from the agency of the member's job seeking efforts to date, and require the family to submit to SAHA any reports provided to the other agency. In the event third -party verification is not available, SAHA will provide the family with a form on which the family member must record job search efforts. SAHA will review this information at each subsequent reexamination for which this deduction is claimed. Furthering Education SAHA will request third -party documentation to verify that the person permitted to further their education by the childcare is enrolled and provide information about the timing of classes for which the person is registered. The documentation may be provided by the family. Gainful Employment SAHA will seek third -party verification of the work schedule of the person who is permitted to work by the childcare. In cases in which two or more family members could be permitted to work, the work schedules for all relevant family members may be verified. The documentation may be provided by the family. 025 City Council — 419 5 2 25 EXHIBIT 1 Allowable Type of Childcare The type of care to be provided is determined by the family, but must fall within certain guidelines, as discussed in Chapter 6. SAHA Policv SAHA will verify that the type of childcare selected by the family is allowable, as described in Chapter 6. SAHA will verify that the fees paid to the childcare provider cover only childcare costs (e.g., no housekeeping services or personal services) and are paid only for the care of an eligible child (e.g., prorate costs if some of the care is provided for ineligible family members). SAHA will verify that the childcare provider is not an assisted family member. Verification will be made through the head of household's declaration of family members who are expected to reside in the unit. Reasonableness of Expenses Only reasonable childcare costs can be deducted. SAHA Policv The actual costs the family incurs will be compared with SAHA's established standards of reasonableness for the type of care in the locality to ensure that the costs are reasonable. If the family presents a justification for costs that exceed typical costs in the area, SAHA will request additional documentation, as required, to support a determination that the higher cost is appropriate. 025 City Council — 420 7M5 2 25 EXHIBIT 1 EXHIBIT 7-1: SUMMARY OF DOCUMENTATION REQUIREMENTS FOR NONCITIZENS [HCV GB, pp. 5-9 and 5-101 • All noncitizens claiming eligible status must sign a declaration of eligible immigrant status on a form acceptable to the PHA. • Except for persons 62 or older, all noncitizens must sign a verification consent form • Additional documents are required based upon the person's status. Elderly Noncitizens • A person 62 years of age or older who claims eligible immigration status also must provide proof of age such as birth certificate, passport, or documents showing receipt of SS old -age benefits. All other Noncitizens • Noncitizens that claim eligible immigration status also must present the applicable USCIS document. Acceptable USCIS documents are listed below. • Form I-551 Alien Registration Receipt • Form I-94 Arrival -Departure Record with Card (for permanent resident aliens) no annotation accompanied by: • Form I-94 Arrival -Departure Record • A final court decision granting asylum annotated with one of the following: (but only if no appeal is taken); • "Admitted as a Refugee Pursuant to • A letter from a USCIS asylum officer Section 207" granting asylum (if application is filed • "Section 208" or "Asylum" on or after 10/1/90) or from a USCIS district director granting asylum • "Section 243(h)" or "Deportation (application filed before 10/l/90); stayed by Attorney General" • A court decision granting withholding • "Paroled Pursuant to Section 221 (d)(5) of deportation; or of the USCIS" . A letter from an asylum officer granting withholding or deportation (if application filed on or after 10/l/90). • Form I-688 Temporary Resident Card Form I-688B Employment Authorization Card annotated "Section 245A" or Section 210". annotated "Provision of Law 274a. 12(11)" or "Provision of Law 274a.12". • A receipt issued by the USCIS indicating that an application for issuance of a replacement document in one of the above listed categories has been made and the applicant's entitlement to the document has been verified; or • Other acceptable evidence. If other documents are determined by the USCIS to constitute acceptable evidence of eligible immigration status, they will be announced by notice published in the Federal Register 025 City Council — 421 5 2 25 EXHIBIT 1 Chapter 8.A. HOUSING QUALITY STANDARDS AND RENT REASONABLENESS DETERMINATIONS [24 CFR 982 Subpart I and 24 CFR 982.507] INTRODUCTION Owners must maintain all units occupied by families receiving Housing Choice Voucher (HCV) assistance in accordance with housing quality standards. Units assisted under the program must comply with HUD's National Standards for the Physical Inspection of Real Estate (NSPIRE) regulations and standards no later than October 1, 2025. Until such time, the PHA may continue using the HQS inspection standards. All units must pass an HQS inspection prior to the approval of a lease and at least once every 24 months during the term of the contract, and at other times as needed, to determine that the unit meets HQS. HUD also requires PHAs to determine that rents for units under the program are reasonable when compared to comparable unassisted units in the market area. This chapter explains HUD and PHA requirements related to housing quality and rent reasonableness as follows: Part I. Physical Standards. This part discusses the physical standards required of units occupied by HCV-assisted families and identifies decisions about the acceptability of the unit that may be made by the family based upon the family's preference. It also identifies life -threatening conditions that must be addressed on an expedited basis. Part II. The Inspection Process. This part describes the types of inspections the PHA will make and the steps that will be taken when units do not meet HQS. Part III. Rent Reasonableness Determinations. This part discusses the policies the PHA will use to make rent reasonableness determinations. Special HQS requirements for homeownership, manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. NSPIRE and HQS Even once the HQS inspection standard has sunset, the regulations at 24 CFR Part 982 and 983 governing the HCV and PBV programs will continue to use the terms HQS and housing quality standards rather than NSPIRE. This is because the definition of housing quality standards (HQS) at 24 CFR 982.4 means the minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for the HCV program, including any variations approved by HUD for the PHA. As such, the model policy uses the term housing quality standards whenever applicable regulations use this term. Except in the chapter describing HQS, the acronym HQS is not used in the model policy in order to avoid confusion between the umbrella term meaning housing standards and the specific inspection protocol. The model policy only uses the term NSPIRE when referring to specific NSPIRE standards. Page 8-1 Administrative Plan 7/l/2025 City Council 5 — 422 7/15/2025 EXHIBIT 1 PART I: PHYSICAL STANDARDS 8-I.A. GENERAL HUD REQUIREMENTS HUD Performance and Acceptability Standards HUD's performance and acceptability standards for HCV-assisted housing are provided in 24 CFR 982.401. These standards cover the following areas: • Sanitary facilities • Food preparation and refuse disposal • Space and security • Thermal environment • Illumination and electricity • Structure and materials • Interior air quality • Water supply • Lead -based paint • Access • Site and neighborhood • Sanitary condition • Smoke detectors A summary of HUD performance criteria is provided in Exhibit 8-1. Additional guidance on these requirements is found in the following HUD resources: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) • HUD Notice 2003-31, Accessibility Notice: Section 504 of the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act of 1968 and the Fair Housing Act of 1988. Page 8-2 Administrative Plan 7/l/2025 City Council 5 — 423 7/15/2025 EXHIBIT 1 NSPIRE Standards Applicable to HQS [HUD Letter 6/14/24] Even if the PHA is still under the HQS inspection standard, the PHA must apply the following requirements under NSPIRE: The NSPIRE standards for carbon monoxide alarms are currently applicable even if the PHA has not yet transitioned to NSPIRE; PHAs are required to comply with the NSPIRE Smoke Alarm Standard prior to December 3, 2024; and The Visual Assessment Standard for Potential Lead -Based Paint Hazard in 24 CFR Part 35 Subparts M and H apply. Tenant Preference Items HUD requires the PHA to enforce minimum HQS but also recognizes that certain judgments about the acceptability of the unit are left to the family. For example, the PHA must ensure that the unit contains the required sanitary facilities, but the family decides whether the cosmetic appearance of the facilities is acceptable. Exhibit 8-2 summarizes those items that are considered tenant preferences. Modifications to Provide Accessibility Under the Fair Housing Act of 1988 an owner must not refuse the request of a family that contains a person with a disability to make necessary and reasonable modifications to the unit. Such modifications are at the family's expense. The owner may require restoration of the unit to its original condition if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31]. Modifications to units to provide access for a person with a disability must meet all applicable HQS requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003-31 ] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities. SAHA Policy Any owner that intends to negotiate a restoration agreement or require an escrow account must submit the agreement(s) to SAHA for review. Page 8-3 Administrative Plan 7/l/2025 City Council 5 — 424 7/15/2025 EXHIBIT 1 8-I.B. ADDITIONAL LOCAL REQUIREMENTS The PHA may impose variations to the HQS as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to the HQS. HUD approval is not required if the variations are clarifications of HUD's acceptability criteria or performance standards [24 CFR 982.401(a)(4)]. Thermal Environment [HCV GB p.10-7] The PHA must define a "healthy living environment" for the local climate. This may be done by establishing a temperature that the heating system must be capable of maintaining, that is appropriate for the local climate. SAHA Policv The heating system must be capable of maintaining an interior temperature of 64 degrees Fahrenheit between October 1 and March 31. Clarifications of HUD Requirements SAHA Policv As permitted by HUD, SAHA has adopted the following specific requirements that elaborate on HUD standards. Walls In areas where plaster or drywall is sagging, severely cracked, or otherwise damaged, it must be repaired or replaced. Windows Window sashes must be in good condition, solid and intact, and properly fitted to the window frame. Damaged or deteriorated sashes must be replaced. Windows must be weather-stripped as needed to ensure a weather -tight seal. Window screens must be in good condition (applies only if screens are present). Doors All exterior doors must be weather -tight to avoid any air or water infiltration, be lockable, have no holes, have all trim intact, and have a threshold. All interior doors must have no holes, have all trim intact, and be openable without the use of a key. Page 8-4 Administrative Plan 7/l/2025 City Council 5 — 425 7/15/2025 EXHIBIT 1 Floors All wood floors must be sanded to a smooth surface and sealed. Any loose or warped boards must be resecured and made level. If they cannot be leveled, they must be replaced. All floors must be in a finished state. Raw wood or unsealed concrete is not permitted. All floors should have some type of base shoe, trim, or sealing for a "finished look." Vinyl base shoe is permitted. Sinks All sinks and commode water lines must have shut off valves, unless faucets are wall mounted. All sinks must have functioning stoppers. Toilets All worn or cracked toilet seats and tank lids must be replaced and toilet tank lid must fit properly. Security If window security bars or security screens are present on emergency exit windows, they must be equipped with a quick release system. The owner is responsible for ensuring that the family is instructed on the use of the quick release system. Page 8-5 Administrative Plan 7/l/2025 City Council 5 — 426 7/15/2025 EXHIBIT 1 8-I.C. LIFE -THREATENING CONDITIONS [24 CFR 982.404(a); FR Notice 1/18/17] HUD requires the PHA to define life -threatening conditions and to notify the owner or the family (whichever is responsible) of the corrections required. The responsible party must correct life - threatening conditions within 24 hours of PHA notification. SAHA Policy The following are considered life -threatening conditions: Any condition that jeopardizes the security of the unit Major plumbing leaks or flooding, waterlogged ceiling or floor in imminent danger of falling Natural or LP gas or fuel oil leaks A fuel storage vessel, fluid line, valve, or connection that supplies fuel to a HVAC unit is leaking or a strong odor is detected with potential for explosion or fire or that results in a health risk if inhaled Any electrical problem or condition that could result in shock or fire A light fixture is readily accessible, is not securely mounted to the ceiling or wall, and electrical connections or wires are exposed A light fixture is hanging by its wires A light fixture has a missing or broken bulb, and the open socket is readily accessible to the tenant during the day-to-day use of the unit A receptacle (outlet) or switch is missing or broken and electrical connections or wires are exposed An open circuit breaker position is not appropriately blanked off in a panel board, main panel board, or other electrical box that contains circuit breakers or fuses A cover is missing from any electrical device box, panel box, switch gear box, control panel, etc., and there are exposed electrical connections Any nicks, abrasions, or fraying of the insulation that exposes conducting wire Exposed bare wires or electrical connections Any condition that results in openings in electrical panels or electrical control device enclosures Page 8-6 Administrative Plan 7/l/2025 City Council 5 — 427 7/15/2025 EXHIBIT 1 Water leaking or ponding near any electrical device Any condition that poses a serious risk of electrocution or fire and poses an immediate life -threatening condition Absence of a working heating system when outside temperature is below 60 degrees Fahrenheit. Utilities not in service, including no running hot water Conditions that present the imminent possibility of injury Obstacles that prevent safe entrance or exit from the unit Any components that affect the function of the fire escape are missing or damaged Stored items or other barriers restrict or prevent the use of the fire escape in the event of an emergency The building's emergency exit is blocked or impeded, thus limiting the ability of occupants to exit in a fire or other emergency Absence of a functioning toilet in the unit Inoperable or missing smoke detectors Missing or inoperable carbon monoxide detector Missing, damaged, discharged, overcharged, or expired fire extinguisher (where required) Gas/oil-fired water heater or heating, ventilation, or cooling system with missing, damaged, improper, or misaligned chimney venting The chimney or venting system on a fuel -fired water heater is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting or gases A gas dryer vent is missing, damaged, or is visually determined to be inoperable, or the dryer exhaust is not vented to the outside A fuel -fired space heater is not properly vented or lacks available combustion air A non -vented space heater is present Safety devices on a fuel -fired space heater are missing or damaged The chimney or venting system on a fuel -fired heating, ventilation, or cooling system is misaligned, negatively pitched, or damaged, which may cause improper or dangerous venting of gas Page 8-7 Administrative Plan 7/l/2025 City Council 5 — 428 7/15/2025 EXHIBIT 1 Deteriorating paint as defined at 24 CFR 35.110 in a unit built before 1978 that is to be occupied by a family with a child under six years of age if it would prevent the family from moving into the unit If an owner fails to correct life -threatening conditions as required by SAHA, SAHA will enforce the HQS in accordance with HUD requirements. See 8-II-G. If a family fails to correct a family -caused life -threatening condition as required by SAHA, SAHA will enforce the family obligations. See 8-II.H. The owner will be required to repair an inoperable smoke detector unless SAHA determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours. Page 8-8 Administrative Plan 7/l/2025 City Council 5 — 429 7/15/2025 EXHIBIT 1 8-I.D. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.4041 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Family Responsibilities The family is responsible for correcting the following HQS deficiencies: • Tenant -paid utilities not in service • Failure to provide or maintain appliances owned by the family Damage to the unit or premises caused by a household member or guest beyond ordinary wear and tear that results in a breach of the HQS. Ordinary wear and tear is defined as items which could not be charged against the tenant's security deposit under state law or court practice. Owner Responsibilities The owner is responsible for all HQS violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. SAHA Policy The owner is responsible for all housing quality violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. The owner will be required to repair an inoperable smoke detector unless SAHA determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours. If an owner fails to correct life -threatening conditions as required by SAHA, SAHA will enforce the housing quality standards in accordance with HUD requirements. See 8-II.G. The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: Owner Obligation The owner must maintain the unit in accordance with housing quality standards. A unit is not in compliance with housing quality standards if the PHA or other inspector authorized by the state or local government determines that the unit has housing quality standards deficiencies based upon an inspection, notifies the owner in writing of the deficiencies, and the deficiencies are not remedied within the appropriate time frame. Page 8-9 Administrative Plan 7/l/2025 City Council 5 — 430 7/15/2025 EXHIBIT 1 In the case of a housing quality standards deficiency that the PHA determines is caused by the tenant, any member of the household, or any guest or other person under the tenant's control (other than damage resulting from ordinary use), the PHA may waive the owner's responsibility to remedy the violation. The HAP to the owner may not be withheld or abated if the owner responsibility has been waived. However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. In addition, the PHA may terminate the family's assistance because of a housing quality standards breach (beyond damage resulting from ordinary use) caused by any member of the household, guest, or other person under the tenant's control. SAHA Policy SAHA will waive the owner's responsibility for housing quality standards deficiencies that have been determined to have been caused by the tenant, any member of the household, or any guest or other person under the tenant's control, to the extent the tenant can be held responsible for ensuring that the deficiencies are corrected: the tenant must take all necessary steps permissible under the lease and state and local law to remedy the deficiency. This may include paying the owner for the cost of the necessary repairs in accordance with the lease. Family Responsibilities The family may be held responsible for a breach of housing quality standards caused by any of the following: • Tenant -paid utilities not in service; • Failure to provide or maintain appliances owned by the family; and Damage to the dwelling unit or premises caused by a household member or guest beyond ordinary wear and tear. SAHA Policy Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. If the PHA has waived the owner's responsibility to remedy the violation as outlined under the owner obligations above, the following applies: • If the housing quality standards breach caused by the family is life -threatening, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 24 hours of notification. For other family -caused deficiencies, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 30 calendar days of notification (or any PHA -approved extension). If the family has caused a breach of the HQS, the PHA must take prompt and vigorous action to enforce the family obligations. The PHA may terminate assistance for the family in accordance with 24 CFR 982.552. Page 8-10 Administrative Plan 7/l/2025 City Council 5 — 431 7/15/2025 EXHIBIT 1 8-I.E. SPECIAL REQUIREMENTS FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2O17-13] If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than six years of age, living in an HCV-assisted unit has been identified as having an elevated blood lead level, the PHA must complete an environmental investigation of the dwelling unit within 15 calendar days after being notified by a public health department or other medical health care provider. The environmental investigation must be completed in accordance with program requirements, and the result of the environmental investigation must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. Within 30 days after receiving the environmental investigation report from the PHA, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead -based paint hazards in accordance with the lead -based paint regulations [24 CFR 35.1325 and 35.1330; 40 CFR 745.227]. If the owner does not complete the "hazard reduction" as required, the dwelling unit is in violation of HQS and the PHA will take action in accordance with Section 8-II.G. PHA reporting requirements, and data collection and record keeping responsibilities related to children with an elevated blood lead level are discussed in Chapter 16. Page 8-11 Administrative Plan 7/l/2025 City Council 5 — 432 7/15/2025 EXHIBIT 1 8-I.F. VIOLATION OF HQS SPACE STANDARDS [24 CFR 982.401, 24 CFR 982.4031 A dwelling unit must: • Provide adequate space and security for the family • Have at least one bedroom or living/sleeping room for each two persons A unit that does not meet these HQS space standards is defined as overcrowded. A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space [HCV GB p. 10-6]. A bedroom or living/sleeping room must have at least: • One window • Two electrical outlets in proper operating condition (permanent overhead or wall -mounted light fixtures may count as one of the required electrical outlets) If the PHA determines that a unit is overcrowded because of an increase in family size or a change in family composition, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. Page 8-12 Administrative Plan 7/l/2025 City Council 5 — 433 7/15/2025 EXHIBIT 1 PART II: THE INSPECTION PROCESS 8-II.A. OVERVIEW [24 CFR 982.4051 Types of Inspections The PHA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow. • Initial Inspections. The PHA conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program. • Periodic Inspections. HUD requires the PHA to inspect each unit under lease at least annually or biennially, depending on PHA policy, to confirm that the unit still meets HQS. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. • Interim Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections. • Supervisory Quality Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with the HQS. Inspection of PHA -Owned Units [24 CFR 982.352(b)] The PHA must obtain the services of an independent entity to perform all HQS inspections in cases where an HCV family is receiving assistance in a PHA -owned unit as defined in 24 CFR 982.4. The independent entity must communicate the results of each inspection to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). The PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease. PHA - owned unit is freely selected by the family, without PHA pressure or steering. For information on the inspection of PHA -owned units in the PBV program, see Chapter 17. Page 8-13 Administrative Plan 7/l/2025 City Council 5 — 434 7/15/2025 EXHIBIT 1 Inspection Costs [Notice PIH 2O16-05; 24 CFR 5.705(h)] The PHA may not charge the family for unit inspections or reinspections [24 CFR 982.405(g)]. In the case of inspections of PHA -owned units, the PHA may compensate the independent agency from ongoing administrative fees (including fees credited to the administrative fee reserve) for inspections performed. The PHA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)]. The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspections if an owner notifies the PHA that a repair has been made or the allotted time for repairs has elapsed and a reinspection reveals that any deficiency cited in the previous inspection that the owner is responsible for repairing, pursuant to 24 CFR 982.404(a), was not corrected. Fees may not be imposed for tenant -caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection. The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the PHA's administrative fee reserves and may only be used for activities related to the provision of tenant -based assistance. SAHA Policy SAHA will not charge a fee for failed reinspections. Remote Video Inspections (RVIs) [Notice PIH 2O20-311 As an alternative to some or all on -site inspections, the PHA may, but is not required to, perform HQS inspections from a remote location using video streaming technology and a proxy at the inspection site. Since there may be some circumstances in which the application of technology provides insufficient information or evidence to allow the PHA to make appropriate determinations about whether a condition violates HQS, Notice PIH 2O20-31 requires that if a PHA chooses to implement RVIs, the PHA should have policies and procedures in place to address such limitations. SAHA Policy SAHA may conduct any inspection using RVI. Notice and Scheduling The family must allow the PHA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)]. SAHA Policy Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life -threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 7:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life -threatening emergency, SAHA will give as much notice as possible, given the nature of the emergency. Page 8-14 Administrative Plan 7/l/2025 City Council 5 — 435 7/15/2025 EXHIBIT 1 Owner and Family Inspection Attendance HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27]. SAHA Policv When a family occupies the unit at the time of inspection an authorized adult must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required. At initial inspection of a vacant unit, SAHA will inspect the unit in the presence of the owner or owner's representative. The presence of a family representative is permitted but is not required. 8-II.13. INITIAL HQS INSPECTION [24 CFR 982.405(a)] HUD regulations require that units assisted under the HCV program be inspected to determine that the units meet housing quality standards before the PHA approves assisted tenancy. However, PHAs have two options for bringing units under HAP contract (or, in the case of PBV, approving occupancy and the execution of a lease) more quickly. The PHA may but is not required to approve assisted tenancy and start HAP if the unit: • Fails the initial inspection, but only if no life -threatening deficiencies are identified; and/or Passed an alternative inspection in the last 24 months. If the PHA adopts the alternative inspection option in combination with the non -life -threatening deficiencies option, the PHA must follow family and owner notification requirements listed at 24 CFR 982.406(f). Otherwise, if neither of the above provisions are adopted, the PHA must determine that the unit the family selects meets NSPIRE standards prior to approving tenancy. Approving Units with Non -Life -Threatening Deficiencies [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.4050)] The PHA may approve assisted tenancy, execute a HAP contract, and begin paying HAP if a unit fails an initial inspection, but only if the deficiencies identified are non -life threatening. This is known as the "NLT option." A PHA that implements the NLT option may apply the option to all of the PHA's initial inspections or may limit it to certain units. If the NLT option is adopted, the PHA must follow requirements listed at 24 CFR 982.4050) for family and owner notification. The PHA's administrative plan must specify the circumstances under which the PHA will exercise the NLT option, if any. SAHA Policv SAHA will not use the NLT option. All units must pass the initial inspection on or before the effective date of the HAP contract. Page 8-15 Administrative Plan 7/l/2025 City Council 5 — 436 7/15/2025 EXHIBIT 1 Approving Units Using Alternative Inspections [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.4061 The PHA may approve assisted tenancy, execute a HAP contract, and begin paying HAP if a unit passed an alternative inspection (i.e., an inspection conducted for another housing program) conducted in the last 24 months provided the PHA is able to obtain the results of the alternative inspection, the property received a "pass" score (if applicable), and the inspection meets the requirements at 24 CFR 982.406(c) and (d). The PHA may implement the use of alternative inspections for both initial and periodic inspections or may limit the use of alternative inspections to either initial or periodic inspections. If alternative inspections are used, the PHA must follow requirements listed at 24 CFR 982.406(e)(2) for family and owner notification. A PHA relying on an alternative inspections must identify the alternative inspection method being used in the PHA's administrative plan. SAHA Policy SAHA will not rely on alternative inspections and will conduct an initial inspection for each unit prior to executing a HAP contract with the owner. Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] Unless the PHA relies on alternative inspections, HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection [982.305(b)(2)]. SAHA Policy SAHA will complete the initial inspection, determine whether the unit satisfies HQS, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA) or of the date when the unit becomes available for inspection whichever is later. Page 8-16 Administrative Plan 7/l/2025 City Council 5 — 437 7/15/2025 EXHIBIT 1 Inspection Results and Reinspections SAHA Policv If any HQS violations are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by SAHA for good cause. SAHA will reinspect the unit within five business days of the date the owner notifies SAHA that the required corrections have been made. If the time period for correcting the deficiencies (or any SAHA-approved extension) has elapsed, or the unit fails HQS at the time of the reinspection, SAHA will notify the owner and the family that the unit has been rejected and that the family must search for another unit. SAHA may agree to conduct a second reinspection, for good cause, at the request of the family and owner. Following a failed reinspection, the family may submit a new Request for Tenancy Approval for the same unit after the owner has made repairs, if they are unable to locate another suitable unit. Utilities Generally, at initial lease -up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying. SAHA Policv Utility service must be available for testing at the time of the initial inspection. SAHA may not conduct an inspection if the utilities are not in service. Appliances [Form HUD-525801 SAHA Policy If the family is responsible for supplying the stove and/or refrigerator, SAHA will allow the stove and refrigerator to be placed in the unit after the unit has met all other HQS requirements. The required appliances must be in place before the HAP contract is executed by the PHA. SAHA will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working. A confirmatory inspection will be scheduled within 30 days of HAP contract approval. Page 8-17 Administrative Plan 7/l/2025 City Council 5 — 438 7/15/2025 EXHIBIT 1 8-II.C. PERIODIC HQS INSPECTIONS [24 CFR 982.405(b) and Notice PIH 2O16-05] SAHA Policy Each unit under HAP contract must be inspected biennially within 24 months of the last full HQS inspection. SAHA reserves the right to require annual inspections of any unit or owner at any time. SAHA will not rely on alternative inspection standards. Scheduling the Inspection SAHA Policy If an adult cannot be present on the scheduled date, the family should request that SAHA reschedule the inspection. SAHA and family will agree on a new inspection date that generally should take place within 14 calendar days of the originally scheduled date. SAHA may schedule an inspection more than 14 calendar days after the original date for good cause. If the family misses the first scheduled appointment without requesting a new inspection date, SAHA will automatically schedule a second inspection. If the family misses two scheduled inspections without SAHA approval, SAHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family's assistance in accordance with Chapter 12. 8-ILD. INTERIM INSPECTIONS [24 CFR 982.405(d)] If a participant or government official notifies the PHA of a potential deficiency, the following applies: If the reported deficiency is life -threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the life -threatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non -life -threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA -approved extension. SAHA Policy During an interim inspection, SAHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional HQS deficiencies that are observed and will require the responsible party to make the necessary repairs. If the periodic inspection has been scheduled or is due within 90 days of the date the interim inspection is scheduled SAHA may elect to conduct a full inspection. Page 8-18 Administrative Plan 7/l/2025 City Council 5 — 439 7/15/2025 EXHIBIT 1 8-II.E. SUPERVISORY QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-321 HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the HQS. The unit sample must include only units that have been inspected within the preceding three months. The selected sample should be drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors. 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Notification of Corrective Actions The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies HQS failures, the PHA will determine (1) whether or not the failure is a life - threatening condition and (2) whether the family or owner is responsible. SAHA Policy When life -threatening conditions are identified, SAHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of SAHA's notice. When failures that are not life -threatening are identified, SAHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. The notice of inspection results will inform the owner that if life -threatening conditions are not corrected within 24 hours, and non -life -threatening conditions are not corrected within the specified time frame (or any SAHA-approved extension), the owner's HAP will be abated in accordance with SAHA policy (see 8-II.G.). Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any SAHA-approved extension, if applicable) the family's assistance will be terminated in accordance with SAHA policy (see Chapter 12). Page 8-19 Administrative Plan 7/l/2025 City Council 5 — 440 7/15/2025 EXHIBIT 1 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: Notification of Corrective Actions [24 CFR 982.404(d)(1)] The owner must maintain the unit in accordance with housing quality standards. The unit is in noncompliance with housing quality standards if: • The PHA or authorized inspector determines the unit has housing quality standards deficiencies based upon an inspection • The PHA notified the owner in writing of the unit housing quality standards deficiencies; and • The unit's housing quality standards deficiencies are not corrected within the required timeframes. A PHA may withhold assistance payments for units that have deficiencies once the owner has been notified in writing of the deficiencies. The PHA's administrative plan must identify the conditions under which the PHA will withhold HAP. In this case, if the unit is brought into compliance during the applicable cure period, the PHA must resume assistance payments and provide payments to cover the time period for which the payments were withheld. The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period. In this case, the PHA must notify the family and the owner that it is abating payments and, if the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will terminate the HAP contract for the unit and the family will have to move to receive continued assistance. In this case, the PHA must issue the family its voucher to move at least 30 days prior to the termination of the HAP contract. Page 8-20 Administrative Plan 7/l/2025 City Council 5 — 441 7/15/2025 EXHIBIT 1 SAHA Policy The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies housing quality standards failures, SAHA will determine (1) whether or not the failure is a life -threatening condition and (2) whether the family or owner is responsible. SAHA will not withhold assistance payments upon notification of the deficiencies to the owner. When life -threatening conditions are identified, SAHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of SAHA's notice. When failures that are not life -threatening are identified, SAHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If the owner is responsible for correcting the deficiency, the notice of inspection results will inform the owner that if life -threatening conditions are not corrected within 24 hours, and non -life -threatening conditions are not corrected within the specified time frame (or any SAHA-approved extension), the owner's HAP will be abated in accordance with SAHA policy (see 8-II.G.). Likewise, if the family is responsible for correcting the deficiency, the notice will inform the family that if corrections are not made within the specified time frame (or any SAHA- approved extension, if applicable) the family's assistance will be terminated in accordance with SAHA policy (see Chapter 12). Page 8-21 Administrative Plan 7/l/2025 City Council 5 — 442 7/15/2025 EXHIBIT 1 Extensions For conditions that are life -threatening, the PHA cannot grant an extension to the 24 hour corrective action period. For conditions that are not life -threatening, the PHA may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate [24 CFR 982.404]. SAHA Policy Extensions will be granted in cases where SAHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner's control. Reasons may include, but are not limited to: A repair cannot be completed because required parts or services are not available. A repair cannot be completed because of weather conditions. A reasonable accommodation is needed because the family includes a person with disabilities. Any repairs that cannot be completed because of a delay caused by a Homeowners' Association's (HOA) action or inaction. The length of the extension will be determined on a case -by -case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions or the HOA's action or inaction In the case of weather conditions or the HOA's action or inaction, extensions may be continued until the weather has improved sufficiently to make repairs possible or when the HOA has approved the repairs to be completed. The necessary repairs must be made within 30 calendar days, once the weather conditions have subsided or of the HOA's approval. Reinspections [24 CFR 982.405(i)] When a PHA must verify correction of a deficiency, the PHA may use verification methods other than another on -site inspection. The PHA may establish different verification methods for initial and non -initial inspections or for different deficiencies. Upon either an inspection for initial occupancy or a reinspection, the PHA may accept photographic evidence or other reliable evidence from the owner to verify that a deficiency has been corrected. SAHA Policy SAHA will conduct a reinspection immediately following the end of the corrective period, or any SAHA approved extension. The family and owner will be given reasonable notice of the reinspection appointment. If the deficiencies have not been corrected by the time of the reinspection, SAHA will send a notice of abatement to the owner, or in the case of family caused violations, a notice of proposed termination to the family, in accordance with SAHA policies. If SAHA is unable to gain entry to the unit in order to conduct the scheduled reinspection, SAHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family's assistance in accordance with Chapter 12. Page 8-22 Administrative Plan 7/l/2025 City Council 5 — 443 7/15/2025 EXHIBIT 1 SAHA will not accept self -certification of HQS repairs. Photos or other documentation of repairs will not be accepted in lieu of a reinspection. Page 8-23 Administrative Plan 7/1/2025 City Council 5 — 444 7/15/2025 EXHIBIT 1 8-II.G. ENFORCING OWNER COMPLIANCE If the owner fails to maintain the dwelling unit in accordance with HQS, the PHA must take prompt and vigorous action to enforce the owner obligations. The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: HAP Abatement If an owner fails to correct HQS deficiencies by the time specified by the PHA, HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of HQS failures that are the family's responsibility. SAHA Policy SAHA will make all HAP abatements effective the first of the month following the expiration of the SAHA specified correction period (including any extension). SAHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV G13 p. 10-29] and must give the owner reasonable notice of the termination. The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10. SAHA Policy The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies SAHA before the termination date of the HAP contract, SAHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Reasonable notice of HAP contract termination by SAHA is 30 days. Page 8-24 Administrative Plan 7/l/2025 City Council 5 — 445 7/15/2025 EXHIBIT 1 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: HAP Withholding [24 CFR 982.404(d)(1)] A PHA may withhold assistance payments for units that have housing quality standards deficiencies once the PHA has notified the owner in writing of the deficiencies. The PHA's administrative plan must identify the conditions under which the PHA will withhold HAP. In this case, if the unit is brought into compliance during the applicable cure period, the PHA resumes assistance payments and provides assistance payments to cover the time period for which the payments were withheld. SAHA Policv SAHA will not withhold assistance payments upon notification to the owner of the deficiencies. HAP Abatement [24 CFR 982.404(d)(2)] The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period. In this case, the PHA must notify the family and the owner that it is abating payments and, if the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will terminate the HAP contract for the unit and the family will have to move to receive continued assistance. In this case, the PHA must issue the family its voucher to move at least 30 days prior to the termination of the HAP contract. The owner may not terminate the tenancy of any family due to the withholding or abatement of assistance. SAHA Policv SAHA will make all HAP abatements effective the first of the month following the expiration of the SAHA-specified correction period (including any extension). SAHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. For PHA policies on family moves when units are in abatement and termination of the HAP contract when a family moves due to deficiencies, see Section 10-I.13. Page 8-25 Administrative Plan 7/l/2025 City Council 5 — 446 7/15/2025 EXHIBIT 1 HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner reasonable notice of the termination. The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10. SAHA Policy The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies the PHA before the termination date of the HAP contract, SAHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Reasonable notice of HAP contract termination by the PHA is 30 days. SAHA will issue a voucher to permit the family to move to another unit as described in Chapter 10. Page 8-26 Administrative Plan 7/l/2025 City Council 5 — 447 7/15/2025 EXHIBIT 1 8-II.H. ENFORCING FAMILY COMPLIANCE WITH HQS [24 CFR 982.404(b)] The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Families are responsible for correcting any HQS violations listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family's assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair. The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: If the PHA waived the landlord responsibility for housing quality standards deficiencies that have been determined to have been caused by the tenant, any member of the household, or any guest or other person under the tenant's control (see section 8-I.1)), the family is responsible for correcting any housing quality standards violations listed in paragraph 8.I.1). If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family's assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair and may enter into a repayment agreement with the family. Page 8-27 Administrative Plan 7/l/2025 City Council 5 — 448 7/15/2025 EXHIBIT 1 PART III: RENT REASONABLENESS [24 CFR 982.5071 8-III.A. OVERVIEW Except in the case of certain LIHTC- and HOME -assisted units, no HAP contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program. HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit's rent is reasonable. PHA -Owned Units [24 CFR 982.352(b)] In cases where an HCV family is receiving assistance in a PHA -owned unit, the PHA must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA -owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of the rent reasonableness determination to the family and the PHA. The independent agency must be approved by HUD, and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). Page 8-28 Administrative Plan 7/l/2025 City Council 5 — 449 7/15/2025 EXHIBIT 1 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Owner -Initiated Rent Determinations The PHA must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment. The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the case of PHA -owned units) will assist the family with the negotiations upon request. At initial occupancy the PHA must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent HQS inspection have been corrected. SAHA Policy After the initial occupancy period, the owner may request a rent adjustment in accordance with the owner's lease. For rent increase requests after initial lease -up, SAHA may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises SAHA will consider unit size and length of tenancy in the other units. SAHA will determine whether the requested increase is reasonable within 14 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. All rents adjustments will be effective the first of the month following 60 days after SAHA's receipt of the owner's request or on the date specified by the owner, whichever is later. PHA and HUD -Initiated Rent Reasonableness Determinations HUD requires the PHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time. SAHA Policy In addition to the instances described above, SAHA will make a determination of rent reasonableness at any time after the initial occupancy period if. (1) SAHA determines that the initial rent reasonableness determination was in error or (2) SAHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect. Page 8-29 Administrative Plan 7/l/2025 City Council 5 — 450 7/15/2025 EXHIBIT 1 LIHTC and HOME -Assisted Units [24 CFR 982.507(c)] For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD's HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME -assisted units in the project that are not occupied by families with tenant -based assistance. For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non -voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of. (1) the reasonable rent as determined from the rent comparability study; or (2) the payment standard established by the PHA for the unit size involved. 8-III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age • Unit size including the number of rooms and square footage of rooms • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise) • The quality of the units including the quality of the original construction, maintenance and improvements made • Amenities, services, and utilities included in the rent Units that Must Not Be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project -based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program - assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent -controlled by local ordinance [Notice PIH 2O02-22, Notice PIH 2O05-20, and Notice PIH 2O20-19]. Note: Notice PIH 2O20-19, issued August 21, 2020, provides further guidance on the issue of what constitutes an assisted unit. Page 8-30 Administrative Plan 7/l/2025 City Council 5 — 451 7/15/2025 EXHIBIT 1 Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. By accepting the PHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give the PHA information regarding rents charged for other units on the premises. Page 8-31 Administrative Plan 7/l/2025 City Council 5 — 452 7/15/2025 EXHIBIT 1 8-IILD. PHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected SAHA Policv SAHA will primarily utilize an outside vendor who specializes in rent reasonable data collection to collect and maintain data on market rents in SAHA's jurisdiction. Information sources include newspapers, realtors, market surveys, inquiries of owners and other available sources. The data will be maintained by bedroom size and market areas. Market areas may be defined by zip codes. The data will be updated on an ongoing basis and rent information that is more than 12 months old will be archived in the vendor's database. Market data greater than 12 months old will not be used for eligibility but may be used for reference. How Rents Are Determined SAHA Policv The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable units in the same market area. SAHA will develop a range of prices for comparable units by bedroom size within defined market areas. Units proposed for HCV assistance will be compared to the units within this rent range. Because units may be similar, but not exactly like the unit proposed for HCV assistance, SAHA may make adjustments to the range of prices to account for these differences. The adjustment must reflect the local market. Not all differences in units require adjustments (e.g., the presence or absence of a garbage disposal may not affect the rent in some market areas). SAHA uses a unit -to -unit comparison, by which the rent for a unit proposed for HCV assistance is directly compared to the rents for one or more unassisted units selected as comparables within the same market area. Geocoded maps will be used to identify the non -assisted units in closest proximity to the subject unit, and unit data information will be used to select the most similar units. In comparing rents, SAHA will take into account critical market factors that impact rent, including the location, quality, size, unit type, and age of the contract unit, as well as any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease. Where comparable units differ from the unit proposed for HCV assistance, SAHA will determine whether those differences impact rent. Where they do, SAHA will adjust the rental value of the comparable units, up or down, based on the market value of these factors. The rent for the unit proposed for HCV assistance will be compared to the adjusted rents for the comparable units, enabling a fair, accurate, market -based determination of rent reasonableness. Adjustments may vary by unit type (e.g., a second bathroom may be more valuable in a three -bedroom unit than in a two -bedroom). The adjustment must reflect the rental value of the difference — not its construction costs (e.g., it might cost $20,000 to put on a new roof, but the new roof might not make any difference in what a tenant would be willing to pay because rents units are presumed to have functioning roofs). When a comparable Page 8-32 Administrative Plan 7/l/2025 City Council 5 — 453 7/15/2025 EXHIBIT 1 project offers rent concessions (e.g., first month rent-free, or reduced rent) reported monthly rents will be adjusted accordingly. For example, if a comparable project reports rents of $500/month but new tenants receive the first month's rent free, the actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 months = actual monthly rent of $488. Page 8-33 Administrative Plan 7/l/2025 City Council 5 — 454 7/15/2025 EXHIBIT 1 EXHIBIT 8-1: OVERVIEW OF HUD HOUSING QUALITY STANDARDS Note: This document provides an overview of HQS. For more detailed information see the following documents: 24 CFR 982.401, Housing Quality Standards (HQS) • Housing Choice Voucher Guidebook, Chapter 10. HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Sanitary Facilities The dwelling unit must include sanitary facilities within the unit. The sanitary facilities must be usable in privacy and must be in proper operating condition and adequate for personal cleanliness and disposal of human waste. Food Preparation and Refuse Disposal The dwelling unit must have space and equipment suitable for the family to store, prepare, and serve food in a sanitary manner. Space and Security The dwelling unit must provide adequate space and security for the family. This includes having at least one bedroom or living/sleeping room for each two persons. Thermal Environment The unit must have a safe system for heating the dwelling unit. Air conditioning is not required but if provided must be in proper operating condition. The dwelling unit must not contain unvented room heaters that burn gas, oil, or kerosene. Portable electric room heaters or kitchen stoves with built-in heating units are not acceptable as a primary source of heat for units located in climatic areas where permanent heat systems are required. Illumination and Electricity Each room must have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. The dwelling unit must have sufficient electrical sources so occupants can use essential electrical appliances. Minimum standards are set for different types of rooms. Once the minimum standards are met, the number, type and location of electrical sources are a matter of tenant preference. Structure and Materials The dwelling unit must be structurally sound. Handrails are required when four or more steps (risers) are present, and protective railings are required when porches, balconies, and stoops are thirty inches or more off the ground. The elevator servicing the unit must be working [if there is one]. Manufactured homes must have proper tie -down devices capable of surviving wind loads common to the area. Page 8-34 Administrative Plan 7/l/2025 City Council 5 — 455 7/15/2025 EXHIBIT 1 Interior Air Quality The dwelling unit must be free of air pollutant levels that threaten the occupants' health. There must be adequate air circulation in the dwelling unit. Bathroom areas must have one openable window or other adequate ventilation. Any sleeping room must have at least one window. If a window was designed to be opened, it must be in proper working order. Water Supply The dwelling unit must be served by an approved public or private water supply that is sanitary and free from contamination. Plumbing fixtures and pipes must be free of leaks and threats to health and safety. Lead -Based Paint Lead -based paint requirements apply to dwelling units built prior to 1978 that are occupied or can be occupied by families with children under six years of age, excluding zero bedroom dwellings. Owners must: • Disclose known lead -based paint hazards to prospective tenants before the lease is signed, • provide all prospective families with "Protect Your Family from Lead in Your Home", • Stabilize deteriorated painted surfaces and conduct hazard reduction activities within 30 days when identified by the PHA • Notify tenants each time such an activity is performed • Conduct all work in accordance with HUD safe practices • As part of ongoing maintenance ask each family to report deteriorated paint • Maintain covered housing without deteriorated paint if there is child under six in the family For units occupied by elevated blood lead level (lead poisoned) children under six years of age, an environmental investigation must be conducted (paid for by the PHA). If lead hazards are identified during the environmental investigation, the owner must complete hazard reduction activities within 30 days. See HCV GB p. 10-15 for a detailed description of these requirements. For additional information on lead -based paint requirements see 24 CFR 35, Subparts A, B, M, and R. Access Use and maintenance of the unit must be possible without unauthorized use of other private properties. The building must provide an alternate means of exit in case of fire. Site and Neighborhood The site and neighborhood must be reasonably free from disturbing noises and reverberations, excessive trash or vermin, or other dangers to the health, safety, and general welfare of the occupants. Page 8-35 Administrative Plan 7/l/2025 City Council 5 — 456 7/15/2025 EXHIBIT 1 Sanitary Condition The dwelling unit and its equipment must be in sanitary condition and free of vermin and rodent infestation. The unit must have adequate barriers to prevent infestation. Smoke Detectors Smoke detectors must be installed in accordance with and meet the requirements of the National Fire Protection Association Standard (NFPA) 74 (or its successor standards). If the dwelling unit is occupied by any person with a hearing impairment, smoke detectors must have an appropriate alarm system as specified in NFPA 74 (or successor standards). Hazards and Heath/Safety The unit, interior and exterior common areas accessible to the family, the site, and the surrounding neighborhood must be free of hazards to the family's health and safety. Page 8-36 Administrative Plan 7/l/2025 City Council 5 — 457 7/15/2025 EXHIBIT 1 EXHIBIT 8-2: SUMMARY OF TENANT PREFERENCE AREAS RELATED TO HOUSING QUALITY Note: This document provides an overview of unit and site characteristics and conditions for which the family determines acceptability. For more detailed information see the following documents: • Housing Choice Voucher Guidebook, Chapter 10. • HUD Housing Inspection Manual for Section 8 Housing • HUD Inspection Form, form HUD-52580 (3/01) and Inspection Checklist, form HUD-52580-A (9/00) Provided the minimum housing quality standards have been met, HUD permits the family to determine whether the unit is acceptable with regard to the following characteristics. Sanitary Facilities. The family may determine the adequacy of the cosmetic condition and quality of the sanitary facilities, including the size of the lavatory, tub, or shower; the location of the sanitary facilities within the unit; and the adequacy of the water heater. Food Preparation and Refuse Disposal. The family selects size and type of equipment it finds acceptable. When the family is responsible for supplying cooking appliances, the family may choose to use a microwave oven in place of a conventional oven, stove, or range. When the owner is responsible for providing cooking appliances, the owner may offer a microwave oven in place of an oven, stove, or range only if other subsidized and unsubsidized units on the premises are furnished with microwave ovens only. The adequacy of the amount and type of storage space, the cosmetic conditions of all equipment, and the size and location of the kitchen are all determined by the family. Space and Security. The family may determine the adequacy of room sizes and room locations. The family is also responsible for deciding the acceptability of the type of door and window locks. Energy conservation items. The family may determine whether the amount of insulation, presence of absence of storm doors and windows and other energy conservation items are acceptable. Illumination and Electricity. The family may determine whether the location and the number of outlets and fixtures (over and above those required to meet HQS standards) are acceptable or if the amount of electrical service is adequate for the use of appliances, computers, or stereo equipment. Page 8-37 Administrative Plan 7/l/2025 City Council 5 — 458 7/15/2025 EXHIBIT 1 • Structure and Materials. Families may determine whether minor defects, such as lack of paint, or worn flooring or carpeting will affect the livability of the unit. • Indoor Air. Families may determine whether window and door screens, filters, fans, or other devices for proper ventilation are adequate to meet the family's needs. However, if screens are present they must be in good condition. • Sanitary Conditions. The family determines whether the sanitary conditions in the unit, including minor infestations, are acceptable. • Neighborhood conditions. Families may determine whether neighborhood conditions such as the presence of drug activity, commercial enterprises, and convenience to shopping will affect the livability of the unit. Families have no discretion with respect to lead -based paint standards and smoke detectors. Page 8-38 Administrative Plan 7/l/2025 City Council 5 — 459 7/15/2025 EXHIBIT 1 Chapter 8.B. NATIONAL STANDARDS FOR THE PHYSICAL INSPECTION OF REAL ESTATE AND RENT REASONABLENESS DETERMINATIONS [24 CFR 5 Subpart G and Notice PIH 2O24-26] INTRODUCTION Owners must maintain all units occupied by families receiving Housing Choice Voucher (HCV) and Project Based Voucher (PBV) assistance in accordance with housing quality standards. Units assisted under the program must comply with HUD's National Standards for the Physical Inspection of Real Estate (NSPIRE) regulations and standards no later than October 1, 2025. The inspection performance standards and procedures for conducting NSPIRE inspections must be included in the administrative plan [Notice PIH 2O24-26]. All units must pass an inspection prior to the approval of a lease (with some exceptions) and at least once every 24 months (or 36 months for small rural PHAs) during the term of the HAP contract, and at other times as needed, to determine that the unit meets housing quality standards. HUD also requires PHAs to determine that rents for units under the program are reasonable when compared to comparable unassisted units in the market area. Provided they meet certain requirements, HUD permits PHAs to establish some additional local requirements in their administrative plans. The use of the term NSPIRE standards in this plan refers to the combination of both HUD and PHA -established requirements. However, state and local codes, compliance is not part of the determination of whether a unit passes the NSPIRE standards. This chapter explains HUD and PHA requirements related to physical inspections and rent reasonableness as follows: Part I. Physical Standards. This part discusses NSPIRE standards required of units occupied by HCV and PBV-assisted families. It also identifies affirmative habitability requirements for all units and life -threatening conditions that must be corrected in 24 hours. Part II. The Inspection Process. This part describes the types of inspections the PHA will make and the steps that will be taken when units do not meet NSPIRE standards. Part III. Rent Reasonableness Determinations. This part discusses the policies the PHA will use to make rent reasonableness determinations. Special requirements for homeownership, manufactured homes, and other special housing types are discussed in Chapter 15 to the extent that they apply in this jurisdiction. Special requirements for the PBV program is discussed in Chapters 17. - 025 City Council — 460 7 5 2 25 EXHIBIT 1 NSPIRE and HQS Even once the HQS inspection standard has sunset, the regulations at 24 CFR Part 982 and 983 governing the HCV and PBV programs will continue to use the terms HQS and housing quality standards rather than NSPIRE. This is because the definition of housing quality standards (HQS) at 24 CFR 982.4 means the minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for the HCV program, including any variations approved by HUD for the PHA. As such, the model policy uses the term housing quality standards whenever applicable regulations use this term. Except in the chapter describing HQS, the acronym HQS is not used in the model policy in order to avoid confusion between the umbrella term meaning housing standards and the specific inspection protocol. The model policy only uses the term NSPIRE when referring to specific NSPIRE standards. 025 City Council — 461 PHI5 2 25 EXHIBIT 1 PART I: NSPIRE STANDARDS NSPIRE standards are published on HUD's NSPIRE website as well as in the NSPIRE Final Rule [FR Notice 5/1//2023]. 8-I.A. INSPECTABLE AREAS [24 CFR 5.703(a)(1) and 24 CFR 5.705(a)(2)] NSPIRE defines the inspectable areas for inspection under the standards as inside, outside and unit. However, the inspection requirement for the HCV and PBV programs only applies to units occupied or to be occupied by HCV or PBV participants and common areas and exterior areas which either service or are associated with such units. 8-I.B. AFFIRMATIVE HABITABILITY REQUIREMENTS [24 CFR 5.703(b), (c), and (d)] NSPIRE provides for minimum, or affirmative, habitability requirements for each area (unit, inside, outside). These areas must meet these requirements for habitability, which are listed in Exhibit 8-1. The inside, outside and unit must be free of health and safety hazards that pose a danger to residents. Types of health and safety concerns include, but are not limited to carbon monoxide, electrical hazards, extreme temperature, flammable materials or other fire hazards, garbage and debris, handrail hazards, infestation, lead -based paint, mold, and structural soundness [24 CFR 5.703 (e). The NSPIRE Smoke Alarm Standard does not require that smoke alarms have a sealed battery; however, upon the effective date of the Public and Federally Assisted Housing Fire Safety Act of 2022 on December 29, 2024, sealed batteries will be required. 025 City Council — 462 5 2 25 EXHIBIT 1 8-I.C. MODIFICATIONS TO PROVIDE ACCESSIBILITY [24 CFR 100.203; Notice 2003-31; and Notice PIH 2O14-021 Under the Fair Housing Act of 1988 an owner must make reasonable accommodations in rules, policies, practices, or services if necessary for a person with disabilities to use the housing and must not refuse the request of a family that contains a person with a disability to make necessary and reasonable modifications to the unit if such modification is necessary to afford the person with a disability full enjoyment of the premises. Such modifications are at the family's expense. The owner may, where it is reasonable to do so, require restoration of the unit to its original condition (reasonable wear and tear excepted) if the modification would interfere with the owner or next occupant's full enjoyment of the premises. The owner may not increase a customarily required security deposit. However, the landlord may negotiate a restoration agreement that requires the family to restore the unit and, if necessary to ensure the likelihood of restoration, may require the tenant to pay a reasonable amount into an interest- bearing escrow account over a reasonable period of time. The interest in any such account accrues to the benefit of the tenant. The owner may also require reasonable assurances that the quality of the work will be acceptable and that any required building permits will be obtained. [24 CFR 100.203; Notice 2003-31]. Modifications to units to provide access for a person with a disability must meet all applicable NSPIRE requirements and conform to the design, construction, or alteration of facilities contained in the UFAS and the ADA Accessibility Guidelines (ADAAG) [28 CFR 35.151(c) and Notice 2003-31] See Chapter 2 of this plan for additional information on reasonable accommodations for persons with disabilities. SAHA Policy SAHA will not review any restoration agreement. - 025 City Council — 463 5 2 25 EXHIBIT 1 8-I.D. ADDITIONAL LOCAL REQUIREMENTS [24 CFR 5.705(a)(3) and Notice PIH 2O24-261 The PHA may impose variations to the NSPIRE standards as long as the additional criteria are not likely to adversely affect the health or safety of participant families or severely restrict housing choices for families. HUD approval is required for variations to NSPIRE standards and approved variations must be added to the administrative plan. HUD may approve inspection criteria variations if the variations apply standards in local housing codes or other codes adopted by the PHA or because of local climatic or geographic conditions. Acceptability criteria variations may only be approved by HUD if such variations either meet or exceed the performance requirements or significantly expand affordable housing opportunities for families assisted under the program. SAHA Policy SAHA has not requested any HUD -approved variations to NSPIRE standards. - 025 City Council — 464 5 2 25 EXHIBIT 1 8-I.E. LIFE -THREATENING DEFICIENCIES [Notice PIH 2O24-26] HUD previously required the PHA to define life -threatening conditions in the administrative plan. The NSPIRE standards now describe those conditions which are considered life -threatening and must be corrected within 24 hours. The following are a list of life -threatening deficiencies under NSPIRE: Inspectable Item Deficiency Call -for -Aid System System is blocked, or pull cord is higher than 6 inches off the floor. System does not function properly Carbon Monoxide Alarm Carbon monoxide alarm is missing, not installed, or not installed in a proper location. Carbon monoxide alarm is obstructed. Carbon monoxide alarm does not produce an audio or visual alarm when tested. Chimney A visually accessible chimney, flue, or firebox connected to a fireplace or wood -burning appliance is incomplete or damaged such that it may not safely contain fire and convey smoke and combustion gases to the exterior. Chimney exhibits signs of structural failure. Clothes Dryer Exhaust Ventilation Electric dryer transition duct is detached or missing. Gas dryer transition duct is detached or missing. Electric dryer exhaust ventilation system has restricted airflow. Dryer transition duct is constructed of unsuitable material. Gas dryer exhaust ventilation system has restricted airflow. Door — Entry Entry door is missing. Door — Fire Labeled Fire labeled door is missing. Egress Obstructed means of egress. Sleeping room is located on the third floor or below and has an obstructed rescue opening. Fire escape is obstructed. Electrical — Conductor, Outlet, and Switch Outlet or switch is damaged. Exposed electrical conductor. Water is currently in contact with an electrical conductor. Electrical — Service Panel The overcurrent protection device is damaged. Exit Sign Exit sign is damaged, missing, obstructed, or not adequately illuminated. - 025 City Council — 465 5 2 25 EXHIBIT 1 Inspectable Item Deficiency Fire Escape Fire escape component is damaged or missing. Fire Extinguisher Fire extinguisher pressure gauge reads over or under -charged. Fire extinguisher service tag is missing, illegible, or expired. Fire extinguisher is damaged or missing. Flammable and Combustible Items Flammable or combustible item is on or within 3 feet of an appliance that provides heat for thermal comfort or a fuel -burning water heater; OR Improperly stored chemicals. Guardrail Guardrail is missing or not installed. Guardrail is not functionally adequate. Heating, Ventilation, and Air Conditioning (HVAC) The inspection date is on or between October 1 and March 31 and the permanently installed heating source is not working or the permanently installed heating source is working and the interior temperature is below 64 degrees Fahrenheit. Unvented space heater that burns gas, oil, or kerosene is present. Combustion chamber cover or gas shutoff valve is missing from a fuel burning heating appliance. Fuel burning heating system or device exhaust vent is misaligned, blocked, disconnected, improperly connected, damaged, or missing. Leak — Gas or Oil Natural gas, propane, or oil leak. Mold -like Substance Presence of mold -like substance at extremely high levels is observed visually. Smoke Alarm Smoke alarm is not installed where required. Smoke alarm is obstructed. Smoke alarm does not produce an audio or visual alarm when tested. Sprinkler Assembly Sprinkler head assembly is encased or obstructed by an item or object that is within 18 inches of the sprinkler head. Sprinkler assembly component is damaged, inoperable, or missing and it is detrimental to performance. Sprinkler assembly has evidence of corrosion. Sprinkler assembly has evidence of foreign material that is detrimental to performance. Structural System Structural system exhibits signs of serious failure. Toilet Only 1 toilet was installed, and it is missing. - 025 City Council — 466 5 2 25 EXHIBIT 1 Inspectable Item Deficiency Water Heater Chimney or flue piping is blocked, misaligned, or missing. Gas shutoff valve is damaged, missing, or not installed. However, PHAs may add additional deficiencies which the PHA considers life -threatening provided they are described in the administrative plan. SAHA Policy In addition to those listed under the NSPIRE standards, the following are considered life - threatening conditions: Utilities not in service, including no running hot water - 025 City Council — 467 5 2 25 EXHIBIT 1 8-I.F. OWNER AND FAMILY RESPONSIBILITIES [24 CFR 982.404] The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Family Responsibilities The family is responsible for correcting the following deficiencies: • Tenant -paid utilities not in service • Failure to provide or maintain appliances owned by the family Damage to the unit or premises caused by a household member or guest beyond ordinary wear and tear. If a family fails to correct a family -caused life -threatening condition as required by the PHA, the PHA will enforce the family obligations. See 8-II.H. SAHA Policy Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. Owner Responsibilities The owner must maintain the unit in accordance with housing quality standards. The owner is not responsible for a breach of housing quality standards that is not caused by the owner, and for which the family is responsible (as provided in 24 CFR 982.404(b) and 982.551(c)). SAHA Policy The owner is responsible for all housing quality violations not listed as a family responsibility above, even if the violation is caused by the family's living habits (e.g., vermin infestation). However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. The owner will be required to repair an inoperable smoke detector unless SAHA determines that the family has intentionally disconnected it (by removing batteries or other means). In this case, the family will be required to repair the smoke detector within 24 hours. If an owner fails to correct life -threatening conditions as required by the PHA, the PHA will enforce the housing quality standards in accordance with HUD requirements. See 8-II-G. 025 City Council — 468 7 5 2 25 EXHIBIT 1 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later. Owner Obligation The owner must maintain the unit in accordance with housing quality standards. A unit is not in compliance with housing quality standards if the PHA or other inspector authorized by the state or local government determines that the unit has housing quality standards deficiencies based upon an inspection, notifies the owner in writing of the deficiencies, and the deficiencies are not remedied within the appropriate time frame. In the case of a housing quality standards deficiency that the PHA determines is caused by the tenant, any member of the household, or any guest or other person under the tenant's control (other than damage resulting from ordinary use), the PHA may waive the owner's responsibility to remedy the violation. The HAP to the owner may not be withheld or abated if the owner responsibility has been waived. However, if the family's actions constitute a serious or repeated lease violation, the owner may take legal action to evict the family. In addition, the PHA may terminate the family's assistance because of a housing quality standards breach (beyond damage resulting from ordinary use) caused by any member of the household, guest, or other person under the tenant's control. SAHA Policy SAHA will waive the owner's responsibility for housing quality standards deficiencies that have been determined to have been caused by the tenant, any member of the household, or any guest or other person under the tenant's control, to the extent the tenant can be held responsible for ensuring that the deficiencies are corrected: the tenant must take all necessary steps permissible under the lease and state and local law to remedy the deficiency. This may include paying the owner for the cost of the necessary repairs in accordance with the lease. ftgv - 025 City Council — 469 5 2 25 EXHIBIT 1 Family Responsibilities The family may be held responsible for a breach of housing quality standards caused by any of the following: • Tenant -paid utilities not in service; • Failure to provide or maintain appliances owned by the family; and • Damage to the dwelling unit or premises caused by a household member or guest beyond ordinary wear and tear. SAHA Policy Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. If the PHA has waived the owner's responsibility to remedy the violation as outlined under the owner obligations above, the following applies: • If the housing quality standards breach caused by the family is life -threatening, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 24 hours of notification. • For other family -caused deficiencies, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 30 calendar days of notification (or any PHA -approved extension). If the family has caused a breach of housing quality standards, the PHA must take prompt and vigorous action to enforce the family obligations. The PHA may terminate assistance for the family in accordance with 24 CFR 982.552. Pdgv - 025 City Council — 470 5 2 25 EXHIBIT 1 8-I.G. LEAD -BASED PAINT PHAs and owners must comply with the requirements and timelines in 24 CFR Part 35 Subpart M—Tenant-Based Rental Assistance and Subpart H—Project-Based Assistance. PHAs and owners are reminded that any deteriorated paint in target housing, or other lead -based paint hazard identified through a lead -based paint risk assessment or lead -based paint inspection is considered a violation of NSPIRE standards. For the HCV program, Subpart M applies to units where a child under age six resides or is expected to reside, common areas that service that unit, and exterior painted surfaces associated with that unit or common areas. For project -based programs, Subpart H applies to assisted units and common areas of the property regardless of whether a child under age six resides or is expected to reside in the unit. NSPIRE does not alter any of the lead -based paint requirements in Part 35 for these programs. Special Requirements for Children with Elevated Blood Lead Level [24 CFR 35.1225; FR Notice 1/13/17; Notice PIH 2O17-131 If a PHA is notified by a public health department or other medical health care provider, or verifies information from a source other than a public health department or medical health care provider, that a child of less than six years of age, living in an HCV-assisted unit has been identified as having an elevated blood lead level, the PHA must complete an environmental investigation of the dwelling unit within 15 calendar days after being notified by a public health department or other medical health care provider. The environmental investigation must be completed in accordance with program requirements, and the result of the environmental investigation must be immediately provided to the owner of the dwelling unit. In cases where the public health department has already completed an evaluation of the unit, this information must be provided to the owner. Within 30 days after receiving the environmental investigation report from the PHA, or the evaluation from the public health department, the owner is required to complete the reduction of identified lead -based paint hazards in accordance with the lead -based paint regulations [24 CFR 35.1325 and 35.1330; 40 CFR 745.227]. If the owner does not complete the "hazard reduction" as required, the dwelling unit is in violation of NSPIRE and the PHA will take action in accordance with Section 8-II.G. PHA reporting requirements, and data collection and record keeping responsibilities related to children with an elevated blood lead level are discussed in Chapter 16. ftgv - 025 City Council — 471 5 2 25 EXHIBIT 1 8-I.H. VIOLATION OF SPACE STANDARDS [24 CFR 5.703(d)(5)] Units assisted under the HCV or PBV programs must have at least one bedroom or living/sleeping room for each two persons. A living room may be used as sleeping (bedroom) space, but no more than two persons may occupy the space [HCV GB p. 10-6]. Each habitable room must have two working outlets or one working outlet and a permanent light. HUD defines a habitable room as a room in a building for living, sleeping, eating, or cooking, but excluding bathrooms, toilet rooms, closets, hallways, storage or utility spaces, and similar areas [FR Notice 5/11/23]. A unit that does not meet these space standards is defined as overcrowded. If the PHA determines that a unit is overcrowded because of an increase in family size or a change in family composition, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms. ftgv - 025 City Council — 472 5 2 25 EXHIBIT 1 PART II: THE INSPECTION PROCESS 8-II.A. OVERVIEW [24 CFR 982.4051 Types of Inspections The PHA conducts the following types of inspections as needed. Each type of inspection is discussed in the paragraphs that follow. • Initial Inspections. The PHA conducts initial inspections in response to a request from the family to approve a unit for participation in the HCV program. • Periodic Inspections. HUD requires the PHA to inspect each unit under lease at least annually or biennially (or triennially for small rural PHAs as defined in 24 CFR 982.305(b)(2)), depending on PHA policy, to confirm that the unit still meets housing quality standards. • Interim Inspections. A special inspection may be requested by the owner, the family, or a third party as a result of problems identified with a unit between annual inspections. • Supervisory Control Inspections. HUD requires that a sample of units be inspected by a supervisor or other qualified individual to evaluate the work of the inspector(s) and to ensure that inspections are performed in compliance with housing quality standards. Inspection of PHA -Owned Units [24 CFR 982.352(b)] The PHA must obtain the services of an independent entity to perform all inspections in cases where an HCV family is receiving assistance in a PHA -owned unit as defined in 24 CFR 982.4. The independent entity must communicate the results of each inspection to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). The PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease. PHA - owned unit is freely selected by the family, without PHA pressure or steering. For information on the inspection of PHA -owned units in the PBV program, see Chapter 17. ftgv - 025 City Council — 473 5 2 25 EXHIBIT 1 Inspection Costs [Notice PIH 2O16-05 and 24 CFR 5.705(h)] The PHA may not charge the family for unit inspections or reinspections [24 CFR 982.405(g)]. In the case of inspections of PHA -owned units, the PHA may compensate the independent agency from ongoing administrative fees (including fees credited to the administrative fee reserve) for inspections performed. The PHA and the independent agency may not charge the family any fee or charge for the inspection [24 CFR.982.352(b)(1)(v)(B)]. The PHA may not charge the owner for the inspection of the unit prior to the initial term of the lease or for a first inspection during assisted occupancy of the unit. However, the PHA may charge a reasonable fee to owners for reinspections if an owner notifies the PHA that a repair has been made or the allotted time for repairs has elapsed and a reinspection reveals that any deficiency cited in the previous inspection that the owner is responsible for repairing, pursuant to 24 CFR 982.404(a), was not corrected. Fees may not be imposed for tenant -caused damages, for cases in which the inspector could not gain access to the unit, or for new deficiencies discovered during a reinspection. The owner may not pass the cost of a reinspection fee to the family. Reinspection fees must be added to the PHA's administrative fee reserves and may only be used for activities related to the provision of tenant -based assistance. SAHA Policv SAHA will not charge a fee for failed reinspections. Remote Video Inspections (RVIs) [Notice PIH 2O20-311 As an alternative to some or all on -site inspections, the PHA may, but is not required to, perform NSPIRE inspections from a remote location using video streaming technology and a proxy at the inspection site. Since there may be some circumstances in which the application of technology provides insufficient information or evidence to allow the PHA to make appropriate determinations about whether a condition violates NSPIRE standards, Notice PIH 2O20-31 requires that if a PHA chooses to implement RVIs, the PHA should have policies and procedures in place to address such limitations. SAHA Policv SAHA may conduct any inspection using RVI. Notice and Scheduling The family must allow the PHA to inspect the unit at reasonable times with reasonable notice [24 CFR 982.551(d)]. SAHA Policv Both the family and the owner will be given reasonable notice of all inspections. Except in the case of a life -threatening emergency, reasonable notice is considered to be not less than 48 hours. Inspections may be scheduled between 8:00 a.m. and 7:00 p.m. Generally, inspections will be conducted on business days only. In the case of a life -threatening emergency, SAHA will give as much notice as possible, given the nature of the emergency. Pdgv - 025 City Council — 474 5 2 25 EXHIBIT 1 Owner and Family Inspection Attendance HUD permits the PHA to set policy regarding family and owner presence at the time of inspection [HCV GB p. 10-27]. SAHA Policv When a family occupies the unit at the time of inspection an authorized adult must be present for the inspection. The presence of the owner or the owner's representative is encouraged but is not required. At initial inspection of a vacant unit, SAHA will inspect the unit in the presence of the owner or owner's representative. The presence of a family representative is permitted but is not required. 8-II.13. INITIAL INSPECTION [24 CFR 982.405(a)] HUD regulations require that units assisted under the HCV program be inspected to determine that the units meet housing quality standards before the PHA approves assisted tenancy. However, PHAs have two options for bringing units under HAP contract (or, in the case of PBV, approving occupancy and the execution of a lease) more quickly. The PHA may, but is not required to approve assisted tenancy and start HAP if the unit: • Fails the initial inspection, but only if no life -threatening deficiencies are identified; and/or • Passed an alternative inspection in the last 24 months. If the PHA adopts the alternative inspection option in combination with the non -life -threatening deficiencies option, the PHA must follow family and owner notification requirements listed at 24 CFR 982.406(f). Otherwise, if neither of the above provisions are adopted, the PHA must determine that the unit the family selects meets NSPIRE standards prior to approving tenancy. Approving Units with Non -Life -Threatening Deficiencies [FR Notice 1/18/17; Notice PIH 2017-20; FR Notice 5/7/24; and 24 CFR 982.4050)] The PHA may approve assisted tenancy, execute a HAP contract, and begin paying HAP if a unit fails an initial inspection, but only if the deficiencies identified are non -life threatening. This is known as the "NLT option." A PHA that implements the NLT option may apply the option to all of the PHA's initial inspections or may limit it to certain units. If the NLT option is adopted, the PHA must follow requirements listed at 24 CFR 982.4050) for family and owner notification. The PHA's administrative plan must specify the circumstances under which the PHA will exercise the NLT option, if any. SAHA Policv SAHA will not use the NLT option. All units must pass the initial inspection on or before the effective date of the HAP contract. ftgv - 025 City Council — 475 5 2 25 EXHIBIT 1 Approving Units Using Alternative Inspections [FR Notice 1/18/17; Notice PIH 2O17-20; FR Notice 5/7/24; and 24 CFR 982.4061 The PHA may approve assisted tenancy, execute a HAP contract, and begin paying HAP if a unit passed an alternative inspection (i.e., an inspection conducted for another housing program) conducted in the last 24 months provided the PHA is able to obtain the results of the alternative inspection, the property received a "pass" score (if applicable), and the inspection meets the requirements at 24 CFR 982.406(c) and (d). The PHA may implement the use of alternative inspections for both initial and periodic inspections or may limit the use of alternative inspections to either initial or periodic inspections. If alternative inspections are used, the PHA must follow requirements listed at 24 CFR 982.406(e)(2) for family and owner notification. A PHA relying on an alternative inspections must identify the alternative inspection method being used in the PHA's administrative plan. SAHA Policy SAHA will not rely on alternative inspections and will conduct an initial inspection for each unit prior to executing a HAP contract with the owner. Timing of Initial Inspections [24 CFR 982.305(b)(2)(i)] Unless the PHA relies on alternative inspections, HUD requires PHAs with fewer than 1,250 budgeted units to complete the initial inspection, determine whether the unit satisfies housing quality standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA). For PHAs with 1,250 or more budgeted units, to the extent practicable such inspection and determination must be completed within 15 days. The 15-day period is suspended for any period during which the unit is not available for inspection. SAHA Policy SAHA will complete the initial inspection, determine whether the unit satisfies NSPIRE standards, and notify the owner and the family of the determination within 15 days of submission of the Request for Tenancy Approval (RTA) or of the date when the unit becomes available for inspection, whichever is later. ftgv - 025 City Council — 476 5 2 25 EXHIBIT 1 Inspection Results and Reinspections For new units proposed for the HCV program, life -threatening deficiencies must be resolved before the HAP contract is executed and the family moves into the unit. SAHA Policv If any deficiencies are identified, the owner will be notified of the deficiencies and be given a time frame to correct them. If requested by the owner, the time frame for correcting the deficiencies may be extended by SAHA for good cause. SAHA will reinspect the unit within five business days of the date the owner notifies SAHA that the required corrections have been made. If the time period for correcting the deficiencies (or any SAHA-approved extension) has elapsed, or the unit fails at the time of the reinspection, SAHA will notify the owner and the family that the unit has been rejected and that the family must search for another unit. SAHA may agree to conduct a second reinspection, for good cause, at the request of the family and owner. Following a failed reinspection, the family may submit a new Request for Tenancy Approval for the same unit after the owner has made repairs, if they are unable to locate another suitable unit. Utilities Generally, at initial lease -up the owner is responsible for demonstrating that all utilities are in working order including those utilities that the family will be responsible for paying. SAHA Policv Utility service must be available for testing at the time of the initial inspection. SAHA may not conduct an inspection if the utilities are not in service. Appliances SAHA Policy If the family is responsible for supplying the stove and/or refrigerator, SAHA will allow the stove and refrigerator to be placed in the unit after the unit has met all other NSPIRE requirements. The required appliances must be in place before the HAP contract is executed by SAHA. SAHA will execute the HAP contract based upon a certification from the family that the appliances have been installed and are working. A confirmatory inspection will be scheduled within 30 days of HAP contract approval. Pdgv - 025 City Council — 477 5 2 25 EXHIBIT 1 8-ILC. PERIODIC INSPECTIONS [24 CFR 982.405(b) and Notice PIH 2O16-051 HUD requires the PHA to inspect each unit under HAP contract at least biennially (or triennially for small rural PHAs), to confirm that the unit still meets NSPIRE standards. The inspection may be conducted in conjunction with the family's annual reexamination but also may be conducted separately. SAHA Policv Each unit under HAP contract must be inspected biennially within 24 months of the last full inspection. SAHA reserves the right to require annual inspections of any unit or owner at any time. SAHA will not rely on alternative inspection standards. Scheduling the Inspection SAHA Policv If an adult cannot be present on the scheduled date, the family should request that SAHA reschedule the inspection. SAHA and family will agree on a new inspection date that generally should take place within 14 calendar days of the originally scheduled date. SAHA may schedule an inspection more than 14 calendar days after the original date for good cause. If the family misses the first scheduled appointment without requesting a new inspection date, SAHA will automatically schedule a second inspection. If the family misses two scheduled inspections without SAHA approval, SAHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family's assistance in accordance with Chapter 12. 8-II.D. INTERIM INSPECTIONS [24 CFR 982.405(d)] If a participant family or government official notifies the PHA of a potential deficiency, the following applies: If the reported deficiency is life -threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the life -threatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non -life -threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA -approved extension. SAHA Policv During an interim inspection, SAHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional deficiencies that are observed and will require the responsible party to make the necessary repairs. If the periodic inspection has been scheduled or is due within 90 days of the date the interim inspection is scheduled SAHA may elect to conduct a full inspection. t'dgv - 025 City Council — 478 5 2 25 EXHIBIT 1 8-II.E. SUPERVISORY QUALITY CONTROL INSPECTIONS [24 CFR 982.405(b); 24 CFR 985.3(e); HCV GB, p. 10-321 HUD requires a PHA supervisor or other qualified person to conduct quality control inspections of a sample of units to ensure that each inspector is conducting accurate and complete inspections and that there is consistency in the application of the NSPIRE standards. The unit sample must include only units that have been inspected within the preceding three months. The selected sample should be drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors. 8-II.F. INSPECTION RESULTS AND REINSPECTIONS FOR UNITS UNDER HAP CONTRACT Correction Timeframes Each deficiency is identified in the NSPIRE standards as either life -threatening, severe, moderate, or low. For units under HAP contract, life -threatening deficiencies must be corrected within 24 hours after notice has been provided. All other non -life -threatening deficiencies (severe and moderate) must be corrected within 30 days (or a PHA -approved extension) after notice has been provided. If low deficiencies are present in a unit, these deficiencies result in a pass and would only be noted by the inspector for informational purposes. ftgv 025 City Council — 479 5 2 25 EXHIBIT 1 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Notification of Corrective Actions The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies deficiencies, the PHA will determine (1) whether or not the failure is a life - threatening condition and (2) whether the family or owner is responsible. SAHA Policy When life -threatening deficiencies are identified, SAHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of SAHA's notice. When failures that are severe or moderate are identified, SAHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If low deficiencies are identified, these deficiencies will only be noted for informational purposes. The notice of inspection results will inform the owner that if life -threatening conditions are not corrected within 24 hours, and non -life -threatening conditions are not corrected within the specified time frame (or any SAHA-approved extension), the owner's HAP will be abated in accordance with SAHA policy (see 8-II.G.). Likewise, in the case of family caused deficiencies, the notice will inform the family that if corrections are not made within the specified time frame (or any SAHA-approved extension, if applicable) the family's assistance will be terminated in accordance with SAHA policy (see Chapter 12). The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: Notification of Corrective Actions [24 CFR 982.404(d)(1)] The owner must maintain the unit in accordance with housing quality standards. The unit is in noncompliance with housing quality standards if: • The PHA or authorized inspector determines the unit has housing quality standards deficiencies based upon an inspection • The PHA notified the owner in writing of the unit housing quality standards deficiencies; and • The unit's housing quality standards deficiencies are not corrected within the required timeframes. A PHA may withhold assistance payments for units that have deficiencies once the owner has been notified in writing of the deficiencies. The PHA's administrative plan must identify the conditions under which the PHA will withhold HAP. In this case, if the unit is brought into compliance during the applicable cure period, the PHA must resume assistance payments and provide payments to cover the time period for which the payments were withheld. ftgv 025 City Council 81 — 480 PHI5 2 25 EXHIBIT 1 The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period. The PHA must notify the family and the owner that it is abating payments and, if the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will terminate the HAP contract for the unit and the family will have to move to receive continued assistance. SAHA Policy The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies housing quality standards failures, SAHA will determine (1) whether or not the failure is a life -threatening condition and (2) whether the family or owner is responsible. SAHA will not withhold assistance payments upon notification of the deficiencies to the owner. When life -threatening conditions are identified, the PHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of SAHA's notice. When failures that are not life -threatening are identified, SAHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If the owner is responsible for correcting the deficiency, the notice of inspection results will inform the owner that if life -threatening conditions are not corrected within 24 hours, and non -life -threatening conditions are not corrected within the specified time frame (or any SAHA-approved extension), the owner's HAP will be abated in accordance with SAHA policy (see 8-II.G.). Likewise, if the family is responsible for correcting the deficiency, the notice will inform the family that if corrections are not made within the specified time frame (or any SAHA- approved extension, if applicable) the family's assistance will be terminated in accordance with SAHA policy (see Chapter 12). ftgv 025 City Council — 481 PHI5 2 25 EXHIBIT 1 Extensions For life -threatening deficiencies, the PHA cannot grant an extension to the 24-hour corrective action period. For conditions that are severe or moderate, the PHA may grant an exception to the required time frames for correcting the violation, if the PHA determines that an extension is appropriate. SAHA Policv Extensions will be granted in cases where SAHA has determined that the owner has made a good faith effort to correct the deficiencies and is unable to for reasons beyond the owner's control. Reasons may include, but are not limited to: A repair cannot be completed because required parts or services are not available. A repair cannot be completed because of weather conditions. A reasonable accommodation is needed because the family includes a person with disabilities. Any repairs that cannot be completed because of a delay caused by a Homeowners' Association's (HOA) action or inaction. The length of the extension will be determined on a case -by -case basis, but will not exceed 60 days, except in the case of delays caused by weather conditions or the HOA's action or inaction. In the case of weather conditions or the HOA's action or inaction, extensions may be continued until the weather has improved sufficiently to make repairs possible or when the HOA has approved the repairs to be completed. The necessary repairs must be made within 30 calendar days, once the weather conditions have subsided or of the HOA's approval. Reinspections [24 CFR 982.405(i)] When a PHA must verify correction of a deficiency, the PHA may use verification methods other than another on -site inspection. SAHA Policv SAHA will conduct a reinspection immediately following the end of the corrective period, or any SAHA approved extension. The family and owner will be given reasonable notice of the reinspection appointment. If the deficiencies have not been corrected by the time of the reinspection, SAHA will send a notice of abatement to the owner, or in the case of family caused violations, a notice of proposed termination to the family, in accordance with SAHA policies. If SAHA is unable to gain entry to the unit in order to conduct the scheduled reinspection, SAHA will consider the family to have violated its obligation to make the unit available for inspection. This may result in termination of the family's assistance in accordance with Chapter 12. SAHA will not accept self -certification of repairs. Photos or other documentation of repairs will not be accepted in lieu of a reinspection. fagv 025 City Council — 482 PHI5 2 25 EXHIBIT 1 8-II.G. ENFORCING OWNER COMPLIANCE If the owner fails to maintain the dwelling unit in accordance with NSPIRE standards, the PHA must take prompt and vigorous action to enforce the owner obligations. The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: HAP Abatement If an owner fails to correct deficiencies by the time specified by the PHA, HUD requires the PHA to abate housing assistance payments no later than the first of the month following the specified correction period (including any approved extension) [24 CFR 985.3(f)]. No retroactive payments will be made to the owner for the period of time the rent was abated. Owner rents are not abated as a result of deficiencies that are the family's responsibility. SAHA Policy SAHA will make all HAP abatements effective the first of the month following the expiration of the SAHA specified correction period (including any extension). SAHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. The owner must not seek payment from the family for abated amounts and may not use the abatement as cause for eviction. HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. The PHA should not terminate the contract until the family finds another unit, provided the family does so in a reasonable time [HCV GB p. 10-29] and must give the owner reasonable notice of the termination. The PHA will issue a voucher to permit the family to move to another unit as described in Chapter 10. SAHA Policy The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies SAHA before the termination date of the HAP contract, SAHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Reasonable notice of HAP contract termination by SAHA is 30 days. Pdgv 025 City Council — 483 5 2 25 EXHIBIT 1 The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: HAP Withholding [24 CFR 982.404(d)(1)] A PHA may withhold assistance payments for units that have housing quality standards deficiencies once the PHA has notified the owner in writing of the deficiencies. The PHA's administrative plan must identify the conditions under which the PHA will withhold HAP. In this case, if the unit is brought into compliance during the applicable cure period, the PHA resumes assistance payments and provides assistance payments to cover the time period for which the payments were withheld. SAHA Policv SAHA will not withhold assistance payments upon notification to the owner of the deficiencies. HAP Abatement [24 CFR 982.404(d)(2)] The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period. In this case, the PHA must notify the family and the owner that it is abating payments and, if the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will terminate the HAP contract for the unit and the family will have to move to receive continued assistance. The owner may not terminate the tenancy of any family due to the withholding or abatement of assistance. SAHA Policv SAHA will make all HAP abatements effective the first of the month following the expiration of the SAHA-specified correction period (including any extension). SAHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. For PHA policies on family moves when units are in abatement and termination of the HAP contract when a family moves due to deficiencies, see Section 10-I.13. ftgv 025 City Council — 484 5 2 25 EXHIBIT 1 HAP Contract Termination The PHA must decide how long any abatement period will continue before the HAP contract will be terminated. If the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will terminate the HAP contract for the unit and the family will have to move to receive continued assistance. In this case, the PHA must issue the family its voucher to move at least 30 days prior to the termination of the HAP contract. SAHA Policy The maximum length of time that HAP may be abated is 90 days. However, if the owner completes corrections and notifies the PHA before the termination date of the HAP contract, SAHA may rescind the termination notice if (1) the family still resides in the unit and wishes to remain in the unit and (2) the unit passes inspection. Reasonable notice of HAP contract termination by SAHA is 30 days. SAHA will issue a voucher to permit the family to move to another unit as described in Chapter 10. ftgv 025 City Council — 485 PHI5 2 25 EXHIBIT 1 8-II.H. ENFORCING FAMILY COMPLIANCE [24 CFR 982.404(b)] The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: Families are responsible for correcting any deficiencies listed in paragraph 8-I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family's assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair. The following is applicable to HAP contracts executed or renewed June 6, 2024, or later: If the PHA waived the landlord responsibility for housing quality standards deficiencies that have been determined to have been caused by the tenant, any member of the household, or any guest or other person under the tenant's control, (see section 8-I.1)), the family is responsible for correcting any housing quality standards violations listed in paragraph 8.I.D. If the family fails to correct a violation within the period allowed by the PHA (and any extensions), the PHA will terminate the family's assistance, according to the policies described in Chapter 12. If the owner carries out a repair for which the family is responsible under the lease, the owner may bill the family for the cost of the repair and may enter into a repayment agreement with the family. ftgv 025 City Council — 486 5 2 25 EXHIBIT 1 PART III: RENT REASONABLENESS [24 CFR 982.507] 8-III.A. OVERVIEW Except in the case of certain LIHTC- and HOME -assisted units, no HAP contract can be approved until the PHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the HCV program. HUD regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for assisted units than for comparable units on the premises. This part explains the method used to determine whether a unit's rent is reasonable. PHA -Owned Units [24 CFR 982.352(b)] In cases where an HCV family is receiving assistance in a PHA -owned unit, the PHA must obtain the services of an independent entity to determine rent reasonableness in accordance with program requirements, and to assist the family in negotiating the contract rent when the family requests assistance. A PHA -owned unit is defined as a unit that is owned by the PHA that administers the assistance under the consolidated ACC (including a unit owned by an entity substantially controlled by the PHA). The independent agency must communicate the results of the rent reasonableness determination to the family and the PHA. The independent agency must be approved by HUD and may be the unit of general local government for the PHA jurisdiction (unless the PHA is itself the unit of general local government or an agency of such government). ftgv 025 City Council — 487 5 2 25 EXHIBIT 1 8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED Owner -Initiated Rent Determinations The PHA must make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment. The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the case of PHA -owned units) will assist the family with the negotiations upon request. At initial occupancy the PHA must determine whether the proposed rent is reasonable before a HAP Contract is signed. The owner must not change the rent during the initial lease term. Subsequent requests for rent adjustments must be consistent with the lease between the owner and the family. Rent increases will not be approved unless any failed items identified by the most recent inspection have been corrected. SAHA Policy After the initial occupancy period, the owner may request a rent adjustment in accordance with the owner's lease. For rent increase requests after initial lease -up, SAHA may request owners to provide information about the rents charged for other units on the premises, if the premises include more than 4 units. In evaluating the proposed rents in comparison to other units on the premises SAHA will consider unit size and length of tenancy in the other units. SAHA will determine whether the requested increase is reasonable within 14 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. All rents adjustments will be effective the first of the month following 60 days after SAHA's receipt of the owner's request or on the date specified by the owner, whichever is later. PHA and HUD -Initiated Rent Reasonableness Determinations HUD requires the PHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 10 percent decrease in the fair market rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to make a determination at any other time. The PHA may decide that a new determination of rent reasonableness is needed at any time. SAHA Policy In addition to the instances described above, SAHA will make a determination of rent reasonableness at any time after the initial occupancy period if. (1) SAHA determines that the initial rent reasonableness determination was in error or (2) SAHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect. ftgv 025 City Council — 488 5 2 25 EXHIBIT 1 LIHTC and HOME -Assisted Units [24 CFR 982.507(c)] For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD's HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME -assisted units in the project that are not occupied by families with tenant -based assistance. For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non -voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of. (1) the reasonable rent as determined from the rent comparability study; or (2) the payment standard established by the PHA for the unit size involved. 8-III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. The PHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age • Unit size including the number of rooms and square footage of rooms • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise) • The quality of the units including the quality of the original construction, maintenance and improvements made • Amenities, services, and utilities included in the rent Units that Must Not Be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project -based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program - assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent -controlled by local ordinance [Notice PIH 2O02-22, Notice PIH 2O05-20, and Notice PIH 2O20-19]. Note: Notice PIH 2O20-19, issued August 21, 2020, provides further guidance on the issue of what constitutes an assisted unit. ftgv - 025 City Council — 489 5 2 25 EXHIBIT 1 Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. By accepting the PHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give the PHA information regarding rents charged for other units on the premises. ftgv - 025 City Council — 490 5 2 25 EXHIBIT 1 8-IILD. PHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected SAHA Policy SAHA will primarily utilize an outside vendor who specializes in rent reasonable data collection to collect and maintain data on market rents in SAHA's jurisdiction. Information sources include newspapers, realtors, market surveys, inquiries of owners and other available sources. The data will be maintained by bedroom size and market areas. Market areas may be defined by zip codes. The data will be updated on an ongoing basis and rent information that is more than 12 months old will be archived in the vendor's database. Market data greater than 12 months old will not be used for eligibility but may be used for reference. How Rents Are Determined SAHA Polic The rent for a unit proposed for HCV assistance will be compared to the rent charged for comparable units in the same market area. SAHA will develop a range of prices for comparable units by bedroom size within defined market areas. Units proposed for HCV assistance will be compared to the units within this rent range. Because units may be similar, but not exactly like the unit proposed for HCV assistance, SAHA may make adjustments to the range of prices to account for these differences. The adjustment must reflect the local market. Not all differences in units require adjustments (e.g., the presence or absence of a garbage disposal may not affect the rent in some market areas). SAHA uses a unit -to -unit comparison, by which the rent for a unit proposed for HCV assistance is directly compared to the rents for one or more unassisted units selected as comparables within the same market area. Geocoded maps will be used to identify the non -assisted units in closest proximity to the subject unit, and unit data information will be used to select the most similar units. In comparing rents, SAHA will take into account critical market factors that impact rent, including the location, quality, size, unit type, and age of the contract unit, as well as any amenities, housing services, maintenance and utilities to be provided by the owner in accordance with the lease. Where comparable units differ from the unit proposed for HCV assistance, SAHA will determine whether those differences impact rent. Where they do, SAHA will adjust the rental value of the comparable units, up or down, based on the market value of these factors. The rent for the unit proposed for HCV assistance will be compared to the adjusted rents for the comparable units, enabling a fair, accurate, market -based determination of rent reasonableness. Adjustments may vary by unit type (e.g., a second bathroom may be more valuable in a three -bedroom unit than in a two -bedroom). The adjustment must reflect the rental value of the difference — not its construction costs (e.g., it might cost $20,000 to put on a new roof, but the new roof might not make any difference in what a tenant would be willing to pay because rents units are presumed to have functioning roofs). When a comparable Pdgv - 025 City Council — 491 5 2 25 EXHIBIT 1 project offers rent concessions (e.g., first month rent-free, or reduced rent) reported monthly rents will be adjusted accordingly. For example, if a comparable project reports rents of $500/month but new tenants receive the first month's rent free, the actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 months = actual monthly rent of $488. Pdgv - 025 City Council — 492 5 2 25 EXHIBIT 1 EXHIBIT 8-1: AFFIRMATIVE HABITABILITY REQUIREMENTS Affirmative Habitability Requirements: Inside Must include at least 1 battery -operated or hard -wired smoke detector, in proper working condition, on each level of the property. Must meet or exceed the carbon monoxide detection standards set by the Secretary through Federal Register notification. Any outlet installed within 6 feet of a water source must be GFCI protected. Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. Must have permanently mounted light fixtures in any kitchens and each bathroom. May not contain unvented space heaters that burn gas, oil or kerosene. Affirmative Habitability Requirements: Outside Any outlet installed within 6 feet of a water source must be GFCI-protected. Must have a guardrail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. Pdgv - 025 City Council — 493 5 2 25 EXHIBIT 1 Affirmative Habitability Requirements: Unit Must have hot and cold running water in the bathroom and kitchen, including an adequate source of safe drinking water in the bathroom and kitchen. Must include its own bathroom or sanitary facility that is in proper operating condition and usable in privacy. It must contain a sink, a bathtub or shower, and an interior flushable toilet. Must have at least one battery -operated or hard -wired smoke detector, in proper working condition, in the following locations: • On each level of the unit AND • Inside each bedroom or sleeping area AND • With 21 feet of any door toa bedroom measured along a path of travel AND • Where a smoke detector is installed outside a bedroom is separated from an adjacent living area by a door, a smoke detector must also be installed in the living area side of the door. If the unit is occupied by a hearing -impaired person, the smoke detectors must have an alarm system designed for hearing -impaired persons. Must have a living room and a kitchen area with a sink, cooking appliance, refrigerator, food preparation area and food storage area. Must have two working outlets or one working outlet and one permanent light fixture within all habitable rooms. Must have a permanently mounted light fixture in each bathroom and in the kitchen. Outlets within 6 feet of water source must be GFCI-protected. Must have permanently installed heating source. No units may contain unvented space heaters that burn gas, oil or kerosene. Must have a guard rail when there is an elevated walking surface with a drop off of 30 inches or greater measured vertically. Must have at least one bedroom or living/sleeping room for each two persons. Pdgv - 025 City Council — 494 5 2 25 EXHIBIT 1 Chapter 9 GENERAL LEASING POLICIES INTRODUCTION Chapter 9 covers the lease -up process from the family's submission of a Request for Tenancy Approval to execution of the HAP contract. In order for the PHA to assist a family in a particular dwelling unit, or execute a Housing Assistance Payments (HAP) contract with the owner of a dwelling unit, the PHA must determine that all the following program requirements are met: • The unit itself must qualify as an eligible unit [24 CFR 982.305(a)] • The unit must be inspected by the PHA and pass applicable housing quality standards [24 CFR 982.305(a)] • The lease offered by the owner must be approvable and must include the required Tenancy Addendum [24 CFR 982.305(a)] • The rent to be charged by the owner for the unit must be reasonable [24 CFR 982.305(a)] • The owner must be an eligible owner, approvable by the PHA, with no conflicts of interest [24 CFR 982.306] • For families initially leasing a unit only: Where the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family cannot exceed 40 percent of the family's monthly adjusted income [24 CFR 982.305(a)] - 025 City Council — 495 PHI5 2 25 EXHIBIT 1 9-I.A. TENANT SCREENING The PHA has no liability or responsibility to the owner or other persons for the family's behavior or suitability for tenancy [24 CFR 982.307(a)(1)]. The PHA may elect to screen applicants for family behavior or suitability for tenancy. See Chapter 3 for a discussion of the PHA's policies with regard to screening applicant families for program eligibility [24 CFR 982.307(a)(1)]. The owner is responsible for screening and selection of the family to occupy the owner's unit. At or before PHA approval of the tenancy, the PHA must inform the owner that screening and selection for tenancy is the responsibility of the owner [24 CFR 982.307(a)(2)]. The PHA must also inform the owner or manager or their rights and obligations under the Violence against Women Act (VAWA) [24 CFR 5.2005(a)(2)]. The PHA must provide the owner with the family's current and prior address (as shown in the PHA records) and the name and address (if known to the PHA) of the landlord at the family's current and prior address [24 CFR 982.307(b)(1)]. The PHA is permitted, but not required, to offer the owner other information in the PHA's possession about the tenancy history or drug trafficking of family members [24 CFR 982.307(b)(2)]. The PHA's policy on providing information to the owner must be included in the family's briefing packet [24 CFR 982.307(b)(3)]. The PHA may not disclose to the owner any confidential information provided by the family in response to a PHA request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking, except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(b)(4)]. SAHA Policy SAHA will not screen applicants for family behavior or suitability for tenancy. SAHA will not provide additional screening information to the owner. 025 City Council — 496 5 2 25 EXHIBIT 1 9-I.B. REQUESTING TENANCY APPROVAL [Form HUD-52517 and 24 CFR 982.302] After the family is issued a voucher, the family must locate an eligible unit, with an owner or landlord willing to participate in the voucher program. Once a family finds a suitable unit and the owner is willing to lease the unit under the program, the owner and the family must request the PHA to approve the assisted tenancy in the selected unit. The owner and the family must submit two documents to the PHA: • Completed Request for Tenancy Approval (RTA) — Form HUD-52517 • Copy of the proposed lease, including the HUD -prescribed Tenancy Addendum — Form HUD-52641-A The RTA contains important information about the rental unit selected by the family, including the unit address, number of bedrooms, structure type, year constructed, utilities included in the rent, and the requested beginning date of the lease, necessary for the PHA to determine whether to approve the assisted tenancy in this unit. Owners must certify to the most recent amount of rent charged for the unit and provide an explanation for any difference between the prior rent and the proposed rent. Owners must certify that they are not the parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has granted a request for reasonable accommodation for a person with disabilities who is a member of the tenant household. For units constructed prior to 1978, owners must either 1) certify that the unit, common areas, and exterior have been found to be free of lead -based paint by a certified inspector; or 2) attach a lead -based paint disclosure statement. 025 City Council — 497 5 2 25 EXHIBIT 1 Both the RTA and the proposed lease must be submitted no later than the expiration date stated on the voucher. [HCV GB p.8-15]. The PHA must identify in the administrative plan whether the family will be permitted to submit more than one RTA at a time [24 CFR 982.54(d)(25)]. SAHA Policy The RTA must be signed by both the family and the owner. The owner may submit the RTA on behalf of the family. Completed RTA (including the proposed dwelling lease) must be submitted as hard copies, in -person, by mail, or by email. The family may not submit, and SAHA will not process, more than one RTA at a time. When the family submits the RTA SAHA will review the RTA for completeness. If the RTA is incomplete (including lack of signature by family, owner, or both), or if the dwelling lease is not submitted with the RTA, SAHA will notify the family and the owner of the deficiencies. Missing information and/or missing documents will only be accepted as hard copies, in -person, by mail, or by email. When the family submits the RTA and proposed lease, SAHA will also review the terms of the RTA for consistency with the terms of the proposed lease. If the terms of the RTA are not consistent with the terms of the proposed lease, SAHA will notify the family and the owner of the discrepancies. Corrections to the terms of the RTA and/or the proposed lease will only be accepted as hard copies, in -person, by mail, or by email. Because of the time sensitive nature of the tenancy approval process, SAHA will attempt to communicate with the owner and family by phone or email. SAHA will use mail when the parties cannot be reached by phone or email. 9-I.C. OWNER PARTICIPATION The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner -related issues. There are also criteria for which the PHA must disapprove an owner. No owner has a right to participate in the HCV program [24 CFR 982.306(e)] See Chapter 13 for a full discussion of owner qualification to participate in the HCV program. - 025 City Council — 498 5 2 25 EXHIBIT 1 9-I.D. ELIGIBLE UNITS There are a number of criteria that a dwelling unit must meet in order to be eligible for assistance under the voucher program. Generally, a voucher -holder family may choose any available rental dwelling unit on the market in the PHA's jurisdiction. This includes the dwelling unit they are currently occupying. Ineligible Units [24 CFR 982.352(a)] The PHA may not assist a unit under the voucher program if the unit is a public housing or Indian housing unit; a unit receiving project -based assistance under section 8 of the 1937 Act (42 U.S.C. 1437f); nursing homes, board and care homes, or facilities providing continual psychiatric, medical, or nursing services; college or other school dormitories; units on the grounds of penal, reformatory, medical, mental, and similar public or private institutions; a unit occupied by its owner or by a person with any interest in the unit. PHA -Owned Units [24 CFR 982.352(b)] PHA -owned units as defined in 24 CFR 982.4 may also be leased in the voucher program. In order for a PHA -owned unit to be leased under the voucher program, the unit must not be ineligible housing and the PHA must inform the family, both orally and in writing, that the family has the right to select any eligible unit available for lease and that the family is free to select a PHA -owned unit without any pressure or steering by the PHA. The PHA must obtain the services of an independent entity to perform certain functions as described in 24 CFR 982.352(b)(v)(A). SAHA Policy SAHA does not have any eligible PHA -owned units available for leasing under the voucher program. Special Housing Types [24 CFR 982 Subpart M] HUD regulations permit, but do not generally require, the PHA to permit families to use voucher assistance in a number of special housing types in accordance with the specific requirements applicable to those programs. These special housing types include single room occupancy (SRO) housing, congregate housing, group home, shared housing, manufactured home space (where the family owns the manufactured home and leases only the space), cooperative housing and homeownership option. See Chapter 15 for specific information and policies on any of these housing types that the PHA has chosen to allow. The regulations do require the PHA to permit use of any special housing type if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. - 025 City Council — 499 5 2 25 EXHIBIT 1 Duplicative Assistance [24 CFR 982.352(c)] A family may not receive the benefit of HCV tenant -based assistance while receiving the benefit of any of the following forms of other housing subsidy, for the same unit or for a different unit: • Public or Indian housing assistance; • Other Section 8 assistance (including other tenant -based assistance); • Assistance under former Section 23 of the United States Housing Act of 1937 (before amendment by the Housing and Community Development Act of 1974); • Section 101 rent supplements; • Section 236 rental assistance payments; • Tenant -based assistance under the HOME Program; • Rental assistance payments under Section 521 of the Housing Act of 1949 (a program of the Rural Development Administration); • Any local or State rent subsidy; • Section 202 supportive housing for the elderly; • Section 811 supportive housing for persons with disabilities; (11) Section 202 projects for non -elderly persons with disabilities (Section 162 assistance); or • Any other duplicative federal, State, or local housing subsidy, as determined by HUD. For this purpose, 'housing subsidy' does not include the housing component of a welfare payment, a social security payment received by the family, or a rent reduction because of a tax credit. Initial Inspection In order to be eligible, the dwelling unit must be in safe and habitable condition and pass applicable housing quality standards. See Chapter 8 for a full discussion of inspection standards, as well as the process for inspection at initial lease -up. - 025 City Council — 500 7 115 2 25 EXHIBIT 1 Unit Size In order to be eligible, the dwelling unit must be appropriate for the number of persons in the household. A family must be allowed to lease an otherwise acceptable dwelling unit with fewer bedrooms than the number of bedrooms stated on the voucher issued to the family, provided the unit meets the applicable space requirements [24 CFR 5.703(d)(5)]. The family must be allowed to lease an otherwise acceptable dwelling unit with more bedrooms than the number of bedrooms stated on the voucher issued to the family. See Chapter 5 for a full discussion of subsidy standards. Rent Reasonableness [24 CFR 982.305 and 24 CFR 982.5071 In order to be eligible, the dwelling unit must have a reasonable rent. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See Chapter 8 for a full discussion of rent reasonableness and the rent reasonableness determination process. Rent Burden [24 CFR 982.5081 Where a family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the family share cannot exceed 40 percent of the family's adjusted monthly income. The term "family share" refers to the amount the family pays toward rent and utilities. The gross rent for the unit minus the total housing assistance payment (HAP) for the unit equals the family share. See Chapter 6 for a discussion of calculation of gross rent, the use of payment standards, and calculation of family income, family share of rent and HAP. - 025 City Council — 501 PHI5 2 25 EXHIBIT 1 9-I.E. LEASE AND TENANCY ADDENDUM The family and the owner must execute a written dwelling lease agreement for the assisted unit. This written lease is a contract between the tenant family and the owner; the PHA is not a party to this contract. The tenant must have legal capacity to enter a lease under State and local law. 'Legal capacity' means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner [24 CFR 982.308(a)] Lease Form and Tenancy Addendum [24 CFR 982.3081 If the owner uses a standard lease form for rental to unassisted tenants in the locality or the premises, the lease must be in such standard form. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease. The HAP contract prescribed by HUD contains the owner's certification that if the owner uses a standard lease form for rental to unassisted tenants, the lease for the assisted tenants is in such standard form. All provisions in the HUD -required Tenancy Addendum must be added word-for-word to the owner's standard lease form. The Tenancy Addendum includes the HUD requirements for the tenancy. Because it is a part of the lease, the tenant shall have the right to enforce the Tenancy Addendum against the owner. If there is a conflict between the owner's lease and the Tenancy Addendum, the terms of the Tenancy Addendum shall prevail over any other provisions of the lease. SAHA Policy SAHA does not provide a model or standard dwelling lease for owners to use in the HCV program. Lease Information [24 CFR 982.308(d)] The assisted dwelling lease must contain all of the required information as listed below: • The names of the owner and the tenant: • The unit rented (address, apartment number, and any other information needed to identify the contract unit) • The term of the lease (initial term and any provisions for renewal) • The amount of the monthly rent to owner • A specification of what utilities and appliances are to be supplied by the owner, and what utilities and appliances are to be supplied by the family - 025 City Council — 502 7 5 2 25 EXHIBIT 1 Term of Assisted Tenancy The initial term of the assisted dwelling lease must be for at least one year [24 CFR 982.309]. The initial lease term is also stated in the HAP contract. The HUD program regulations permit the PHA to approve a shorter initial lease term if certain conditions are met. SAHA Policy SAHA will approve an initial lease term of less than one (1) year if SAHA determines that: Such shorter term would improve housing opportunities for the tenant; and Such shorter term is the prevailing local market practice During the initial term of the lease, the owner may not raise the rent to owner [24 CFR 982.309]. Any provisions for renewal of the dwelling lease will be stated in the dwelling lease [HCV Guidebook, pg. 8-22]. There are no HUD requirements regarding any renewal extension terms, except that they must be stated in the dwelling lease if they exist. The PHA may execute the HAP contract even if there is less than one year remaining from the beginning of the initial lease term to the end of the last expiring funding increment under the consolidated ACC. [24 CFR 982.309(b)]. Security Deposit [24 CFR 982.313 (a) and (b)] The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. However, if the PHA chooses to do so, language to this effect must be added to Part A of the HAP contract [Form HUD-52641]. SAHA Policy SAHA will allow the owner to collect any security deposit amount the owner determines is appropriate and legal under California tenant -landlord law. Therefore, no modifications to the HAP contract will be necessary. 025 City Council — 503 PHI5 2 25 EXHIBIT 1 Separate Non -Lease Agreements between Owner and Tenant Owners may not demand or accept any rent payment from the family in excess of the rent to the owner as approved by the PHA minus the PHA's housing assistance payments to the owner [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality, or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. SAHA Policy SAHA permits owners and families to execute separate, non -lease agreements for services, appliances (other than range and refrigerator) and other items that are not included in the lease. Any items, appliances, or other services that are customarily provided to unassisted families as part of the dwelling lease with those families, or are permanently installed in the dwelling unit must be included in the dwelling lease for the assisted family. These items, appliances or services cannot be placed under a separate non -lease agreement between the owner and family. Side payments for additional rent, or for items, appliances or services customarily provided to unassisted families as part of the dwelling lease for those families, are prohibited. Any items, appliances, or other services that are not customarily provided to unassisted families as part of the dwelling lease with those families, are not permanently installed in the dwelling unit and where the family has the sole option of not utilizing the item, appliance or service, may be included in a separate non -lease agreement between the owner and the family. The family is not liable and cannot be held responsible under the terms of the assisted dwelling lease for any charges pursuant to a separate non -lease agreement between the owner and the family. Non-payment of any charges pursuant to a separate non -lease agreement between the owner and the family cannot be a cause for eviction or termination of tenancy under the terms of the assisted dwelling lease. Separate non -lease agreements that involve additional items, appliances or other services may be considered amenities offered by the owner and may be taken into consideration when determining the reasonableness of the rent for the property. Pdgv - 025 City Council — 504 5 2 25 EXHIBIT 1 PHA Review of Lease The PHA will review the dwelling lease for compliance with all applicable requirements. SAHA Policv If the dwelling lease is incomplete or incorrect, SAHA will notify the family and the owner of the deficiencies. Missing and corrected lease information will only be accepted as hard copies, in -person, by mail, or by email. SAHA will not accept missing and corrected information over the phone. Because the initial leasing process is time -sensitive, SAHA will attempt to communicate with the owner and family by phone or email. SAHA will use mail when the parties can't be reached by phone or email. The PHA is permitted, but is not required, to review the lease to determine if the lease complies with State and local law and is permitted to decline to approve the tenancy if the PHA determines that the lease does not comply with State or local law [24 CFR 982.308(c)] SAHA Policv SAHA will not review the owner's lease for compliance with state/local law and will refer the family to the Orange County Fair Housing Council or Public Law Center if they express any concerns. ftgv - 025 City Council — 505 5 2 25 EXHIBIT 1 9-I.F. TENANCY APPROVAL [24 CFR 982.3051 After receiving the family's Request for Tenancy Approval, with proposed dwelling lease, the PHA must promptly notify the family and owner whether the assisted tenancy is approved. Prior to approving the assisted tenancy and execution of a HAP contract, the PHA must ensure that all required actions and determinations, discussed in Part I of this chapter have been completed. These actions include ensuring that the unit is eligible; the unit has been inspected by the PHA and meets housing quality standards; the lease offered by the owner is approvable and includes the required Tenancy Addendum; the rent to be charged by the owner for the unit must is reasonable; where the family is initially leasing a unit and the gross rent of the unit exceeds the applicable payment standard for the family, the share of rent to be paid by the family does not exceed 40 percent of the family's monthly adjusted income [24 CFR 982.305(a)]; the owner is an eligible owner, not disapproved by the PHA, with no conflicts of interest [24 CFR 982.306]; the family and the owner have executed the lease, including the Tenancy Addendum, and the lead - based paint disclosure information [24 CFR 982.305(b)]. SAHA Policy SAHA will complete its determination within 14 calendar days of receiving all required information. Corrections to the RTA will only be accepted as hard copies, in -person, by mail, or by email. SAHA will not accept contract rent corrections over the phone. If SAHA determines that the tenancy cannot be approved for any reason, the owner and the family will be notified in writing and given the opportunity to address any reasons for disapproval. SAHA will instruct the owner and family of the steps that are necessary to obtain approval of the tenancy. Where the tenancy is not approvable because the unit is not approvable, the family must continue to search for eligible housing within the timeframe of the issued voucher. If the tenancy is not approvable due to rent affordability or rent reasonableness, SAHA will attempt to negotiate the rent with the owner. If a new, approvable rent is negotiated, the tenancy will be approved. If the owner is not willing to negotiate an approvable rent, the family must continue to search for eligible housing within the timeframe of the issued voucher. t'dgv - 025 City Council — 506 5 2 25 EXHIBIT 1 9-I.G. HAP CONTRACT EXECUTION [24 CFR 982.3051 The HAP contract is a written agreement between the PHA and the owner of the dwelling unit. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family, and the owner agrees to comply with all program requirements as stated in the HAP contract. The HAP contract form is prescribed by HUD. If the PHA has given approval for the family of the assisted tenancy, the owner and the PHA must execute the HAP contract. The term of the HAP contract must be the same as the term of the lease [24 CFR 982.451(a)(2)]. The PHA is permitted to execute a HAP contract even if the funding currently available does not extend for the full term of the HAP contract. The PHA must make a best effort to ensure that the HAP contract is executed before the beginning of the lease term. Regardless, the HAP contract must be executed no later than 60 calendar days from the beginning of the lease term. Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner, unless there are extenuating circumstances that prevent or prevented the PHA from meeting the 60-day deadline —then the PHA may submit to the HUD field office a request for an extension no later than two weeks after the 60-day deadline. The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. If the HAP contract is executed during the period of 60 calendar days from the beginning of the lease term, the PHA will pay housing assistance payments after execution of the HAP contract (in accordance with the terms of the HAP contract), to cover the portion of the lease term before execution of the HAP contract (a maximum of 60 days). Any HAP contract executed after the 60-day period is void, and the PHA may not pay any housing assistance payment to the owner. ftgv - 025 City Council — 507 5 2 25 EXHIBIT 1 SAHA Polic The owner and the assisted family will execute the dwelling lease and the owner must provide a copy to SAHA. SAHA will ensure that both the owner and the assisted family receive copies of the dwelling lease. The owner and SAHA will execute the HAP contract. SAHA will not execute the HAP contract until the owner has submitted IRS form W-9. SAHA will ensure that the owner receives a copy of the executed HAP contract. Payments will not be made until SAHA has received all required paperwork and the HAP contract is fully executed. As required under VAWA, once the HAP contract and lease have been executed and the family has been admitted to the program, SAHA will notify families of their rights under VAWA by providing all families with a copy of the domestic violence certification form (HUD-5382) as well as the VAWA notice of occupancy rights (form HUD-5380). See Chapter 13 for a discussion of the HAP contract and contract provisions. ftgv - 025 City Council — 508 5 2 25 EXHIBIT 1 9-I.H. CHANGES IN LEASE OR RENT [24 CFR 982.3081 If the tenant and the owner agree to any changes in the lease, such changes must be in writing, and the owner must immediately give the PHA a copy of such changes. The lease, including any changes, must remain in accordance with the requirements of this chapter. Generally, PHA approval of tenancy and execution of a new HAP contract are not required for changes in the lease. However, under certain circumstances, the execution of a new lease and HAP contract are required. These circumstances include: • Changes in lease requirements governing tenant or owner responsibilities for utilities or appliances • Changes in lease provisions governing the term of the lease • The family moves to a new unit, even if the unit is in the same building or complex In these cases, if the HCV assistance is to continue, the family must submit a new Request for Tenancy Approval (RTA) along with a new dwelling lease containing the proposed changes. A new tenancy must then be approved in accordance with this chapter. Where the owner is changing the amount of the rent to owner, the owner must notify the PHA at least 60 days before any such changes go into effect [24 CFR 982.308(g)(4)]. The PHA will agree to such an increase only if the amount of the rent to owner is considered reasonable according to the rent reasonableness standards discussed in Chapter 8. If the requested rent is not found to be reasonable, the owner must either reduce the requested rent increase, or terminate the tenancy in accordance with the terms of the lease. No rent increase is permitted during the initial term of the lease [24 CFR 982.309(a)(3)]. SAHA Policy Where the owner is requesting a rent increase, SAHA will determine whether the requested increase is reasonable within 30 calendar days of receiving the request from the owner. The owner will be notified of the determination in writing. Rent increases will go into effect on the first of the month following the 60-day period after the owner notifies SAHA of the rent change or on the date specified by the owner, whichever is later. If SAHA was not properly notified, the effective date of the rent increase will be delayed accordingly. ftgv - 025 City Council — 509 5 2 25 EXHIBIT 1 Chapter 10 MOVING WITH CONTINUED ASSISTANCE AND PORTABILITY INTRODUCTION Freedom of housing choice is a hallmark of the housing choice voucher (HCV) program. In general, HUD regulations impose few restrictions on where families may live or move with HCV assistance. This chapter sets forth HUD regulations and PHA policies governing moves within or outside the PHA's jurisdiction in two parts: Part I: Moving with Continued Assistance. This part covers the general rules that apply to all moves by a family assisted under the PHA's HCV program, whether the family moves to another unit within the PHA's jurisdiction or to a unit outside the PHA's jurisdiction under portability. Part II: Portability. This part covers the special rules that apply to moves by a family under portability, whether the family moves out of or into the PHA's jurisdiction. This part also covers the special responsibilities that the PHA has under portability regulations and procedures. PART I: MOVING WITH CONTINUED ASSISTANCE 10-I.A. ALLOWABLE MOVES HUD lists six regulatory conditions under which an assisted family is allowed to move to a new unit with continued assistance. Permission to move is subject to the restrictions set forth in section 10-I.B. • The family has a right to terminate the lease on notice to the owner (for the owner's breach or otherwise) and has given a notice of termination to the owner in accordance with the lease [24 CFR 982.354(b)(3)]. If the family terminates the lease on notice to the owner, the family must give the PHA a copy of the notice at the same time [24 CFR 982.354(d)(1)]. • The lease for the family's unit has been terminated by mutual agreement of the owner and the family [24 CFR 982.354(b)(1)(ii)]. SAHA Policy If the family and the owner mutually agree to terminate the lease for the family's unit, the family must give SAHA a copy of the termination agreement within 7 calendar days. SAHA will pay HAP up to the move out date. 025 City Council 5 — 510 5 2 25 EXHIBIT 1 • The owner has given the family a notice to vacate, has commenced an action to evict the family, or has obtained a court judgment or other process allowing the owner to evict the family [24 CFR 982.354(b)(2)]. The family must give the PHA a copy of any owner eviction notice [24 CFR 982.551(g)]. The family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the move is needed to protect the health or safety of the family or family member [see 24 CFR 982.354(b)(4)]. This condition applies even when the family has moved out of its unit in violation of the lease, with or without prior notification to the PHA, if the family or family member who is the victim reasonably believed that they were imminently threatened by harm from further violence if they remained in the unit [24 CFR 982.354(b)(4), 24 CFR 982.353(b)]. The PHA must adopt an emergency transfer plan as required by regulations at 24 CFR 5.2007(e). SAHA Polic If a family requests permission to move with continued assistance or for an external transfer to another covered housing program operated by SAHA based on a claim that the move is necessary to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, SAHA will request that the resident request the emergency transfer using form HUD-5383, and SAHA will request documentation in accordance with section 16- IX.D of this plan. SAHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the family or family member will suffice. In such cases SAHA will document the waiver in the family's file. SAHA may choose to provide a voucher to facilitate an emergency transfer of the victim without first terminating the assistance of the perpetrator. Before granting an emergency transfer, SAHA will ensure the victim is eligible to receive continued assistance based on the citizenship or immigration status of the victim. SAHA has adopted an emergency transfer plan, which is included as Exhibit 16-3 to this plan and discusses external transfers to other covered housing programs. The PHA has terminated the HAP contract for the family's unit for the owner's breach [24 CFR 982.354(b)(1)(i)]. The PHA determines that the family's current unit does not meet space standards because of an increase in family size or a change in family composition. In such cases, the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for the family, the PHA must terminate the HAP contract for the family's old unit in accordance with the HAP contract terms and must notify both the family and the owner of the termination. The HAP contract terminates at the end of the calendar month that follows the calendar month in which the PHA gives notice to the owner. [24 CFR 982.403(a) and (c)] 025 City Council 5 — 511 5 2 25 EXHIBIT 1 10-I.B. FAMILY MOVES DUE TO UNIT DEFICIENCIES Units in Abatement [24 CFR 982.404(d)(3)] An owner may not terminate the tenancy of a family due to the PHA withholding or abating HAP for housing quality standards deficiencies that are not repaired timely. During the period that assistance is abated, the family may terminate tenancy by notifying the owner and the PHA. If the family chooses to terminate tenancy, the HAP contract will automatically terminate on the effective date of tenancy termination or the date the family vacates the unit, whichever is earlier. The PHA must promptly issue the family its voucher to move. SAHA Policv Upon receipt of a family's written notification that it wishes to move, SAHA will issue a voucher within 14 calendar days of SAHA's written approval to move. A move briefing is required for these families. SAHA will follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. Termination of HAP Contract and Family Moves [24 CFR 982.404(e)] For HAP contracts executed or renewed on or after June 6, 2024, if an owner fails to make required repairs within 60 days (or a reasonable longer period established by the PHA) of the notice of abatement, the PHA must terminate the HAP contract. In this case, the PHA must issue the family its voucher at least 30 days prior to the termination of the HAP contract. The family must be provided at least 90 days following the termination of the HAP contract to lease a new unit, although the PHA may provide a longer period as the PHA determines is reasonably necessary. SAHA Policv SAHA will issue a family whose HAP contract is being terminated due to an owner failing to make required repairs within the required time frame a voucher no later than 30 days prior to the termination of the HAP contract. The initial term of the voucher will be 120 calendar days. A move briefing is required for these families. To continue under the tenant -based HCV program, the family must submit a Request for Tenancy Approval and proposed lease prior to the expiration date of the voucher unless SAHA grants an extension. SAHA will follow the policies set forth in Chapter 5 on voucher extension and expiration. 025 City Council 5 — 512 5 2 25 EXHIBIT 1 Offer of Public Housing [24 CFR 982.404(e)(2)] If the family is unable to lease a new unit within the term of the voucher and the PHA owns or operates public housing, the PHA must offer, and if accepted, provide the family a selection preference for an appropriate -sized public housing unit that first becomes available for occupancy after the time period expires. SAHA Policv SAHA does not operate any public housing units. However, SAHA does have a project - based voucher (PBV) program but will not offer the family continued assistance in a suitable PBV unit. Relocation Assistance [24 CFR 982.404(e)(3)] PHAs may assist families relocating due to the HAP contract being terminated as a result of the owner failing to make required repairs within the required time frame in finding a new unit, including using up to two months of the withheld and abated assistance payments for costs directly associated with relocating to a new unit, such as security deposits, temporary housing costs, or other reasonable moving costs as determined by the PHA based on their locality. The PHA must assist families with disabilities with locating available accessible units in accordance with 24 CFR 8.28(a)(3). SAHA Policv SAHA will assist families with disabilities with locating available accessible units in accordance with program requirements. 025 City Council 5 — 513 5 2 25 EXHIBIT 1 10-I.C. RESTRICTIONS ON MOVES A family's right to move is generally contingent upon the family's compliance with program requirements [24 CFR 982.1(b)(2)]. HUD specifies two conditions under which a PHA may deny a family permission to move and two ways in which a PHA may restrict moves by a family. Denial of Moves HUD regulations permit the PHA to deny a family permission to move under the following conditions: Insufficient Funding The PHA may deny a family permission to move either within or outside the PHA's jurisdiction if the PHA does not have sufficient funding for continued assistance [24 CFR 982.354(e)(1)]. However, Notice PIH 2O16-09 significantly restricts the ability of PHAs to deny permission to move due to insufficient funding and places further requirements on PHAs regarding moves denied due to lack of funding. The requirements found in this notice are mandatory. SAHA Policy SAHA will deny a family permission to move on grounds that SAHA does not have sufficient funding for continued assistance if (a) the move is initiated by the family, not the owner or SAHA; (b) SAHA can demonstrate that the move will, in fact, result in higher subsidy costs (c) SAHA can demonstrate, in accordance with the policies in Part VIII of Chapter 16, that it does not have sufficient funding in its annual budget to accommodate the higher subsidy costs, including the Interjurisdictional Agreement (Mobility); and (d) for portability moves, the receiving PHA is not absorbing the voucher. If SAHA does not have sufficient funding for continued assistance, but the family must move from their unit (e.g., the unit failed inspection), the family may move to a higher cost unit if the move is within SAHA's jurisdiction. SAHA, however, will not allow the family to move under portability in this situation if the family wishes to move to a higher cost area. For both moves within SAHA's jurisdiction and outside under portability, SAHA will not deny a move due to insufficient funding if SAHA previously approved the move and subsequently experienced a funding shortfall if the family cannot remain in their current unit. SAHA will rescind the voucher in this situation if the family will be allowed to remain in their current unit. SAHA will create a list of families whose moves have been denied due to insufficient funding. SAHA will keep the family's request open indefinitely, and when funds become available, the families on this list will take precedence over families on the waiting list. SAHA will use the same procedures for notifying families with open requests to move when funds become available as it uses for notifying families on the waiting list (see section 4-IILD). SAHA will inform the family of its policy regarding moves denied due to insufficient funding in a letter to the family at the time the move is denied. 025 City Council 5 — 514 5 2 25 EXHIBIT 1 Grounds for Denial or Termination of Assistance The PHA may deny a family permission to move if it has grounds for denying or terminating the family's assistance [24 CFR 982.354(e)(2)]. SAHA Policy If SAHA has grounds for denying or terminating a family's assistance, SAHA will act on those grounds in accordance with the regulations and policies set forth in Chapters 3 and 12, respectively. In general, it will not deny a family permission to move for this reason; however, it retains the discretion to do so under special circumstances. Restrictions on Elective Moves [24 CFR 982.354(c)] HUD regulations permit the PHA to prohibit any elective move by a participant family during the family's initial lease term. They also permit the PHA to prohibit more than one elective move by a participant family during any 12-month period. However, such prohibitions, if adopted, do not apply when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the move is needed to protect the health or safety of the family or family member. (For the policy on documentation of abuse, see section 10-I.A.) In addition, the PHA may not establish a policy permitting moves only at reexamination [Notice PIH 2O16-09]. SAHA Polic SAHA will deny a family permission to make an elective move during the family's initial lease term. This policy applies to moves within SAHA's jurisdiction or outside it under portability. SAHA will also deny a family permission to make more than one elective move during any 12-month period unless the family shows cause and there is a mutual recession of the lease from the landlord. This policy applies to all assisted families residing in SAHA's jurisdiction. SAHA will consider exceptions to these policies for the following reasons: to protect the health or safety of a family member (e.g., lead -based paint hazards, domestic violence, witness protection programs), to accommodate a change in family circumstances for head of household, co-head, or spouse (e.g., new employment, school attendance in a distant area/25 miles or more), or to address an emergency situation over which a family has no control. In addition, SAHA will allow exceptions to these policies for purposes of reasonable accommodation of a family member who is a person with disabilities (see Chapter 2). SAHA may deny portability to a family who owes monies to SAHA under the terms of a repayment agreement and require the family to pay in full before giving permission to exercise portability. 025 City Council 5 — 515 5 2 25 EXHIBIT 1 10-I.D. MOVING PROCESS Notification If a family wishes to move to a new unit, the family must notify the PHA and the owner before moving out of the old unit or terminating the lease on notice to the owner [24 CFR 982.354(d)(2)]. If the family wishes to move to a unit outside the PHA's jurisdiction under portability, the notice to the PHA must specify the area where the family wishes to move [24 CFR 982.354(d)(2)]. The notices must be in writing [24 CFR 982.5]. Approval SAHA Policv Upon receipt of a family's notification that it wishes to move, SAHA will determine whether the move is approvable in accordance with the regulations and policies set forth in sections 10-I.A and 10-I.B. Following receipt of the family's notification, SAHA will send out written approval within 7 calendar days to confirm the move out date with a scheduled appointment date for the move briefing. Reexamination of Family Income and Composition SAHA Policv For families approved to move to a new unit within SAHA's jurisdiction, SAHA will not perform a new annual reexamination in accordance with policies set forth in Chapter 11 of this plan. For families moving into or families approved to move out of SAHA's jurisdiction under portability, SAHA will follow the policies set forth in Part II of this chapter. Voucher Issuance and Briefing SAHA Polic For families approved to move to a new unit within SAHA's jurisdiction including the Interjurisdictional Agreement (Mobility), SAHA will issue a new voucher within 14 calendar days of SAHA's written approval to move. A move briefing is conducted when the voucher is issued. During the briefing, the following information will be provided to the participant: voucher term, expiration, extension, last HAP paid, HAP extension request, move policies, Lead -Based Paint, portability procedure and mobility inspection procedure. The following documents will be provided to participant: copy of move briefing checklist, voucher, RTA packet, and housing search log. SAHA will also follow the policies set forth in Chapter 5 on voucher term, extension, and expiration. If a family does not locate a new unit within the term of the voucher and any approved extensions, the family may remain in its current unit with continued voucher assistance if the owner agrees and SAHA approves. Otherwise, the family will lose their housing assistance. For families moving into or families approved to move out of SAHA's jurisdiction under portability, SAHA will follow the policies set forth in Part II of this chapter. For families moving due an owner failing to make required repairs timely, resulting in SAHA terminating the HAP contract, SAHA will follow the policies set forth earlier in this section and in Chapter 8, Part II. 025 City Council — 516 H5 2 25 EXHIBIT 1 Housing Assistance Payments [24 CFR 982.311(d)] When a family moves out of an assisted unit, the PHA may not make any housing assistance payment to the owner for any month after the month the family moves out. The owner may keep the housing assistance payment for the month when the family moves out of the unit. If a participant family moves from an assisted unit with continued tenant -based assistance, the term of the assisted lease for the new assisted unit may begin during the month the family moves out of the first assisted unit. Overlap of the last housing assistance payment (for the month when the family moves out of the old unit) and the first assistance payment for the new unit, is not considered to constitute a duplicative housing subsidy. Zero HAP Families Who Wish to Move [24 CFR 982.4551 A participant who is not receiving any subsidy, but whose HAP contract is still in force, may request a voucher to move to a different unit. The PHA must issue a voucher to move unless it has grounds to deny assistance under the program regulations. However, if the PHA determines no subsidy would be paid at the new unit, the PHA may refuse to enter into a HAP contract on behalf of the family. SAHA Policy If a zero HAP family requests to move to a new unit, the family may request a voucher to move. However, if no subsidy will be paid at the unit to which the family requests to move, SAHA will not enter into a HAP contract on behalf of the family for the new unit. 025 City Council 5 — 517 5 2 25 EXHIBIT 1 PART II: PORTABILITY 10-II.A. OVERVIEW Within the limitations of the regulations and this plan, a participant family or an applicant family that has been issued a voucher has the right to use tenant -based voucher assistance to lease a unit anywhere in the United States providing that the unit is located within the jurisdiction of a PHA administering a tenant -based voucher program [24 CFR 982.353(b)]. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. The PHA that issues the voucher is called the initial PHA. The PHA that has jurisdiction in the area to which the family wants to move is called the receiving PHA. The receiving PHA has the option of administering the family's voucher for the initial PHA or absorbing the family into its own program. Under the first option, the receiving PHA provides all housing services for the family and bills the initial PHA for the family's housing assistance payments and the fees for administering the family's voucher. Under the second option, the receiving PHA pays for the family's assistance with its own program funds, and the initial PHA has no further relationship with the family. The initial PHA must contact the receiving PHA via email or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the initial PHA's voucher. Based on the receiving PHA's response, the initial PHA must determine whether they will approve or deny the portability request [Notice PIH 2O16-09]. PHAs commonly act as both the initial and receiving PHA because families may move into or out of their jurisdiction under portability. Each role involves different responsibilities. The PHA will follow the rules and policies in section 10-II.13 when it is acting as the initial PHA for a family. It will follow the rules and policies in section 10-II.0 when it is acting as the receiving PHA for a family. In administering portability, the initial PHA and the receiving PHA must comply with financial procedures required by HUD, including the use of HUD -required forms [24 CFR 982.355(e)(5)]. PHAs must also comply with billing and payment deadlines. HUD may reduce an administrative fee to an initial or receiving PHA if the PHA does not comply with HUD portability requirements [24 CFR 982.355(e)(7)]. 025 City Council 5 — 518 5 2 25 EXHIBIT 1 10-II.B. INITIAL PHA ROLE Allowable Moves under Portability A family may move with voucher assistance only to an area where there is at least one PHA administering a voucher program [24 CFR 982.353(b)]. If there is more than one PHA in the area, the initial PHA provides the family with the contact information for the receiving PHAs that serve the area, and the family selects the receiving PHA. The family must inform the initial PHA which receiving PHA it has selected. If the family prefers not to select the receiving PHA, the initial PHA will select the receiving PHA on behalf of the family [24 CFR 982.255(b)]. Applicant families that have been issue vouchers as well as participant families may qualify to lease a unit outside the PHA's jurisdiction under portability. HUD regulations and PHA policy determine whether a family qualifies. Applicant Families Under HUD regulations, most applicant families qualify to lease a unit outside the PHA's jurisdiction under portability. However, HUD gives the PHA discretion to deny a portability move by an applicant family for the same two reasons that it may deny any move by a participant family: insufficient funding and grounds for denial or termination of assistance. If a PHA intends to deny a family permission to move under portability due to insufficient funding, the PHA must notify HUD within 10 business days of the determination to deny the move [24 CFR 982.355(e)]. SAHA Policy In determining whether or not to deny an applicant family permission to move under portability because SAHA lacks sufficient funding or has grounds for denying assistance to the family, SAHA will follow the policies established in section 10-I.B of this chapter. If SAHA does deny the move due to insufficient funding, SAHA will notify HUD in writing within 14 calendar days of SAHA's determination to deny the move. In addition, the initial PHA may establish a policy denying the right to portability to nonresident applicants during the first 12 months after they are admitted to the program [24 CFR 982.353(c)]. SAHA Polic If neither the head of household nor the spouse/cohead of an applicant family had a domicile (legal residence) in SAHA's jurisdiction at the time that the family's initial application for assistance was submitted, the family must lease a unit within SAHA's jurisdiction for at least 12 months before requesting portability. SAHA will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking. For purposes of homeless individuals and families, the term, "residence," includes homeless shelters and other dwelling places where homeless people may be living, sleeping or receiving services in the City of Santa Ana. Therefore, homeless individuals and families who qualify for this local preference will qualify as residents. - 025 City Council 5 — 519 5 2 25 EXHIBIT 1 Participant Families The initial PHA must not provide portable assistance for a participant if a family has moved out of its assisted unit in violation of the lease [24 CFR 982.353(b)]. The Violence against Women Act (VAWA) creates an exception to this prohibition for families who are otherwise in compliance with program obligations but have moved to protect the health or safety of a family member who is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [see 24 CFR 982.353(b)]. SAHA Policy SAHA will determine whether a participant family may move out of SAHA's jurisdiction with continued assistance in accordance with the regulations and policies set forth here and in sections 10-I.A and 104.13 of this chapter. SAHA will notify the family of its determination in accordance with the approval policy set forth in section 10-I.0 of this chapter. Determining Income Eligibility Applicant Families An applicant family may lease a unit in a particular area under portability only if the family is income eligible for admission to the voucher program in that area [24 CFR 982.353(d)(1)]. The family must specify the area to which the family wishes to move [24 CFR 982.355(c)(1)]. The initial PHA is responsible for determining whether the family is income eligible in the area to which the family wishes to move [24 CFR 982.353(d)(1), 24 CFR 982.355(9)]. If the applicant family is not income eligible in that area, the PHA must inform the family that it may not move there and receive voucher assistance [Notice PIH 2O16-09]. Participant Families The income eligibility of a participant family is not redetermined if the family moves to a new jurisdiction under portability [24 CFR 982.353(d)(2)]. Reexamination of Family Income and Composition No new reexamination of family income and composition is required for an applicant family. SAHA Policy For a participant family approved to move out of its jurisdiction under portability, SAHA generally will conduct a reexamination of family income and composition only if the family's annual reexamination must be completed on or before the initial billing deadline specified on form HUD-52665, Family Portability Information. SAHA will make any exceptions to this policy necessary to remain in compliance with HUD regulations. - 025 City Council 5 — 520 5 2 25 EXHIBIT 1 Briefing The regulations and policies on briefings set forth in Chapter 5 of this plan require the PHA to provide information on portability to all applicant families that qualify to lease a unit outside the PHA's jurisdiction under the portability procedures. Therefore, no special briefing is required for these families. SAHA Policv A move briefing will be required for a participant family wishing to move outside SAHA's jurisdiction under portability. However, SAHA will provide the family with the same oral and written explanation of portability that it provides to applicant families selected for admission to the program (see Chapter 5). SAHA will provide the name, address, and phone number of the contact for the PHA(s) in the jurisdiction to which they wish to move. If there is more than one PHA with jurisdiction over the area to which the family wishes to move, SAHA will advise the family that the family selects the receiving PHA and notify SAHA of which receiving PHA was selected. SAHA will provide the family with contact information for all of the receiving PHAs that serve the area. SAHA will not provide any additional information about receiving PHAs in the area. SAHA will further inform the family that if the family prefers not to select the receiving PHA, SAHA will select the receiving PHA on behalf of the family. In this case, SAHA will not provide the family with information for all receiving PHAs in the area. SAHA will advise the family that they will be under the receiving PHA's policies and procedures, including screening, subsidy standards, voucher extension policies, and payment standards. Voucher Issuance and Term An applicant family has no right to portability until after the family has been issued a voucher [24 CFR 982.353(b)]. In issuing vouchers to applicant families, the PHA will follow the regulations and procedures set forth in Chapter 5. SAHA Policv For participating families approved to move under portability, SAHA will issue a new voucher within 14 calendar days of SAHA's written approval to move. The initial term of the voucher will be 120 days. For portability, family must have at least 30 days left on their Voucher from the date the paperwork is sent to the receiving housing authority. However, if the move is due to the HAP contract being terminated due to an owner failing to make required repairs within the required time frame, SAHA will issue the family a voucher no later than 30 days prior to the termination of the HAP contract. The initial term of the voucher will be 120 calendar days. - 025 City Council 5 — 521 7M5 2 25 EXHIBIT 1 Voucher Extensions and Expiration SAHA Policv SAHA will approve no extensions to a voucher issued to an applicant or participant family porting out of SAHA's jurisdiction except under the following circumstances: (a) the initial term of the voucher will expire before the portable family will be issued a voucher by the receiving PHA, (b) the family decides to return to the SAHA's jurisdiction and search for a unit there, or (c) the family decides to search for a unit in a third PHA's jurisdiction. In such cases, the policies on voucher extensions set forth in Chapter 5, section 5-II.E, of this plan will apply, including the requirement that the family apply for an extension in writing prior to the expiration of the initial voucher term. Preapproval Contact with the Receiving PHA Prior to approving a family's request to move under portability, the initial PHA must contact the receiving PHA via email or other confirmed delivery method to determine whether the receiving PHA will administer or absorb the family's voucher. Based on the receiving PHA's response, the initial PHA must determine whether it will approve or deny the move [24 CFR 982.355(c)(3)]. PHA Policv SAHA will use email, when possible, to contact the receiving PHA regarding whether the receiving PHA will administer or absorb the family's voucher. Initial Notification to the Receiving PHA After approving a family's request to move under portability, the initial PHA must promptly notify the receiving PHA via email or other confirmed delivery method to expect the family [24 CFR 982.355(c)(3); 24 CFR 982.355(c)(7)]. The initial PHA must also advise the family how to contact and request assistance from the receiving PHA [24 CFR 982.355(c)(6)]. SAHA Policv Because the portability process is time -sensitive, SAHA will notify the receiving PHA by phone or email to expect the family. SAHA will also ask the receiving PHA to provide any information the family may need upon arrival, including the name, email address, and telephone number of the staff person responsible for business with incoming portable families and procedures related to appointments for voucher issuance. SAHA will pass this information along to the family. SAHA will also ask for the name, address, telephone number, and email of the person responsible for processing the billing information. - 025 City Council 5 — 522 5 2 25 EXHIBIT 1 Sending Documentation to the Receiving PHA The initial PHA is required to send the receiving PHA the following documents: • Form HUD-52665, Family Portability Information, with Part I filled out [Notice PIH 2O16-09] • A copy of the family's voucher [Notice PIH 2O16-09] • A copy of the family's most recent form HUD-50058, Family Report, or, if necessary in the case of an applicant family, family and income information in a format similar to that of form HUD-50058 [24 CFR 982.355(c)(7), Notice PIH 2O16-09] • Copies of the income verifications backing up the form HUD-50058, including a copy of the family's current EIV data [24 CFR 982.355(c)(7), Notice PIH 2O16-09] SAHA Policy In addition to these documents, SAHA will provide the following information, if available, to the receiving PHA: Documentation of SSNs for all nonexempt household members whose SSNs have not been verified through the EIV system Documentation of legal identity Documentation of citizenship or eligible immigration status Documentation of participation in the earned income disallowance (EID) benefit Documentation of participation in a family self-sufficiency (FSS) program If applicable, information related to the family's health and medical care and disability assistance expense phased -in hardship exemption, including what stage the family is in and how many months remain in that phase -in stage SAHA will notify the family in writing regarding any information provided to the receiving PHA [HCV GB, p. 13-3]. - 025 City Council 5 — 523 5 2 25 EXHIBIT 1 Initial Billing Deadline [Notice PIH 2O16-091 The deadline for submission of initial billing is 90 days following the expiration date of the voucher issued to the family by the initial PHA. In cases where suspension of the voucher delays the initial billing submission, the receiving PHA must notify the initial PHA of delayed billing before the billing deadline and document the delay is due to the suspension. In this case, the initial PHA must extend the billing deadline by 30 days. If the initial PHA does not receive a billing notice by the deadline and does not intend to honor a late billing submission, it must notify the receiving PHA in writing. The initial PHA may report to HUD the receiving PHA's failure to comply with the deadline. If the initial PHA will honor the late billing, no action is required. SAHA Policy SAHA's decision as to whether to accept late billing will be based on internal PHA factors, including SAHA's leasing or funding status. If SAHA has not received an initial billing notice from the receiving PHA within the billing deadline and does not intend to honor the late billing, it will contact the receiving PHA to inform them that it will not honor a late billing submission and will return any subsequent billings that it receives on behalf of the family. In this case, SAHA will send the receiving PHA a written confirmation of its decision by mail. Among other considerations as to whether to accept late billing will be if the family includes a person with disabilities and the late billing is a result of a reasonable accommodation granted to the family by the receiving PHA. - 025 City Council 5 — 524 5 2 25 EXHIBIT 1 Monthly Billing Payments [24 CFR 982.355(e), Notice PIH 2O16-09] If the receiving PHA is administering the family's voucher, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. When reimbursing for administrative fees, the initial PHA must promptly reimburse the receiving PHA for the lesser of 80 percent of the initial PHA ongoing administrative fee or 100 percent of the receiving PHA's ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill [24 CFR 982.355(e)(2)]. The initial PHA is responsible for making billing payments in a timely manner. The first billing amount is due within 30 calendar days after the initial PHA receives Part II of form HUD-52665 from the receiving PHA. Subsequent payments must be received by the receiving PHA no later than the fifth business day of each month. The payments must be provided in a form and manner that the receiving PHA is able and willing to accept. The initial PHA may not terminate or delay making payments under existing portability billing arrangements as a result of overleasing or funding shortfalls. The PHA must manage its tenant - based program in a manner that ensures that it has the financial ability to provide assistance for families that move out of its jurisdiction under portability and are not absorbed by receiving PHAs as well as for families that remain within its jurisdiction. SAHA Policy SAHA will utilize direct deposit to ensure that the payment is received by the deadline unless the receiving PHA notifies the SAHA that direct deposit is not acceptable to them. If SAHA extends the term of the voucher, the receiving PHA's voucher will expire 30 calendar days from the new expiration date of SAHA's voucher. Annual Updates of Form HUD-50058 If the initial PHA is being billed on behalf of a portable family, it should receive an updated form HUD-50058 each year from the receiving PHA. If the initial PHA fails to receive an updated 50058 by the family's annual reexamination date, the initial PHA should contact the receiving PHA to verify the status of the family. The initial PHA must continue paying the receiving PHA based on the last form HUD-50058 received, unless instructed otherwise by HUD. The initial PHA may seek absorption of the vouchers by following steps outlined in Notice PIH 2O16-09. Denial or Termination of Assistance [24 CFR 982.355(c)(17)] At any time, either the initial PHA or the receiving PHA may make a determination to deny or terminate assistance with the family in accordance with 24 CFR 982.552 and 24 CFR 982.553. (For PHA policies on denial and termination, see Chapters 3 and 12, respectively.) - 025 City Council 5 — 525 7H5 2 25 EXHIBIT 1 10-II.C. RECEIVING PHA ROLE If a family has a right to lease a unit in the receiving PHA's jurisdiction under portability, the receiving PHA must provide assistance for the family [24 CFR 982.355(10)]. HUD may determine in certain instances that a PHA is not required to accept incoming portable families, such as a PHA in a declared disaster area. However, the PHA must have approval in writing from HUD before refusing any incoming portable families [24 CFR 982.355(b)]. Administration of the voucher must be in accordance with the receiving PHA's policies. This requirement also applies to policies of Moving to Work agencies. The receiving PHA procedures and preferences for selection among eligible applicants do not apply to the family, and the receiving PHA waiting list is not used [24 CFR 982.355(c)(10)]. The family's unit, or voucher, size is determined in accordance with the subsidy standards of the receiving PHA [24 CFR 982.355(c)(12)], and the receiving PHA's policies on extensions of the voucher term apply [24 CFR 982.355(c)(14)]. Responding to Initial PHA's Request [24 CFR 982.355(c)] The receiving PHA must respond via email or other confirmed delivery method to the initial PHA's inquiry to determine whether the family's voucher will be billed or absorbed [24 CFR 982.355(c)(3)]. If the receiving PHA informs the initial PHA that it will be absorbing the voucher, the receiving PHA cannot reverse its decision at a later date without consent of the initial PHA (24 CFR 982.355(c)(4). SAHA Policy SAHA will use email, when possible, to notify the initial PHA whether it will administer or absorb the family's voucher. Initial Contact with Family When a family moves into the PHA's jurisdiction under portability, the family is responsible for promptly contacting the PHA and complying with the PHA's procedures for incoming portable families. The family's failure to comply may result in denial or termination of the receiving PHA's voucher [24 CFR 982.355(c)(8)]. If the voucher issued to the family by the initial PHA has expired, the receiving PHA must contact the initial PHA to determine if it will extend the voucher [24 CFR 982.355(c)(13)]. An informal hearing is not required when a voucher has expired without the family leasing a unit. If for any reason the receiving PHA refuses to process or provide assistance to a family under the portability procedures, the family must be given the opportunity for an informal review or hearing [Notice PIH 2O16-09]. (For more on this topic, see later under "Denial or Termination of Assistance.") - 025 City Council 5 — 526 5 2 25 EXHIBIT 1 Briefing HUD allows the receiving PHA to require a briefing for an incoming portable family as long as the requirement does not unduly delay the family's search [Notice PIH 2O16-09]. SAHA Policv SAHA will require the family to attend a briefing. SAHA will provide the family with a briefing packet (as described in Chapter 5) and, in an individual briefing, will orally inform the family about SAHA's payment and subsidy standards, procedures for requesting approval of a unit within the City of Santa Ana city limits (does not include unincorporated areas), the unit inspection process, and the leasing process. Income Eligibility and Reexamination The receiving PHA does not redetermine eligibility for a portable family that was already receiving assistance in the initial PHA's voucher program [24 CFR 982.355(c)(9)]. If the receiving PHA opts to conduct a new reexamination for a current participant family, the receiving PHA may not delay issuing the family a voucher or otherwise delay approval of a unit [24 CFR 982.355(c)(11)]. SAHA Policv For any family moving into its jurisdiction under portability, SAHA will conduct a new reexamination of family income and composition. However, SAHA will not delay issuing the family a voucher for this reason. Nor will SAHA delay approving a unit for the family until the reexamination process is complete unless the family is an applicant and SAHA cannot otherwise confirm that the family is income eligible for admission to the program in the area where the unit is located. In conducting its own reexamination, SAHA will rely upon any verifications provided by the initial PHA to the extent that they (a) accurately reflect the family's current circumstances and (b) were obtained within the last 120 days. Any new information may be verified by documents provided by the family and adjusted, if necessary, when third party verification is received. - 025 City Council 5 — 527 7MW2b25 EXHIBIT 1 Voucher Issuance When a family moves into its jurisdiction under portability, the receiving PHA is required to issue the family a voucher [24 CFR 982.355(c)(13)]. The family must submit a request for tenancy approval to the receiving PHA during the term of the receiving PHA's voucher [24 CFR 982.355(c)(15)]. Timing of Voucher Issuance HUD expects the receiving PHA to issue the voucher within two weeks after receiving the family's paperwork from the initial PHA if the information is in order, the family has contacted the receiving PHA, and the family complies with the receiving PHA's procedures [Notice PIH 2O16-09]. SAHA Policy When a family ports into SAHA's jurisdiction, SAHA will issue the family a voucher based on the paperwork provided by the initial PHA unless the family's paperwork from the initial PHA is incomplete, the family's voucher from the initial PHA has expired or the family does not comply with SAHA's procedures. SAHA will update the family's information when verification has been completed. Voucher Term The term of the receiving PHA's voucher may not expire before 30 calendar days from the expiration of the initial PHA's voucher [24 CFR 982.355(c)(13)]. If the initial PHA extends the term of the voucher, the receiving PHA's voucher may not expire before 30 days from the new expiration date of the initial PHA's voucher [Notice PIH 2O16-09]. SAHA Policy SAHA's voucher will expire 30 calendars days from the expiration date of the initial PHA's voucher. If the initial PHA extends the term of the voucher, SAHA's voucher will expire 30 calendar days from the new expiration date of the initial PHA's voucher. Voucher Extensions [24 CFR 982.355(c)(14), Notice 2016-091 Once the receiving PHA issues the portable family a voucher, the receiving PHA's policies on extensions of the voucher term apply. The receiving PHA must inform the initial PHA of any extension granted to the term of the voucher. It must also bear in mind the billing deadline provided by the initial PHA. Unless willing and able to absorb the family, the receiving PHA should ensure that any voucher expiration date would leave sufficient time to process a request for tenancy approval, execute a HAP contract, and deliver the initial billing to the initial PHA. SAHA Policy SAHA will not extend the term of the voucher that it issues to an incoming portable family. SAHA will consider an exception to this policy as a reasonable accommodation to a person with disabilities (see Chapter 2). - 025 City Council — 528 5 2 25 EXHIBIT 1 Voucher Suspensions [24 CFR 982.303, 24 CFR 982.355(c)(15)J If the family submits a request for tenancy approval during the term of the receiving PHA's voucher, the PHA must suspend the term of that voucher. The term of the voucher stops from the date that the family submits a request for PHA approval of the tenancy until the date the PHA notifies the family in writing whether the request has been approved or denied [24 CFR 982.4(b)] (see Section 5-II.E). Notifying the Initial PHA The receiving PHA must promptly notify the initial PHA if the family has leased an eligible unit under the program or if the family fails to submit a request for tenancy approval for an eligible unit within the term of the receiving PHA's voucher [24 CFR 982.355(c)(16)]. The receiving PHA is required to use Part II of form HUD-52665, Family Portability Information, for this purpose [Notice PIH 2O16-09]. (For more on this topic and the deadline for notification, see below under "Administering a Portable Family's Voucher.") If an incoming portable family ultimately decides not to lease in the jurisdiction of the receiving PHA but instead wishes to return to the initial PHA's jurisdiction or to search in another jurisdiction, the receiving PHA must refer the family back to the initial PHA. In such a case the voucher of record for the family is once again the voucher originally issued by the initial PHA. Any extension of search time provided by the receiving PHA's voucher is only valid for the family's search in the receiving PHA's jurisdiction [Notice PIH 2O16-09]. Administering a Portable Family's Voucher Portability Billing [24 CFR 982.355(e)] To cover assistance for a portable family that was not absorbed, the receiving PHA bills the initial PHA for housing assistance payments and administrative fees. The amount of the housing assistance payment for a portable family in the receiving PHA's program is determined in the same manner as for other families in the receiving PHA's program. The receiving PHA may bill the initial PHA for the lesser of 80 percent of the initial PHA's ongoing administrative fee or 100 percent of the receiving PHA's ongoing administrative fee for each program unit under contract on the first day of the month for which the receiving PHA is billing the initial PHA under portability. If the administrative fees are prorated for the HCV program, the proration will apply to the amount of the administrative fee for which the receiving PHA may bill (i.e., the receiving PHA may bill for the lesser of 80 percent of the initial PHA's prorated ongoing administrative fee or 100 percent of the receiving PHA's ongoing administrative fee). If both PHAs agree, the PHAs may negotiate a different amount of reimbursement. SAHA Policy Unless SAHA negotiates a different amount of reimbursement with the initial PHA, SAHA will bill the initial PHA the maximum amount of administrative fees allowed, ensuring any administrative fee proration has been properly applied. - 025 City Council 5 — 529 5 2 25 EXHIBIT 1 Initial Billing Deadline If a portable family's search for a unit is successful and the receiving PHA intends to administer the family's voucher, the receiving PHA must submit its initial billing notice (Part II of form HUD-52665) in time that the notice will be received no later than 90 days following the expiration date of the family's voucher issued by the initial PHA [Notice PIH 2O16-09]. This deadline may be extended for 30 additional days if the delay is due to suspension of the voucher's term (see Initial Billing Section). A copy of the family's form HUD-50058, Family Report, completed by the receiving PHA must be attached to the initial billing notice. The receiving PHA may send these documents by mail or email. SAHA Policv SAHA will send its initial billing notice by email, if necessary, to meet the billing deadline but will also send the notice by regular mail. If the receiving PHA fails to send the initial billing by the deadline, it is required to absorb the family into its own program unless (a) the initial PHA is willing to accept the late submission or (b) HUD requires the initial PHA to honor the late submission (e.g., because the receiving PHA is overleased) [Notice PIH 2O16-09]. Ongoing Notification Responsibilities [Notice PIH 2O16-09, HUD-52665] Annual Reexamination. The receiving PHA must send the initial PHA a copy of a portable family's updated form HUD-50058 after each annual reexamination for the duration of time the receiving PHA is billing the initial PHA on behalf of the family, regardless of whether there is a change in the billing amount. SAHA Policv SAHA will send a copy of the updated HUD-50058 by regular mail or email no later than 14 calendar days after the effective date of the reexamination. Change in Billing Amount. The receiving PHA is required to notify the initial PHA, using form HUD-52665, of any change in the billing amount for the family as a result o£ • A change in the HAP amount (because of a reexamination, a change in the applicable payment standard, a move to another unit, etc.) • An abatement or subsequent resumption of the HAP payments • Termination of the HAP contract • Payment of a damage/vacancy loss claim for the family • Termination of the family from the program 025 City Council 5 — 530 5 2 25 EXHIBIT 1 The timing of the notice of the change in the billing amount should correspond with the notification to the owner and the family in order to provide the initial PHA with advance notice of the change. Under no circumstances should the notification be later than 10 business days following the effective date of the change in the billing amount. If the receiving PHA fails to send Form HUD-52665 within 10 days of effective date of billing changes, the initial PHA is not responsible for any increase prior to notification. If the change resulted in a decrease in the monthly billing amount, the initial PHA will offset future monthly payments until the difference is reconciled. Late Payments [Notice PIH 2O16-09] If the initial PHA fails to make a monthly payment for a portable family by the fifth business day of the month, the receiving PHA must promptly notify the initial PHA in writing of the deficiency. The notice must identify the family, the amount of the billing payment, the date the billing payment was due, and the date the billing payment was received (if it arrived late). The receiving PHA must send a copy of the notification to the Office of Public Housing (OPH) in the HUD area office with jurisdiction over the receiving PHA. If the initial PHA fails to correct the problem by the second month following the notification, the receiving PHA may request by memorandum to the director of the OPH with jurisdiction over the receiving PHA that HUD transfer the unit in question. A copy of the initial notification and any subsequent correspondence between the PHAs on the matter must be attached. The receiving PHA must send a copy of the memorandum to the initial PHA. If the OPH decides to grant the transfer, the billing arrangement on behalf of the family ceases with the transfer, but the initial PHA is still responsible for any outstanding payments due to the receiving PHA. Overpayments [Notice PIH 2O16-091 In all cases where the receiving PHA has received billing payments for billing arrangements no longer in effect, the receiving PHA is responsible for returning the full amount of the overpayment (including the portion provided for administrative fees) to the initial PHA. In the event that HUD determines billing payments have continued for at least three months because the receiving PHA failed to notify the initial PHA that the billing arrangement was terminated, the receiving PHA must take the following steps: • Return the full amount of the overpayment, including the portion provided for administrative fees, to the initial PHA. • Once full payment has been returned, notify the Office of Public Housing in the HUD area office with jurisdiction over the receiving PHA of the date and the amount of reimbursement to the initial PHA. At HUD's discretion, the receiving PHA will be subject to the sanctions spelled out in Notice PIH 2O16-09. 025 City Council 5 — 531 7M5 2 25 EXHIBIT 1 Denial or Termination of Assistance At any time, the receiving PHA may make a determination to deny or terminate assistance to a portable family for family action or inaction [24 CFR 982.355(c)(17)]. In the case of a termination, the PHA should provide adequate notice of the effective date to the initial PHA to avoid having to return a payment. In no event should the receiving PHA fail to notify the initial PHA later than 10 business days following the effective date of the termination of the billing arrangement [HUD-52665; Notice PIH 2O16-09]. SAHA Policy If SAHA elects to deny or terminate assistance for a portable family, SAHA will notify the initial PHA within 14 calendar days after the informal review or hearing if the denial or termination is upheld. SAHA will base its denial or termination decision on the policies set forth in Chapter 3 or Chapter 12, respectively. The informal review or hearing will be held in accordance with the policies in Chapter 16. SAHA will furnish the initial PHA with a copy of the review or hearing decision. 025 City Council 5 — 532 5 2 25 EXHIBIT 1 Absorbing a Portable Family The receiving PHA may absorb an incoming portable family into its own program when the PHA executes a HAP contract on behalf of the family or at any time thereafter providing that the PHA has funding available under its annual contributions contract (ACC) [24 CFR 982.355(d)(1), Notice PIH 2O16-09]. If the receiving PHA absorbs a family from the point of admission, the admission will be counted against the income targeting obligation of the receiving PHA [24 CFR 982.201(b)(2)(vii)]. If the receiving PHA absorbs a family after providing assistance for the family under a billing arrangement with the initial PHA, the receiving PHA must send an updated form HUD-52665 to the initial PHA no later than 10 business days following the effective date of the termination of the billing arrangement [Notice PIH 2O16-09]. SAHA Policy If SAHA decides to absorb a portable family upon the execution of a HAP contract on behalf of the family, SAHA will notify the initial PHA by the initial billing deadline specified on form HUD-52665. The effective date of the HAP contract will be the effective date of the absorption. If SAHA decides to absorb a family after that, it will provide the initial PHA with 30 days' advance notice, but no later than 14 calendar days following the effective date of the termination of the billing arrangement. Following the absorption of an incoming portable family, the family is assisted with funds available under the consolidated ACC for the receiving PHA's voucher program [24 CFR 982.355(d)], and the receiving PHA becomes the initial PHA in any subsequent moves by the family under portability [24 CFR 982.355(e)(4)]. 025 City Council 5 — 533 5 2 25 EXHIBIT 1 Chapter II.A. REEXAMINATIONS INTRODUCTION This chapter is applicable until the PHA's HOTMA 102/104 compliance date. After this date, the PHA will follow policies as outlined in Chapter I I .B. of the model policy. The PHA is required to reexamine each family's income and composition at least annually, and to adjust the family's level of assistance accordingly. Interim reexaminations are also needed in certain situations. This chapter discusses both annual and interim reexaminations, and the recalculation of family share and subsidy that occurs as a result. HUD regulations and PHA policies concerning reexaminations are presented in three parts: Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations. Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations. Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations. Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this plan, apply to both annual and interim reexaminations. PART L• ANNUAL REEXAMINATIONS [24 CFR 982.516] 11-I.A. OVERVIEW The PHA must conduct a reexamination of family income and composition at least annually. This includes gathering and verifying current information about family composition, income, and expenses. Based on this updated information, the family's income and rent must be recalculated. This part discusses the schedule for annual reexaminations, the information to be collected and verified, and annual reexamination effective dates. PHAs also have the option of using a Safe Harbor income verification from another federal means -tested program to verify gross annual income. Chapter 7 contains the PHA's policies related to use of Safe Harbor income verifications. Page 11-1 Administrative Plan 7/l/2025 City Council 5 — 534 7/15/2025 EXHIBIT 1 11-I.B. STREAMLINED ANNUAL REEXAMINATIONS [24 CFR 982.516(b); New HCV GB, Reexaminations] HUD permits PHAs to streamline the income determination process for family members with fixed sources of income. While third -party verification of all income sources must be obtained during the intake process and every three years thereafter, in the intervening years the PHA may determine income from fixed sources by applying a verified cost of living adjustment (COLA) or rate of interest. The PHA may, however, obtain third -party verification of all income, regardless of the source. Further, upon request of the family, the PHA must perform third -party verification of all income sources. Fixed sources of income include Social Security and SSI benefits, pensions, annuities, disability or death benefits, and other sources of income subject to a COLA or rate of interest. The determination of fixed income may be streamlined even if the family also receives income from other non -fixed sources. Two streamlining options are available, depending upon the percentage of the family's income that is received from fixed sources. If at least 90 percent of the family's income is from fixed sources, the PHA may streamline the verification of fixed income but is not required to verify non -fixed income amounts. If the family receives less than 90 percent of its income from fixed sources, the PHA may streamline the verification of fixed income and must verify non -fixed income annually. SAHA Policy SAHA chooses not to streamline the annual reexamination process for fixed -income sources. SAHA will obtain third -party verification of all income sources annually. Page 11-2 Administrative Plan 7/l/2025 City Council 5 — 535 7/15/2025 EXHIBIT 1 11-I.C. SCHEDULING ANNUAL REEXAMINATIONS The PHA must establish a policy to ensure that the annual reexamination for each family is completed within a 12-month period and may require reexaminations more frequently [HCV GB p. 12-1]. SAHA Policy SAHA will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, SAHA will schedule annual reexamination effective dates to coincide with the family's anniversary date. Anniversary date is defined as 12 months from the effective date of the family's last annual reexamination or, during a family's first year in the program, from the effective date of the family's initial examination (admission). If the family moves to a new unit, SAHA will perform a new annual reexamination. SAHA also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes. Notification of and Participation in the Annual Reexamination Process The PHA is required to obtain the information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who were not provided the opportunity the option to complete Form HUD-92006 at this time [Notice PIH 2O09-36]. SAHA Policy Families generally are required to participate in an annual reexamination interview, which must be attended by the head of household, spouse, or cohead. If participation in an in -person interview poses a hardship because of a family member's disability, the family should contact SAHA to request a home visit or remote interview as a reasonable accommodation (see Chapter 2). Notification of annual reexamination interviews will be sent by first-class mail and will contain the date, time, and location of the interview. In addition, it will inform the family of the information and documentation that must be brought to the interview. If the family is unable to attend the scheduled interview, the family must contact SAHA at a minimum 24-hours before their scheduled appointment. If a family does not attend the scheduled interview, SAHA will send a second notification with a new interview date and appointment time. If a family fails to attend two scheduled interviews without SAHA approval, or if the notice is returned by the post office with no forwarding address, a notice of proposed termination (see Chapter 12) will be sent to the family's address of record, and to any alternate address provided in the family's file. An advocate, interpreter, or other assistant may assist the family in the interview process. The family must notify SAHA at least 5 days prior to the scheduled appointment if they require translation service. Page 11-3 Administrative Plan 7/l/2025 City Council 5 — 536 7/15/2025 EXHIBIT 1 11-I.D. CONDUCTING ANNUAL REEXAMINATIONS As part of the annual reexamination process, families are required to provide updated information to the PHA regarding the family's income, expenses, and composition [24 CFR 982.551(b)]. SAHA Policv Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment. The required information will include a SAHA-designated reexamination form, an Authorization for the Release of Information/Privacy Act Notice, as well as supporting documents or forms related to the family's income, expenses, and family composition. Any required documents or information that the family is unable to provide at the time of the interview must be provided within 14 calendar days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the family does not provide the required documents or information after two consecutive requests, the family will be sent a notice of proposed termination (See Chapter 12). At their annual reexamination appointment, the family must provide a new certification of the continued need for a live -in -aide and/or an additional bedroom if either is approved as a reasonable accommodation. Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any member of the tenant's household, is subject to a lifetime sex offender registration requirement in any state [Notice PIH 2O12-28]. SAHA Policv At the annual reexamination, SAHA will ask whether the tenant, or any member of the tenant's household, is subject to a lifetime sex offender registration requirement in any state. SAHA will use the Dru Sjodin National Sex Offender database to verify the information provided by the tenant. If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter 12.) Page 11-4 Administrative Plan 7/l/2025 City Council 5 — 537 7/15/2025 EXHIBIT 1 The information provided by the family generally must be verified in accordance with the policies in Chapter 7. Unless the family reports a change, or the PHA has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to be re -verified on an annual basis. These include: • Legal identity • Age • Social security numbers • A person's disability status • Citizenship or immigration status If adding a new family member to the unit causes overcrowding according to the housing quality standards (HQS) (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms [24 CFR 982.403]. Page 11-5 Administrative Plan 7/l/2025 City Council 5 — 538 7/15/2025 EXHIBIT 1 11-I.E. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)] Section 327 of Public Law 109-115 established new restrictions on the ongoing eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled in an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student's eligibility must be reexamined along with the income eligibility of the student's parents on an annual basis. In these cases, both the student and the student's parents must be income eligible for the student to continue to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents or is considered a vulnerable youth in accordance with PHA policy, the income of the student's parents will not be considered in determining the student's ongoing eligibility. Students who reside with parents in an HCV assisted unit are not subject to this provision. It is limited to students who are receiving assistance on their own, separately from their parents. SAHA Policy During the annual reexamination process, SAHA will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student's individual income as well as the income of the student's parents. If the student has been determined "independent" from their parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents' income will not be reviewed. If the student is no longer income eligible based on their own income or the income of their parents, the student's assistance will be terminated in accordance with the policies in Section 12-I.D. If the student continues to be income eligible based on their own income and the income of their parents (if applicable), SAHA will process a reexamination in accordance with the policies in this chapter. Page 11-6 Administrative Plan 7/l/2025 City Council 5 — 539 7/15/2025 EXHIBIT 1 11-I.F. EFFECTIVE DATES The PHA must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516]. SAHA Policy In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family's anniversary date, and the family will be notified at least 30 days in advance. If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period. If a family moves to a new unit, the increase will take effect on the effective date of the new lease and HAP contract, and no 30-day notice is required. If the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively, to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family's anniversary date. If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract. If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively, from the first day of the month following completion of the reexamination processing. Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by SAHA by the date specified, and this delay prevents SAHA from completing the reexamination as scheduled. Page 11-7 Administrative Plan 7/l/2025 City Council 5 — 540 7/15/2025 EXHIBIT 1 PART II: INTERIM REEXAMINATIONS [24 CFR 982.5161 11-II.A. OVERVIEW Family circumstances may change between annual reexaminations. HUD and PHA policies dictate what kinds of information about changes in family circumstances must be reported, and under what circumstances the PHA must process interim reexaminations to reflect those changes. HUD regulations also permit the PHA to conduct interim reexaminations of income or family composition at any time. When an interim reexamination is conducted, only those factors that have changed are verified and adjusted [HCV GB, p. 12-10]. In addition to specifying what information the family must report, HUD regulations permit the family to request an interim determination if other aspects of the family's income or composition changes. The PHA must complete the interim reexamination within a reasonable time after the family's request. This part includes HUD and PHA policies describing what changes families are required to report, what changes families may choose to report, and how the PHA will process both PHA - and family -initiated interim reexaminations. 11-II.B. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION The family is required to report all changes in family composition. The PHA must adopt policies prescribing when and under what conditions the family must report changes in income and family composition. However, due to family obligations under the program, the PHA has limited discretion in this area. SAHA Policy SAHA will conduct interim reexaminations to account for any changes in household composition that occur between annual reexaminations. New Family Members Not Requiring PHA Approval The addition of a family member as a result of birth, adoption, or court -awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR 982.551(h)(2)]. SAHA Policy The family must inform SAHA of the birth, adoption, or court -awarded custody of a child within 14 calendar. Page 11-8 Administrative Plan 7/l/2025 City Council 5 — 541 7/15/2025 EXHIBIT 1 New Family and Household Members Requiring Approval With the exception of children who join the family as a result of birth, adoption, or court - awarded custody, a family must request PHA approval to add a new family member [24 CFR 982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)]. Although the PHA must verify aspects of program eligibility when any new family member is added, the Streamlining Final Rule removed the requirement that PHAs conduct a reexamination of income whenever a new family member is added. The PHA may state in policy that an income reexamination will be conducted. If a change in family size causes a violation of Housing Quality Standards (HQS) space standards (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the family's HAP contract in accordance with its terms [24 CFR 982.403]. SAHA Policy Families must request SAHA approval to add a new family member, live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 30 cumulative calendar days during any 12-month period, subject to lease terms. Requests must be made in writing and approved by SAHA prior to the individual moving into the unit. Family must also receive written approval from the owner to add a new member. If owner does not approve new member, SAHA may issue a new voucher to move. SAHA will not approve the return of adult family members who have left the assisted unit to establish a separate family unit. SAHA will review requests for additional adult family members and only grant as a reasonable accommodation. SAHA will not approve the addition of a new family or household member unless the individual meets SAHA's eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II). SAHA will not approve the addition of a foster child or foster adult if it will cause a violation of HQS space standards. However, if the foster child/children are blood related to the head of household, SAHA may grant additional bedrooms. If SAHA determines an individual meets SAHA's eligibility criteria and documentation requirements, SAHA will provide written approval to the family. If the approval of a new family member or live-in aide will cause overcrowding according to HQS standards, the approval letter will explain that the family will be issued a voucher and will be required to move. If SAHA determines that an individual does not meet SAHA's eligibility criteria or documentation requirements, SAHA will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial. SAHA will make its determination within 14 calendar days of receiving all information required to verify the individual's eligibility. Page 11-9 Administrative Plan 7/l/2025 City Council 5 — 542 7/15/2025 EXHIBIT 1 Departure of a Family or Household Member Families must promptly notify the PHA if any family member no longer lives in the unit [24 CFR 982.551(h)(3)]. Because household members are considered when determining the family unit (voucher) size [24 CFR 982.402], the PHA also needs to know when any live-in aide, foster child, or foster adult ceases to reside in the unit. SAHA Policy If a household member ceases to reside in the unit, the family must inform SAHA within 14 calendar days. This requirement also applies to a family member who has been considered temporarily absent at the point that SAHA concludes the individual is permanently absent. SAHA will request proof of new residency for the departing family member. If live -in -aide, foster child, or foster adult ceases to reside in the unit, the family must inform SAHA within 14 calendar days. Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6)] Changes effective 12/2/24 and earlier: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size must be used to determine the payment standard for the family beginning at the family's first regular reexamination following the change in family unit size. Changes effective 12/3/24 and later: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size may be used to determine the payment standard immediately or at the family's first regular reexamination following the change in family unit size. SAHA Policy If the family unit size (voucher size) changes during the term of a HAP contract, the new family unit size will be used to determine the payment standard at the family's first regular reexamination following the change in family unit size. Page 11-10 Administrative Plan 7/ l /2025 City Council 5 — 543 7/15/2025 EXHIBIT 1 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES Interim reexaminations can be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. When a family reports a change, the PHA may take different actions depending on whether the family reported the change voluntarily, or because it was required to do so. PHA -Initiated Interim Reexaminations PHA -initiated interim reexaminations are those that are scheduled based on circumstances or criteria defined by the PHA. They are not scheduled because of changes reported by the family. SAHA Policy SAHA will conduct interim reexaminations in each of the following instances: For families receiving the Earned Income Disallowance (EID), SAHA will conduct an interim reexamination at the conclusion of the 24-month eligibility period. If the family has reported zero income, SAHA will conduct an interim reexamination every 3 months as long as the family continues to report that they have no income. If at the time of the annual reexamination, it is not feasible to anticipate a level of income for the next 12 months (e.g. seasonal or cyclic income), SAHA will schedule an interim reexamination to coincide with the end of the period for which it is feasible to project income. If at the time of the annual reexamination, tenant declarations were used on a provisional basis due to the lack of third -party verification, and third -party verification becomes available, SAHA will conduct an interim reexamination. SAHA may conduct an interim reexamination at any time in order to correct an error in a previous reexamination, or to investigate a tenant fraud complaint. Page 11-11 Administrative Plan 7/ l /2025 City Council 5 — 544 7/15/2025 EXHIBIT 1 Family -Initiated Interim Reexaminations The PHA must adopt policies prescribing when and under what conditions the family must report changes in family income or expenses [24 CFR 982.516(c)]. In addition, HUD regulations require that the family be permitted to obtain an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. Required Reporting HUD regulations give the PHA the freedom to determine the circumstances under which families will be required to report changes affecting income. SAHA Policy Families are required to report all increases in earned income, including new employment, within 14 calendar days of the date the change takes effect. SAHA will note the information in the tenant file but will not conduct an interim reexamination. Optional Reporting The family may request an interim reexamination any time the family has experienced a change in circumstances since the last determination [24 CFR 982.516(b)(2)]. The PHA must process the request if the family reports a change that will result in a reduced family income [HCV GB, p. 12-9]. If a family reports a decrease in income from the loss of welfare benefits due to fraud or non- compliance with a welfare agency requirement to participate in an economic self-sufficiency program, the family's share of the rent will not be reduced [24 CFR 5.615]. For more information regarding the requirement to impute welfare income see Chapter 6. SAHA Policy If a family reports a change that it was not required to report and that would result in a decrease in the family share of rent, SAHA will conduct an interim reexamination. See Section 11-II.D. for effective dates. Families may report changes in income or medical and childcare expenses at any time. Page 11-12 Administrative Plan 7/ l /2025 City Council 5 — 545 7/15/2025 EXHIBIT 1 11-ILD. PROCESSING THE INTERIM REEXAMINATION Method of Reporting SAHA Policv The family may notify SAHA of changes in writing. Generally, the family will not be required to attend an interview for an interim reexamination. However, if SAHA determines that an interview is warranted, the family may be required to attend. Based on the type of change reported, SAHA will determine the documentation the family will be required to submit. The family must submit any required information or documents within 14 calendar days of receiving a request from SAHA. This time frame may be extended for good cause with SAHA approval. SAHA will accept required documentation by mail, by email, or in person. Effective Dates The PHA must establish the time frames in which any changes that result from an interim reexamination will take effect [24 CFR 982.516(d)]. The changes may be applied either retroactively or prospectively, depending on whether there is to be an increase or a decrease in the family share of the rent, and whether the family reported any required information within the required time frames [HCV GB, p. 12-10]. SAHA Policy If the family share of the rent is to increase: The increase generally will be effective on the first of the month following 30 days' notice to the family. If a family fails to report a change within the required time frames, or fails to provide all required information within the required time frames, the increase will be applied retroactively, to the date it would have been effective had the information been provided on a timely basis. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. If the family share of the rent is to decrease: The decrease will be effective on the first day of the month following the month in which the change was reported and all required documentation was submitted. In cases where the change cannot be verified until after the date the change would have become effective, the change will be made retroactively. Page 11-13 Administrative Plan 7/ l /2025 City Council 5 — 546 7/15/2025 EXHIBIT 1 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW After gathering and verifying required information for an annual or interim reexamination, the PHA must recalculate the family share of the rent and the subsidy amount and notify the family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be updated and included in the PHA's calculations. Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below. Payment Standards [24 CFR 982.505 and FR Notice 5/7/241 The family share of the rent and HAP calculations must use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the appropriate payment standard when the PHA changes its payment standard or when there is a change in family composition. Subsidy Standards [24 CFR 982.505(c)(4)] If there is a change in the family unit size that would apply to a family during the HAP contract term, either due to a change in family composition, or a change in the PHA's subsidy standards (see Chapter 5), the new family unit size must be used to determine the payment standard amount for the family immediately or at the family's first annual reexamination following the change in family unit size. Utility Allowances [24 CFR 982.517(d)] The family share of the rent and HAP calculations must reflect any changes in the family's utility arrangement with the owner, or in the PHA's utility allowance schedule [HCV GB, p. 12-5]. Chapter 16 discusses how utility allowance schedules are established. When there are changes in the utility arrangement with the owner, the PHA must use the utility allowances in effect at the time the new lease and HAP contract are executed. At reexamination, the PHA must use the PHA current utility allowance schedule [HCV GB, P. 18-8]. SAHA Policy Revised utility allowances will be applied to a family's rent and subsidy calculations at the first annual reexamination after the allowance is adopted. Page 11-14 Administrative Plan 7/ l /2025 City Council 5 — 547 7/15/2025 EXHIBIT 1 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT The PHA must notify the owner and family of any changes in the amount of the HAP payment [HUD-52641, HAP Contract]. The notice must include the following information [HCV G13, p. 12-6] : • The amount and effective date of the new HAP payment • The amount and effective date of the new family share of the rent • The amount and effective date of the new tenant rent to owner The family must be given an opportunity for an informal hearing regarding the PHA's determination of their annual or adjusted income, and the use of such income to compute the housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16). SAHA Policy The notice to the family will include the annual and adjusted income amounts that were used to calculate the family share of the rent and the housing assistance payment. The notice will state the family has the right to request an explanation of how the assistance was calculated and if the family disagrees, they have the right to informal hearing. The notice will include the procedures for requesting an informal hearing. 11-III.D. DISCREPANCIES During an annual or interim reexamination, the PHA may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, the PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment of subsidy are discovered, corrections will be made in accordance with the policies in Chapter 14. Page 11-15 Administrative Plan 7/ l /2025 City Council 5 — 548 7/15/2025 EXHIBIT 1 Chapter II.B. REEXAMINATIONS UNDER HOTMA 102/104 INTRODUCTION This chapter is applicable upon the PHA's HOTMA 102/104 compliance date. Prior to this date, the PHA will follow policies as outlined in Chapter I I .A. The PHA is required to reexamine each family's income and composition at least annually, and to adjust the family's level of assistance accordingly. Interim reexaminations are also needed in certain situations. This chapter discusses both annual and interim reexaminations, and the recalculation of family share and subsidy that occurs as a result. HUD regulations and PHA policies concerning reexaminations are presented in three parts: Part I: Annual Reexaminations. This part discusses the process for conducting annual reexaminations. Part II: Interim Reexaminations. This part details the requirements for families to report changes in family income and composition between annual reexaminations. Part III: Recalculating Family Share and Subsidy Amount. This part discusses the recalculation of family share and subsidy amounts based on the results of annual and interim reexaminations. Part IV: Non -Interim Reexamination Transaction. This part describes transactions that do not entail changes to the family's adjusted income. Policies governing reasonable accommodation, family privacy, required family cooperation, and program abuse, as described elsewhere in this plan, apply to both annual and interim reexaminations. PART I: ANNUAL REEXAMINATIONS [24 CFR 982.5161 11-I.A. OVERVIEW The PHA must conduct a reexamination of family income and composition at least annually. This includes gathering and verifying current information about family composition, income, and expenses. Based on this updated information, the family's income and rent must be recalculated. This part discusses the schedule for annual reexaminations, the information to be collected and verified, and annual reexamination effective dates. Unlike when performing an interim reexamination or at intake, at annual reexamination, the PHA must determine the income of the family for the previous 12-month period, except where the PHA uses a streamlined income determination. Income from assets, however, is always anticipated, irrespective of the income examination type [Notice PIH 2O23-27]. PHAs also have the option of using a Safe Harbor income verification from another federal means -tested program to verify gross annual income. Chapter 7 contains the PHA's policies related to streamlined income determinations and the use of Safe Harbor income verifications. 025 City Council 5 — 549 5 2 25 EXHIBIT 1 11-I.B. SCHEDULING ANNUAL REEXAMINATIONS The PHA must establish a policy to ensure that the annual reexamination for each family is completed within a 12-month period and may require reexaminations more frequently [HCV GB p. 12-1]. PHA Policy SAHA will begin the annual reexamination process 120 days in advance of its scheduled effective date. Generally, SAHA will schedule annual reexamination effective dates to coincide with the family's anniversary date. Anniversary date is defined as 12 months from the effective date of the family's last annual reexamination or, during a family's first year in the program, from the effective date of the family's initial examination (admission). If the family moves to a new unit, SAHA will perform a new annual reexamination if the move is effective at the annual reexamination. SAHA also may schedule an annual reexamination for completion prior to the anniversary date for administrative purposes. Notification of and Participation in the Annual Reexamination Process The PHA is required to obtain the information needed to conduct annual reexaminations. How that information will be collected is left to the discretion of the PHA. However, PHAs should give tenants who were not provided the opportunity the option to complete Form HUD-92006 at this time [Notice PIH 2O09-36]. SAHA Polic Families generally are required to participate in an annual reexamination interview, which must be attended by the head of household, spouse, or cohead. If participation in an in -person interview poses a hardship because of a family member's disability, the family should contact SAHA to request a reasonable accommodation (see Chapter 2). Notification of annual reexamination interviews will be sent by first-class mail and will contain the date, time, and location of the interview. In addition, it will inform the family of the information and documentation that must be brought to the interview. If the family is unable to attend a scheduled interview, the family should contact SAHA in advance of the interview to schedule a new appointment. If a family does not attend the scheduled interview, SAHA will send a second notification with a new interview date and appointment time. If a family fails to attend two scheduled interviews without SAHA approval, or if the notice is returned by the post office with no forwarding address, a notice of proposed termination (see Chapter 12) will be sent to the family's address of record, and to any alternate address provided in the family's file. An advocate, interpreter, or other assistant may assist the family in the interview process. The family and SARA must execute a certification attesting to the role and the assistance provided by any such third party. 025 City Council 5 — 550 5 2 25 EXHIBIT 1 11-I.C. CONDUCTING ANNUAL REEXAMINATIONS As part of the annual reexamination process, families are required to provide updated information to the PHA regarding the family's income, expenses, and composition [24 CFR 982.551(b)]. SAHA Polic Families will be asked to bring all required information (as described in the reexamination notice) to the reexamination appointment. The required information will include a PHA -designated reexamination form as well as supporting documents or forms related to the family's income, expenses, and family composition. Any required documents or information that the family is unable to provide at the time of the interview must be provided within 14 calendar days of the interview. If the family is unable to obtain the information or materials within the required time frame, the family may request an extension. If the family does not provide the required documents or information within the required time period (plus any extensions), the family will be sent a notice of proposed termination (See Chapter 12). At their annual reexamination, the family must provide a new certification of the continued need for a live -in -aid and/or an additional bedroom if either is approved as a reasonable accommodation. Additionally, HUD recommends that at annual reexaminations PHAs ask whether the tenant, or any member of the tenant's household, is subject to a lifetime sex offender registration requirement in any state [Notice PIH 2O12-28]. SAHA Policy At the annual reexamination, SAHA will ask whether the tenant, or any member of the tenant's household, is subject to a lifetime sex offender registration requirement in any state. SAHA will use the Dru Sjodin National Sex Offender database to verify the information provided by the tenant. If the PHA proposes to terminate assistance based on lifetime sex offender registration information, the PHA must notify the household of the proposed action and must provide the subject of the record and the tenant a copy of the record and an opportunity to dispute the accuracy and relevance of the information prior to termination. [24 CFR 5.903(f) and 5.905(d)]. (See Chapter 12.) 025 City Council 5 — 551 5 2 25 EXHIBIT 1 The information provided by the family generally must be verified in accordance with the policies in Chapter 7. Unless the family reports a change, or the PHA has reason to believe a change has occurred in information previously reported by the family, certain types of information that are verified at admission typically do not need to be re -verified on an annual basis. These include: • Legal identity • Age • Social security numbers • A person's disability status • Citizenship or immigration status If adding a new family member to the unit causes overcrowding according to space standards (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the HAP contract in accordance with its terms [24 CFR 982.403]. 025 City Council 5 — 552 5 2 25 EXHIBIT 1 11-I.D. DETERMINING ONGOING ELIGIBILITY OF CERTAIN STUDENTS [24 CFR 982.552(b)(5)] Section 327 of Public Law 109-115 established restrictions on the ongoing eligibility of certain students (both part- and full-time) who are enrolled in institutions of higher education. If a student enrolled in an institution of higher education is under the age of 24, is not a veteran, is not married, does not have a dependent child, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the student's eligibility must be reexamined along with the income eligibility of the student's parents on an annual basis. In these cases, both the student and the student's parents must be income eligible for the student to continue to receive HCV assistance. If, however, a student in these circumstances is determined independent from their parents or is considered a vulnerable youth in accordance with PHA policy, the income of the student's parents will not be considered in determining the student's ongoing eligibility. Students who reside with parents in an HCV assisted unit are not subject to this provision. It is limited to students who are receiving assistance on their own, separately from their parents. SAHA Polic During the annual reexamination process, SAHA will determine the ongoing eligibility of each student who is subject to the eligibility restrictions in 24 CFR 5.612 by reviewing the student's individual income as well as the income of the student's parents. If the student has been determined "independent" from their parents or is considered a vulnerable youth based on the policies in Sections 3-II.E and 7-II.E, the parents' income will not be reviewed. If the student is no longer income eligible based on their own income or the income of their parents, the student's assistance will be terminated in accordance with the policies in Section 12-I.D. If the student continues to be income eligible based on their own income and the income of their parents (if applicable), SAHA will process a reexamination in accordance with the policies in this chapter. 025 City Council 5 — 553 5 2 25 EXHIBIT 1 11-I.E. CALCULATING ANNUAL INCOME AT ANNUAL REEXAMINATION [24 CFR 5.609(c)(2) and Notice PIH 2O23-271 The PHA must determine the income of the family for the previous 12-month period and use this amount as the family income for annual reexaminations, except where the PHA uses a streamlined income determination as indicated in Chapter 7 of this policy. The PHA may also use Safe Harbor income determinations dated within the last 12 months from a means -tested federal public assistance program at annual reexamination as outlined in Chapter 7 of this policy. Except when using streamlined or Safe Harbor income determinations, in determining the income of the family for the previous 12-month period, any change of income since the family's last annual reexamination, including those that did not meet the threshold to process an interim reexamination in accordance with PHA policies and 24 CFR 5.657(c) or 960.257(b) must be considered. Income from assets is always anticipated, irrespective of the income examination type. A change in income may be a loss of income or the addition of a new source of income. Changing to a different employer in the prior year does not necessarily constitute a change if the income earned from either employer is substantially the same. The PHA should look at the entirety of the family's unearned income and earned income from the prior year in which earned income may have been one constant job or many different jobs that start and stop. Cost of Living Adjustments (COLA) to Social Security income and Social Security disability income are always considered changes to income because the COLA is an adjustment that automatically occurs annually by law. See Chapter 6 for PHA policies on when the COLA is applied and Chapter 7 on streamlined determination of income for inflationary adjustments. Notice PIH 2O23-27 lists the following steps to calculate both earned and unearned income at annual reexamination. Step 1: The PHA determines annual income for the previous 12-month period by reviewing the following information: • The EIV Income Report pulled within 120 days of the effective date of the annual reexamination; • The income reported on the most recent HUD-50058; and • The amount of prior -year income reported by the family on the PHA's annual reexamination paperwork. Step 2: The PHA takes into consideration any interim reexamination of family income completed since the last annual reexamination. • If there was an interim reexamination performed within the last reexamination cycle and there are no additional changes, the PHA must use the annual income from the interim to determine the family's total annual income. The PHA may use verification obtained from the interim for this step. • If the PHA did not perform an interim or there have been changes since the last reexamination, the PHA moves to Step 3. 025 City Council 5 — 554 5 2 25 EXHIBIT 1 Step 3: If there were changes in annual income not processed by the PHA since the last reexamination, the PHA must use current income. The family will be required to report their income for the prior year and whether there have been permanent changes. If there are no reported changes to an income source, the PHA may use documentation of prior - year income to calculate the annual income. For example, the PHA may use the following documentation: EIV + self -certification (wages, Supplemental Security Income (SSI), Social Security, and unemployment) Current written third -party verification from the source verifying prior -year income that is dated within 120 days of receipt by the PHA, for example: - Year-end statements - Paystub with year-to-date amounts Tax forms (Form 1040, W2, 1099, etc.) If there are reported changes by the family or the PHA notes discrepancies between EIV and what the family reports, the PHA must follow the verification hierarchy (described in Chapter 7) to document and verify income. Exhibit 11-1 provides detailed examples of how the PHA calculates income from different sources at annual reexamination using the above method. 11-I.F. EFFECTIVE DATES The PHA must establish policies concerning the effective date of changes that result from an annual reexamination [24 CFR 982.516]. SAHA Policy In general, an increase in the family share of the rent that results from an annual reexamination will take effect on the family's anniversary date, and the family will be notified at least 30 days in advance. If less than 30 days remain before the scheduled effective date, the increase will take effect on the first of the month following the end of the 30-day notice period. If a family moves to a new unit, the increase will take effect on the effective date of the new lease and HAP contract, and no 30-day notice is required. If the family causes a delay in processing the annual reexamination, increases in the family share of the rent will be applied retroactively to the scheduled effective date of the annual reexamination. The family will be responsible for any overpaid subsidy and may be offered a repayment agreement in accordance with the policies in Chapter 16. In general, a decrease in the family share of the rent that results from an annual reexamination will take effect on the family's anniversary date. If a family moves to a new unit, the decrease will take effect on the effective date of the new lease and HAP contract. 025 City Council — 555 M5 2 25 EXHIBIT 1 If the family causes a delay in processing the annual reexamination, decreases in the family share of the rent will be applied prospectively from the first day of the month following completion of the reexamination processing. Delays in reexamination processing are considered to be caused by the family if the family fails to provide information requested by SAHA by the date specified, and this delay prevents SAHA from completing the reexamination as scheduled. 025 City Council 5 — 556 5 2 25 EXHIBIT 1 PART H: INTERIM REEXAMINATIONS [24 CFR 982.516; Notice PIH 2O23-27] 11-II.A. OVERVIEW Family circumstances may change between annual reexaminations. HUD and PHA policies dictate what kinds of information about changes in family circumstances must be reported, and under what circumstances the PHA must process interim reexaminations to reflect those changes. A family may request an interim determination of family income or composition because of any changes since the last determination. The PHA must conduct any interim reexamination within a reasonable period of time after the family request or when the PHA becomes aware of a change in the family's adjusted income that must be processed in accordance with HUD regulations. What qualifies as a "reasonable time" may vary based on the amount of time it takes to verify information, but the PHA generally should conduct the interim reexamination not longer than 30 days after the PHA becomes aware of changes in income. Notice PIH 2O23-27 changes the conditions under which interim reexaminations must be conducted, codifies when interim reexaminations should be processed and made effective, and requires related changes for annual reexaminations and streamlined income determinations. When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in all aspects of adjusted income. 11-II.13. CHANGES IN FAMILY AND HOUSEHOLD COMPOSITION Reporting PHAs must require families to report household composition changes; however, PHAs determine the timeframe in which reporting happens [Notice PIH 2O23-27]. The PHA must adopt policies prescribing when and under what conditions the family must report changes in income and family composition [24 CFR 960.257(b)(5)]. SAHA Policy All families must report all changes in family and household composition that occur between annual reexaminations within 14 calendar days of the change. New Family Members Not Requiring PHA Approval The addition of a family member as a result of birth, adoption, or court -awarded custody does not require PHA approval. However, the family is required to promptly notify the PHA of the addition [24 CFR 982.551(h)(2)]. 025 City Council 5 — 557 5 2 25 EXHIBIT 1 New Family and Household Members Requiring Approval With the exception of children who join the family as a result of birth, adoption, or court - awarded custody, a family must request PHA approval to add a new family member [24 CFR 982.551(h)(2)] or other household member (live-in aide or foster child) [24 CFR 982.551(h)(4)]. Although the PHA must verify aspects of program eligibility when any new family member is added, the Streamlining Final Rule removed the requirement that PHAs conduct a reexamination of income whenever a new family member is added. The PHA may state in policy that an income reexamination will be conducted. If a change in family size causes a violation of space standards (see Chapter 8), the PHA must issue the family a new voucher, and the family and PHA must try to find an acceptable unit as soon as possible. If an acceptable unit is available for rental by the family, the PHA must terminate the family's HAP contract in accordance with its terms [24 CFR 982.403]. SAHA Policy Families must request SAHA approval to add a new family member (other than due to birth, adoption, or court -awarded custody), live-in aide, foster child, or foster adult. This includes any person not on the lease who is expected to stay in the unit for more than 30 consecutive days or 90 cumulative days within a 12-month period and therefore no longer qualifies as a "guest." Requests must be made in writing and approved by SAHA prior to the individual moving into the unit. SAHA will not approve the addition of a new family or household member unless the individual meets SAHA's eligibility criteria (see Chapter 3) and documentation requirements (see Chapter 7, Part II). SAHA will not approve the addition of a foster child or foster adult if it will cause a violation of space standards. If SAHA determines an individual meets SAHA's eligibility criteria and documentation requirements, SAHA will provide written approval to the family. If the approval of a new family member or live-in aide will cause overcrowding according to space standards, the approval letter will explain that the family will be issued a voucher and will be required to move. If SAHA determines that an individual does not meet SAHA's eligibility criteria or documentation requirements, SAHA will notify the family in writing of its decision to deny approval of the new family or household member and the reasons for the denial. SAHA will make its determination within 14 calendar days of receiving all information required to verify the individual's eligibility. 025 City Council 5 — 558 5 2 25 EXHIBIT 1 Departure of a Family or Household Member Families must promptly notify the PHA if any household member no longer lives in the unit [24 CFR 982.551(h)(3)]. Because household members are considered when determining the family unit (voucher) size [24 CFR 982.402], the PHA also needs to know when any live-in aide, foster child, or foster adult ceases to reside in the unit. The PHA must process an interim for all decreases in adjusted income when a family member permanently moves out of the unit. SAHA Policv If a household member ceases to reside in the unit, the family must inform SAHA within 14 calendar days. This requirement also applies to a family member who has been considered temporarily absent at the point that SAHA concludes the individual is permanently absent. SAHA will request proof of new residency for departing family member. If a live -in -aide, foster child, or adult ceases to reside in the unit, the family must inform SAHA within 14 days. Changes in Family Unit Size (Voucher Size) [24 CFR 982.505(c)(6)] Changes effective 12/3/24 and later: Irrespective of any increase or decrease in the payment standard, if the family unit size increases or decreases during the HAP contract term, the new family unit size may be used to determine the payment standard immediately or at the family's first regular reexamination following the change in family unit size. SAHA Policv If the family unit size (voucher size), increases, during the term of a HAP contract, the new family unit size will be used to determine the payment standard on the effective date of the interim reexamination implementing the change in family size. If the family unit size (voucher size), decreases, during the term of a HAP contract, the new family unit size will be used to determine the payment standard at the family's first regular reexamination following the change in family unit size. 025 City Council 5 — 559 5 2 25 EXHIBIT 1 11-II.C. CHANGES AFFECTING INCOME OR EXPENSES Overview Interim reexaminations for changes in income or expenses may be scheduled either because the PHA has reason to believe that changes in income or expenses may have occurred, or because the family reports a change. The PHA must estimate the income of the family for the upcoming 12-month period to determine family income for an interim reexamination [24 CFR 5.609(c)(1)]. Policies for projecting income are found in Chapter 6. Interim Decreases [24 CFR 982.516(c)(2) and Notice PIH 2O23-27] A family may request an interim determination of family income for any change since the last determination. However, the PHA may decline to conduct an interim reexamination if the PHA estimates the family's adjusted income will decrease by an amount that is less than 10 percent of the family's adjusted income. The PHA may set a lower threshold in PHA policy such as performing an interim for any decreases in adjusted income, although HUD prohibits the PHA from setting a dollar -figure threshold. However, while the PHA has some discretion, HUD requires that the PHA perform an interim reexamination for a decrease in adjusted income of any amount in two circumstances: • When there is a decrease in family size attributed to the death of a family member; or • When a family member permanently moves out of the assisted unit during the period since the family's last reexamination. In the above circumstances, the PHA must perform an interim reexamination for any decrease in adjusted income. If the net effect of the changes in adjusted income due to a decrease in family size results in no change or an increase in annual adjusted income, then PHA must process the removal of the household member(s) as a non -interim reexamination transaction without making changes to the family's annual adjusted income. SAHA Policy Generally, SAHA will only conduct an interim when the family's adjusted income has decreased by an amount that is 10 percent or more of the family's adjusted income. When determining the 10 percent threshold, SAHA will round calculated percentages up or down to the next nearest unit as applicable (e.g., a calculated decrease of 9.5 percent will be rounded to 10 percent). However, SAHA will perform an interim reexamination for a decrease in adjusted income of any amount in two circumstances: When there is a decrease in family size attributed to the death of a family member; or When a family member permanently moves out of the assisted unit during the period since the family's last reexamination. 025 City Council 5 — 560 5 2 25 EXHIBIT 1 Interim Increases [24 CFR 982.516(c)(3) and Notice PIH 2O23-27] Increases Less than 10 Percent PHAs must not process interim reexaminations for income increases that result in less than a 10 percent increase in annual adjusted income. Increases 10 Percent or Greater PHAs must conduct an interim reexamination of family income when the PHA becomes aware that the family's adjusted income has changed by an amount that the PHA estimates will result in an increase of 10 percent or more in adjusted income, with the following exceptions: • PHAs may not consider any increases in earned income when estimating or calculating whether the family's adjusted income has increased, unless the family has previously received an interim reduction during the same reexamination cycle; and • PHAs may choose not to conduct an interim reexamination during the last three months of a certification period if a family reports an increase in income within three months of the next annual reexamination effective date. When the family previously received an interim reexamination for a decrease to adjusted income during the same annual reexamination cycle, a PHA has the discretion whether to consider a subsequent increase in earned income. SAHA Polic When a family reports an increase in their earned income between annual reexaminations, SAHA will not conduct an interim reexamination, regardless of the amount of the increase, and regardless of whether there was a previous decrease since the family's last annual reexamination. SAHA will process an interim reexamination for any increases in unearned income of 10 percent or more in adjusted income. SAHA will not perform an interim reexamination when a family reports an increase in income (whether earned or unearned income) within three months of their annual reexamination effective date. However, families who delay reporting income increases until the last three months of their certification period may be subject to retroactive rent increases in accordance with SAHA policies in Chapter 14. 025 City Council 5 — 561 5 2 25 EXHIBIT 1 Concurrent Increases in Earned and Unearned Income [Notice PIH 2O23-271 When the family reports an increase in both earned and unearned income at the same time, the PHA must look at the earned and unearned income changes independently of each other to determine if an interim reexamination is performed. The PHA will only conduct an interim reexamination when the increase independently meets the 10 percent threshold and all other requirements for performing interim reexaminations. For example, if a family reported increases in both earned and unearned income that overall resulted in a 12 percent increase in their adjusted income, but the change in earned income represented a 7 percent increase and the change in unearned income represented a 5 percent increase, the PHA may not perform an interim for either change since neither change meets the 10 percent threshold amount independently. If the change in unearned income met the 10 percent threshold in this case, the PHA would be required to perform an interim. If the change in earned income met the 10 percent threshold in this case, the PHA would refer to PHA policy to determine whether an interim was required. Cumulative Increases [Notice PIH 2O23-271 A series of smaller reported increases in adjusted income may cumulatively meet or exceed the 10-percent increase threshold, at which point the PHA must conduct an interim reexamination in accordance with PHA policy. 025 City Council 5 — 562 7M5 2 25 EXHIBIT 1 Family Reporting The PHA must adopt policies consistent with HUD regulations prescribing when and under what conditions the family must report a change in family income or composition [24 CFR 982.516(d)]. PHA policy may require families to report only changes that the family estimates meet the threshold for an interim reexamination or the PHA may establish policies requiring that families report all changes in income and household composition, and the PHA will subsequently determine if the change requires an interim reexamination [Notice PIH 2O23-27]. When the PHA determines that an interim reexamination of income is necessary, they must ask the family to report changes in all aspects of adjusted income. For example, if the family is reporting a decrease in adjusted income that is more than 10 percent, but the family also had a change in assets that would result in a change in income, the change in assets must also be reviewed [Notice PIH 2O23-27]. SAHA Policy The family will be required to report all changes in income regardless of the amount of the change, whether the change is to earned or unearned income, or if the change occurred during the last three months of the certification period. Families must report changes in income within 14 calendar days of the date the change takes effect.. SAHA requires the family to submit the changes in writing, including email. Within 14 calendar days of the family reporting the change, SAHA will determine whether the change will require an interim reexamination. If the change will not result in an interim reexamination, SAHA will note the information in the tenant file but will not conduct an interim reexamination. SAHA will send the family written notification (which may be emailed) within 14 calendar days of making this determination informing the family that SAHA will not conduct an interim reexamination. If the change will result in an interim reexamination, SAHA will determine the documentation the family will be required to submit based on the type of change reported and SAHA policies in Chapter 7. SAHA will ask the family to report changes in all aspects of adjusted income at this time. The family must submit any required information or documents within 14 calendar days of receiving a request from SAHA. This time frame may be extended for good cause with SAHA approval. SAHA will accept required documentation by mail, email, or in person. SAHA will conduct the interim within a reasonable time period based on the amount of time it takes to verify the information. Generally, the family will not be required to attend an interview for an interim reexamination. However, if SAHA determines that an interview is warranted, the family may be required to attend. 025 City Council 5 — 563 5 2 25 EXHIBIT 1 11-II.D. EFFECTIVE DATES [24 CFR 982.516(e) and Notice 2023-27] Changes Reported Timely [Notice PIH 2O23-271 If the family reports a change in family income or composition timely in accordance with PHA policies: • For rent increases, the PHA must provide the family with 30 days advance written notice. The rent increase is effective the first of the month after the end of that 30-day notice period. • Rent decreases are effective on the first of the month after the date of the actual change leading to the interim reexamination of family income. This means the decrease will be applied retroactively. Changes Not Reported Timely [Notice PIH 2O23-27] If the family failed to report a change in family income or composition timely in accordance with PHA policies: • For rent increases, the PHA must implement any resulting rent increases retroactively to the first of the month following the date of the change leading to the interim reexamination of family income. • For rent decreases, the PHA must implement the change no later than the first rent period following completion of the interim reexamination. However, the PHA may choose to adopt a policy that would make the effective date of the rent decrease retroactive to the first of the month following completion of the reexamination. PHAs may choose to establish conditions or requirements for when such a retroactive application would apply. PHAs that choose to adopt such policies must ensure the earliest date that the retroactive decrease is applied is the later o£ • The first of the month following the date of the change that led to the interim reexamination; or • The first of the month following the most recent previous income examination. 025 City Council 5 — 564 7M5 2 25 EXHIBIT 1 In applying a retroactive change in rent as the result of an interim reexamination, the PHA must clearly communicate the effect of the retroactive adjustment to the family so that there is no confusion over the amount of the rent that is the family's responsibility. SAHA Policy In general, when the family fails to report a change in income or family composition timely, and the change would lead to a rent decrease, SAHA will apply the decrease the first of the month following completion of the interim reexamination. However, SAHA will apply the results of the interim reexamination retroactively where a family's ability to report a change in income promptly may have been hampered due to extenuating circumstances such as a natural disaster or disruptions to SAHA management operations. SAHA will decide to apply decreases retroactively on a case -by -case basis. When SAHA applies the results of interim increases retroactively, SAHA will clearly communicate the effect of the retroactive adjustment to the family and may enter into a repayment agreement in accordance with SAHA policies. SAHA will also clearly communicate the effect of the retroactive adjustment to the owner. 025 City Council 5 — 565 5 2 25 EXHIBIT 1 025 City Council 5 — 566 5 2 5 EXHIBIT 1 PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW After gathering and verifying required information for an annual or interim reexamination, the PHA must recalculate the family share of the rent and the subsidy amount and notify the family and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be updated and included in the PHA's calculations. Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below. Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] The family share of the rent and HAP calculations must use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the appropriate payment standard when the PHA changes its payment standard or when there is a change in family composition. Subsidy Standards [24 CFR 982.505(c)(4)] If there is a change in the family unit size that would apply to a family during the HAP contract term, either due to a change in family composition, or a change in the PHA's subsidy standards (see Chapter 5), the new family unit size must be used to determine the payment standard amount for the family immediately or at the family's first annual reexamination following the change in family unit size. Utility Allowances [24 CFR 982.517(d)] The family share of the rent and HAP calculations must reflect any changes in the family's utility arrangement with the owner, or in the PHA's utility allowance schedule [HCV GB, p. 12-5]. Chapter 16 discusses how utility allowance schedules are established. When there are changes in the utility arrangement with the owner, the PHA must use the utility allowances in effect at the time the new lease and HAP contract are executed. At reexamination, the PHA must use the PHA current utility allowance schedule [HCV GB, P. 18-8]. SAHA Policy Revised utility allowances will be applied to a family's rent and subsidy calculations at the first annual reexamination after the allowance is adopted. 025 City Council 1 It 567 5 2 25 EXHIBIT 1 11-III.C. NOTIFICATION OF NEW FAMILY SHARE AND HAP AMOUNT The PHA must notify the owner and family of any changes in the amount of the HAP payment [HUD-52641, HAP Contract]. The notice must include the following information [HCV GB, p. 12-6]: • The amount and effective date of the new HAP payment • The amount and effective date of the new family share of the rent • The amount and effective date of the new tenant rent to owner • The family must be given an opportunity for an informal hearing regarding the PHA's determination of their annual or adjusted income, and the use of such income to compute the housing assistance payment [24 CFR 982.555(a)(1)(i)] (see Chapter 16). SAHA Policy The notice to the family will include the new and prior rent amounts for the owner and the family. The notice will also state the procedures for requesting an informal hearing. 11-III.D. DISCREPANCIES During an annual or interim reexamination, the PHA may discover that information previously reported by the family was in error, or that the family intentionally misrepresented information. In addition, the PHA may discover errors made by the PHA. When errors resulting in the overpayment or underpayment of subsidy are discovered, corrections will be made in accordance with the policies in Chapter 14. 025 City Council 5 — 568 5 2 25 EXHIBIT 1 PART IV: NON -INTERIM REEXAMINATION TRANSACTIONS [Notice PIH 2O23-27] Families may experience changes within the household that do not trigger an interim reexamination under PHA policy and HUD regulations, but which HUD still requires the PHA to report to HUD via Form HUD-50058. These are known as non -interim reexamination transactions. In these cases, PHAs will submit a separate, new action code on Form HUD-50058. The following is a list of non -interim reexamination transactions: • Adding or removing a hardship exemption for the childcare expense deduction; • Updating or removing the phased -in hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction (families will begin receiving a 24-month phased -in relief at their next annual or interim reexamination, whichever occurs first); • Adding or removing general hardship relief for the health and medical care expense deduction and/or reasonable attendant care and auxiliary apparatus expense deduction; • Adding or removing a minimum rent hardship; • Adding or removing a non -family member (i.e., live-in aide, foster child, foster adult); • Ending a family's EID or excluding 50 percent (decreased from 100 percent) of a family member's increase in employment income at the start of the second 12- month EID period. • Adding a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule; • Removing a family member and the increase in adjusted income does not trigger an interim reexamination under the final rule; • Adding/updating a family or household member's Social Security number; • Updating a family member's citizenship status from eligible to ineligible or vice versa, resulting in a change to the family's rent and/or utility reimbursement, if applicable (i.e., family begins receiving prorated assistance or previously prorated assistance becomes full assistance), or updating the prorated rent calculation due to the addition or removal of family members in household with an ineligible noncitizen(s); and • Rent increases PHAs must make all other changes to assets, income, and deductions at the next annual or interim reexamination of income, whichever is sooner. 025 City Council 5 — 569 5 2 25 EXHIBIT 1 025 City Council 5 — 570%7�5 2 5 EXHIBIT 1 EXHIBIT 11-1: CALCULATING INCOME AT ANNUAL REEXAMINATION Example 1: Calculating Annual Income at Annual Reexamination Using EIV Staff are processing the 3/l/2024 annual reexamination for Ruby Myers and her minor daughter, Georgia. No interim reexaminations have been processed, and Ruby has not reported any changes to annual income to the PHA since the 3/1/2023 annual reexamination. The SSA published 2024 COLA is 7 percent. Last reexamination — 3/l/2023 Annual Reexamination Ruby: Georgia: Wages: $30,000 SSI: $10,980 ($915 monthly The EIV report pulled on 12/15/2023 Ruby: Wages Total: $33,651 Quarter 3 of 2023: $8,859 (City Public School) Quarter 2 of 2023: $8,616 (City Public School) Quarter 1 of 2023: $8,823 (City Public School) Quarter 4 of 2022: $7,353 (City Public School) Georgia: SSI Total: $10,980 2023 benefit $915 monthly 025 City Council 5 — 571 7H5 2 25 EXHIBIT 1 Income Reported on Reexamination Application Ruby: Wages at City Public School: $32,000 (switched jobs but no permanent change to Calculating Ruby's wages: Step 1: Determine prior annual income from EIV (i.e., Q4 2022 through Q3 of 2023: $33,651). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination (in this case, there have been no interim reexaminations processed since the last annual reexamination). Step 3: Ruby certifies that the $33,651 of wages in EIV is accurate and reflects her current annual income, so the PHA will use $33,651 for annual wages for the 3/1/2024 annual reexamination given there have been no additional changes to annual income. If Ruby did not agree with the annual wages reported in EIV, the PHA/MFH Owner would be required to verify her current income in accordance with HUD's verification hierarchy Ruby (Head of Household): Georgia: SSI benefits: $10,980 (no changes) Calculating Georgia's SSI benefit: Step 1: Determine the prior annual income from EIV (i.e., $915 x 12 months: $10,980). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination (in this case, there have been no interim reexaminations processed since the last annual reexamination). Step 3: Ruby certifies the SSI income in EIV is accurate and reflects Georgia's current annual income. The PHA must adjust the prior -year income (2023 SSI benefit) by the 7- percent COLA and will use this amount to calculate annual SSI income for the 3/l/2024 annual reexamination: COLA: $64.05 ($915 x 0.07) New gross SSI benefit: $11,748.60 ($979.05 x 12 months) of Annual Income (as Other Wage: $33,651 Myers Family Total Annual Income: $45,399 on the HUD-5005 Georgia (Other Youth Under 18): SSI: $11,748 - 025 City Council 5 — 572 5 2 25 EXHIBIT 1 Example 2: Calculating Annual Income at Annual Reexamination Using EIV: Family Disagrees with EIV Staff are processing Paul Hewson's 5/l/2024 annual reexamination. Since the last annual reexamination, Paul reported a decrease in annual income that exceeded 10 percent. Last year, Paul reported a decrease in earned income because he transferred from a full-time job at Sasha's Sweets to a part-time job at Viking Bakery. Following HUD's EIV verification hierarchy, staff confirmed Paul was no longer employed at Sasha's Sweets and decreased his anticipated annual income from $28,000 to $7,500 resulting from his new part-time employment at Viking Bakery; an interim reexamination was processed effective 7/l/2023. After the 7/l/2023 interim, Paul worked briefly at two different jobs, but he says he is no longer working and is not planning to work. The EIV report pulled on 1/15/2024 Wages Total: $18,271 Quarter 3 of 2023: $2,500 (Viking Bakery) Quarter 3 of 2023: $796 (Sweet Tooth Candy Bar) Quarter 2 of 2023: $1,300 (Sasha's Sweets) Quarter 2 of 2023: $584 (Larry's Concessions) Quarter 2 of 2023: $2,401 (Viking Bakery) Quarter 1 of 2023: $6,500 (Sasha's Sweets) Quarter 4 of 2022: $600 (Sasha's Sweets) SS/SSI: No history of benefits 025 City Council 5 — 573 7MW2b25 EXHIBIT 1 Income Reported on Reexamination Application Wages: $0 permanent change; no longer receiving) Social Security: $14,400 ($1,200 monthly) Paul certified on the PHA's annual reexamination paperwork that he does not agree with the annual wages of $18,271 reported in EIV and it is not reflective of his current anticipated annual income. He reported he is currently unemployed, and provided a copy of an award letter from the Social Security Administration to document that he will begin receiving a monthly disability benefit of $1,200 effective 3/l/2024. Calculating Wages and SS Benefit Step 1: Determine prior annual income taking into consideration the 7/l/2023 interim reexamination (i.e., EIV wages reflected Q4 2022 through Q3 2023: $18,271) Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there was a 7/1/2023 interim that reduced wages to $7,500. Step 3: Obtain documentation to verify current income and confirm Paul is no longer employed at Viking Bakery or The Sweet Tooth Candy Bar (the employers reported in the most recent quarter of EIV). This step is necessary, because Paul did not agree with the EIV income report or income reported on the last interim reexamination. Paul reported that he is no longer working at all. Process the annual reexamination effective 5/l/2024 using annual SS income of $14,400 and $0 wages. Summary of Annual Income (as reported on the HUD-500581 Paul (Head of Household): $14,400 (SS) Hewson Family Total Annual Income: $14,400 025 City Council 5 — 574 7MW2b25 EXHIBIT 1 Example 3: Calculating Annual Income at Annual Reexamination Staff are processing the 11/1/2024 annual reexamination for Samantha and Fergus Pool, head of household and spouse. On 2/14/2024 Samantha reported her monthly child support payment was reduced from $200 to $100 per month, but an interim reexamination was not processed because the reduction in child support income for Samantha's daughter, Hailey, did not result in a decrease of 10 percent or more in annual adjusted income, and the PHA did not establish a lower threshold. Samantha did not report anv additional changes to the PHA. Samantha: Fergus: Business income: $28,000 Wages: $8,250 VA disability pension: $12,000 Other non -wage income: $3,000 (Go Fund Me Child support: $2,400 online fundraiser) The EIV report nulled on 9/16/2024 Samantha: Fergus: Wages Total: $0 (no wage data reported since Wages Total: $8,600 Q1 2023) Quarter 1 of 2024: $2,100 (Ian's Fish `n' Chips) Quarter 1 of 2024: $500 (Claire's Healthcare Supplies) Quarter 4 of 2023: $1,000 (Claire's Healthcare Supplies) Quarter 3 of 2023: $1,800 (The Onion Garden Shop) Quarter 2 of 2023: $3,200 (Ivar's Fish Haus) 025 City Council 1 5 — 575 5 2 25 EXHIBIT 1 Current Family Circumstances: Income Reported on Reexamination Application Samantha and Fergus reported how much income was earned/received in the previous 12-month period and noted permanent changes, where applicable, for each source of their income on PHA's annual reexamination form. However, no information was reported by the family concerning other non -wage income. Fergus reported only wages and his current employment at Ian's Fish `n' Chips for the annual reexamination. The family supplied the supporting documentation noted below to the PHA for the I I/1/2024 annual reexamination. Samantha: Fergus: Business income: $28,750 (last year); has Wages: $6,000 decreased to $18,000 (permanent change) VA disability benefit: $12,000 (last year); has increased to $12,300 (permanent change) Child support: $2,400 (last year); has decreased to $1,200 (permanent chan Calculatinfz Samantha's Net Business Income Step 1: Determine prior annual net business income (i.e., $28,000 on last HUD-50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: Adjust to reflect current net business income. Samantha reported on the annual reexamination application that business income permanently decreased to $18,000. The PHA must obtain supporting documentation from Samantha that demonstrates current net business income. Samantha provided documentation that supported the current annual net business income is $18,000. Process the annual reexamination effective l l/1/2024 using annual net business income determined in Sten 3. Calculating Samantha's VA Pension Income Step 1: Determine prior annual VA pension income (i.e., $12,000 supported by a VA award letter Samantha supplied that documents the prior year monthly VA pension was $1,000). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: The PHA needs to adjust to reflect current VA pension income. Samantha supplies a VA award letter showing a monthly pension of $1,025, or $12,300 annually. Process the annual reexamination effective l l/l/2024 using annual VA pension income determined in Step 3 ($12,300 in this example). - 025 City Council 5 — 576 5 2 25 EXHIBIT 1 Calculating Samantha's Child Support Income Step 1: Determine prior annual child support income (i.e., $2,400 on the last HUD-50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. The family reported a decrease from $200 to $100 monthly, but the change was not processed because it did not meet the threshold. Step 3: The family reported changes, so the PHA must adjust to reflect current child support income. In this example, the family submitted a child support history report from the local child support office that documents regular $100 monthly child supports payments beginning 3/l/2024 through the current month. Process the annual reexamination effective 11/1/2024 using current annual child support income determined in Ste 3 $1,200 in this example). Calculating Fergus' Wages Step 1: Determine prior annual income from wages in EIV (i.e., Q2 2023 through Q 1 of 2024: $8,600). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: There is a discrepancy between what the family reported and EIV, so the PHA must verify and adjust to reflect current annual income from wages. Fergus reported $6,000 in annual income from wages on the annual reexamination from a single employer, Ian's Fish `n' Chips. The PHA projected annual income of $7,800 based on the two paystubs for this employer, and EIV shows $8,600 earned in the most recent four quarters in EIV. To complete Step 3, the PHA must do the following: • Resolve the discrepancy between EIV wages, the $6,000 annual income Fergus reported, and the $7,800 projected based on the paystubs he provided, and • Verify he is no longer employed at Claire's Healthcare Supplies in accordance with HUD's verification hierarchy and local policies. The PHA determined that Fergus reported his net vs. gross annual income from wages, which he corrected on the annual reexamination form to reflect his current gross annual income of $9,000. The PHA verified Fergus was no longer employed at Claire's Healthcare Supplies and obtained two additional paystubs. Based on four current and consecutive paystubs, Fergus is now projected to earn $9,360 annually. Process the annual reexamination effective 11/1/2024 using income from wages determined in Step 3 ($9,360 in this example). 025 City Council 11 5 — 577 5 2 25 EXHIBIT 1 Calculating Fergus' Other Non -Wage Income Step 1: Determine prior annual income from other non -wage income (i.e., $3,000 on the last HUD— 50058). Step 2: Take into consideration any interim reexamination of family income completed since the last annual reexamination. In this case, there have been no interim reexaminations processed since the last annual reexamination. Step 3: The family did not report any non -wage income on the annual reexamination form, but it was included on the last HUD-50058. The PHA must verify and adjust to reflect current non -wage income. The PHA must verify no income was received through a "Go Fund Me" online fundraiser so that it may be excluded. Fergus provided a self -certification that he hasn't solicited funds online and doesn't plan to in the following year; he also provided records from the account that documented no fundraising activity in the prior 12-month period. Process the annual reexamination effective l l/l/2024 using annual non -wage income of $0 determined in Step 3. SummM of Annual Income as reported on the HUD-50058 Samantha (Head of Household): Fergus (Co-head): Own business: $18,000 Wages: $9,360 Pension: $12,300 Child support: $1,200 Poole Family Total Annual Income: $40,860 - 025 City Council 5 — 578 7HV2b25 EXHIBIT 1 Chapter 12 TERMINATION OF ASSISTANCE AND TENANCY HUD regulations specify mandatory and optional grounds for which a PHA can terminate a family's assistance. They also specify the circumstances under which an owner may terminate the tenancy of an assisted family. This chapter describes the policies that govern mandatory and optional terminations of assistance, and termination of tenancy by the owner. It is presented in three parts: Part I: Grounds for Termination of Assistance. This part describes the various circumstances under which assistance under the program can be terminated by the family or by the PHA. Part II: Approach to Termination of Assistance. This part describes the policies and the process that the PHA will use in evaluating decisions on whether to terminate assistance due to actions or inactions of the family where termination is an option. It specifies the alternatives that the PHA may consider in lieu of termination, the criteria the PHA will use when deciding what action to take, and the steps the PHA must take when terminating a family's assistance. Part III: Termination of Tenancyby the Owner. This part describes the HUD policies that govern the owner's right to terminate an assisted tenancy. PART I: GROUNDS FOR TERMINATION OF ASSISTANCE 12-I.A. OVERVIEW HUD requires the PHA to terminate assistance for certain actions and inactions of the family and when the family no longer requires assistance due to increases in family income. HUD permits the PHA to terminate assistance for certain other actions or inactions of the family. In addition, a family may decide to withdraw from the program and terminate their HCV assistance at any time by notifying the PHA. 12-LB. FAMILY NO LONGER REQUIRES ASSISTANCE [24 CFR 982.4551 As a family's income increases, the amount of the housing assistance payment decreases. If the amount of assistance provided by the PHA is reduced to zero, the family's assistance terminates automatically 180 days after the last HAP payment. SAHA Policy If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify SAHA of the change and request an interim reexamination before the expiration of the 180-day period. 025 City Council 5 — 579 5 2 25 EXHIBIT 1 12-I.C. FAMILY CHOOSES TO TERMINATE ASSISTANCE The family may request that the PHA terminate housing assistance payments on behalf of the family at any time. SAHA Policv The request to terminate assistance should be made in writing and signed by the head of household, and spouse or cohead if applicable. Before terminating the family's assistance, SAHA will follow the notice requirements in Section 12-II.F. 12-I.D. MANDATORY TERMINATION OF ASSISTANCE HUD requires the PHA to terminate assistance in the following circumstances. Eviction [24 CFR 982.552(b)(2), 24 CFR 5.2005(c)(1)] The PHA must terminate assistance whenever a family is evicted from a unit assisted under the HCV program for a serious or repeated violation of the lease. As discussed further in section 12- II.E, incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed as serious or repeated violations of the lease by the victim or threatened victim of such violence or stalking. SAHA Policv A family will be considered evicted if the family moves after a legal eviction order has been issued, whether or not physical enforcement of the order was necessary. If a family moves after the owner has given the family an eviction notice for serious or repeated lease violations but before a legal eviction order has been issued, termination of assistance is not mandatory. In such cases SAHA will determine whether the family has committed serious or repeated violations of the lease based on available evidence and may terminate assistance or take any of the alternative measures described in section 12-II.C. In making its decision, SAHA will consider the factors described in sections 12-II.1) and 12-II.E. Upon consideration of such factors, SAHA may, on a case - by -case basis, choose not to terminate assistance. Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Failure to Provide Consent [24 CFR 982.552(b)(3)] The PHA must terminate assistance if any family member fails to sign and submit any consent form they are required to sign for a regular or interim reexamination. See Chapter 7 for a complete discussion of consent requirements. Upon the PHA's HOTMA 102/104 compliance date, the below policy on failure to provide consent is added: 025 City Council 5 — 580 5 2 25 EXHIBIT 1 SAHA Policy SAHA will also terminate assistance if the family revokes consent for the PHA to collect information from financial institutions. 025 City Council 5 — 581 5 2 25 EXHIBIT 1 Failure to Document Citizenship [24 CFR 982.552(b)(4) and [24 CFR 5.514(c)] The PHA must terminate assistance if (1) a family fails to submit required documentation within the required timeframe concerning any family member's citizenship or immigration status; (2) a family submits evidence of citizenship and eligible immigration status in a timely manner, but United States Citizenship and Immigration Services (USCIS) primary and secondary verification does not verify eligible immigration status of the family; or (3) a family member, as determined by the PHA, has knowingly permitted another individual who is not eligible for assistance to reside (on a permanent basis) in the unit. For (3) above, such termination must be for a period of at least 24 months. This does not apply to ineligible noncitizens already in the household where the family's assistance has been prorated. See Chapter 7 for a complete discussion of documentation requirements. Failure to Disclose and Document Social Security Numbers [24 CFR 5.218(c), Notice PIH 2O18-241 The PHA must terminate assistance if a participant family fails to disclose the complete and accurate social security numbers of each household member and the documentation necessary to verify each social security number. However, if the family is otherwise eligible for continued program assistance, and the PHA determines that the family's failure to meet the SSN disclosure and documentation requirements was due to circumstances that could not have been foreseen and were outside of the family's control, the PHA may defer the family's termination and provide the opportunity to comply with the requirement within a period not to exceed 90 calendar days from the date the PHA determined the family to be noncompliant. SAHA Policy SAHA will defer the family's termination and provide the family with the opportunity to comply with the requirement for a period of 90 calendar days for circumstances beyond the participant's control such as delayed processing of the SSN application by the SSA, natural disaster, fire, death in the family, or other emergency, if there is a reasonable likelihood that the participant will be able to disclose an SSN by the deadline. Methamphetamine Manufacture or Production [24 CFR 982.553(b)(1)(ii)] The PHA must terminate assistance if any household member has ever been convicted of the manufacture or production of methamphetamine on the premises of federally assisted housing. Lifetime Registered Sex Offenders [Notice PIH 2O12-281 Should a PHA discover that a member of an assisted household was subject to a lifetime registration requirement at admission and was erroneously admitted after June 25, 2001, the PHA must immediately terminate assistance for the household member. In this situation, the PHA must offer the family the opportunity to remove the ineligible family member from the household. If the family is unwilling to remove that individual from the household, the PHA must terminate assistance for the household. 025 City Council 5 — 582 5 2 25 EXHIBIT 1 Failure of Students to Meet Ongoing Eligibility Requirements [24 CFR 982.552(b)(5) and FR 4/10/061 If a student enrolled at an institution of higher education is under the age of 24, is not a veteran, is not married, does not have dependent children, is not residing with their parents in an HCV assisted household, and is not a person with disabilities receiving HCV assistance as of November 30, 2005, the PHA must the terminate the student's assistance if, at the time of reexamination, either the student's income or the income of the student's parents (if applicable) exceeds the applicable income limit. If a participant household consists of both eligible and ineligible students, the eligible students shall not be terminated, but must be issued a voucher to move with continued assistance in accordance with program regulations and PHA policies, or must be given the opportunity to lease in place if the terminated ineligible student members elect to move out of the assisted unit. Death of the Sole Family Member [24 CFR 982.311(d) and Notice PIH 2O10-9] The PHA must immediately terminate program assistance for deceased single member households. 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS Mandatory Policies [24 CFR 982.553(b) and 982.551(1)] HUD requires the PHA to establish policies that permit the PHA to terminate assistance if the PHA determines that: • Any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents • Any household member's abuse or pattern of abuse of alcohol may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents • Any household member has violated the family's obligation not to engage in any drug - related criminal activity • Any household member has violated the family's obligation not to engage in violent criminal activity 025 City Council 5 — 583 5 2 25 EXHIBIT 1 Use of Illegal Drugs and Alcohol Abuse SAHA Policy SAHA will terminate a family's assistance if any household member is currently engaged in any illegal use of a drug, or has a pattern of illegal drug use that interferes with the health, safety, or right to peaceful enjoyment of the premises by other residents. SAHA will terminate assistance if any household member's abuse or pattern of abuse of alcohol threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Currently engaged in is defined as any use of illegal drugs during the previous three months. SAHA will consider all credible evidence, including but not limited to, any record of arrests, convictions, or eviction of household members related to the use of illegal drugs or abuse of alcohol. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. In making its decision to terminate assistance, SAHA will consider alternatives as described in Section 12-II.0 and other factors described in Sections 12-II.1) and 12-II.E. Upon consideration of such alternatives and factors, SAHA may, on a case -by -case basis, choose not to terminate assistance. 025 City Council 5 — 584 5 2 25 EXHIBIT 1 Drug -Related and Violent Criminal Activity [24 CFR 5.1001 Drug means a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802). Drug -related criminal activity is defined by HUD as the illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute or use the drug. Violent criminal activity means any criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force substantial enough to cause, or be reasonably likely to cause, serious bodily injury or property damage. SAHA Polic SAHA will terminate a family's assistance if any household member has violated the family's obligation not to engage in any drug -related or violent criminal activity during participation in the HCV program. SAHA will consider all credible evidence, including but not limited to, any record of arrests and/or convictions of household members related to drug -related or violent criminal activity, and any eviction or notice to evict based on drug -related or violent criminal activity. A record or records of arrest will not be used as the sole basis for the termination or proof that the participant engaged in disqualifying criminal activity. In making its decision to terminate assistance, SAHA will consider alternatives as described in Section 12-II.0 and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, SAHA may, on a case -by -case basis, choose not to terminate assistance. 025 City Council — 585 5 2 25 EXHIBIT 1 Other Authorized Reasons for Termination of Assistance [24 CFR 982.552(c), 24 CFR 5.2005(c), 24 CFR 984.101(d)] HUD permits the PHA to terminate assistance under a number of other circumstances. It is left to the discretion of the PHA whether such circumstances in general warrant consideration for the termination of assistance. As discussed further in section 12-II.E, the Violence against Women Act prohibits PHAs from considering incidents of, or criminal activity directly related to, domestic violence, dating violence, sexual assault, stalking, or human trafficking as reasons for terminating the assistance of a victim of such abuse. Additionally, per 24 CFR 984.101(d), PHAs are no longer permitted to terminate assistance to a family due to the family's failure to meet its obligations under the Family Self -Sufficiency (FSS) contract of participation. SAHA Policy SAHA will terminate a family's assistance if: The family has failed to comply with any family obligations under the program. See Exhibit 12-1 for a listing of family obligations and related SAHA policies. Any family member has been evicted from federally assisted housing in the last three years. Any family member has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program. The family currently owes rent or other amounts to any PHA in connection with Section 8 or public housing assistance under the 1937 Act. The family has not reimbursed any PHA for amounts SAHA paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease. The family has breached the terms of a repayment agreement entered into with SAHA. 025 City Council 5 — 586 5 2 25 EXHIBIT 1 A family member has engaged in or threatened violent or abusive behavior toward SAHA personnel. Abusive or violent behavior towards SAHA personnel includes verbal as well as physical abuse or violence. Use of racial epithets, or other language, written or oral, that is customarily used to intimidate may be considered abusive or violent behavior. Threatening refers to oral or written threats or physical gestures that communicate intent to abuse or commit violence. In making its decision to terminate assistance, SAHA will consider alternatives as described in Section 12-II.0 and other factors described in Sections 12-II.D and 12-II.E. Upon consideration of such alternatives and factors, SAHA may, on a case -by -case basis, choose not to terminate assistance. Family Absence from the Unit [24 CFR 982.3121 The family may be absent from the unit for brief periods. The PHA must establish a policy on how long the family may be absent from the assisted unit. However, the family may not be absent from the unit for a period of more than 180 consecutive calendar days for any reason. Absence in this context means that no member of the family is residing in the unit. SAHA Policv If the family is planning on being absent from the unit in excess of 14 calendar days, the family must notify SAHA. If the family is absent from the unit for more than 30 days for medical reasons, the family must provide written verification from a physician or other licensed health care provider. If the family is absent from the unit for more than 60 consecutive calendar days, the family's assistance may be terminated. Notice of proposed termination will be sent in accordance with Section 12-II.F. If the family is a single member household, with a reasonable accommodation, SAHA may approve absence from the unit for up to 180 consecutive calendar days. Upon the PHA's HOTMA 102/104 compliance date, the below section on the asset limitation is added: Asset Limitation [24 CFR 5.618; Notice PIH 2O23-271 The PHA has discretion with respect to the application of the asset limitation at annual and interim reexamination. The PHA may adopt a written policy of total nonenforcement, enforcement, or limited enforcement as well as adopting exception policies. SAHA Policv SAHA has adopted a policy of total nonenforcement of the asset limitation for all program participants. The asset limitation only applies to initial eligibility determinations for new admissions to the SAHA's HCV program. 025 City Council 5 — 587 5 2 25 EXHIBIT 1 Insufficient Funding [24 CFR 982.4541 The PHA may terminate HAP contracts if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program. SAHA Policy SAHA will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If SAHA determines there is a shortage of funding, prior to terminating any HAP contracts, SAHA will determine if any other actions can be taken to reduce program costs. Those include but are not limited to the following: o Deny portability to higher payment standard areas o Lower payment standards o Request landlords to reduce or delay rent increase requests If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, SAHA will terminate HAP contracts as a last resort. Prior to terminating any HAP contracts, SAHA will inform the local HUD field office. SAHA will terminate the minimum number needed in order to reduce HAP costs to a level within SAHA's annual budget authority. If SAHA must terminate HAP contracts due to insufficient funding, SAHA will do so in accordance with the following criteria and instructions: The following program -type priority order will first be applied: 1. Housing Choice Voucher (HCV), including Non -Elderly Disabled 2. Special Purpose Vouchers (FYI and VASH) Tenant -Based 3. Project -Based Vouchers including Special Purpose Vouchers For each program type the following order will then be followed: 1. SAHA will stop selection from the waiting list (or referral list), discontinue the issuance of initial vouchers, and put previously issued initial vouchers on hold until funding is available. 2. Families who have been assisted in the program the longest will be the first to be terminated, excluding elderly or disabled families, and families with minor children or disabled dependent. 3. SAHA will terminate participants based on highest income (lowest housing assistance needed), excluding elderly and disabled families and families with minor children or disabled dependent. - 025 City Council 5 — 588 5 2 25 EXHIBIT 1 4. SAHA will terminate remaining participants based on highest income (lowest housing assistance needed), including families with minor children or disabled dependent, disabled, and then elderly families (in that order). When SAHA resumes issuing vouchers, SAHA will issue vouchers first to the special purpose voucher families on its waiting list until it has reached the required number of special purpose vouchers, when applicable. Due to contractual obligations, Project -Based Vouchers will be the last to be terminated due to insufficient funds. - 025 City Council 5 — 589 5 2 25 EXHIBIT 1 PART II: APPROACH TO TERMINATION OF ASSISTANCE 12-II.A. OVERVIEW The PHA is required by regulation to terminate a family's assistance for certain actions or inactions of the family. For other types of actions or inactions of the family, the regulations give the PHA the authority to either terminate the family's assistance or to take another action. This part discusses the various actions the PHA may choose to take when it has discretion, and outlines the criteria the PHA will use to make its decision about whether or not to terminate assistance. It also specifies the requirements for the notification to the family of the PHA's intent to terminate assistance. 12-II.B. METHOD OF TERMINATION [24 CFR 982.552(a)(3)] Termination of assistance for a participant may include any or all of the following: • Terminating housing assistance payments under a current HAP contract, • Refusing to enter into a new HAP contract or approve a lease, or • Refusing to process a request for or to provide assistance under portability procedures. 12-II.C. ALTERNATIVES TO TERMINATION OF ASSISTANCE Change in Household Composition As a condition of continued assistance, the PHA may require that any household member who participated in or was responsible for an offense no longer resides in the unit [24 CFR 982.552(c)(2)(ii)]. SAHA Policy As a condition of continued assistance, the head of household must certify that the culpable family member has vacated the unit and will not be permitted to visit or to stay as a guest in the assisted unit. The family must present evidence of the former family member's current address upon SAHA request. Repayment of Family Debts SAHA Policy If a family owes amounts to SAHA, as a condition of continued assistance, SAHA will require the family to repay the full amount or to enter into a repayment agreement, within 30 days of receiving notice from SAHA of the amount owed. See Chapter 16 for policies on repayment agreements. - 025 City Council 5 — 590 5 2 25 EXHIBIT 1 12-II.D. CRITERIA FOR DECIDING TO TERMINATE ASSISTANCE Evidence For criminal activity, HUD permits the PHA to terminate assistance if a preponderance of the evidence indicates that a household member has engaged in the activity, regardless of whether the household member has been arrested or convicted [24 CFR 982.553(c)]. PHA Policv SAHA will use the concept of the preponderance of the evidence as the standard for making all termination decisions. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence Use of Criminal Conviction Records after Admission [24 CFR 5.9031 The regulation at 24 CFR 5.903 governs a PHA's access to and use of criminal conviction records obtained from a "law enforcement agency" such as the National Crime Information Center (NCIC), police departments, and other law enforcement agencies that hold criminal conviction records. While the regulatory listing of permitted uses for these records includes PHA screening of applicants for admission to the HCV program, it specifically excludes the use of records for lease enforcement and eviction of HCV participants and excludes by omission a PHA's use of records to terminate assistance for participants. While a PHA has regulatory authority to use criminal conviction records for the purpose of applicant screening for admission, there is no corresponding authority to use these records to check for criminal and illegal drug activity by participants, and therefore, PHAs may not use records for this purpose. The limitations, however, do not apply to criminal conviction information searches from non-federal sources (i.e., sources other than the "law enforcement agencies" defined in 24 CFR 5.902(b)). There is no prohibition that bars a PHA from using non-federal sources to conduct criminal background checks of program participants. Consideration of Circumstances [24 CFR 982.552(c)(2)(i)] The PHA is permitted, but not required, to consider all relevant circumstances when determining whether a family's assistance should be terminated. SAHA Policv SAHA will consider the following facts and circumstances when making its decision to terminate assistance: The seriousness of the case, especially with respect to how it would affect other residents' safety or property The effects that termination of assistance may have on other members of the family who were not involved in the action or failure to act - 025 City Council 5 — 591 5 2 25 EXHIBIT 1 The extent of participation or culpability of individual family members, including whether the culpable family member is a minor or a person with disabilities or (as discussed further in section 12-II.E) a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking The length of time since the violation occurred, including the age of the individual at the time of the conduct, as well as the family's recent history and the likelihood of favorable conduct in the future While a record or records of arrest will not be used as the sole basis for termination, an arrest may, however, trigger an investigation to determine whether the participant actually engaged in disqualifying criminal activity. As part of its investigation, SAHA may obtain the police report associated with the arrest and consider the reported circumstances of the arrest. SAHA may also consider: Any statements made by witnesses or the participant not included in the police report Whether criminal charges were filed Whether, if filed, criminal charges were abandoned, dismissed, not prosecuted, or ultimately resulted in an acquittal Any other evidence relevant to determining whether or not the participant engaged in disqualifying activity Evidence of criminal conduct will be considered if it indicates a demonstrable risk to safety and/or property In the case of drug or alcohol abuse, whether the culpable household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program or has otherwise been rehabilitated successfully SAHA will require the participant to submit evidence of the household member's current participation in or successful completion of a supervised drug or alcohol rehabilitation program, or evidence of otherwise having been rehabilitated successfully. In the case of program abuse, the dollar amount of the overpaid assistance and whether or not a false certification was signed by the family (See Chapter 16- IV.13. Repayment Policy, Criminal Prosecution for Program Fraud/Abuse). Reasonable Accommodation [24 CFR 982.552(c)(2)(iv)] If the family includes a person with disabilities, the PHA's decision to terminate the family's assistance is subject to consideration of reasonable accommodation in accordance with 24 CFR Part 8. SAHA Policy If a family indicates that the behavior of a family member with a disability is the reason for a proposed termination of assistance, SAHA will determine whether the behavior is related to the disability. If so, upon the family's request, SAHA will determine whether alternative measures are appropriate as a reasonable accommodation. SAHA will only consider accommodations that can reasonably be expected to address the behavior that is - 025 City Council 5 — 592 5 2 25 EXHIBIT 1 the basis of the proposed termination of assistance. See Chapter 2 for a discussion of reasonable accommodation. - 025 City Council 5 — 593 5 2 25 EXHIBIT 1 12-II.E. TERMINATIONS RELATED TO DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, STALKING, OR HUMAN TRAFFICKING This section describes the protections against termination of assistance that the Violence against Women Act (VAWA) provides for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking. For general VAWA requirements, key VAWA definitions, and PHA policies pertaining to notification, documentation, and confidentiality, see section 16-IX of this plan. VAWA Protections against Termination VAWA provides four specific protections against termination of HCV assistance for victims of domestic violence, dating violence, sexual assault or stalking. (Note: The second, third, and fourth protections also apply to terminations of tenancy or occupancy by owners participating in the HCV program, as do the limitations discussed under the next heading.) Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2O22-06, PIH 2O22-22, and PIH 2O22-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD's recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. First, VAWA provides that a PHA may not terminate assistance to a family that moves out of an assisted unit in violation of the lease, with or without prior notification to the PHA, if the move occurred to protect the health or safety of a family member who is or has been the victim of domestic violence, dating violence, sexual assault stalking, or human trafficking, and who reasonably believed they were imminently threatened by harm from further violence if they remained in the unit [see 24 CFR 982.354(b)(4)]. Second, it provides that an incident or incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed either as a serious or repeated lease violation by the victim or as good cause to terminate the assistance of the victim [see 24 CFR 5.2005(c)(1)]. Third, it provides that criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking may not be construed as cause for terminating the assistance of a tenant if a member of the tenant's household, a guest, or another person under the tenant's control is the one engaging in the criminal activity and the tenant or affiliated individual or other individual is the actual or threatened victim of the domestic violence, dating violence, sexual assault, stalking, or human trafficking [see 24 CFR 5.2005(c)(2)]. Fourth, it gives PHAs the authority to terminate assistance to any tenant or lawful occupant who engages in criminal acts of physical violence against family members or others without terminating assistance to, or otherwise penalizing, the victim of the violence [24 CFR 5.2009(a)]. PHAs and owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWA [FR Notice 1/4/23]. - 025 City Council 5 — 594 5 2 25 EXHIBIT 1 Limitations on VAWA Protections [24 CFR 5.2005(d) and (e)] VAWA does not limit the authority of a PHA to terminate the assistance of a victim of abuse for reasons unrelated to domestic violence, dating violence, sexual assault, stalking, or human trafficking so long as the PHA does not subject the victim to a more demanding standard than it applies to other program participants [24 CFR 5.2005(d)(1)]. Likewise, VAWA does not limit the authority of a PHA to terminate the assistance of a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking if the PHA can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the assisted property if the victim is not terminated from assistance [24 CFR 5.2005(d)(2)]. HUD regulations define actual and imminent threat to mean words, gestures, actions, or other indicators of a physical threat that (a) is real, (b) would occur within an immediate time frame, and (c) could result in death or serious bodily harm [24 CFR 5.2005(d)(2) and (e)]. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: • The duration of the risk • The nature and severity of the potential harm • The likelihood that the potential harm will occur • The length of time before the potential harm would occur [24 CFR 5.2005(e)] In order to demonstrate an actual and imminent threat, the PHA must have objective evidence of words, gestures, actions, or other indicators. Even when a victim poses an actual and imminent threat, however, HUD regulations authorize a PHA to terminate the victim's assistance "only when there are no other actions that could be taken to reduce or eliminate the threat" [24 CFR 5.2005(d)(3)]. SAHA Policy In determining whether a program participant who is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking is an actual and imminent threat to other tenants or those employed at or providing service to a property, SAHA will consider the following, and any other relevant, factors: Whether the threat is toward an employee or tenant other than the victim of domestic violence, dating violence, sexual assault, stalking or human trafficking Whether the threat is a physical danger beyond a speculative threat Whether the threat is likely to happen within an immediate time frame Whether the threat to other tenants or employees can be eliminated in some other way, such as by helping the victim relocate to a confidential location or seeking a legal remedy to prevent the perpetrator from acting on the threat If the participant wishes to contest SAHA's determination that they are an actual and imminent threat to other tenants or employees, the participant may do so as part of the informal hearing. - 025 City Council 5 — 595 5 2 25 EXHIBIT 1 Documentation of Abuse [24 CFR 5.2007] SAHA Policy When an individual facing termination of assistance for reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking claims protection under VAWA, SAHA will request that the individual provide documentation supporting the claim in accordance with the policies in section 16-IX.D of this plan. SAHA reserves the right to waive the documentation requirement if it determines that a statement or other corroborating evidence from the individual will suffice. In such cases SAHA will document the waiver in the individual's file. Terminating the Assistance of a Domestic Violence Perpetrator Although VAWA provides protection against termination of assistance for victims of domestic violence, it does not provide such protection for perpetrators. VAWA gives the PHA the explicit authority to "terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others" without terminating assistance to "or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant" [24 CFR 5.2009(a)]. This authority is not dependent on a bifurcated lease or other eviction action by an owner against an individual family member. Further, this authority supersedes any local, state, or other federal law to the contrary. However, if the PHA chooses to exercise this authority, it must follow any procedures prescribed by HUD or by applicable local, state, or federal law regarding termination of assistance. This means that the PHA must follow the same rules when terminating assistance to an individual as it would when terminating the assistance of an entire family [FR Notice 3/16/07]. If the perpetrator remains in the unit, the PHA continues to pay the owner until the PHA terminates the perpetrator from the program. The PHA must not stop paying HAP until 30 days after the owner bifurcates the lease to evict the perpetrator. The PHA may pay HAP for the full month if the 30-day period will end mid -month [Notice PIH 2O17-08]. If the perpetrator is the only participant eligible to receive assistance, the PHA will provide any remaining participant a chance to establish eligibility for the program. If the remaining participant cannot do so, the PHA will provide them with 30 days to establish eligibility for another housing program prior to termination of the HAP contract. - 025 City Council 5 — 596 5 2 25 EXHIBIT 1 SAHA Polic SAHA will terminate assistance to a family member if SAHA determines that the family member has committed criminal acts of physical violence against other family members or others. This action will not affect the assistance of the remaining, nonculpable family members. In making its decision, SAHA will consider all credible evidence, including, but not limited to, a signed certification (form HUD-5382) or other documentation of abuse submitted to SAHA by the victim in accordance with this section and section 16-IX.D. SAHA will also consider the factors in section 12-II.D. Upon such consideration, SAHA may, on a case -by -case basis, choose not to terminate the assistance of the culpable family member. If SAHA does terminate the assistance of the culpable family member, it will do so in accordance with applicable law, HUD regulations, and the policies in this plan. - 025 City Council 5 — 597 5 2 25 EXHIBIT 1 12-II.F. TERMINATION NOTICE HUD regulations require PHAs to provide written notice of termination of assistance to a family only when the family is entitled to an informal hearing. However, since the family's HAP contract and lease will also terminate when the family's assistance terminates [form HUD- 52641], it is a good business practice to provide written notification to both owner and family anytime assistance will be terminated, whether voluntarily or involuntarily. SAHA Policy Whenever a family's assistance will be terminated, SAHA will send a written notice of termination to the family and to the owner. SAHA will also send a form HUD-5382 and form HUD-5380 to the family with the termination notice. The notice will state the date on which the termination will become effective. This date generally will be at least 30 calendar days following the date of the termination notice, but exceptions will be made whenever HUD rules, other PHA policies, or the circumstances surrounding the termination require. When SAHA notifies an owner that a family's assistance will be terminated, SAHA will, if appropriate, advise the owner of their right to offer the family a separate, unassisted lease. If a family whose assistance is being terminated is entitled to an informal hearing, the notice of termination that the PHA sends to the family must meet the additional HUD and PHA notice requirements discussed in section 16-III.0 of this plan. VAWA requires PHAs to provide notice of VAWA rights and the HUD 5382 form when a PHA terminates a household's housing benefits. PHA Policy Whenever SAHA decides to terminate a family's assistance because of the family's action or failure to act, SAHA will include in its termination notice the VAWA information described in section 16-IX.0 of this plan and a form HUD-5382 and form HUD-5380. SAHA will request in writing that a family member wishing to claim protection under VAWA notify SAHA within 14 calendar days. Still other notice requirements apply in two situations: • If a criminal record is the basis of a family's termination, the PHA must provide a copy of the record to the subject of the record and the tenant so that they have an opportunity to dispute the accuracy and relevance of the record [24 CFR 982.553(d)(2)]. • If immigration status is the basis of a family's termination, as discussed in section 12-I.D, the special notice requirements in section 16-III.1) must be followed. - 025 City Council 5 — 598 5 2 25 EXHIBIT 1 PART III: TERMINATION OF TENANCY BY THE OWNER 12-III.A. OVERVIEW Termination of an assisted tenancy is a matter between the owner and the family; the PHA is not directly involved. However, the owner is under some constraints when terminating an assisted tenancy. Termination of tenancy for certain reasons will also result in termination of assistance as discussed in this section. 12-III.B. GROUNDS FOR OWNER TERMINATION OF TENANCY [24 CFR 982.310, 24 CFR 5.2005(c), and Form HUD-52641-A, Tenancy Addendum] During the term of the lease, the owner is not permitted to terminate the tenancy except for serious or repeated violations of the lease, certain violations of state or local law, or other good cause. Serious or Repeated Lease Violations The owner is permitted to terminate the family's tenancy for serious or repeated violations of the terms and conditions of the lease, except when the violations are related to incidents of actual or threatened domestic violence, dating violence, sexual assault, stalking, and human trafficking and the victim is protected from eviction by the Violence against Women Act of 2013 (see section 12-II.E). A serious lease violation includes failure to pay rent or other amounts due under the lease. However, the PHA's failure to make a HAP payment to the owner is not a violation of the lease between the family and the owner. Violation of Federal, State, or Local Law The owner is permitted to terminate the tenancy if a family member violates federal, state, or local law that imposes obligations in connection with the occupancy or use of the premises. Criminal Activity or Alcohol Abuse The owner may terminate tenancy during the term of the lease if any covered person —meaning any member of the household, a guest, or another person under the tenant's control —commits any of the following types of criminal activity (for applicable definitions see 24 CFR 5.100): • Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of the premises by, other residents (including property management staff residing on the premises) • Any criminal activity that threatens the health or safety of, or the right to peaceful enjoyment of their residences by, persons residing in the immediate vicinity of the premises • Any violent criminal activity on or near the premises • Any drug -related criminal activity on or near the premises However, in the case of criminal activity directly related to domestic violence, dating violence, sexual assault, stalking, or human trafficking if the tenant or an affiliated individual is the victim, the criminal activity may not be construed as cause for terminating the victim's tenancy (see section 12-II.E). - 025 City Council 5 — 599 5 2 25 EXHIBIT 1 The owner may terminate tenancy during the term of the lease if any member of the household is: • Fleeing to avoid prosecution, custody, or confinement after conviction for a crime or an attempt to commit a crime that is a felony under the laws of the place from which the individual flees, or that, in the case of the State of New Jersey, is a high misdemeanor; or • Violating a condition of probation or parole imposed under federal or state law. The owner may terminate tenancy during the term of the lease if any member of the household has engaged in abuse of alcohol that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents. Evidence of Criminal Activity The owner may terminate tenancy and evict by judicial action a family for criminal activity by a covered person if the owner determines the covered person has engaged in the criminal activity, regardless of whether the covered person has been arrested or convicted for such activity and without satisfying the standard of proof used for a criminal conviction. This is the case except in certain incidents where the criminal activity directly relates to domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the tenant or an affiliated individual is the victim or threatened victim of the domestic violence, dating violence, sexual assault, stalking, or human trafficking. Other Good Cause During the initial lease term, the owner may not terminate the tenancy for "other good cause" unless the owner is terminating the tenancy because of something the family did or failed to do. During the initial lease term or during any extension term, other good cause includes the disturbance of neighbors, destruction of property, or living or housekeeping habits that cause damage to the unit or premises. After the initial lease term, "other good cause" for termination of tenancy by the owner includes: • Failure by the family to accept the offer of a new lease or revision • The owner's desire to use the unit for personal or family use, or for a purpose other than as a residential rental unit • A business or economic reason for termination of the tenancy (such as sale of the property, renovation of the unit, or desire to lease the unit at a higher rent) After the initial lease term, the owner may give the family notice at any time, in accordance with the terms of the lease. If a property is subject to foreclosure, during the term of the lease, the new owner of the property does not have good cause to terminate the tenant's lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. See Section 13-II.G for a discussion of PHA policies relating to units in foreclosure. - 025 City Council 5 — 600 5 2 25 EXHIBIT 1 12-III.C. EVICTION [24 CFR 982.310(e) and (f) and Form HUD-52641-A, Tenancy Addendum] The owner must give the tenant a written notice that specifies the grounds for termination of tenancy during the term of the lease. The tenancy does not terminate before the owner has given this notice, and the notice must be given at or before commencement of the eviction action. The notice of grounds may be included in, or may be combined with, any owner eviction notice to the tenant. Owner eviction notice means a notice to vacate, or a complaint or other initial pleading used under state or local law to commence an eviction action. The owner may only evict the tenant from the unit by instituting a court action. The owner must give the PHA a copy of any eviction notice at the same time the owner notifies the family. The family is also required to give the PHA a copy of any eviction notice (see Chapter 5). SAHA Policy If the eviction action is finalized in court, the owner must provide SAHA with documentation related to the eviction, including notice of the eviction date, as soon as possible, but no later than 5 business days following the court -ordered eviction. 025 City Council 5 — 601 7M5 2 25 EXHIBIT 1 12-III.D. DECIDING WHETHER TO TERMINATE TENANCY [24 CFR 982.310(h), 24 CFR 982.310(h)(4)] An owner who has grounds to terminate a tenancy is not required to do so, and may consider all of the circumstances relevant to a particular case before making a decision. These might include: • The nature of the offending action • The seriousness of the offending action; • The effect on the community of the termination, or of the owner's failure to terminate the tenancy; • The extent of participation by the leaseholder in the offending action; • The effect of termination of tenancy on household members not involved in the offending activity; • The demand for assisted housing by families who will adhere to lease responsibilities; • The extent to which the leaseholder has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; • The effect of the owner's action on the integrity of the program. The owner may require a family to exclude a household member in order to continue to reside in the assisted unit, where that household member has participated in or been culpable for action or failure to act that warrants termination. In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior, the owner may consider whether such household member is participating in or has successfully completed a supervised drug or alcohol rehabilitation program, or has otherwise been rehabilitated successfully (42 U.S.C. 13661). For this purpose, the owner may require the tenant to submit evidence of the household member's current participation in, or successful completion of, a supervised drug or alcohol rehabilitation program or evidence of otherwise having been rehabilitated successfully. The owner's termination of tenancy actions must be consistent with the fair housing and equal opportunity provisions in 24 CFR 5.105. An owner's decision to terminate tenancy for incidents related to domestic violence, dating violence, sexual assault, stalking, or human trafficking is limited by the Violence against Women Act (VAWA) and the conforming regulations in 24 CFR Part 5, Subpart L. (See section 12-II.E.) 12-III.E. EFFECT OF TENANCY TERMINATION ON THE FAMILY'S ASSISTANCE If a termination is not due to a serious or repeated violation of the lease, and if the PHA has no other grounds for termination of assistance, the PHA may issue a new voucher so that the family can move with continued assistance (see Chapter 10). - 025 City Council 5 — 602 5 2 25 EXHIBIT 1 EXHIBIT 12-1: STATEMENT OF FAMILY OBLIGATIONS Following is a listing of a participant family's obligations under the HCV program: • The family must supply any information that the PHA or HUD determines to be necessary, including submission of required evidence of citizenship or eligible immigration status. • The family must supply any information requested by the PHA or HUD for use in a regularly scheduled reexamination or interim reexamination of family income and composition. • The family must disclose and verify social security numbers and sign and submit consent forms for obtaining information. • Any information supplied by the family must be true and complete. • The family is responsible for any deficiencies under the National Standards for the Physical Inspection of Real Estate (NSPIRE) by the family caused by failure to pay tenant -provided utilities or appliances, or damages to the dwelling unit or premises beyond ordinary wear and tear caused by any member of the household or guest. SAHA Policv Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. • The family must allow the PHA to inspect the unit at reasonable times and after reasonable notice, as described in Chapter 8 of this plan. • The family must not commit any serious or repeated violation of the lease. SAHA Policv SAHA will determine if a family has committed serious or repeated violations of the lease based on available evidence, including but not limited to, a court -ordered eviction or an owner's notice to evict, police reports, and affidavits from the owner, neighbors, or other credible parties with direct knowledge. Serious and repeated lease violations will include, but not be limited to, nonpayment of rent, disturbance of neighbors, destruction of property, living or housekeeping habits that cause damage to the unit or premises, and criminal activity. Generally, the criterion to be used will be whether or not the reason for the eviction was the fault of the tenant or guests. Any incidents of, or criminal activity related to, domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be construed as serious or repeated lease violations by the victim [see 24 CFR 5.2005(c)(1)]. • The family must notify the PHA and the owner before moving out of the unit or terminating the lease. SAHA Policv The family must comply with lease requirements regarding written notice to the owner. The family must provide written notice to SAHA at the same time the owner is notified. • The family must promptly give the PHA a copy of any owner eviction notice. 025 City Council 5 — 603 7H5 2 25 EXHIBIT 1 The family must use the assisted unit for residence by the family. The unit must be the family's only residence. The composition of the assisted family residing in the unit must be approved by the PHA. The family must promptly notify the PHA in writing of the birth, adoption, or court -awarded custody of a child. The family must request PHA approval to add any other family member as an occupant of the unit. SAHA Policv The request to add a family member must be submitted in writing and approved prior to the person moving into the unit. SAHA will determine eligibility of the new member in accordance with the policies in Chapter 3. Only SAHA approved family members may receive mail at the assisted unit. • The family must promptly notify the PHA in writing if any family member no longer lives in the unit. • If the PHA has given approval, a foster child or a live-in aide may reside in the unit. The PHA has the discretion to adopt reasonable policies concerning residency by a foster child or a live-in aide, and to define when PHA consent may be given or denied. For policies related to the request and approval/disapproval of foster children, foster adults, and live-in aides, see Chapter 3 (Sections I.K and I.M), and Chapter 11 (Section II.B). • The family must not sublease the unit, assign the lease, or transfer the unit. SAHA Policv Subleasing includes receiving payment to cover rent and utility costs by a person living in the unit who is not listed as an approved family member. • The family must supply any information requested by the PHA to verify that the family is living in the unit or information related to family absence from the unit. • The family must promptly notify the PHA when the family is absent from the unit. SAHA Policv Notice is required under this provision only when all family members will be absent from the unit for an extended period. An extended period is defined as any period greater than 30 calendar days. Written notice must be provided to the PHA at the start of the extended absence. • The family must pay utility bills and provide and maintain any appliances that the owner is not required to provide under the lease [Form HUD-52646, Voucher]. • The family must not own or have any interest in the unit, (other than in a cooperative and owners of a manufactured home leasing a manufactured home space). • Family members must not commit fraud, bribery, or any other corrupt or criminal act in connection with the program. (See Chapter 14, Program Integrity for additional information). age - 025 City Council 5 — 604 7M5 2 25 EXHIBIT 1 • Family members must not engage in drug -related criminal activity or violent criminal activity or other criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for HUD and PHA policies related to drug -related and violent criminal activity. • Members of the household must not engage in abuse of alcohol in a way that threatens the health, safety or right to peaceful enjoyment of the other residents and persons residing in the immediate vicinity of the premises. See Chapter 12 for a discussion of HUD and PHA policies related to alcohol abuse. • An assisted family or member of the family must not receive HCV program assistance while receiving another housing subsidy, for the same unit or a different unit under any other federal, state or local housing assistance program. • A family must not receive HCV program assistance while residing in a unit owned by a parent, child, grandparent, grandchild, sister or brother of any member of the family, unless the PHA has determined (and has notified the owner and the family of such determination) that approving rental of the unit, notwithstanding such relationship, would provide reasonable accommodation for a family member who is a person with disabilities. [Form HUD-52646, Voucher] 025 City Council 1'2-r— 605 5 2 25 EXHIBIT 1 Chapter 13 OWNERS INTRODUCTION Owners play a major role in the HCV program by supplying decent, safe, and sanitary housing for participating families. The term "owner" refers to any person or entity with the legal right to lease or sublease a unit to a participant in the HCV program [24 CFR 982.4(b)]. The term "owner" includes a principal or other interested party [24 CFR 982.453; 24 CFR 982.306(f)], such as a designated agent of the owner. Owners have numerous responsibilities under the program, including screening and leasing to families, maintaining the dwelling unit, enforcing the lease, and complying with various contractual obligations. The chapter is organized in two parts: Part I: Owners in the HCV Program. This part discusses the role of an owner in the PHA's HCV program and highlights key owner rights and responsibilities. Part II: HAP Contracts. This part explains provisions of the HAP contract and the relationship between the PHA and the owner as expressed in the HAP contract. For detailed information about HCV program responsibilities and processes, including PHA policies in key areas, owners will need to refer to several other chapters in this plan. Where appropriate, Chapter 13 will reference the other chapters. 025 City Council IKe 5 2 25 EXHIBIT 1 PART I. OWNERS IN THE HCV PROGRAM 13-I.A. OWNER RECRUITMENT AND RETENTION [HCV GB, pp. 2-4 to 2-6; HCV Landlord Strategy Guidebook for PHAs] Recruitment PHAs are responsible for ensuring that very low-income families have access to all types and ranges of affordable housing in the PHA's jurisdiction, particularly housing outside areas of poverty or minority concentration. A critical element in fulfilling this responsibility is for the PHA to ensure that a sufficient number of owners, representing all types and ranges of affordable housing in the PHA's jurisdiction, are willing to participate in the HCV program. To accomplish this objective, PHAs must identify and recruit new owners to participate in the program. If the PHA will be conducting outreach events, the PHA must ensure that notices and communications during outreach events are provided in a manner that is effective for persons with hearing, visual, and other communications -related disabilities. PHAs must also take reasonable steps to ensure meaningful access to programs to persons with limited English proficiency. SAHA Policy SAHA will conduct owner outreach to ensure that owners are familiar with the program and its advantages. SAHA will actively recruit property owners with property located outside areas of poverty and minority concentration. These outreach strategies will include: Distributing printed material about the program to property owners and managers Contacting property owners and managers by phone or in -person Holding owner recruitment/information meetings at least once a year Participating in community -based organizations comprised of private property and apartment owners and managers (e.g. Apartment Association of Orange County) Developing working relationships with owners, apartment associations, industry investor groups, and real estate brokers associations To the extent practical, partnering with and attending events hosted by other area agencies to deliver information about the HCV program Outreach strategies will be monitored for effectiveness and adapted accordingly. 025 City Council IKe 5 2 25 EXHIBIT 1 Retention In addition to recruiting owners to participate in the HCV program, the PHA must also provide the kind of customer service that will encourage participating owners to remain active in the program. SAHA Policy All SAHA activities that may affect an owner's ability to lease a unit will be processed as rapidly as possible, in order to minimize vacancy losses for owners. SAHA will provide owners with a handbook that explains the program, including HUD and SAHA policies and procedures, in easy -to -understand language. SAHA will give special attention to helping new owners succeed through activities such as: Providing the owner with a designated SAHA contact person. Direct deposit for issuance of HAP. Free listing of vacant units on www.AffordableHousing.com Coordinating inspection and leasing activities between SAHA, the owner, and the family. Initiating telephone contact with the owner to explain the inspection process and providing an inspection booklet and other resource materials about HUD housing quality standards. Providing other written information about how the program operates through a landlord handbook, including answers to frequently asked questions. Providing monthly electronic newsletters via email to update owners when changes occur to the HCV program by HUD or SAHA. Additional services may be undertaken on an as -needed basis, and as resources permit. 025 City Council IKe 5 2 25 EXHIBIT 1 13-I.B. BASIC HCV PROGRAM REQUIREMENTS HUD requires the PHA to assist families in their housing search by providing the family with a list of landlords or other parties known to the PHA who may be willing to lease a unit to the family, or to help the family find a unit. Although the PHA cannot maintain a list of owners that are pre -qualified to participate in the program, owners may indicate to the PHA their willingness to lease a unit to an eligible HCV family, or to help the HCV family find a unit [24 CFR 982.301(b)(11)]. SAHA Policy SAHA will provide an online software system for owners and property managers to list their properties and allow families to search for available units, such as www.AffordableHousing.com. When a family approaches an owner to apply for tenancy, the owner is responsible for screening the family and deciding whether to lease to the family, just as the owner would with any potential unassisted tenant. The PHA has no liability or responsibility to the owner or other persons for the family's behavior or suitability for tenancy. See chapters 3 and 9 for more detail on tenant family screening policies and process. If the owner is willing, the family and the owner must jointly complete a Request for Tenancy Approval (RTA, Form HUD 52517), which constitutes the family's request for assistance in the specified unit, and which documents the owner's willingness to lease to the family and to follow the program's requirements. When submitted to the PHA, this document is the first step in the process of obtaining approval for the family to receive the financial assistance it will need in order to occupy the unit. Also submitted with the RTA is a copy of the owner's proposed dwelling lease, including the HUD -required Tenancy Addendum (Form HUD-52641-A). See Chapter 9 for more detail on request for tenancy approval policies and process. HUD regulations stipulate requirements for the approval of an assisted tenancy. The owner must be qualified to participate in the program [24 CFR 982.306]. Some owners are precluded from participating in the program, or from renting to a particular family, either because of their past history with this or another federal housing program, or because of certain conflicts of interest. Owner qualifications are discussed later in this chapter. The selected unit must be of a type that is eligible for the program [24 CFR 982.305(a)]. Certain types of dwelling units cannot be assisted under the HCV program. Other types may be assisted under certain conditions. See chapter 9 for more detail on unit eligibility policies and process. The selected unit must meet HUD's National Standards for the Physical Inspection of Real Estate (NSPIRE) and/or equivalent state or local standards approved by HUD [24 CFR 982.305(a)]. The PHA will inspect the owner's dwelling unit at least biennially to ensure that the unit continues to meet inspection requirements. See Chapter 8 for a discussion of the NSPIRE standards and policies for inspections at initial lease -up and throughout the family's tenancy. 025 City Council IKe 5 2 25 EXHIBIT 1 The PHA must determine that the proposed rent for the unit is reasonable [24 CFR 982.305(a)]. The rent must be reasonable in relation to comparable unassisted units in the area and must not be in excess of rents charged by the owner for comparable, unassisted units on the premises. See chapter 8 for a discussion of requirements and policies on rent reasonableness, rent comparability and the rent reasonableness determination process. At initial lease -up of a unit, if the gross rent exceeds the applicable payment standard, the PHA must ensure that the family share does not exceed 40 percent of the family's monthly adjusted income [24 CFR 982.305(a)]. See chapter 6 for a discussion of the calculation of family income, family share of rent and HAP. The dwelling lease must comply with all program requirements [24 CFR 982.308]. Owners are encouraged to use their standard leases when renting to an assisted family. The HUD Tenancy Addendum includes the HUD requirements governing the tenancy and must be added word-for- word to the owner's lease. See chapter 9 for a discussion of the dwelling lease and tenancy addendum, including lease terms and provisions. The PHA and the owner must execute a Housing Assistance Payment (HAP) Contract (Form HUD-52641). The HAP contract format is prescribed by HUD. See chapter 9 for a discussion of the HUD requirements for execution of the HAP contract. 025 City Council IKe - 5 2 25 EXHIBIT 1 13-I.C. OWNER RESPONSIBILITIES [24 CFR 982.4521 The basic owner responsibilities in the HCV program are outlined in the regulations as follows: • Complying with all of the owner's obligations under the housing assistance payments (HAP) contract and the lease • Performing all management and rental functions for the assisted unit, including selecting a voucher -holder to lease the unit, and deciding if the family is suitable for tenancy of the unit • Maintaining the unit in accordance with the National Standards for the Physical Inspection of Real Estate (NSPIRE), including performance of ordinary and extraordinary maintenance • Complying with equal opportunity requirements • Preparing and furnishing to the PHA information required under the HAP contract • Collecting the security deposit, the tenant rent, and any charges for unit damage by the family. • Enforcing tenant obligations under the dwelling lease • Paying for utilities and services that are not the responsibility of the family as specified in the lease • Allowing reasonable modifications to a dwelling unit occupied or to be occupied by a disabled person [24 CFR 100.203] • Complying with the Violence against Women Act (VAWA) when screening prospective HCV tenants or terminating the tenancy of an HCV family [see 24 CFR Part 5, Subpart L; 24 CFR 982.3 1 0(h)(4); 24 CFR 982.452(b)(1); and FR Notice 1/4/23] 025 City Council tKe 611T 5 2 25 EXHIBIT 1 13-I.D. OWNER QUALIFICATIONS The PHA does not formally approve an owner to participate in the HCV program. However, there are a number of criteria where the PHA may deny approval of an assisted tenancy based on past owner behavior, conflict of interest, or other owner -related issues. No owner has a right to participate in the HCV program [24 CFR 982.306(e)]. Owners Barred from Participation [24 CFR 982.306(a) and (b)] The PHA must not approve the assisted tenancy if the PHA has been informed that the owner has been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. HUD may direct the PHA not to approve a tenancy request if a court or administrative agency has determined that the owner violated the Fair Housing Act or other federal equal opportunity requirements, or if such an action is pending. Leasing to Relatives [24 CFR 982.306(d), HCV GB p. 11-21 The PHA must not approve a tenancy if the owner is the parent, child, grandparent, grandchild, sister, or brother of any member of the family. The PHA may make an exception as a reasonable accommodation for a family member with a disability. The owner is required to certify that no such relationship exists. This restriction applies at the time that the family receives assistance under the HCV program for occupancy of a particular unit. Current contracts on behalf of owners and families that are related may continue, but any new leases or contracts for these families may not be approved. Conflict of Interest [24 CFR 982.161; HCV GB p. 8-19; Form HUD-52641, Section 131 The PHA must not approve a tenancy in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: • Any present or former member or officer of the PHA (except a participant commissioner) • Any employee of the PHA, or any contractor, subcontractor or agent of the PHA, who formulates policy or who influences decisions with respect to the programs • Any public official, member of a governing body, or State or local legislator, who exercises functions or responsibilities with respect to the programs • Any member of the Congress of the United States Such "covered individual" may not have any direct or indirect interest in the HAP contract or in any benefits or payments under the contract (including the interest of an immediate family member of such covered individual) while such person is a covered individual or for one year thereafter. Immediate family member means the spouse, parent (including a stepparent), child (including a stepchild), grandparent, grandchild, sister, or brother (including a stepsister or stepbrother) of any covered individual. 025 City Council Ke - 5 2 25 EXHIBIT 1 HUD may waive the conflict of interest requirements, except for members of Congress, for good cause. The PHA must submit a waiver request to the appropriate HUD Field Office for determination. Any waiver request submitted by the PHA must include the following [HCV Guidebook pp.11-2 and 11-3]: • Complete statement of the facts of the case; • Analysis of the specific conflict of interest provision of the HAP contract and justification as to why the provision should be waived; • Analysis of and statement of consistency with state and local laws. The local HUD office, the PHA, or both parties may conduct this analysis. Where appropriate, an opinion by the state's attorney general should be obtained; • Opinion by the local HUD office as to whether there would be an appearance of impropriety if the waiver were granted; • Statement regarding alternative existing housing available for lease under the HCV program or other assisted housing if the waiver is denied; • If the case involves a hardship for a particular family, statement of the circumstances and discussion of possible alternatives; • If the case involves a public official or member of the governing body, explanation of their duties under state or local law, including reference to any responsibilities involving the HCV program; • If the case involves employment of a family member by the PHA or assistance under the HCV program for an eligible PHA employee, explanation of the responsibilities and duties of the position, including any related to the HCV program; • If the case involves an investment on the part of a member, officer, or employee of the PHA, description of the nature of the investment, including disclosure/divestiture plans. Where the PHA has requested a conflict of interest waiver, the PHA may not execute the HAP contract until HUD has made a decision on the waiver request. SAHA Policy In considering whether to request a conflict of interest waiver from HUD, SAHA will consider certain factors such as consistency of the waiver with state and local laws, the existence of alternative housing available to families, the individual circumstances of a particular family, the specific duties of individuals whose positions present a possible conflict of interest, the nature of any financial investment in the property and plans for disclosure/divestiture, and the possible appearance of impropriety. 025 City Council Ke - 5 2 25 EXHIBIT 1 Owner Actions That May Result in Disapproval of a Tenancy Request [24 CFR 982.306(c)] HUD regulations permit the PHA to disapprove a request for tenancy for various actions and inactions of the owner. If the PHA disapproves a request for tenancy because an owner is not qualified, it may not terminate the HAP contract for any assisted families that are already living in the owner's properties unless the owner has violated the HAP contract for those units [HCV GB p. 11-4]. SAHA Policy SAHA will refuse to approve a request for tenancy if SAHA becomes aware that any of the following are true: The owner has violated obligations under a HAP contract under Section 8 of the 1937 Act (42 U.S.C. 1437f); The owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program; The owner has engaged in any drug -related criminal activity or any violent criminal activity; The owner has a history or practice of noncompliance with inspection standards for units leased under the tenant -based programs, or with applicable housing standards for units leased with project -based Section 8 assistance or leased under any other federal housing program; The owner has a history or practice of failing to terminate tenancy of tenants of units assisted under Section 8 or any other federally assisted housing program for activity engaged in by the tenant, any member of the household, a guest or another person under the control of any member of the household that: (i) Threatens the right to peaceful enjoyment of the premises by other residents; (ii) Threatens the health or safety of other residents, of employees of the PHA, or of owner employees or other persons engaged in management of the housing; (iii) Threatens the health or safety of, or the right to peaceful enjoyment of their residences, by persons residing in the immediate vicinity of the premises; or (iv) Is drug -related criminal activity or violent criminal activity; The owner has a history or practice of renting units that fail to meet state or local housing codes; or The owner has not paid state or local real estate taxes, fines, or assessment. 025 City Council Ke - 5 2 25 EXHIBIT 1 In considering whether to disapprove owners for any of the discretionary reasons listed above, SAHA will consider any mitigating factors. Such factors may include, but are not limited to, the seriousness of the violation in relation to program requirements, the impact on the ability of families to lease units under the program, health and safety of participating families, among others. Upon consideration of such circumstances, SAHA may, on a case -by -case basis, choose to approve an owner. Legal Ownership of Unit The following represents PHA policy on legal ownership of a dwelling unit to be assisted under the HCV program. SAHA Policy The PHA will only enter into a contractual relationship with the legal owner of a qualified unit. No tenancy will be approved without acceptable documentation of legal ownership (e.g., deed of trust, proof of taxes for most recent year). If the owner requests a different party to receive HAP from SAHA, the owner must provide legal documentation to authorize (management agreement or power -of attorney). 13-I.E. NON-DISCRIMINATION [HAP Contract — Form HUD-526411 The owner must not discriminate against any person because of race, color, religion, sex, national origin, age, familial status, or disability, in connection with any actions or responsibilities under the HCV program and the HAP contract with the PHA. The owner must cooperate with the PHA and with HUD in conducting any equal opportunity compliance reviews and complaint investigations in connection with the HCV program and the HAP contract with the PHA. See Chapter 2 for a more thorough discussion of Fair Housing and Equal Opportunity requirements in the HCV program. 025 City Council Ke - 5 2 25 EXHIBIT 1 PART II. HAP CONTRACTS 13-II.A. OVERVIEW The HAP contract represents a written agreement between the PHA and the owner of the dwelling unit occupied by a HCV assisted family. The contract spells out the owner's responsibilities under the program, as well as the PHA's obligations. Under the HAP contract, the PHA agrees to make housing assistance payments to the owner on behalf of the family approved by the PHA to occupy the unit. The HAP contract is used for all HCV tenant -based program tenancies except for assistance under the Section 8 homeownership program, and assistance to families that own a manufactured home and use their assistance to lease the space for the manufactured home. See chapter 15 for a discussion of any special housing types included in the PHA's HCV program. When the PHA has determined that the unit meets program requirements and the tenancy is approvable, the PHA and owner must execute the HAP contract. See chapter 9 for a discussion of the leasing process, including provisions for execution of the HAP contract. 025 City Council IKe EXHIBIT 1 13-II.B. HAP CONTRACT CONTENTS The HAP contract format is required by HUD, specifically Housing Assistance Payment (HAP) Contract, Form HUD-52641. The HAP contract contains three parts. Part A of the contract includes basic contract information: the names of the tenant and all household members, the address of the contract unit, start and end dates of initial lease term, the amount of initial monthly rent to owner, the amount of initial housing assistance payment, the utilities and appliances to be supplied by owner and tenant, and the signatures of the PHA representative and owner [HCV Guidebook, pp. 11-10 and 11-I I]. In general, the HAP contract cannot be modified. However, PHAs do have the discretion to add language to Part A of the HAP contract which prohibits the owner from collecting a security deposit in excess of private market practices or in excess of amounts charged to unassisted tenants. PHA policy on the amount of security deposit an owner may collect is found in Chapter 9. PHAs also have the discretion to add language to Part A of the HAP contract that defines when the housing assistance payment by the PHA is deemed received by the owner (e.g., upon mailing by the PHA or actual receipt by the owner). SAHA Policy SAHA has not adopted a policy that defines when the housing assistance payment by SAHA is deemed received by the owner. Therefore, no modifications to the HAP contract will be necessary. 025 City Council �e 5 2 25 EXHIBIT 1 Part B is the body of the contract. It describes in detail program requirements affecting the owner and owner roles and responsibilities under the HCV program. Most of the requirements contained in Part B of the HAP contract are outlined elsewhere in this plan. Topics addressed in Part B include: • Lease of Contract Unit • Maintenance, Utilities, and Other Services • Term of HAP Contract • Provision and Payment of Utilities and Appliances • Rent to Owner: Reasonable Rent • PHA Payment to Owner • Prohibition of Discrimination • Owner's Breach of HAP Contract • PHA and HUD Access to Premises and Owner's Records • Exclusion of Third Party Rights • Conflict of Interest • Assignment of the HAP Contract • Written Notices • Entire Agreement Interpretation Part C of the contract includes the Tenancy Addendum (Form HUD-52641-A). The addendum sets forth the tenancy requirements for the program and the composition of the household, as approved by the PHA. The tenant has the right to enforce the Tenancy Addendum against the owner. The terms of the Tenancy Addendum prevail over any other provisions of the lease. 025 City Councile EXHIBIT 1 13-II.C. HAP CONTRACT PAYMENTS General During the term of the HAP contract, and subject to the provisions of the HAP contract, the PHA must make monthly HAP payments to the owner on behalf of the family at the beginning of each month. If a lease term begins after the first of the month, the HAP payment for the first month is prorated for a partial month. The amount of the HAP payment is determined according to the policies described in Chapter 6 and is subject to change during the term of the HAP contract. The PHA must notify the owner and the family in writing of any changes in the HAP payment. HAP payments can be made only during the lease term, and only while the family is residing in the unit. The monthly HAP payment by the PHA is credited toward the monthly rent to owner under the family's lease. The total of the rent paid by the tenant and the HAP payment is equal to the rent to owner as specified in the lease. The family is not responsible for payment of the HAP payment, and the PHA is not responsible for payment of the family share of rent. The family's share of the rent cannot be more than the difference between the rent to owner and the HAP payment. The owner may not demand or accept any rent payment from the tenant in excess of this maximum [24 CFR 982.451(b)(4)]. The owner may not charge the tenant extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises [24 CFR 982.510(c)]. See chapter 9 for a discussion of separate, non -lease agreements for services, appliances and other items that are not included in the lease. If the owner receives any excess HAP from the PHA, the excess amount must be returned immediately. If the PHA determines that the owner is not entitled to all or a portion of the HAP, the PHA may deduct the amount of overpayment from any amounts due to the owner, including amounts due under any other Section 8 HCV contract. See Chapter 16 for additional detail on owner reimbursement of HAP overpayments. Owner Certification of Compliance Unless the owner complies with all provisions of the HAP contract, the owner is not entitled to receive housing assistance payments under the HAP contract [HAP Contract — Form HUD-52641 ] . By accepting the monthly check from the PHA, the owner certifies to compliance with the terms of the HAP contract. This includes certification that the owner is maintaining the unit and premises in accordance with NSPIRE standards; that the contract unit is leased to the tenant family and, to the best of the owner's knowledge, the family resides in the unit as the family's only residence; the rent to owner does not exceed rents charged by the owner for comparable unassisted units on the premises; and that the owner does not receive (other than rent to owner) any additional payments or other consideration for rent of the contract unit during the HAP term. 025 City Council tKe - 5 2 25 EXHIBIT 1 Late HAP Payments [24 CFR 982.451(a)(5)] The PHA is responsible for making HAP payments promptly when due to the owner, in accordance with the terms of the HAP contract. After the first two calendar months of the HAP contract term, the HAP contract provides for late penalties if the PHA fails to make the HAP payment on time. Penalties for late HAP payments can only be imposed if 1) the penalties are in accordance with generally accepted local rental market practices and law governing penalties for late payment by tenants; 2) it is the owner's normal business practice to charge late payment penalties for both assisted and unassisted families; and 3) the owner charges the assisted family for late payment of the family's share of the rent. The PHA is not required to pay a late payment penalty if HUD determines that the payment is late for reasons beyond the PHA's control. In addition, late payment penalties are not required if the PHA intentionally delays or denies payment as a remedy to an owner breach of the HAP contract [HCV Guidebook p. 11-7]. Termination of HAP Payments [24 CFR 982.311(b)] The PHA must continue making housing assistance payments to the owner in accordance with the HAP contract as long as the tenant continues to occupy the unit and the HAP contract is not violated. HAP payments terminate when the HAP contract terminates or when the tenancy is terminated in accordance with the terms of the lease. If the owner has initiated eviction proceedings against the family and the family continues to reside in the unit, the PHA must continue to make housing assistance payments to the owner until the owner has obtained a court judgment or other process allowing the owner to evict the tenant. SAHA Polic The owner must inform SAHA in writing when the owner has initiated eviction proceedings against the family and the family continues to reside in the unit. The owner must inform SAHA in writing when the owner has obtained a court judgment or other process allowing the owner to evict the tenant and provide SAHA with a copy of such judgment or determination. After the owner has obtained a court judgment or other process allowing the owner to evict the tenant, SAHA will continue to make HAP payments to the owner until the family actually moves from the unit or until the family is physically evicted from the unit, whichever is earlier. The owner must inform SAHA of the date when the family actually moves from the unit or the family is physically evicted from the unit. 025 City Council tge'7X5 2 25 EXHIBIT 1 13-ILD. BREACH OF HAP CONTRACT [24 CFR 982.453] Any of the following actions by the owner constitutes a breach of the HAP contract: • If the owner violates any obligations under the HAP contract including failure to maintain the unit in accordance with NSPIRE standards • If the owner has violated any obligation under any other HAP contract under Section 8 • If the owner has committed fraud, bribery or any other corrupt or criminal act in connection with any federal housing program • For projects with mortgages insured by HUD or loans made by HUD, if the owner has failed to comply with the regulation for the applicable program; or if the owner has committed fraud, bribery or any other corrupt or criminal act in connection with the mortgage or loan • If the owner has engaged in drug -related criminal activity • If the owner has committed any violent criminal activity If the PHA determines that a breach of the HAP contract has occurred, it may exercise any of its rights and remedies under the HAP contract. The PHA rights and remedies against the owner under the HAP contract include recovery of any HAP overpayment, suspension of housing assistance payments, abatement or reduction of the housing assistance payment, termination of the payment or termination of the HAP contract. The PHA may also obtain additional relief by judicial order or action. The PHA must notify the owner of its determination and provide in writing the reasons for the determination. The notice may require the owner to take corrective action by an established deadline. The PHA must provide the owner with written notice of any reduction in housing assistance payments or the termination of the HAP contract. SAHA Polic Before SAHA invokes a remedy against an owner, SAHA will evaluate all information and documents available to determine if the contract has been breached. If relevant, SAHA will conduct an audit of the owner's records pertaining to the tenancy or unit. If it is determined that the owner has breached the contract, SAHA will consider all of the relevant factors including the seriousness of the breach, the effect on the family, the owner's record of compliance and the number and seriousness of any prior HAP contract violations. 025 City Council �e 5 2 25 EXHIBIT 1 13-II.E. HAP CONTRACT TERM AND TERMINATIONS The term of the HAP contract runs concurrently with the term of the dwelling lease [24 CFR 982.45 1 (a)(2)], beginning on the first day of the initial term of the lease and terminating on the last day of the term of the lease, including any lease term extensions. The HAP contract and the housing assistance payments made under the HAP contract terminate if [HCV Guidebook pp.11-4 and 11-5, pg. 15-3]: • The owner or the family terminates the lease; • The lease expires; • The PHA terminates the HAP contract; • The PHA terminates assistance for the family; • The family moves from the assisted unit. In this situation, the owner is entitled to keep the housing assistance payment for the month when the family moves out of the unit. • 180 calendar days have elapsed since the PHA made the last housing assistance payment to the owner; • The family is absent from the unit for longer than the maximum period permitted by the PHA; • The Annual Contributions Contract (ACC) between the PHA and HUD expires • The PHA elects to terminate the HAP contract. SAHA Policy SAHA may elect to terminate the HAP contract in each of the following situations: Available program funding is not sufficient to support continued assistance for families in the program [24 CFR 982.454]; The unit does not meet size requirements due to change in family composition [24 CFR 982.403] — see Chapter 8; The unit does not meet NSPIRE standards [24 CFR 982.404] — see Chapter 8; The family breaks up [HUD Form 52641 ] — see Chapter 3; The owner breaches the HAP contract [24 CFR 982.453(b)] — see Section 13-II.D. 025 City Council tge'7X5 2 25 EXHIBIT 1 If the PHA terminates the HAP contract, the PHA must give the owner and the family written notice. The notice must specify the reasons for the termination and the effective date of the termination. Once a HAP contract is terminated, no further HAP payments may be made under that contract [HCV Guidebook pg.15-4]. SAHA Policy Generally, the HAP contract terminates at the end of the calendar month that follows the calendar month in which SAHA gives written notice to the owner. SAHA cannot make any HAP payment for any month after the month the family vacates the unit. The owner is not entitled to any housing assistance payment after this period and must return to the SAHA any housing assistance payment received after this period. If the family moves from the assisted unit into a new unit, even if the new unit is in the same building or complex as the assisted unit, the HAP contract for the assisted unit terminates. A new HAP contract would be required [HCV G13, p. 11-17]. When the family moves from an assisted unit into a new unit, the term of the HAP contract for the new unit may begin in the same month in which the family moves out of its old unit. This is not considered a duplicative subsidy [HCV GB, p. 8-22]. 025 City Council tge 5 2 25 EXHIBIT 1 13-II.F. CHANGE IN OWNERSHIP / ASSIGNMENT OF THE HAP CONTRACT [HUD-52641] The HAP contract cannot be assigned to a new owner without the prior written consent of the PHA. An owner under a HAP contract must notify the PHA in writing prior to a change in the legal ownership of the unit. The owner must supply all information as requested by the PHA. Prior to approval of assignment to a new owner, the new owner must agree to be bound by and comply with the HAP contract. The agreement between the new owner and the former owner must be in writing and in a form that the PHA finds acceptable. The new owner must provide the PHA with a copy of the executed agreement. SAHA Policy Assignment of the HAP of the HAP contract will be approved only if the new owner is qualified to become an owner under the HCV Program according to policies in Section 13-I.D. of this chapter. Within 14 calendar days of receiving the owner's request, SAHA will inform the current owner in writing whether the assignment may take place. SAHA must receive a signed, written Transfer of Ownership Packet stating the name and address of the new HAP payee and the effective date of the assignment in order to change the HAP payee under an existing HAP contract. The new owner must provide the Assumption of Contract and Lease to SAHA that includes, but is not limited to: A copy of the escrow statement or other document showing the transfer of title and/or recorded deed; A copy of the owner's IRS Form W-9, Request for Taxpayer Identification Number and Certification, or the social security number of the new owner; The effective date of the HAP contract assignment; A new HAP contract signed by the new owner only upon new owner's request; and Certification that the new owner is not a prohibited relative. SAHA will only process the change of ownership with a future effective date unless HAP has been held for prior months from the previous owner. If the new owner does not agree to an assignment of the HAP contract, or fails to provide the necessary documents, SAHA will terminate the HAP contract with the old owner. If the new owner wants to offer the family a new lease, and the family elects to stay with continued assistance, SAHA will process the leasing in accordance with the policies in Chapter 9. 025 City Council tge 5 2 25 EXHIBIT 1 13-11.G. FORECLOSURE [Notice PIH 2O10-49] Families receiving HCV assistance are entitled to certain protections set forth under the Protecting Tenants at Foreclosure Act (PTFA). During the term of the lease, the new owner of the property does not have good cause to terminate the tenant's lease, unless the new owner will occupy the unit as their primary residence and has provided the tenant with at least a 90-day notice. In that case, the lease may be terminated effective on the date of sale, although the tenant is still entitled to a 90-day notice to vacate. Further, the new owner assumes interest in the lease between the prior owner and the tenant and to the HAP contract. Any state or local law that provides longer time periods or other additional protections for tenants also applies. SAHA Polic If a property is in foreclosure, SAHA will make all reasonable efforts to determine the status of the foreclosure and ownership of the property and will continue to make payments to the original owner until ownership legally transfers in accordance with the HAP contract. SAHA will attempt to obtain a written acknowledgement of the assignment of the HAP contract from the successor in interest. This will include a request for owner information, including a tax identification number and payment instructions from the new owner. Even if the new owner does not acknowledge the assignment of the HAP contract in writing, the assignment is still effective by operation of law. SAHA will inform the tenant that they must continue to pay rent in accordance with the lease, and if the new owner refuses to accept payment or cannot be identified, the tenant should pay rent into escrow. Failure to pay rent may constitute an independent ground for eviction. In the event that SAHA is unable to make HAP payments to the new owner due to an action or inaction by the new owner that prevents such payments (e.g., rejection of payments or failure to maintain the property according to NSPIRE standards), or due to an inability to identify the new owner, SAHA will either use the funds to pay: The utilities that are the owner's responsibility after taking reasonable steps to notify the owner; except that if the unit has been or will be rendered uninhabitable due to termination or threat of termination of service, prior notice is not required. In the latter case, SAHA shall notify the owner within a reasonable time after making the utility payment; or For the family's reasonable moving costs, including security deposit costs. SAHA will also refer the tenant, as needed, to the local legal aid office in order to ensure adequate protection of the tenant's rights and enforcement of the successor in interest's performance under the HAP contract. See Section 12-III.13 for a discussion of foreclosure as it pertains to owner termination of tenancy. 025 City Council tge 5 2 25 EXHIBIT 1 Chapter 14 PROGRAM INTEGRITY INTRODUCTION The PHA is committed to ensuring that subsidy funds made available to the PHA are spent in accordance with HUD requirements. This chapter covers HUD and PHA policies designed to prevent, detect, investigate, and resolve instances of program abuse or fraud. It also describes the actions that will be taken in the case of unintentional errors and omissions. Part I: Preventing, Detecting, and Investigating Errors and Program Abuse. This part presents PHA policies related to preventing, detecting, and investigating errors and program abuse. Part II: Corrective Measures and Penalties. This part describes the corrective measures the PHA must and may take when errors or program abuses are found. Page 14-1 Administrative Plan 7/l/2025 City Council 5 — 626 7/15/2025 EXHIBIT 1 PART I: PREVENTING, DETECTING, AND INVESTIGATING ERRORS AND PROGRAM ABUSE 14-I.A. PREVENTING ERRORS AND PROGRAM ABUSE HUD created the Enterprise Income Verification (EIV) system to provide PHAs with a powerful tool for preventing errors and detecting program abuse. PHAs are required to use the EIV system at annual reexamination in accordance with HUD administrative guidance [24 CFR 5.233]. PHAs are further required to: • Provide applicants and participants with form HUD-52675, "Debts Owed to PHAs and Terminations" • Require all adult members of an applicant or participant family to acknowledge receipt of form HUD-52675 by signing a copy of the form for retention in the family file SAHA Policy To ensure that SAHA's HCV program is administered according to the highest ethical and legal standards, the PHA will employ a variety of techniques to ensure that both errors and intentional program abuse are rare. SAHA will discuss program compliance and integrity issues during the voucher briefing sessions described in Chapter 5. SAHA will provide each applicant and participant with a copy of "Is Fraud Worth It?" (form HUD-1141-OIG), which explains the types of actions a family must avoid and the penalties for program abuse. SAHA will provide each applicant and participant with a copy of "What You Should Know about EIV," a guide to the Enterprise Income Verification (EIV) system published by HUD as an attachment to Notice PIH 2O17-12. In addition, SAHA will require the head of each household to acknowledge receipt of the guide by signing a copy for retention in the family file. SAHA will place a warning statement about the penalties for fraud (as described in 18 U.S.C. 1001 and 1010) on key SAHA forms and form letters that request information from a family or owner. SAHA staff will be required to review and explain the contents of all HUD- and PHA -required forms prior to requesting family member signatures. At every regular reexamination, SAHA staff will explain any changes in HUD regulations or SAHA policy that affect program participants. SAHA will provide owners with ongoing information about the program, with an emphasis on actions and situations to avoid. SAHA will provide each SAHA employee with the necessary training on program rules and the organization's standards of conduct and ethics. Page 14-2 Administrative Plan 7/l/2025 City Council 5 — 627 7/15/2025 EXHIBIT 1 For purposes of this chapter the term error refers to an unintentional error or omission. Program abuse or fraud refers to a single act or pattern of actions that constitute a false statement, omission, or concealment of a substantial fact, made with the intent to deceive or mislead. 14-I.B. DETECTING ERRORS AND PROGRAM ABUSE In addition to taking steps to prevent errors and program abuse, the PHA will use a variety of activities to detect errors and program abuse. Quality Control and Analysis of Data Under the Section 8 Management Assessment Program (SEMAP), HUD requires the PHA to review a random sample of tenant records annually to determine if the records conform to program requirements and to conduct quality control inspections of a sample of units to ensure compliance with applicable housing quality standards [24 CFR, Part 985]. (See Chapter 16 for additional information about SEMAP requirements). SAHA Policv In addition to the SEMAP quality control requirements, SAHA will employ a variety of methods to detect errors and program abuse. SAHA routinely will use HUD and other non -HUD sources of up -front income verification. This includes The Work Number and any other private or public databases available to SAHA. At each annual or interim reexamination, current information provided by the family will be compared to information provided at the most recent reexamination to identify inconsistencies and incomplete information. SAHA will compare family -reported income and expenditures to detect possible unreported income. Independent Audits and HUD Monitoring OMB Circular A-133 requires all PHAs that expend $750,000 or more in federal awards annually to have an independent audit (IPA). In addition, HUD conducts periodic on -site and automated monitoring of PHA activities and notifies the PHA of errors and potential cases of program abuse. SAHA Policv SAHA will use the results reported in any IPA or HUD monitoring reports to identify potential program abuses as well as to assess the effectiveness of the SAHA's error detection and abuse prevention efforts. Individual Reporting of Possible Errors and Program Abuse SAHA Policv SAHA will encourage staff, program participants, and the public to report possible program abuse. Page 14-3 Administrative Plan 7/1/2025 City Council 5 — 628 7/15/2025 EXHIBIT 1 14-I.C. INVESTIGATING ERRORS AND PROGRAM ABUSE When the PHA Will Investigate SAHA Policv SAHA will review all referrals, specific allegations, complaints, and tips from any source including other agencies, companies, and individuals, to determine if they warrant investigation. In order for SAHA to investigate, the allegation must contain at least one independently verifiable item of information, such as the name of an employer or the name of an unauthorized household member. SAHA will investigate when inconsistent or contradictory information is detected through file reviews and the verification process. Consent to Release of Information [24 CFR 982.5161 The PHA may investigate possible instances of error or abuse using all available PHA and public records. If necessary, the PHA will require HCV families to sign consent forms for the release of additional information. Analysis and Findings SAHA Policv SAHA will base its evaluation on a preponderance of the evidence collected during its investigation. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence that as a whole show that the fact sought to be proved is more probable than not. Preponderance of evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. For each investigation SAHA will determine (1) whether an error or program abuse has occurred, (2) whether any amount of money is owed SAHA, and (3) what corrective measures or penalties will be assessed. Page 14-4 Administrative Plan 7/l/2025 City Council 5 — 629 7/15/2025 EXHIBIT 1 Consideration of Remedies All errors and instances of program abuse must be corrected prospectively. Whether the PHA will enforce other corrective actions and penalties depends upon the nature of the error or program abuse. SAHA Policv In the case of family -caused errors or program abuse, SAHA will take into consideration (1) the seriousness of the offense and the extent of participation or culpability of individual family members, (2) any special circumstances surrounding the case, (3) any mitigating circumstances related to the disability of a family member, (4) the effects of a particular remedy on family members who were not involved in the offense. In the case of owner -caused errors or program abuse, SAHA will take into consideration (1) the seriousness of the offense, (2) the length of time since the violation has occurred, and (3) the effects of a particular remedy on family members who were not involved in the offense. Notice and Appeals SAHA Policv SAHA will inform the relevant party in writing of its findings and remedies within 14 calendar days of the conclusion of the investigation. The notice will include (1) a description of the error or program abuse, (2) the basis on which SAHA determined the error or program abuses, (3) the remedies to be employed, and (4) the family's right to appeal the results through the informal review or hearing process, if applicable (see Chapter 16). Page 14-5 Administrative Plan 7/l/2025 City Council 5 — 630 7/15/2025 EXHIBIT 1 PART II: CORRECTIVE MEASURES AND PENALTIES 14-II.A. SUBSIDY UNDER- OR OVERPAYMENTS A subsidy under- or overpayment includes (1) an incorrect housing assistance payment to the owner, (2) an incorrect family share established for the family, and (3) an incorrect utility reimbursement to a family. Corrections Whether the incorrect subsidy determination is an overpayment or underpayment of subsidy, the PHA must promptly correct the HAP, family share, and any utility reimbursement prospectively. SAHA Policy Any increases in the family share will be implemented on the first of the month following a written 30-day notice. Any decreases in family share will become effective the first of the month following the discovery of the error. Reimbursement Whether the family or owner is required to reimburse the PHA or the PHA is required to make retroactive subsidy payments to the owner or family depends upon which party is responsible for the incorrect subsidy payment and whether the action taken was an error or program abuse. Policies regarding reimbursement are discussed in the three sections that follow. Page 14-6 Administrative Plan 7/l/2025 City Council 5 — 631 7/15/2025 EXHIBIT 1 14-II.B. FAMILY -CAUSED ERRORS AND PROGRAM ABUSE Family obligations and general administrative requirements for participating in the program are discussed throughout this plan. This section deals specifically with errors and program abuse by family members. An incorrect subsidy determination caused by a family generally would be the result of incorrect reporting of family composition, income, assets, or expenses, but also would include instances in which the family knowingly allows the PHA to use incorrect information provided by a third party. Family Reimbursement to PHA [HCV GB pp. 22-12 to 22-13] SAHA Policv In the case of family -caused errors or program abuse, the family will be required to repay any excess subsidy received. SAHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, SAHA will terminate the family's assistance in accordance with the policies in Chapter 12. PHA Reimbursement to Family [HCV GB p. 22-121 SAHA Policv SAHA will not reimburse the family for any underpayment of assistance when the underpayment clearly is caused by the family. Page 14-7 Administrative Plan 7/l/2025 City Council 5 — 632 7/15/2025 EXHIBIT 1 Prohibited Actions An applicant or participant in the HCV program must not knowingly: • Make a false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.552(c)(iv)]. SAHA Policy Any of the following will be considered evidence of family program abuse: Payment to the owner in excess of amounts authorized by SAHA for rent, security deposit, and additional services Offering bribes or illegal gratuities to SAHA Board of Commissioners (City Council), employees, contractors, or other SAHA representatives Offering payments or other incentives to the owner or a third party as an inducement for the third party to make false or misleading statements to SAHA on the family's behalf Use of a false name or the use of falsified, forged, or altered documents Intentional misreporting of family information or circumstances (e.g. income, family composition) Omitted facts that were obviously known by a family member (e.g., not reporting employment income) Admission of program abuse by an adult family member SAHA may determine other actions to be program abuse based upon a preponderance of the evidence, as defined earlier in this chapter. Penalties for Program Abuse In the case of program abuse caused by a family the PHA may, at its discretion, impose any of the following remedies. • The PHA may require the family to repay excess subsidy amounts paid by the PHA, as described earlier in this section. • The PHA may require, as a condition of receiving or continuing assistance, that a culpable family member not reside in the unit. See policies in Chapter 3 (for applicants) and Chapter 12 (for participants). • The PHA may deny or terminate the family's assistance following the policies set forth in Chapter 3 and Chapter 12 respectively. • The PHA may refer the family for state or federal criminal prosecution as described in section 14-II.E. Page 14-8 Administrative Plan 7/l/2025 City Council 5 — 633 7/15/2025 EXHIBIT 1 14-II.C. OWNER -CAUSED ERROR OR PROGRAM ABUSE Owner requirements that are part of the regular process of offering, leasing, and maintaining a unit (e.g., housing quality standards compliance, fair housing) are addressed in the appropriate chapters of this plan. This section focuses on errors and program abuse by owners. An incorrect subsidy determination caused by an owner generally would be the result of an incorrect owner statement about the characteristics of the assisted unit (e.g., the number of bedrooms, which utilities are paid by the family). It also includes accepting duplicate housing assistance payments for the same unit in the same month, or after a family no longer resides in the unit. Owner Reimbursement to the PHA In all cases of overpayment of subsidy caused by the owner, the owner must repay to the PHA any excess subsidy received. The PHA may recover overpaid amounts by withholding housing assistance payments due for subsequent months, or if the debt is large, the PHA may allow the owner to pay in installments over a period of time [HCV GB p. 22-13]. SAHA Policy In cases where the owner has received excess subsidy, SAHA will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B. Prohibited Owner Actions An owner participating in the HCV program must not: • Make any false statement to the PHA [Title 18 U.S.C. Section 1001]. • Commit fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program [24 CFR 982.453(a)(3)] including: Page 14-9 Administrative Plan 7/l/2025 City Council 5 — 634 7/15/2025 EXHIBIT 1 SAHA Policy Any of the following will be considered evidence of owner program abuse: Charging the family rent above or below the amount specified by the SAHA Charging a security deposit other than that specified in the family's lease Charging the family for services that are provided to unassisted tenants at no extra charge Knowingly accepting housing assistance payments for any month(s) after the family has vacated the unit Knowingly accepting incorrect or excess housing assistance payments Offering bribes or illegal gratuities to SAHA Board of Commissioners (City Council), employees, contractors, or other SAHA representatives Offering payments or other incentives to an HCV family as an inducement for the family to make false or misleading statements to SAHA Residing in the unit with an assisted family Committing sexual or other harassment, either quid pro quo or hostile environment, based on the protected classes defined in Chapter 2 Retaliating against any applicant or participant reporting/alleging sexual or other harassment, either quid pro quo or hostile environment, based on the protected classes defined in Chapter 2 Remedies and Penalties When the PHA determines that the owner has committed program abuse, the PHA may take any of the following actions: • Require the owner to repay excess housing assistance payments, as discussed earlier in this section and in accordance with the policies in Chapter 16. • Terminate the HAP contract (See Chapter 13). • Bar the owner from future participation in any PHA programs. • Refer the case to state or federal officials for criminal prosecution as described in section 14-II.E. Page 14-10 Administrative Plan 7/l/2025 City Council 5 — 635 7/15/2025 EXHIBIT 1 14-II.D. PHA -CAUSED ERRORS OR PROGRAM ABUSE The responsibilities and expectations of PHA staff with respect to normal program administration are discussed throughout this plan. This section specifically addresses actions of a PHA staff member that are considered errors or program abuse related to the HCV program. Additional standards of conduct may be provided in the PHA personnel policy. PHA -caused incorrect subsidy determinations include (1) failing to correctly apply HCV rules regarding family composition, income, assets, and expenses, (2) assigning the incorrect voucher size to a family, and (3) errors in calculation. De Minimis Errors [24 CFR 5.609(c)(4)] The PHA will not be considered out of compliance when making annual income determinations solely due to de minimis errors in calculating family income. A de minimis error is an error where the PHA determination of family income deviates from the correct income determination by no more than $30 per month in monthly adjusted income ($360 in annual adjusted income) per family. PHAs must take corrective action to credit or repay a family if the family was overcharged rent, including when PHAs make de minimis errors in the income determination. Families will not be required to repay the PHA in instances where the PHA miscalculated income resulting in a family being undercharged for rent. PHAs state in their policies how they will repay or credit a family the amount they were overcharged as a result of the PHA's de minimis error in income determination. SAHA Policy SAHA will reimburse a family for any family overpayment of rent, regardless of whether the overpayment was the result of staff -caused error, staff program abuse, or a de minimis error. Page 14-11 Administrative Plan 7/l/2025 City Council 5 — 636 7/15/2025 EXHIBIT 1 Prohibited Activities SAHA Policy Any of the following will be considered evidence of program abuse by SAHA staff: Failing to comply with any HCV program requirements for personal gain Failing to comply with any HCV program requirements as a result of a conflict of interest relationship with any applicant, participant, or owner Seeking or accepting anything of material value from applicants, participating families, vendors, owners, contractors, or other persons who provide services or materials to SAHA Disclosing confidential or proprietary information to outside parties Gaining profit as a result of insider knowledge of SAHA activities, policies, or practices Misappropriating or misusing HCV funds Destroying, concealing, removing, or inappropriately using any records related to the HCV program Committing any other corrupt or criminal act in connection with any federal housing program Page 14-12 Administrative Plan 7/1/2025 City Council 5 — 637 7/15/2025 EXHIBIT 1 14-II.E. CRIMINAL PROSECUTION SAHA Policy When SAHA determines that program abuse by an owner, family, or SAHA staff member has occurred and the amount of overpaid subsidy meets or exceeds the threshold for prosecution under local or state law, SAHA will refer the matter to the appropriate entity for prosecution. When the amount of overpaid assistance meets or exceeds the federal threshold, the case will also be referred to the HUD Office of Inspector General (OIG). Other criminal violations related to the HCV program will be referred to the appropriate local, state, or federal entity. 14-II.F. FRAUD AND PROGRAM ABUSE RECOVERIES The PHA may retain a portion of program fraud losses that the PHA recovers from a family or owner through litigation, court order, or a repayment agreement [24 CFR 982.163]. The PHA must be the principal party initiating or sustaining the action to recover amounts due from tenants that are due as a result of fraud and abuse. 24 CFR 792.202 permits the PHA to retain the greater of: • 50 percent of the amount it actually collects from a judgment, litigation (including settlement of a lawsuit) or an administrative repayment agreement, or • Reasonable and necessary costs that the PHA incurs related to the collection including costs of investigation, legal fees, and agency collection fees. The family must be afforded the opportunity for an informal hearing in accordance with requirements in 24 CFR 982.555. If HUD incurs costs on behalf of the PHA related to the collection, these costs must be deducted from the amount retained by the PHA. Page 14-13 Administrative Plan 7/1/2025 City Council 5 — 638 7/15/2025 EXHIBIT 1 Chapter 15 SPECIAL HOUSING TYPES [24 CFR 982 Subpart M; New HCV GB, Special Housing Types] INTRODUCTION The PHA may permit a family to use any of the special housing types discussed in this chapter. However, the PHA is not required to permit families receiving assistance in its jurisdiction to use these housing types, except that PHAs must permit use of any special housing type if needed as a reasonable accommodation for a person with a disability, and the PHA must permit a family to lease a manufactured home and space with assistance under the program. The PHA also may limit the number of families who receive HCV assistance in these housing types and cannot require families to use a particular housing type. No special funding is provided for special housing types. Unless specifically modified by the regulations, housing quality standards apply to special housing types (Single Room Occupancy, Congregate Housing, Group Homes, Shared Housing, Manufactured Homes, Homeownership units) [Notice PIH 2O23-28]. SAHA Policy Families will be able to utilize the following special housing types: Single Room Occupancy Congregate Housing Group Homes Shared Housing Manufactured Homes and space Homeownership Units Families will not be permitted to use any other special housing types not listed, unless needed as a reasonable accommodation to ensure that the program is readily accessible to a person with disabilities. However, policy language is included in this chapter where relevant in the event the PHA does grant use as a reasonable accommodation. Special housing types include single room occupancy (SRO), congregate housing, group homes, shared housing, cooperative housing, manufactured homes where the family owns the home and leases the space, and homeownership [24 CFR 982.601]. A single unit cannot be designated as more than one type of special housing. The PHA cannot give preference to households that wish to live in any of these types of housing and cannot require households to select any of these types of housing [New HCV GB, Special Housing Types, p. 3]. Page 15-1 Administrative Plan 7/l/2025 City Council 5 — 639 7/15/2025 EXHIBIT 1 This chapter consists of the following seven parts. Each part contains a description of the housing type and any special requirements associated with it. Except as modified by this chapter, the general requirements of the HCV program apply to special housing types. Part I: Single Room OccupancX Part II: Congregate Housing Part III: Group Homes Part IV: Shared Housing Part V: Cooperative Housing Part VI: Manufactured Homes (including manufactured home space rental) Part VII: Homeownership Page 15-2 Administrative Plan 7/l/2025 City Council 5 — 640 7/15/2025 EXHIBIT 1 PART I: SINGLE ROOM OCCUPANCY [24 CFR 982.602 through 982.605; Form HUD-52641; New HCV GB, Special Housing Types, p. 4] 15-I.A. OVERVIEW A single room occupancy (SRO) unit provides living and sleeping space for the exclusive use of the occupant but requires the occupant to share sanitary and/or food preparation facilities with others. More than one person may not occupy an SRO unit. HCV regulations do not limit the number of units in an SRO facility, but the size of a facility may be limited by local ordinances. When providing HCV assistance in an SRO unit, a separate lease and HAP contract are executed for each assisted person. The standard form of the HAP contract is used (Form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: "This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Single room occupancy (SRO) housing." 15-I.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for SRO housing is 75 percent of the zero -bedroom payment standard amount on the PHA's payment standard schedule. The utility allowance for an assisted person residing in SRO housing is 75 percent of the zero - bedroom utility allowance. The HAP for an assisted occupant in an SRO facility is the lower of the SRO payment standard amount minus the TTP or the gross rent for the unit minus the TTP. 15-I.C. SRO: HOUSING QUALITY STANDARDS [24 CFR 982.605(a)] Housing quality standards requirements described in the applicable portions of Chapter 8 apply to SRO housing except that sanitary facilities, and space and security characteristics must meet local code standards for SRO housing. In the absence of applicable local code standards for SRO housing, the following standards apply: Access: Access doors to the SRO unit must have working locks for privacy. The occupant must be able to access the unit without going through any other unit. Each unit must have immediate access to two or more approved means of exit from the building, appropriately marked and leading to safe and open space at ground level. The SRO unit must also have any other means of exit required by State or local law. Fire Safety: All SRO facilities must have a sprinkler system that protects major spaces. "Major spaces" are defined as hallways, large common areas, and any other areas specified in local fire, building, or safety codes. SROs must also have hard -wired smoke detectors, and any other fire and safety equipment required by state or local law. Sanitary facilities and space and security standards must meet local code requirements for SRO housing. In the absence of local code standards, the requirements discussed below apply [24 CFR 982.605]. Page 15-3 Administrative Plan 7/l/2025 City Council 5 — 641 7/15/2025 EXHIBIT 1 Sanitary Facilities: At least one flush toilet that can be used in privacy, a lavatory basin, and a bathtub or shower in proper operating condition must be provided for each six persons (or fewer) residing in the SRO facility. If the SRO units are leased only to males, flush urinals may be substituted for up to one half of the required number of toilets. Sanitary facilities must be reasonably accessible from a common hall or passageway to all persons sharing them and may not be located more than one floor above or below the SRO unit. They may not be located below grade unless the SRO units are located on that level. Space and Security: An SRO unit must contain at least 110 square feet of floor space, and at least four square feet of closet space with an unobstructed height of at least five feet, for use by the occupant. If the closet space is less than four square feet, the habitable floor space in the SRO unit must be increased by the amount of the deficiency. Exterior doors and windows accessible from outside the SRO unit must be lockable. For SRO housing, 24 CFR 5.703(d) only applies to the extent that the SRO unit contains the room or facility referenced in 24 CFR 5.703(d). Because no children live in SRO housing, the housing quality standards applicable to lead -based paint do not apply. Page 15-4 Administrative Plan 7/l/2025 City Council 5 — 642 7/15/2025 EXHIBIT 1 PART II: CONGREGATE HOUSING [24 CFR 982.606 through 982.609; Form HUD-52641; New HCV GB, Special Housing Types, p. 6] 15-II.A. OVERVIEW Congregate housing is intended for use by elderly persons or persons with disabilities. A congregate housing facility contains a shared central kitchen and dining area and a private living area for the individual household that includes at least a living room, bedroom and bathroom. Food service for residents must be provided. If approved by the PHA, a family member or live-in aide may reside with the elderly person or person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in congregate housing, a separate lease and HAP contract are executed for each assisted family. The standard form of the HAP contract is used (Form HUD- 52641) with the special housing type specified in Part A of the HAP contract, as follows: "This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Congregate housing." Page 15-5 Administrative Plan 7/l/2025 City Council 5 — 643 7/15/2025 EXHIBIT 1 15-II.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION The payment standard for an individual unit in a congregate housing facility is based on the number of rooms in the private living area for the assisted family. If there is only one room in the unit (not including the bathroom or the kitchen, if a kitchen is provided), the PHA must use the payment standard for a zero -bedroom unit. If the unit has two or more rooms (other than the bathroom and the kitchen), the PHA must use the one -bedroom payment standard. The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable payment standard minus the TTP or the gross rent for the unit minus the TTP. The gross rent for the unit for the purpose of calculating HCV assistance is the shelter portion (including utilities) of the resident's monthly housing expense only. The residents' costs for food service should not be included in the rent for a congregate housing unit. 15-II.C. CONGREGATE: HOUSING QUALITY STANDARDS Housing quality standards requirements as described in Chapter 8 apply to congregate housing except for the requirements stated below. Congregate housing is not subject to the requirement that the dwelling unit must have a kitchen area. In place of the housing quality standards related to food preparation and refuse disposal, congregate housing must have a refrigerator of appropriate size in the private living area of each resident, a central kitchen and dining facilities located within the premises and accessible to the residents, and food service for the residents, that is not provided by the residents themselves. The congregate housing must contain adequate facilities and services for the sanitary disposal of food waste and refuse, including facilities for temporary storage where necessary. The housing quality standards applicable to lead -based paint do not apply unless a child under the age of six is expected to reside in the unit. Page 15-6 Administrative Plan 7/l/2025 City Council 5 — 644 7/15/2025 EXHIBIT 1 PART III: GROUP HOME [24 CFR 982.610 through 982.614; Form HUD-52641; New HCV GB, Special Housing Types, p. 8] 15-III.A. OVERVIEW A group home is a state -approved (licensed, certified, or otherwise approved in writing by the state) facility intended for occupancy by elderly persons and/or persons with disabilities. Except for live-in aides, all persons living in a group home, whether assisted or not, must be elderly persons or persons with disabilities. Persons living in a group home must not require continuous medical or nursing care. A group home consists of bedrooms for residents, which can be shared by no more than two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. No more than 12 persons may reside in a group home including assisted and unassisted residents and any live-in aides. If approved by the PHA, a live-in aide may live in the group home with a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When providing HCV assistance in a group home, a separate lease and HAP contract is executed for each assisted family. The standard form of the HAP contract is used (Form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: "This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Group home." 15-III.B. PAYMENT STANDARD, UTILITY ALLOWANCE, AND HAP CALCULATION Unless there is a live-in aide, the family unit size (voucher size) for an assisted occupant of a group home must be zero- or one -bedroom. If there is a live-in aide, the aide must be counted in determining the household's unit size. The payment standard used to calculate the HAP is the lower of the payment standard for the family unit size or the pro rata share of the payment standard for the group home size. The pro rata share is calculated by dividing the number of persons in the assisted household by the number of persons (assisted and unassisted) living in the group home. The number of persons in the assisted household equals one assisted person plus any PHA -approved live-in aide. The HAP for an assisted occupant in a group home is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted occupant in a group home is the pro rata share of the family unit size to the utility allowance for the group home. Page 15-7 Administrative Plan 7/l/2025 City Council 5 — 645 7/15/2025 EXHIBIT 1 The rents paid for participants residing in group homes are subject to generally applicable standards for rent reasonableness. The rent for an assisted person must not exceed the pro rata portion of the reasonable rent for the group home. In determining reasonable rent, the PHA must consider whether sanitary facilities and facilities for food preparation and service are common facilities or private facilities. 15-III.C. GROUP HOME: HOUSING QUALITY STANDARDS The entire unit must comply with housing quality requirements described in Chapter 8, except for the standards that relate to sanitary facilities, food preparation and refuse disposal, space and security, structure and materials, and site and neighborhood as stated below. • Sanitary Facilities: A group home must have at least one bathroom in the facility, with a flush toilet that can be used in privacy, a fixed basin with hot and cold running water, and a shower or bathtub with hot and cold running water. A group home may contain private or common bathrooms. However, no more than four residents can be required to share a bathroom. • Food Preparation and Service: Group home units must contain a kitchen and dining area with adequate space to store, prepare, and serve food. The facilities for food preparation and service may be private or may be shared by the residents. The kitchen must contain a range, an oven, a refrigerator, and a sink with hot and cold running water. The sink must drain into an approvable public or private disposal system. • Space and Security: Group homes must contain at least one bedroom of appropriate size for every two people, and a living room, kitchen, dining area, bathroom, and other appropriate social, recreational, or community space that may be shared with other residents. Doors and windows accessible from outside the unit must be lockable. • Structure and Material: To avoid any threat to the health and safety of the residents, group homes must be structurally sound. Elevators must be in good condition. Group homes must be accessible to and usable by residents with disabilities. Page 15-8 Administrative Plan 7/l/2025 City Council 5 — 646 7/15/2025 EXHIBIT 1 • Site and Neighborhood: Group homes must be located in a residential setting. The site and neighborhood should be reasonably free from disturbing noises and reverberations, and other hazards to the health, safety, and general welfare of the residents, and should not be subject to serious adverse conditions, such as: - Dangerous walks or steps - Instability - Flooding, poor drainage - Septic tank back-ups, sewage hazards - Mud slides - Abnormal air pollution - Smoke or dust - Excessive noise - Vibrations or vehicular traffic - Excessive accumulations of trash - Vermin or rodent infestation, and - Fire hazards. The housing quality standards applicable to lead -based paint do not apply unless a child under the age of six is expected to reside in the unit. Page 15-9 Administrative Plan 7/l/2025 City Council 5 — 647 7/15/2025 EXHIBIT 1 PART IV: SHARED HOUSING [24 CFR 982.615 through 982.618; Form HUD-52641; Notice PIH 2O21-05; New HCV G13, Special Housing Types, p. 11] 15-IV.A. OVERVIEW Families in markets with tight rental conditions or with a prevalence of single-family housing may determine a shared housing living arrangement to be a useful way to secure affordable housing. PHAs offering shared housing as a housing solution may also experienced some reduction in the average per -unit -cost (PUC) paid on behalf of assisted families. Shared housing is a single housing unit occupied by an assisted family and another resident or residents. The unit may be a house or an apartment. The shared unit consists of both common space for use by the occupants of the unit and separate private space for each assisted family. An assisted family may share a unit with other persons assisted under the HCV program or with other unassisted persons. Shared housing may be offered in a number of ways, including for -profit co -living (such as a boarding house, single bedroom with common living room/kitchen/dining room) run by a private company [Notice PIH 2O21-05]. The owner of a shared housing unit may reside in the unit, but housing assistance may not be paid on behalf of the owner. The resident owner may not be related by blood or marriage to the assisted family. If approved by the PHA, a live-in aide may reside with the family to care for a person with disabilities. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. When shared housing is offered as a housing option, HUD encourages PHAs to consider ways in which the families may be assisted in finding shared housing, including for -profit shared housing matching (such as roommates or single-family homes) and online sites that charge a fee for their matching services, or nonprofit shared housing matching services. HUD further encourages PHAs to include information about this housing possibility in the family's voucher briefing. SAHA Policy SAHA will provide information to families regarding the shared housing option at briefing but will not provide any listings or information of housing matching services in the community. Families will be advised they can conduct their own internet search. Families will be cautioned to not enter into any rental agreement or pay any deposit or rental payment until the tenancy is approved by SAHA. This option is available to one -bedroom voucher holder only. Page 15-10 Administrative Plan 7/l/2025 City Council 5 — 648 7/15/2025 EXHIBIT 1 PHAs should be aware of potential local legal barriers to HCV participants using shared housing, which can create additional obstacles for shared housing: • Municipalities may have occupancy limits for the number of unrelated persons who may share a housing unit. Local zoning codes for single family housing may restrict occupancy in certain areas to households whose family members are related by blood. PHAs should work with local jurisdictions to find solutions that encourage affordable housing and are consistent with the Fair Housing Act, Title VI, and other federal, state, and local fair housing laws. PHAs should inform HUD if they encounter barriers to shared housing that may conflict with fair housing laws. SAHA Policy Although SAHA will not seek out solutions within the jurisdiction, the SAHA may inform HUD if the SAHA encounters barriers to shared housing that conflict with fair housing laws. When providing HCV assistance in shared housing, a separate lease and HAP contract are executed for each assisted family. The standard form of the HAP contract is used (Form HUD-52641) with the special housing type specified in Part A of the HAP contract, as follows: "This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Shared housing." Page 15-11 Administrative Plan 7/l/2025 City Council 5 — 649 7/15/2025 EXHIBIT 1 15-IV.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard for a family in shared housing is the lower of the payment standard for the family unit size (voucher size) or the pro rata share of the payment standard for the shared housing unit size. The pro rata share is calculated by dividing the number of bedrooms available for occupancy by the assisted family in the private, non -shared space by the total number of bedrooms in the unit. Example: Family holds a two -bedroom voucher. Shared housing unit size: bedrooms available to assisted family = 2 Total bedrooms in the unit: 3 2 Bedrooms for assisted family 3 Bedrooms in the unit .667 pro rata share 2 BR payment standard: $1200 3 BR payment standard: $1695 $1695 x .667 (pro rata share) _ $1131 $1131 is lower than the $1200 payment standard for the 2 BR family unit size $1131 is the payment standard used to calculate the HAP The HAP for a family in shared housing is the lower of the payment standard minus the TTP or the gross rent minus the TTP. The utility allowance for an assisted family living in shared housing is the pro rata share of the utility allowance for the shared housing unit. Example: A family holds a 2-bedroom voucher. The family decides to occupy 3 out of 4 bedrooms available in the unit. The utility allowance for a 4-bedroom unit equals $200 The utility allowance for a 2-bedroom unit equals $100 The pro rata share of the utility allowance is $150 (3/4 of $200) The PHA will use the 2-bedroom utility allowance of $100. The rents paid for families living in shared housing are subject to generally applicable standards for rent reasonableness. The rent paid to the owner for the assisted family must not exceed the pro rata portion of the reasonable rent for the shared unit. In determining reasonable rent, the PHA may consider whether sanitary and food preparation areas are private or shared. Page 15-12 Administrative Plan 7/l/2025 City Council 5 — 650 7/15/2025 EXHIBIT 1 15-IV.C. SHARED HOUSING: HOUSING QUALITY STANDARDS The PHA may not give approval to reside in shared housing unless the entire unit, including the portion of the unit available for use by the assisted family under its lease, meets the housing quality standards. Housing quality standards requirements described in Chapter 8 apply to shared housing except for the requirements stated below. • Facilities Available for the Family: Facilities available to the assisted family, whether shared or private, must include a living room, a bathroom, and food preparation and refuse disposal facilities. • Space and Security: The entire unit must provide adequate space and security for all assisted and unassisted residents. The private space for each assisted family must contain at least one bedroom for each two persons in the family. The number of bedrooms in the private space of an assisted family must not be less than the family unit size (voucher size). A zero -bedroom or one -bedroom unit may not be used for shared housing. Page 15-13 Administrative Plan 7/l/2025 City Council 5 — 651 7/15/2025 EXHIBIT 1 PART V: COOPERATIVE HOUSING [24 CFR 982.619; New HCV GB, Special Housing Types, p. 14] 15-V.A. OVERVIEW This part applies to rental assistance for a cooperative member residing in cooperative housing. It does not apply to assistance for a cooperative member who has purchased membership under the HCV homeownership option, or to rental assistance for a family that leases a cooperative housing unit from a cooperative member. A cooperative is a form of ownership (nonprofit corporation or association) in which the residents purchase memberships in the ownership entity. Rather than being charged "rent" a cooperative member is charged a "carrying charge." The monthly carrying charge includes the member's share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. It does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. The occupancy agreement or lease and other appropriate documents must provide that the monthly carrying charge is subject to Section 8 limitations on rent to owner, and the rent must be reasonable as compared to comparable unassisted units. When providing HCV assistance in cooperative housing, the standard form of the HAP contract is used with the special housing type specified in Part A of the HAP contract, as follows: "This HAP contract is used for the following special housing type under HUD regulations for the Section 8 voucher program: Cooperative housing." 15-V.B. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION The payment standard and utility allowance are determined according to regular HCV program requirements. The HAP for a cooperative housing unit is the lower of the payment standard minus the TTP or the gross rent (monthly carrying charge for the unit, plus any utility allowance) minus the TTP. The monthly carrying charge includes the member's share of the cooperative debt service, operating expenses, and necessary payments to cooperative reserve funds. The carrying charge does not include down payments or other payments to purchase the cooperative unit or to amortize a loan made to the family for this purpose. Page 15-14 Administrative Plan 7/l/2025 City Council 5 — 652 7/15/2025 EXHIBIT 1 15-V.C. COOPERATIVE: HOUSING QUALITY STANDARDS All housing quality standard requirements apply to cooperative housing units. There are no additional requirements. The PHA remedies described in 24 CFR 982.404 do not apply. Rather, if the unit and premises are not maintained in accordance with housing quality standards, the PHA may exercise all available remedies regardless of whether the family or cooperative is responsible for the breach of housing quality standards. No housing assistance payment can be made unless unit meets housing quality standards and the defect is corrected within the period as specified by the PHA and the PHA verifies correction (see Chapter 8). In addition to regular deficiencies, breaches of housing quality standards by the family include failure to perform any maintenance for which the family is responsible in accordance with the terms of the cooperative occupancy agreement [HCV GB]. Page 15-15 Administrative Plan 7/l/2025 City Council 5 — 653 7/15/2025 EXHIBIT 1 PART VI: MANUFACTURED HOMES [24 CFR 982.620 through 982.624; FR Notice 1/18/17; New HCV GB, Special Housing Types, p. 15;] 15-VI.A. OVERVIEW A manufactured home is a manufactured structure, transportable in one or more parts, that is built on a permanent chassis, and designed for use as a principal place of residence. HCV- assisted families may occupy manufactured homes in three different ways. (1) A family may choose to rent a manufactured home already installed on a space and the PHA must permit it. In this instance program rules are the same as when a family rents any other residential housing, except that there are special housing quality requirements as provided in 15-VI.D. below. (2) A family can purchase a manufactured home under the Housing Choice Voucher Homeownership program. (3) HUD also permits an otherwise eligible family that owns a manufactured home to rent a space for the manufactured home and receive HCV assistance with the rent for the space as well as certain other housing expenses. PHAs may, but are not required to, provide assistance for such families. 15-VI.B. SPECIAL REQUIREMENTS FOR MANUFACTURED HOME OWNERS WHO LEASE A SPACE Family Income In determining the annual income of families leasing manufactured home spaces, the value of the family's equity in the manufactured home in which the family resides is not counted as a family asset. Lease and HAP Contract There is a designated HAP Contract (Form HUD-52642) and designated Tenancy Addendum (Form HUD-52642-A) for this special housing type. Page 15-16 Administrative Plan 7/l/2025 City Council 5 — 654 7/15/2025 EXHIBIT 1 15-VI.C. PAYMENT STANDARD, UTILITY ALLOWANCE AND HAP CALCULATION Payment Standards The PHA payment standard for manufactured homes is determined in accordance with 24 CFR 982.505 and is the payment standard used for the PHA's HCV program. It is based on the applicable FMR for the area in which the manufactured home space is located. The payment standard for the family is the lower of the family unit size (voucher size) or the payment standard for the number of bedrooms in the manufactured home. Utility Allowance [24 CFR 982.6241 The PHA must establish utility allowances for manufactured home space rental. For the first 12 months of the initial lease term only, the allowance must include a reasonable amount for a utility hook-up charge if the family actually incurred a hook-up charge because of a move. This allowance will not be given to a family that leases in place. Utility allowances for manufactured home space must not include the costs of digging a well or installing a septic system. Space Rent [24 CFR 982.6221 Rent to owner for rental of a manufactured home space includes payment for maintenance and services that the owner must provide to the tenant under the lease for the space. Rent to owner does not include the costs of utilities and trash collection for the manufactured home. However, the owner may charge the family a separate fee for the cost of utilities or trash collection provided by the owner. Amortization Costs The monthly payment made by the family to amortize the cost of purchasing the manufactured home is the debt service established at the time of application to a lender for financing the purchase of the manufactured home if monthly payments are still being made. Any increase in debt service due to refinancing after purchase of the home may not be included in the amortization cost. Debt service for set-up charges incurred by a family may be included in the monthly amortization payments made by the family. In addition, set-up charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize the charges. Housing Assistance Payment [24 CFR 982.623(a)] The HAP for a manufactured home space under the housing choice voucher program is the lower of the payment standard minus the TTP or the family's eligible housing expenses minus the TTP. Page 15-17 Administrative Plan 7/l/2025 City Council 5 — 655 7/15/2025 EXHIBIT 1 Eligible Housing Expenses [24 CFR 982.623(b)] The family's eligible housing expenses are the total of: • The rent charged by the owner for the manufactured home space. • Charges for the maintenance and management the space owner must provide under the lease. • The monthly payments made by the family to amortize the cost of purchasing the manufactured home established at the time of application to a lender for financing the purchase of the manufactured home if monthly payments are still being made, including any required insurance and property taxes included in the loan payment to the lender. - Any increase in debt service or term due to refinancing after purchase of the home may not be included in the amortization cost. Debt service for installation charges incurred by a family may be included in the monthly amortization payments. Installation charges incurred before the family became an assisted family may be included in the amortization cost if monthly payments are still being made to amortize the charges. • The applicable allowances for tenant -paid utilities, as determined under 24 CFR 982.517 and 982.624. Rent Reasonableness [24 CFR 982.622(b)] During the assisted tenancy, the rent to owner for the manufactured home space may not exceed a reasonable rent. Initially, and at least annually thereafter, the PHA must determine that the rent for the manufactured home space is reasonable based on rents for comparable manufactured home spaces. The PHA must consider the location and size of the space, and any services and maintenance to be provided by the owner in accordance with the lease (without a fee in addition to rent). By accepting the monthly housing assistance payment, the owner of the manufactured home space certifies that the rent does not exceed rents charged by the owner for comparable unassisted spaces in the same manufactured home park or elsewhere. If requested by the PHA, the owner must give the PHA information on rents charged by the owner for other manufactured home spaces. Page 15-18 Administrative Plan 7/l/2025 City Council 5 — 656 7/15/2025 EXHIBIT 1 Distribution of HAP [24 CFR 982.623(c)] The PHA pays the owner of the space the lesser of the housing assistance payment or the portion of the monthly rent due to the owner. The portion of the monthly rent due to the owner is the total of: • The actual rent charged by the owner for the manufactured home space; and • Charges for the maintenance and management the space owner must provide under the lease. If the housing assistance payment exceeds the portion of the monthly rent due to the owner, the PHA may pay the balance of the housing assistance payment to the family. Alternatively, the PHA may pay the balance to the lender or utility company, in an amount no greater than the amount due for the month to each, respectively, subject to the lender's or utility company's willingness to accept the PHA's payment on behalf of the family. SAHA Policy If the housing assistance payment exceeds the portion of the monthly rent due to the owner, the SAHA will pay the balance to the family. Single HAP to Family [24 CFR 982.623.(d)] If the owner of the manufactured home space agrees, the PHA may make the entire housing assistance payment to the family, and the family is responsible for paying the owner directly for the full amount of rent of the manufactured home space due to the owner, including owner maintenance and management charges. SAHA Policy SAHA will not exercise the option to pay a single HAP and will pay HAP directly to the owner. 15-VI.D. MANUFACTURED HOMES: HOUSING QUALITY STANDARDS [24 CFR 982.6211 Under either type of occupancy described in 15-VI.A. above, the manufactured home must meet all housing quality standards performance requirements and acceptability criteria discussed in Chapter 8 of this plan. In addition, the following requirements apply: Performance Requirement: A manufactured home must be placed on the site in a stable manner and must be free from hazards such as sliding or wind damage. Acceptability Criteria: The home must be securely anchored by a tie -down device that distributes and transfers the loads imposed by the unit to appropriate ground anchors to resist overturning and sliding. Page 15-19 Administrative Plan 7/l/2025 City Council 5 — 657 7/15/2025 EXHIBIT 1 PART VII: HOMEOWNERSHIP [24 CFR 982.625 through 982.643] 15-VII.A. OVERVIEW [24 CFR 982.6251 The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family. A family assisted under this option may be newly admitted or an existing participant in the HCV program. The PHA must have the capacity to operate a successful HCV homeownership program as defined by the regulations. SAHA Policv SAHA has instituted a minimum homeowner down payment requirement of at least three percent of the purchase price and requires that at least one percent of the purchase price come from the family's personal resources. There are two forms of homeownership assistance described in the regulations: monthly homeownership assistance payments and single down payment assistance grants. However, PHAs may not offer down payment assistance until and unless funding is allocated by Congress. Since this has not yet happened, only monthly homeownership assistance may be offered. SAHA Policv SAHA will offer the monthly homeownership assistance payments to qualified families. The PHA may choose not to offer homeownership assistance. However, the PHA must offer homeownership assistance if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. It is the sole responsibility of the PHA to determine whether it is reasonable to implement a homeownership program as a reasonable accommodation. The PHA must determine what is reasonable based on the specific circumstances and individual needs of the person with a disability. The PHA may determine that it is not reasonable to offer homeownership assistance as a reasonable accommodation in cases where the PHA has otherwise opted not to implement a homeownership program. The PHA must approve a live-in aide if needed as a reasonable accommodation so that the program is readily accessible to and usable by persons with disabilities. Page 15-20 Administrative Plan 7/l/2025 City Council 5 — 658 7/15/2025 EXHIBIT 1 15-VII.B. FAMILY ELIGIBILITY [24 CFR 982.6271 If the PHA offers the homeownership option, participation by the family is optional. However, the family must meet all of the requirements listed below before the commencement of homeownership assistance. The PHA may also establish additional initial requirements as long as they are described in the PHA administrative plan. • The family must have been admitted to the Housing Choice Voucher program. • The family must qualify as a first-time, homeowner, or may be a cooperative member. The family must meet the Federal minimum income requirement. The family must have a gross annual income equal to the Federal minimum wage multiplied by 2000, based on the income of adult family members who will own the home. The PHA may establish a higher income standard for families. However, a family that meets the federal minimum income requirement (but not the PHA's requirement) will be considered to meet the minimum income requirement if it can demonstrate that it has been pre -qualified or pre -approved for financing that is sufficient to purchase an eligible unit. SAHA Policy SAHA will not establish a higher minimum income standard for disabled and/or non - disabled families. • For disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone, multiplied by 12. • For elderly or disabled families, welfare assistance payments for adult family members who will own the home will be included in determining whether the family meets the minimum income requirement. It will not be included for other families. • The family must satisfy the employment requirements by demonstrating that one or more adult members of the family who will own the home at commencement of homeownership assistance is currently employed on a full-time basis (the term full-time employment means not less than an average of 30 hours per week); and has been continuously so employed during the year before commencement of homeownership assistance for the family. SAHA Policy Families will be considered "continuously employed" if the break in employment does not exceed four months. SAHA will count self-employment in a business when determining whether the family meets the employment requirement. • The employment requirement does not apply to elderly and disabled families. In addition, if a family, other than an elderly or disabled family includes a person with disabilities, the PHA must grant an exemption from the employment requirement if the PHA determines that it is needed as a reasonable accommodation. • The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option. Page 15-21 Administrative Plan 7/l/2025 City Council 5 — 659 7/15/2025 EXHIBIT 1 Except for cooperative members who have acquired cooperative membership shares prior to commencement of homeownership assistance, no family member has a present ownership interest in a residence at the commencement of homeownership assistance for the purchase of any home. Except for cooperative members who have acquired cooperative membership shares prior to the commencement of homeownership assistance, the family has entered a contract of sale in accordance with 24 CFR 982.631(c). SAHA Policy SAHA will impose additional eligibility requirements. To be eligible to participate in the homeownership option, families must meet the following criteria: The family has had no family -caused violations of housing quality standards within the past year. The family is not within the initial one-year period of a HAP Contract. The family owes no money to the PHA. The family has not committed any serious or repeated violations of a PHA - assisted lease within the past year. The family must complete classes pertaining to money management and homeownership and provide verification of completion. SAHA may also require additional training or classes that will assist the family in successful homeownership. Page 15-22 Administrative Plan 7/l/2025 City Council 5 — 660 7/15/2025 EXHIBIT 1 15-VII.C. SELECTION OF FAMILIES [24 CFR 982.6261 Unless otherwise provided (under the homeownership option), the PHA may limit homeownership assistance to families or purposes defined by the PHA and may prescribe additional requirements for commencement of homeownership assistance for a family. Any such limits or additional requirements must be described in the PHA administrative plan. If the PHA limits the number of families that may participate in the homeownership option, the PHA must establish a system by which to select families to participate. SAHA Policy SAHA does not limit the number of families that may participate in the homeownership option. Page 15-23 Administrative Plan 7/l/2025 City Council 5 — 661 7/15/2025 EXHIBIT 1 15-VII.D. ELIGIBLE UNITS [24 CFR 982.6281 In order for a unit to be eligible, the PHA must determine that the unit satisfies all of the following requirements: • The unit must meet HUD's "eligible housing" requirements. The unit may not be any of the following: - A public housing or Indian housing unit; - A unit receiving Section 8 project -based assistance; - A nursing home, board and care home, or facility providing continual psychiatric, medical or nursing services; - A college or other school dormitory; - On the grounds of penal, reformatory, medical, mental, or similar public or private institutions. • The unit must be a one -unit property or a single dwelling unit in a cooperative or condominium. • The unit must have been inspected by the PHA and by an independent inspector designated by the family. • The unit must meet housing quality standards (see Chapter 8). • For a unit where the family will not own fee title to the real property (such as a manufactured home), the home must have a permanent foundation and the family must have the right to occupy the site for at least 40 years. Page 15-24 Administrative Plan 7/l/2025 City Council 5 — 662 7/15/2025 EXHIBIT 1 Families may enter into contracts of sale for units not yet under construction. However, the PHA will not commence homeownership assistance for the family for that unit until: 1. Either the responsible entity completes the environmental review as required by 24 CFR part 58 and HUD approved the environmental certification and request for release of funds prior to commencement of construction or HUD performed an environmental review under 24 CFR part 50 and notified the PHA in writing of environmental approval of the site prior to construction commencement; and 2. Construction of the unit has been completed and the unit has passed the required inspection and independent inspection as addressed elsewhere in this chapter. For PHA -owned units (as defined in 24 CFR 982.4), all of the following conditions must be satisfied: - The PHA informs the family, both orally and in writing, that the family has the right to purchase any eligible unit and a PHA -owned unit is freely selected by the family without PHA pressure or steering; - The unit is not ineligible housing; - The PHA obtains the services of an independent entity (as defined in 24 CFR 982.4) to inspect the unit, review the independent inspection report, review the contract of sale, determine the reasonableness of the sales price and any PHA provided financing. All of these actions must be completed in accordance with program requirements. The PHA must not approve the unit if the PHA has been informed that the seller is debarred, suspended, or subject to a limited denial of participation. Page 15-25 Administrative Plan 7/l/2025 City Council 5 — 663 7/15/2025 EXHIBIT 1 15-VII.E. ADDITIONAL PHA REQUIREMENTS FOR SEARCH AND PURCHASE [24 CFR 982.6291 It is the family's responsibility to find a home that meets the criteria for voucher homeownership assistance. The PHA may establish the maximum time that will be allowed for a family to locate and purchase a home and may require the family to report on their progress in finding and purchasing a home. If the family is unable to purchase a home within the maximum time established by the PHA, the PHA may issue the family a voucher to lease a unit or place the family's name on the waiting list for a voucher. SAHA Policy The family will be allowed 120 days to identify a unit and submit a sales contract to SAHA for review. The family will be allowed an additional 120 days to close on the home. SAHA may grant extensions to either of these periods for good cause. The length of the extension(s) will be determined on a case -by -case. The maximum amount of time a family will be given to locate and complete the purchase of a home under the homeownership option is 365 days. During these periods, the family will continue to receive HCV rental assistance in accordance with any active lease and HAP contract until the family vacates the rental unit for its purchased home. All requests for extensions must be submitted in writing to the PHA prior to the expiration of the period for which the extension is being requested. The PHA will approve or disapprove the extension request within 14 calendar days. The family will be notified of SAHA's decision in writing. The family will be required to report their progress on locating and purchasing a home to the PHA every 30 days until the home is purchased. If the family cannot complete the purchase of a unit within the maximum required time frame, and is not receiving rental assistance under a HAP contract at the time the search and purchase time period expires, the family will be issued a voucher to lease a unit. Page 15-26 Administrative Plan 7/l/2025 City Council 5 — 664 7/15/2025 EXHIBIT 1 15-VII.F. HOMEOWNERSHIP COUNSELING [24 CFR 982.6301 Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre -assistance homeownership and housing counseling program required by the PHA. HUD suggests the following topics for the PHA -required pre -assistance counseling: • Home maintenance (including care of the grounds); • Budgeting and money management; • Credit counseling; • How to negotiate the purchase price of a home; • How to obtain homeownership financing and loan pre -approvals, including a description of types of financing that may be available, and the pros and cons of different types of financing; • How to find a home, including information about homeownership opportunities, schools, and transportation in the PHA jurisdiction; • Advantages of purchasing a home in an area that does not have a high concentration of low- income families and how to locate homes in such areas; • Information on fair housing, including fair housing lending and local fair housing enforcement agencies; and • Information about the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) (RESPA), state and Federal truth -in -lending laws, and how to identify and avoid loans with oppressive terms and conditions. The PHA may adapt the subjects covered in pre -assistance counseling (as listed) to local circumstances and the needs of individual families. The PHA may also offer additional counseling after commencement of homeownership assistance (ongoing counseling). If the PHA offers a program of ongoing counseling for participants in the homeownership option, the PHA shall have discretion to determine whether the family is required to participate in the ongoing counseling. Any homeownership counseling provided to families in connection with this section must be conducted by a HUD certified housing counselor working for an agency approved to participate in HUD's Housing Counseling Program. SAHA Policy Families will not be required to participate in ongoing counseling after commencement of homeownership assistance. Page 15-27 Administrative Plan 7/l/2025 City Council 5 — 665 7/15/2025 EXHIBIT 1 15-VII.G. HOME INSPECTIONS, CONTRACT OF SALE, AND PHA DISAPPROVAL OF SELLER [24 CFR 982.6311 Home Inspections The PHA may not commence monthly homeownership assistance payments for a family until the PHA has inspected the unit and has determined that the unit meets housing quality standards. SAHA Policv When the family locates a home they wish to purchase and submits a copy of their purchase offer/contract, SAHA will conduct an inspection within 14 calendar days. Any items found not to meet housing quality standards must be repaired before the unit can be determined eligible for the homeownership program. An independent professional inspector selected by and paid for by the family must also inspect the unit. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components. The PHA may not require the family to use an independent inspector selected by the PHA. The independent inspector may not be a PHA employee or contractor, or other person under control of the PHA. However, the PHA may establish standards for qualification of inspectors selected by families under the homeownership option. SAHA Policv The family must hire an independent professional inspector, whose report must be submitted to SAHA for review. This inspector must be a member of the American Society of Home Inspectors (ASHI) or other recognized professional society, or a licensed engineer. The inspector cannot be a SAHA employee or contractor. The PHA may disapprove a unit for assistance based on information in the independent inspector's report, even if the unit was found to comply with housing quality standards. SAHA Policy SAHA will review the professional report in a timely fashion and, based on the presence of major physical problems, may disapprove the purchase of the home. If SAHA disapproves the purchase of a home, the family will be notified in writing of the reasons for the disapproval. While the family is receiving homeownership assistance, SAHA will conduct an inspection every other year. Page 15-28 Administrative Plan 7/l/2025 City Council 5 — 666 7/15/2025 EXHIBIT 1 Contract of Sale Before commencement of monthly homeownership assistance payments, a member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give the PHA a copy of the contract of sale. The contract of sale must: • Specify the price and other terms of sale by the seller to the purchaser; • Provide that the purchaser will arrange for a pre -purchase inspection of the dwelling unit by an independent inspector selected by the purchaser; • Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser; • Provide that the purchaser is not obligated to pay for any necessary repairs; and • Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under 24 CFR part 24. • A contract for the sale of a unit not yet under construction must meet all above requirements, and requirements below. Commencement of construction in violation of the below requirements voids the purchase contract. The purchaser is not obligated to purchase the unit unless an environmental review has been performed and the site received environmental approval prior to commencement of construction in accordance with 24 CFR 982.628; and The construction will not commence until the environmental review has been completed and the seller has received written notice from the PHA that environmental approval has been obtained. Environmental approval may be conditioned on the contracting parties' agreement to modification to the unit design or to mitigation actions. Disapproval of a Seller In its administrative discretion, the PHA may deny approval of a seller for the same reasons a PHA may disapprove an owner under the regular HCV program [see 24 CFR 982.306(c)]. Page 15-29 Administrative Plan 7/l/2025 City Council 5 — 667 7/15/2025 EXHIBIT 1 15-VII.H. FINANCING [24 CFR 982.6321 The PHA may establish requirements for financing purchase of a home under the homeownership option. This may include requirements concerning qualification of lenders, terms of financing, restrictions concerning debt secured by the home, lender qualifications, loan terms, and affordability of the debt. The PHA must establish policies describing these requirements in the administrative plan. A PHA may not require that families acquire financing from one or more specified lenders, thereby restricting the family's ability to secure favorable financing terms. SAHA Policy As a check against predatory lending, SAHA will review the financing of each purchase transaction, including estimated closing costs. SAHA will review the loans for features, such as balloon payments, adjustable -rate mortgages, and unusually high interest rates, all of which are prohibited. SAHA also will not approve "seller financing" or "owner -held" mortgages. Beyond these basic criteria, SAHA will rely on the lenders to determine that the loan will be affordable to program participants. The mortgage the family applies for must require a minimum down payment of at least three percent of the sales price with one percent of the down payment coming from the purchaser's personal funds. SAHA will not require that the family have any more than the minimum of one percent of their own money in the transaction. However, in cases where a lender is requiring a larger amount, the family may be held to the underwriting guidelines set by their lending institution. SAHA will approve a family's request to utilize its Family Self -Sufficiency escrow account after final disbursement for down payment and/or closing costs when purchasing a unit under the HCV homeownership option. Page 15-30 Administrative Plan 7/l/2025 City Council 5 — 668 7/15/2025 EXHIBIT 1 15-VII.I. CONTINUED ASSISTANCE REQUIREMENTS; FAMILY OBLIGATIONS [24 CFR 982.6331 Homeownership assistance may only be paid while the family is residing in the home. If the family moves out of the home, the PHA may not continue homeownership assistance after the month when the family moves out. The family or lender is not required to refund to the PHA the homeownership assistance for the month when the family moves out. Before commencement of homeownership assistance, the family must execute a statement of family obligations in the form prescribed by HUD [Form HUD-52649]. In the statement, the family agrees to comply with all family obligations under the homeownership option. The family must comply with the following obligations: • The family must comply with the terms of the mortgage securing debt incurred to purchase the home, or any refinancing of such debt. • The family may not convey or transfer ownership of the home, except for purposes of financing, refinancing, or pending settlement of the estate of a deceased family member. Use and occupancy of the home are subject to 24 CFR 982.551 (h) and (i). • The family must supply information to the PHA or HUD as specified in 24 CFR 982.551(b). The family must further supply any information required by the PHA or HUD concerning mortgage financing or refinancing, sale or transfer of any interest in the home, or homeownership expenses. • The family must notify the PHA before moving out of the home. • The family must notify the PHA if the family defaults on the mortgage used to purchase the home. • The family must provide the PHA with information on any satisfaction or payment of the mortgage debt. • No family member may have any ownership interest in any other residential property. • The family must comply with the obligations of a participant family described in 24 CFR 982.551, except for the following provisions which do not apply to assistance under the homeownership option: 24 CFR 982.551(c), (d), (e), (f), (g) and 0). SAHA Policy Any inspection the PHA conducts after the initial inspection will be done on an advisory basis. The family will be encouraged to make the repairs but will not be required to do so as a condition of ongoing assistance. Page 15-31 Administrative Plan 7/l/2025 City Council 5 — 669 7/15/2025 EXHIBIT 1 15-VII.J. MAXIMUM TERM OF HOMEOWNER ASSISTANCE 124 CFR 982.6341 Except in the case of a family that qualifies as an elderly or disabled family, other family members (described below) shall not receive homeownership assistance for more than: Fifteen years, if the initial mortgage incurred to finance purchase of the home has a term of 20 years or longer; or • Ten years, in all other cases. The maximum term described above applies to any member of the family who: Has an ownership interest in the unit during the time that homeownership payments are made; or • Is the spouse of any member of the household who has an ownership interest in the unit during the time homeownership payments are made. In the case of an elderly family, the exception only applies if the family qualifies as an elderly family at the start of homeownership assistance. In the case of a disabled family, the exception applies if at any time during receipt of homeownership assistance the family qualifies as a disabled family. If, during the course of homeownership assistance, the family ceases to qualify as a disabled or elderly family, the maximum term becomes applicable from the date homeownership assistance commenced. However, such a family must be provided at least 6 months of homeownership assistance after the maximum term becomes applicable (provided the family is otherwise eligible to receive homeownership assistance). If the family has received such assistance for different homes, or from different PHAs, the total of such assistance terms is subject to the maximum term described in this part. Page 15-32 Administrative Plan 7/l/2025 City Council 5 — 670 7/15/2025 EXHIBIT 1 15-VII.K. HOMEOWNERSHIP ASSISTANCE PAYMENTS AND HOMEOWNERSHIP EXPENSES [24 CFR 982.6351 The monthly homeownership assistance payment is the lower of. the voucher payment standard minus the total tenant payment, or the monthly homeownership expenses minus the total tenant payment. The payment standard amount may not be lower than what the payment standard amount was at commencement of homeownership assistance. In determining the amount of the homeownership assistance payment, the PHA will use the same payment standard schedule, payment standard amounts, and subsidy standards as those described elsewhere in this plan for the Housing Choice Voucher program. The payment standard for a family is the greater of (i) The payment standard as determined at the commencement of homeownership assistance for occupancy of the home, or (ii) the payment standard at the most recent regular reexamination of family income and composition since the commencement of homeownership assistance for occupancy of the home. The PHA must adopt policies for determining the amount of homeownership expenses to be allowed by the PHA in accordance with HUD requirements. Homeownership expenses (not including cooperatives) may only include amounts allowed by the PHA to cover: • Principal and interest on initial mortgage debt, any refinancing of such debt, and any mortgage insurance premium incurred to finance purchase of the home; • Real estate taxes and public assessments on the home; • Home insurance; • The PHA allowance for maintenance expenses; • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; • Principal and interest on mortgage debt incurred to finance costs for major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person; • Land lease payments where a family does not own fee title to the real property on which the home is located [see 24 CFR 982.628(b)]; For a condominium unit, condominium operating charges or maintenance fees assessed by the condominium homeowner association. Page 15-33 Administrative Plan 7/l/2025 City Council 5 — 671 7/15/2025 EXHIBIT 1 Homeownership expenses for a cooperative member may only include amounts allowed by the PHA to cover: • The cooperative charge under the cooperative occupancy agreement including payment for real estate taxes and public assessments on the home; • Principal and interest on initial debt incurred to finance purchase of cooperative membership shares and any refinancing of such debt; • Home insurance; • The PHA allowance for maintenance expenses; • The PHA allowance for costs of major repairs and replacements; • The PHA utility allowance for the home; and • Principal and interest on debt incurred to finance major repairs, replacements or improvements for the home. If a member of the family is a person with disabilities, such debt may include debt incurred by the family to finance costs needed to make the home accessible for such person, if the PHA determines that allowance of such costs as homeownership expenses is needed as a reasonable accommodation so that the homeownership option is readily accessible to and usable by such person. • Cooperative operating charges or maintenance fees assessed by the cooperative homeowner association. SAHA Policy SAHA will use the following amounts for homeownership expenses: Monthly homeownership payment. This includes principal and interest on initial mortgage debt, taxes and insurance, public assessments, and any mortgage insurance premium, if applicable. Utility allowance. SAHA's utility allowance for the unit, based on the current HCV utility allowance schedule. Monthly maintenance/major repair/replacement allowance. A single monthly maintenance/repair/replacement allowance will be provided at $120 per month. Monthly co-op/condominium assessments. If applicable, the monthly amount of co-op or condominium association operation and maintenance assessments. Monthly principal and interest on debt for improvements. Principal and interest for major home repair, replacements, or improvements, if applicable. Land lease payments. Land lease payments where a family does not own fee title to the real property on which the home is located. Page 15-34 Administrative Plan 7/l/2025 City Council 5 — 672 7/15/2025 EXHIBIT 1 The PHA may pay the homeownership assistance payments directly to the family, or at the PHA's discretion, to a lender on behalf of the family. If the assistance payment exceeds the amount due to the lender, the PHA must pay the excess directly to the family. SAHA Policy SAHA will only pay housing assistance directly to the lender. SAHA will not make housing assistance payments directly to the family. If the assistance payment exceeds the amount due to the lender, SAHA will pay the excess directly to the family. 15-VII.L. PORTABILITY [24 CFR 982.636, 982.637, 982.353(b) and (c), 982.552, 982.5531 Subject to the restrictions on portability included in HUD regulations and PHA policies, a family may exercise portability if the receiving PHA is administering a voucher homeownership program and accepting new homeownership families. The receiving PHA may absorb the family into its voucher program or bill the initial PHA. The family must attend the briefing and counseling sessions required by the receiving PHA. The receiving PHA will determine whether the financing for, and the physical condition of the unit, are acceptable. The receiving PHA must promptly notify the initial PHA if the family has purchased an eligible unit under the program, or if the family is unable to purchase a home within the maximum time established by the PHA. Page 15-35 Administrative Plan 7/l/2025 City Council 5 — 673 7/15/2025 EXHIBIT 1 15-VII.M. MOVING WITH CONTINUED ASSISTANCE [24 CFR 982.6371 A family receiving homeownership assistance may move with continued tenant -based assistance or with voucher homeownership assistance. The PHA must determine that all initial requirements have been satisfied if a family that has received homeownership assistance wants to move with continued homeownership assistance. However, the following do not apply: • The requirement that a family must be a first-time homeowner is not applicable. • The requirement for pre -assistance counseling is not applicable. However, the PHA may require that the family complete additional counseling (before or after moving to a new unit with continued homeownership assistance). Continued tenant -based assistance for a new unit cannot begin so long as any family member holds title to the prior home. However, when the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the move is needed to protect the health or safety of the family or family member (or any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move), such family or family member may be assisted with continued tenant -based assistance even if they own any title or other interest in the prior home. The PHA may deny permission to move to a new unit with continued voucher assistance: • If the PHA has insufficient funding to provide continued assistance. • In accordance with 24 CFR 982.638, regarding denial or termination of assistance. • In accordance with the PHA's policy regarding number of moves within a 12-month period. The PHA must deny the family permission to move to a new unit with continued voucher rental assistance i£ • The family defaulted on an FHA -insured mortgage; and • The family fails to demonstrate that the family has conveyed, or will convey, title to the home, as required by HUD, to HUD or HUD's designee; and • The family has moved, or will move, from the home within the period established or approved by HUD. SAHA Policy For families participating in the homeownership option, requests to move will be approved and/or denied in accordance with SAHA policies in Chapter 10. SAHA will not require additional counseling of any families who move with continued assistance. Page 15-36 Administrative Plan 7/l/2025 City Council 5 — 674 7/15/2025 EXHIBIT 1 15-VII.N. DENIAL OR TERMINATION OF ASSISTANCE [24 CFR 982.6381 At any time, the PHA may deny or terminate homeownership assistance in accordance with HCV program requirements in 24 CFR 982.552 (Grounds for denial or termination of assistance) or 24 CFR 982.553 (Crime by family members). The PHA may also deny or terminate assistance for violation of participant obligations described in 24 CFR Parts 982.551 or 982.633 and in accordance with its own policy, with the exception of failure to meet obligations under the Family Self -Sufficiency program as prohibited under the alternative requirements set forth in FR Notice 12/29/14. Homeownership assistance for a family automatically terminates 180 calendar days after the last homeownership assistance payment on behalf of the family. However, a PHA may grant relief from this requirement in those cases where automatic termination would result in extreme hardship for the family. SAHA Policy SAHA will not grant relief, under any circumstances, from the requirement to automatically terminate homeownership assistance 180 calendar days after the PHA makes the last housing assistance payment on behalf of the family. The PHA must terminate voucher homeownership assistance for any member of family receiving homeownership assistance that is dispossessed from the home pursuant to a judgment or order of foreclosure on any mortgage (whether FHA insured or non -FHA) securing debt incurred to purchase the home, or any refinancing of such debt. SAHA Policy SAHA will terminate a family's homeownership assistance if the family violates any of the homeowner obligations listed in Section 1, as well as for any of the reasons listed in Section 2 of Form HUD-52649, Statement of Homeowner Obligations Housing Choice Homeownership Voucher Program. In making its decision to terminate homeownership assistance, SAHA will consider alternatives as described in Section 12-II.0 and other factors described in Section 12- II.D. Upon consideration of such alternatives and factors, SAHA may, on a case -by -case basis, choose not to terminate assistance. Termination notices will be sent in accordance with the requirements and policies set forth in Section 12-II.F. Page 15-37 Administrative Plan 7/l/2025 City Council 5 — 675 7/15/2025 EXHIBIT 1 Chapter 16 PROGRAM ADMINISTRATION INTRODUCTION This chapter discusses administrative policies and practices that are relevant to the activities covered in this plan. The policies are discussed in seven parts as described below: Part I: Administrative Fee Reserve. This part describes the PHA's policies with regard to oversight of expenditures from its administrative fee reserve. Part II: Setting Program Standards and Schedules. This part describes what payment standards are, and how they are updated, as well as how utility allowances are established and revised. Part III: Informal Reviews and Hearings. This part outlines the requirements and procedures for informal reviews and hearings, and for informal hearings regarding citizenship status. Part IV: Owner or Family Debts to the PHA. This part describes policies for recovery of monies that the PHA has overpaid on behalf of families, or to owners, and describes the circumstances under which the PHA will offer repayment agreements to owners and families. Also discussed are the consequences for failure to make payments in accordance with a repayment agreement. Part V: Section 8 Management Assessment Program (SEMAPI. This part describes what the SEMAP scores represent, how they are established, and how those scores affect a PHA. Part VI: Record -Keeping. All aspects of the program involve certain types of record - keeping. This part outlines the privacy rights of applicants and participants and record retention policies the PHA will follow. Part VII: Reporting and Record Keeping for Children with Elevated Blood Lead Level. This part describes the PHA's responsibilities for reporting, data collection, and record keeping relative to children with elevated blood lead levels that are less than six years of age, and are receiving HCV assistance. Part VIII: Determination of Insufficient Funding. This part describes the PHA's policies for determining if there is sufficient funding to issue vouchers, to approve moves to higher cost units or areas, and to continue assistance for all participant families. Part IX: Violence against Women Act (VAWA): Notification, Documentation, Confidentiality. This part contains key terms used in VAWA and describes requirements related to notifying families and owners about their rights and responsibilities under VAWA; requesting documentation from victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking; and maintaining the confidentiality of information obtained from victims. ftgv 025 City Council il — 676 5 2 25 EXHIBIT 1 PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.1551 The PHA will maintain administrative fee reserves, or unrestricted net position (UNP) for the program to pay program administrative expenses in excess of administrative fees paid by HUD for a PHA fiscal year. HUD appropriations acts beginning with FFY 2004 have specified that administrative fee funding may be used only for activities related to the provision of HCV assistance, including related development activities. Notice PIH 2O12-9 cites two examples of related development activities: unit modification for accessibility purposes and development of project -based voucher units. The notice makes clear that other activities may also qualify as related development activities. Administrative fees that remain in the UNP account from funding provided prior to 2004 may be used for "other housing purposes permitted by state and local law," in accordance with 24 CFR 982.155(b)(1). In addition, as specified in Notice PIH 2O22-18, PHAs may use administrative fee funding for both administrative and "other expenses" needed to employ strategies and undertake activities beyond regular administrative responsibilities to facilitate the successful leasing and use of housing choice vouchers by families, such as through the use of security deposit assistance and landlord recruitment and incentive payments, among other allowable expenses specified in the notice. PHAs are also permitted to use UNP for these expenses [Notice PIH 2O22-18]. If a PHA has not adequately administered its HCV program, HUD may prohibit use of funds in the UNP Account and may direct the PHA to use funds in that account to improve administration of the program, for HCV HAP expenses, or to reimburse ineligible expenses in accordance with the regulation at 24 CFR 982.155(b)(3). HUD requires the PHA Board of Commissioners or other authorized officials to establish the maximum amount that may be charged against the UNP account without specific approval. SAHA Policy Expenditures from the UNP account will be made in accordance with all applicable federal requirements. Expenditures will not exceed $50,000 per occurrence without the prior approval of the Housing Authority of the City of Santa Ana (Santa Ana City Council). ftgv 025 City Council i — 677 5 2 25 EXHIBIT 1 PART II: SETTING PROGRAM STANDARDS AND SCHEDULES 16-II.A. OVERVIEW Although many of the program's requirements are established centrally by HUD, the HCV program's regulations recognize that some flexibility is required to allow the PHA to adapt the program to local conditions. This part discusses how the PHA establishes and updates certain schedules and standards that are used to administer the program locally. Details about how these schedules are applied to individual families are provided in other chapters. The schedules and standards discussed here include: • Payment Standards, which dictate the maximum subsidy a family can receive (application of the payment standards is discussed in Chapter 6); and • Utility Allowances, which specify how a family's payment should be adjusted to account for tenant -paid utilities (application of utility allowances is discussed in Chapter 6). SAHA Policy Copies of the payment standard and utility allowance schedules are available for review in the SAHA's offices during normal business hours and on SAHA's website. Families, owners, and members of the public may submit written comments on the schedules discussed in this part, at any time, for consideration during the next revision cycle. SAHA will maintain documentation to support its annual review of payment standards and utility allowance schedules. This documentation will be retained for at least three years. 16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7; and Notice PIH 2O24-34] The payment standard sets the maximum subsidy payment a family can receive from the PHA each month [24 CFR 982.505(a)]. Payment standards are based on fair market rents (FMRs) published annually by HUD. FMRs are set at a percentile within the rent distribution of standard quality rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th percentile of gross rents in the market area. In the HCV program, the FMR may be established at the ZIP code level, metropolitan market area level, or nonmetropolitan county level. Within each FMR area, the applicable FMR is the HUD -published: • Small Area FMR (SAFMR); - For any metropolitan area designated as an SAFMR area; or - Anywhere a PHA has notified HUD it will voluntarily use SAFMRs; • Metropolitan FMR for any other metropolitan area; or • FMR for any other non -metropolitan county. ftgv 025 City Council — 678 5 2 25 EXHIBIT 1 The PHA must establish a payment standard schedule that establishes payment standard amounts for each FMR area within the PHA's jurisdiction and for each unit size within each of the FMR areas. In many cases a single FMR area will cover the PHA's entire jurisdiction. Some PHAs' jurisdictions include more than one FMR area. The PHA's established payment standards within the payment standard area always must be within the basic range of the applicable FMR area, or any HUD -approved exception payment standard. Program regulations and this policy refer to the "applicable FMR." The "applicable FMR" is the HUD -published SAFMR for PHAs in mandatory SAFMR areas or for those PHAs that have opted -in to using the SAFMR, both of which are discussed below. Small Area FMR PHAs (Mandatory and Opt -In) [Notice PIH 2O18-01; Notice PIH 2O23-32; Notice PIH 2O24-34; and Implementing Small Area Fair Market Rents (SAFMR) Guidebook] SAFMRs are FMRs calculated at the ZIP Code level, rather than for an entire metropolitan or non -metropolitan county. HUD identifies which metropolitan areas are required to use SAFMRs based on significant voucher concentration challenges and market conditions. PHAs administering the HCV program in those areas are required to use the SAFMRs when establishing payment standards (mandatory SAFMR PHAs). Mandatory SAFMR PHAs must use the SAFMR for any part of their jurisdiction located in the SAFMR area. Upon notification to HUD, PHAs not located in mandatory SAFMR areas may opt -in and voluntarily adopt SAFMRs for one or more of the FMR areas in which the PHA administers vouchers (opt -in PHAs). A PHA that exercises this option in one metropolitan area or non - metropolitan county is not required to exercise this option in other metropolitan areas or non - metropolitan counties. A PHA that opts in to SAFMRs may subsequently opt out through revision of the administrative plan and notification to HUD. Alternatively, PHAs may elect to use SAFMRs only as the basis for exception payment standards in some or all of those non -mandatory SAFMR areas that cover or are within their jurisdictions. These PHAs are not considered opt -in PHAs. When applicable, SAFMRs apply to all tenant -based vouchers in the PHA's jurisdiction, including special vouchers such as the Veterans Affairs Supportive Housing (VASH) program, the Family Unification Program (FUP), and special housing types such as Single Room Occupancies (SROs) and homeownership vouchers. SAFMRs do not apply to manufactured home space rental. SAHA Policy SAHA is not a mandatory SAFMR PHA. SAHA will not voluntarily adopt the use of SAFMRs except to establish exception payment standards in certain ZIP code areas. ftgv 025 City Council — 679 5 2 25 EXHIBIT 1 The Basic Range [24 CFR 982.503(c) and Notice PIH 2O24-34] The PHA may establish a payment standard within the "basic range" established by HUD — between 90 and 110 percent of the published FMR for each unit size —without HUD approval or prior notification to HUD. For each payment standard area, the PHA must establish a payment standard amount for each unit size which may be based on the same percentage of the published FMR (for example, all units at 100 percent of FMR), or the PHA may set different payment standards for different unit sizes (for example, 1-bedrooms at 90 percent and 2-bedrooms at 100 percent of the FMR). Designated Payment Standard Areas [24 CFR 982.503(a)(3) and Notice PIH 2O24-341 The PHA may establish designated payment standard areas within each FMR area where the PHA establishes different payment standards, provided each area is no smaller than a census tract block group. If the PHA designates payment standard areas, then it must include the criteria used to determine the designated areas and the payment standard amounts for those areas in the administrative plan. SAHA Policv SAHA has not established any designated payment standard areas. Exception Payment Standards [24 CFR 982.503(d), Notice PIH 2O18-01, Notice PIH 2O24-34, and FR Notice 9/27/211 There are several options available to increase payment standards above the basic range. These are known as exception payment standards, which are payment standards that exceed 110 percent of the published FMR. The following are types of exception payment standards: • Payment standards based on SAFMRs in ZIP codes where the SAFMR is higher than the applicable metropolitan or non -metropolitan county FMR • Payment standards greater than 110 percent up to 120 percent of the applicable FMR • Payment standards over 120 percent of the applicable FMR • Payment standards up to 120 percent of the FMR for Veterans Affairs Supportive Housing (HUD-VASH) • Payment standards necessary as a reasonable accommodation Payment Standards based on SAFMRs in ZIP codes where the SAFMR is Higher than the FMR: Upon notification to HUD, a PHA that is not located in a SAFMR area or that has not opted to voluntarily adopt SAFMRs may establish an exception payment standard for a ZIP code area that exceeds the basic range for the metropolitan area or county FMR of up to and including 110 percent of the SAFMR for that ZIP code area. If an exception area crosses one or more FMR boundaries, then the maximum exception payment standard amount that a PHA may adopt for the area without HUD approval is 110 percent of the ZIP code area with the lowest SAFMR amount. A PHA that adopts an exception payment standard pursuant to this authority must apply it to the entire ZIP code area. ftgv 025 City Council — 680 PHI5 2 25 EXHIBIT 1 Payment Standards Greater than 110 Percent Up to 120 Percent: Upon notification to HUD, a PHA may establish exception payment standards between 110 percent and 120 percent of the applicable FMR if the PHA meets one of the following criteria: • Success rate: Fewer than 75 percent of families to which the PHA has issued tenant -based vouchers during the most recent 12-month period for which there is success rate data available have become participants on the program; or Rent burden: More than 40 percent of families with tenant -based assistance pay more than 30 percent of their adjusted income as their family share. The PHA may revert back to the basic range at any time without notification to HUD. PHAs may combine exception payment standards based on the SAFMR and exception payment standards greater than 110 and up to 120 percent. Other Exception Payment Standards: PHAs may request HUD approval to establish exception payment standards up to 120 percent of the FMR when the above criteria do not apply or in order to establish exception payment standards that exceed 120 percent of the FMR. Requests may be made for an entire FMR area or a designated part of the FMR area. Exception Payment Standards for VASH: In addition, HUD allows PHAs to establish a HUD - Veterans Affairs Supportive Housing (HUD-VASH) exception payment standard. PHAs may go up to but no higher than 120 percent of the FMR or SAFMR specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent must still request a waiver from HUD (See Section 19-III.E.). Once exception payment standards are adopted, the PHA may use the exception payment standard for all units, or for only units of a particular size. The exception payment standard may be established for a designated part of the FMR area (called an "exception area") or for the entire FMR area. Exception areas are typically county, city, town, ZIP code, or census tract areas. However, so long as the exception area is no smaller than census tract block group, the PHA may determine the area for the exception area. SAHA Policy SAHA may establish exception payment standards for Special Purpose Vouchers. ftgv 025 City Council — 681 5 2 25 EXHIBIT 1 Reasonable Accommodation [24 CFR 982.503(d)(5), 24 CFR 982.505(d), Notice PIH 2O24-34, and Notice PIH 2O10-261 Unit -by -unit exceptions to the PHA's payment standards generally are not permitted. However, an exception may be made on a case -by -case basis as a reasonable accommodation for a family that includes a person with disabilities. (See Chapter 2 for a discussion of reasonable accommodations.) This type of exception does not affect the PHA's payment standard schedule. If required as a reasonable accommodation, the PHA may make an exception to the payment standard without HUD approval if the exception amount does not exceed 120 percent of the applicable FMR/SAFMR for the unit size (or in the case of VASH, up to 140 percent of the FMR/SAFMR). The PHA may request HUD approval for an exception to the payment standard for a particular family if the required amount exceeds 120 percent of the FMR/SAFMR. SAHA Policy A family that requires a reasonable accommodation may request a higher payment standard at the time the Request for Tenancy Approval (RTA) is submitted. The family must document the need for the exception. In order to approve an exception, or request an exception from HUD, SAHA must determine that: There is a shortage of affordable units that would be appropriate for the family; The family share would otherwise exceed 40 percent of adjusted monthly income; and The rent for the unit is reasonable. Payment Standard below the Basic Range [24 CFR 982.503(e) and Notice PIH 2O24-34] The PHA must request HUD approval to establish a payment standard amount that is lower than the basic range. At HUD's sole discretion, HUD may approve establishment of a payment standard lower than the basic range. HUD will consider rent burden on families assisted under the program. Updating Payment Standards [24 CFR 982.503(c)(3) and Notice PIH 2O23-241 HUD publishes FMRs in the Federal Register and also makes them available on the HUD website with an effective date of October 1. When HUD updates FMRs, the PHA must revise its payment standard amounts and schedule no later than three months following the effective date of the published FMR if revisions are necessary to stay within the basic range. HUD may require the PHA to make further adjustments if it determines that rent burdens for assisted families in the PHA's jurisdiction are unacceptably high [24 CFR 982.503(h)]. PHAs must include a copy of the payment standard schedule in the voucher briefing materials, and HUD strongly encourages PHAs to post their payment standard schedule on their website. ftgv 025 City Council — 682 PHI5 2 25 EXHIBIT 1 SAHA Policy SAHA will review the appropriateness of the payment standards on an annual basis when the new FMR is published, and at other times as determined necessary. In addition to ensuring the payment standards are always within the "basic range," SAHA will consider the following factors when determining whether an adjustment should be made to the payment standard schedule: Funding Availability: SAHA will review projected HAP expenditures to determine the impact projected subsidy adjustments will have on funding available for the program and the number of families served. SAHA will compare the number of families who could be served under revised payment standard amounts with the number assisted under current payment standard amounts. Rent Burden of Participating Families: Rent burden will be determined by identifying the percentage of families, for each unit size, that are paying more than 30 percent of their monthly adjusted income as the family share. When 40 percent or more of families, for any given unit size, are paying more than 30 percent of adjusted monthly income as the family share, SAHA will consider increasing the payment standard. In evaluating rent burdens, SAHA will not include families renting a larger unit than their family unit size. Quality of Units Selected: SAHA may review the quality of units selected by participant families when making the determination of the percent of income families are paying for housing, to ensure that payment standard increases are only made when needed to reach the mid -range of the market. Changes in Rent to Owner: SAHA may review a sample of the units to determine how often owners are increasing or decreasing rents and the average percent of increases and decreases by bedroom size. Unit Availability: SAHA may review the availability of units for each unit size, particularly in areas with low concentrations of poor and minority families. Lease -up Time and Success Rate: SAHA may consider the percentage of families that are unable to locate suitable housing before the voucher expires and whether families are leaving the jurisdiction to find affordable housing. Effective dates of changes to payment standard amounts will be determined at the time of update. SAHA will always ensure the payment standards will be within the basic range. SAHA will post its payment standards schedule on SAHA's website and include a copy in the voucher briefing materials. ftgv 025 City Council — 683 PHI5 2 25 EXHIBIT 1 16-II.C. UTILITY ALLOWANCES [24 CFR 982.5171 A PHA -established utility allowance schedule is used in determining family share and PHA subsidy. The PHA must maintain a utility allowance schedule for (1) all tenant -paid utilities, (2) the cost of tenant -supplied refrigerators and ranges, and (3) other tenant -paid housing services such as trash collection. The PHA must maintain an area -wide utility allowance schedule. The utility allowance schedule must be determined based on the typical cost of utilities and services paid by energy -conservative households that occupy housing of similar size and type in the same locality. In developing the schedule, the PHA must use normal patterns of consumption for the community as a whole, and current utility rates. The utility allowance must include the utilities and services that are necessary in the locality to provide housing that complies with housing quality standards. Costs for telephone, cable/satellite television, and internet services are not included in the utility allowance schedule. In the utility allowance schedule, the PHA must classify utilities and other housing services according to the following general categories: space heating; air conditioning; cooking; water heating; water; sewer; trash collection; other electric; cost of tenant -supplied refrigerator; cost of tenant -supplied range; applicable surcharges; and other specified housing services. The cost of each utility and housing service must be stated separately by unit size and type. Chapter 18 of the HCV Guidebook provides detailed guidance to the PHA about establishing utility allowance schedules. The PHA must state its policy for utility allowance payments in the administrative plan and apply it consistently to all households. The PHA must provide a copy of the utility allowance schedule to HUD. Energy Efficient Utility Allowance [24 CFR 982.517(b)(2)(ii)] In addition to the area -wide utility allowance standard, the PHA may maintain an area -wide, energy efficient utility allowance schedule to be used for units that are in a building that meets Leadership in Energy and Environmental Design (LEED) or Energy Star standards. SAHA Policy SAHA may maintain an energy efficient utility allowance schedule. Air Conditioning [24 CFR 982.517(b)(1)(iii)] The PHA must provide a utility allowance for air-conditioning when the majority of housing units in the market provide central air-conditioning or are wired for tenant -installed air conditioners. SAHA Policy SAHA has included an allowance for air-conditioning in its schedule. Central air- conditioning or a portable air conditioner must be present in a unit before SAHA will apply this allowance to a family's rent and subsidy calculations. Pdgv 025 City Council — 684 PHI5 2 25 EXHIBIT 1 Reasonable Accommodation and Individual Relief Upon request from a family that includes a person with disabilities, the PHA must approve a utility allowance which is higher than the applicable amount on the utility allowance schedule if a higher utility allowance is needed as a reasonable accommodation to make the program accessible and usable by the family member with a disability [24 CFR 982.517(e)]. See Chapter 2 for policies regarding the request and approval of reasonable accommodations. Further, the PHA may grant requests for relief from charges in excess of the utility allowance on reasonable grounds, such as special needs of the elderly, ill, or residents with disabilities, or special factors not within control of the resident, as the PHA deems appropriate. The family must request the higher allowance and provide the PHA with an explanation of the need for the individual relief and information about the amount of additional allowance required [see HCV GB, p. 18-8]. PHAs should develop criteria for granting individual relief and to notify residents about the availability of individual relief, and also to notify participants about the availability of individual relief programs (sometimes referred to as "Medical Baseline discounts") offered by the local utility company. Policies for granting exception utility allowances can be found in Section 6- III.D. of this plan. Utility Allowance Revisions The PHA must review its schedule of utility allowances each year and must revise the schedule if there has been a change of 10 percent or more in any utility rate since the last time the allowance for that utility was revised [24 CFR 982.517(c)(1)]. The PHA must maintain information supporting its annual review of utility allowance and any revisions made in its utility allowance schedule. ftgc - — 025 City Council 685 5 2 25 EXHIBIT 1 PART III: INFORMAL REVIEWS AND HEARINGS 16-III.A. OVERVIEW Both applicants and participants have the right to disagree with, and appeal, certain decisions of the PHA that may adversely affect them. PHA decisions that may be appealed by applicants and participants are discussed in this section. The process for applicant appeals of PHA decisions is called the "informal review." For participants (or applicants denied admission because of citizenship issues), the appeal process is called an "informal hearing." PHAs are required to include informal review procedures for applicants and informal hearing procedures for participants in their administrative plans [24 CFR 982.54(d)(12) and (13)]. 16-III.B. INFORMAL REVIEWS Informal reviews are provided for program applicants. An applicant is someone who has applied for admission to the program but is not yet a participant in the program. Informal reviews are intended to provide a "minimum hearing requirement" [24 CFR 982.554] and need not be as elaborate as the informal hearing requirements [Federal Register 60, no. 127 (3 July 1995): 34690]. Decisions Subject to Informal Review [24 CFR 982.554(a) and (c)] The PHA must give an applicant the opportunity for an informal review of a decision denying assistance [24 CFR 982.554(a)]. Denial of assistance may include any or all of the following [24 CFR 982.552(a)(2)]: • Denying listing on the PHA waiting list • Denying or withdrawing a voucher • Refusing to enter into a HAP contract or approve a lease • Refusing to process or provide assistance under portability procedures Informal reviews are not required for the following reasons [24 CFR 982.554(c)]: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • A determination of the family unit size under the PHA subsidy standards • A PHA determination not to approve an extension of a voucher term • A PHA determination not to grant approval of the tenancy • A PHA determination that the unit is not in compliance with the housing quality standards • A PHA determination that the unit does not meet space standards ftgc - 025 City Council — 686 5 2 25 EXHIBIT 1 SAHA Policv SAHA will only offer an informal review to applicants for whom assistance is being denied. Denial of assistance includes denying listing on SAHA waiting list; denying or withdrawing a voucher; refusing to enter into a HAP contract or approve a lease; refusing to process or provide assistance under portability procedures. Notice to the Applicant [24 CFR 982.554(a)] The PHA must give an applicant prompt notice of a decision denying assistance. The notice must contain a brief statement of the reasons for the PHA decision and must also state that the applicant may request an informal review of the decision. The notice must describe how to obtain the informal review. Scheduling an Informal Review SAHA Policv A request for an informal review must be made in writing and delivered to SAHA either in person, email, fax or by first class mail, by the close of the business day, no later than 14 calendar days from the date of SAHA's denial of assistance. SAHA must schedule and send written notice of the informal review within 14 calendar days of the family's request. If the informal review will be conducted remotely, at the time SAHA notifies the family of the informal review, the family will be informed: Regarding the processes to conduct a remote informal review; That, if needed, SAHA will provide technical assistance prior to and during the informal review; and That if the family or any individual witness has any technological, resource, or accessibility barriers preventing them from fully accessing the remote informal review, the family may inform SAHA and SAHA will assist the family in either resolving the issues or allow the family to participate in an in -person informal review, as appropriate. Informal Review Procedures [24 CFR 982.554(b)] The informal review must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. The applicant must be provided an opportunity to present written or oral objections to the decision of the PHA. ftgv - 025 City Council — 687 5 2 25 EXHIBIT 1 Remote Informal Reviews [Notice PIH 2O20-321 There is no requirement that informal reviews be conducted in -person and, as such, HUD allows PHAs to conduct all or a portion of their informal review remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal reviews, applicants may still request an in -person informal review, as applicable. SAHA Policy SAHA has the sole discretion to require that informal reviews be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, SAHA will conduct an informal review remotely upon request of the applicant as a reasonable accommodation for a person with a disability, if an applicant does not have childcare or transportation that would enable them to attend the informal review, or if the applicant believes an in -person informal review would create an undue health risk. SAHA will consider other reasonable requests for a remote informal review on a case -by -case basis. Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in -person informal reviews, the platform for conducting remote informal reviews must be accessible to persons with disabilities and the informal review must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings. PHAs are required to make reasonable accommodations in policies, practices, and procedures to ensure persons with disabilities have a full and equal opportunity to participate in and benefit from all aspects of the informal review process. See Chapter 2 for a more detailed discussion of reasonable accommodation requirements. If no method of conducting a remote informal review is available that appropriately accommodates an individual's disability, the PHA may not hold against the individual their inability to participate in the remote informal review, and the PHA should consider whether postponing the remote informal review to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation, will depend on the specific circumstances and requirements. As with in -person reviews, Limited English Proficiency (LEP) requirements also apply to remote informal reviews, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal reviews. - Pl 025 City Council — 688 5 2 25 EXHIBIT 1 Conducting Remote Informal Reviews The PHA must ensure that the lack of technology or inability to use technology for remote informal reviews does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal review and, if the family does not have the proper technology to fully participate, either postpone the informal review or provide an alternative means of access. As with in -person informal reviews, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal review. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA must ensure that the applicant has the right to hear and be heard. All PHA policies and processes for remote informal reviews must be conducted in accordance with due process requirements and be in compliance with HUD regulations at 24 CFR 982.554 and guidance specified in Notice PIH 2O20-32. SAHA Policy SAHA will conduct remote informal reviews via a video conferencing platform, when available. If, after attempting to resolve any barriers, applicants are unable to adequately access the video conferencing platform at any point, or upon applicant request, the informal review will be conducted by telephone conferencing call -in. If the family is unable to adequately access the telephone conferencing call -in at any point, the remote informal review will be postponed, and an in -person alternative will be provided promptly within a reasonable time. At least five business days prior to the scheduled remote review, SAHA will provide the family with login information and/or conferencing call -in information and an electronic and/or physical copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the informal review and request the family notify SAHA of any known barriers. SAHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2O20-32, including offering the family the opportunity to attend an in -person informal review. If the informal review is to be conducted remotely, SAHA will require the family to provide any documents directly relevant to the informal review at least 24 hours before the scheduled review through the mail, via email, in person or fax. SAHA will scan and email copies of these documents to SAHA representative the same day. Documents will be shared electronically whenever possible. SAHA will follow up the email with a phone call and/or email to the applicant at least one business day prior to the remote informal review to ensure that the applicant received all information and is comfortable accessing the video conferencing or call -in platform. SAHA will ensure that all electronic information stored or transmitted with respect to the informal review is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. Pag - 025 City Council — 689 5 2 25 EXHIBIT 1 Informal Review Decision [24 CFR 982.554(b)] The PHA must notify the applicant of the PHA's final decision, including a brief statement of the reasons for the final decision. SAHA Policy In rendering a decision, SAHA will evaluate the following matters: Whether or not the grounds for denial were stated factually in the notice to the family. The validity of the grounds for denial of assistance. If the grounds for denial are not specified in the regulations, then the decision to deny assistance will be overturned. The validity of the evidence. SAHA will evaluate whether the facts presented prove the grounds for denial of assistance. If the facts prove that there are grounds for denial, and the denial is required by HUD, SAHA will uphold the decision to deny assistance. If the facts prove the grounds for denial, and the denial is discretionary, SAHA will consider the recommendation of the person conducting the informal review in making the final decision whether to deny assistance. SAHA will notify the applicant of the final decision, including a statement explaining the reason(s) for the decision. The notice will be mailed within 14 calendar days of the informal review, to the applicant and their representative, if any, along with proof of mailing. If the decision to deny is overturned as a result of the informal review, processing for admission will resume. If the family fails to appear for their informal review, the denial of admission will stand and the family will be so notified. Pdgc - 025 City Council — 690 5 2 25 EXHIBIT 1 16-III.C. INFORMAL HEARINGS FOR PARTICIPANTS [24 CFR 982.5551 PHAs must offer an informal hearing for certain PHA determinations relating to the individual circumstances of a participant family. A participant is defined as a family that has been admitted to the PHA's HCV program and is currently assisted in the program. The purpose of the informal hearing is to consider whether the PHA's decisions related to the family's circumstances are in accordance with the law, HUD regulations and PHA policies. The PHA is not permitted to terminate a family's assistance until the time allowed for the family to request an informal hearing has elapsed, and any requested hearing has been completed. Termination of assistance for a participant may include any or all of the following: • Refusing to enter into a HAP contract or approve a lease • Terminating housing assistance payments under an outstanding HAP contract • Refusing to process or provide assistance under portability procedures Decisions Subject to Informal Hearing Circumstances for which the PHA must give a participant family an opportunity for an informal hearing are as follows: • A determination of the family's annual or adjusted income, and the use of such income to compute the housing assistance payment • A determination of the appropriate utility allowance (if any) for tenant -paid utilities from the PHA utility allowance schedule • A determination of the family unit size under the PHA's subsidy standards • A determination to terminate assistance for a participant family because of the family's actions or failure to act • A determination to terminate assistance because the participant has been absent from the assisted unit for longer than the maximum period permitted under PHA policy and HUD rules SAHA Policy SAHA will also give participant families an opportunity for an informal hearing for: Any denial of a request for a reasonable accommodation for a person with disabilities (see Chapter 2). Families participating in the Family Self -Sufficiency (FSS) program, when SAHA withholds the coordination of supportive services or terminates a family's participation in the FSS program because SAHA determines the FSS family has failed to comply without good cause with the requirements of the FSS Contract of Participation in accordance with the FSS Action Plan [24 CFR 984.303(i)]. ftgc - — 025 City Council 691 5 2 25 EXHIBIT 1 Circumstances for which an informal hearing is not required are as follows: • Discretionary administrative determinations by the PHA • General policy issues or class grievances • Establishment of the PHA schedule of utility allowances for families in the program • A PHA determination not to approve an extension of a voucher term • A PHA determination not to approve a unit or tenancy • A PHA determination that a unit selected by the applicant is not in compliance with housing quality standards • A PHA determination that the unit is not in accordance with space standards because of family size • A determination by the PHA to exercise or not to exercise any right or remedy against an owner under a HAP contract Remote Informal Hearings [Notice PIH 2O20-321 There is no requirement that informal hearings be conducted in -person, and as such, HUD allows PHAs to conduct all or a portion of their informal hearings remotely either over the phone, via video conferencing, or through other virtual platforms. If the PHA chooses to conduct remote informal hearings, applicants may still request an in -person informal hearing, as applicable. SAHA Policy SAHA has the sole discretion to require that informal hearings be conducted remotely in case of local, state, or national physical distancing orders, and in cases of inclement weather or natural disaster. In addition, SAHA will conduct an informal hearing remotely upon request as a reasonable accommodation for a person with a disability, if a participant does not have childcare or transportation that would enable them to attend the informal hearing, or if the participant believes an in -person hearing would create an undue health risk. SAHA will consider other reasonable requests for a remote informal hearing on a case -by -case basis. ftgc - 025 City Council — 692 5 2 25 EXHIBIT 1 Ensuring Accessibility for Persons with Disabilities and LEP Individuals As with in -person informal hearings, the platform for conducting remote informal hearings must be accessible to persons with disabilities and the informal hearings must be conducted in accordance with Section 504 and accessibility requirements. This includes ensuring any information, websites, emails, digital notifications, and other virtual platforms are accessible for persons with vision, hearing, and other disabilities. Further, providing effective communication in a digital context may require the use of individualized auxiliary aids or services, such as audio description, captioning, sign language and other types of interpreters, keyboard accessibility, accessible documents, screen reader support, and transcripts. Auxiliary aids or services must be provided in accessible formats, in a timely manner, and in such a way to protect the privacy and independence of the individual. PHAs may never request or require that individuals with disabilities provide their own auxiliary aids or services, including for remote informal hearings. PHAs are required to make reasonable accommodations in policies, practices, and procedures to ensure persons with disabilities have a full and equal opportunity to participate in and benefit from all aspects of the informal hearing process. See Chapter 2 for a more detailed discussion of reasonable accommodation requirements. If no method of conducting a remote informal hearing is available that appropriately accommodates an individual's disability, the PHA may not hold against the individual their inability to participate in the remote informal hearing, and the PHA should consider whether postponing the remote hearing to a later date is appropriate or whether there is a suitable alternative. Due to the individualized nature of disability, the appropriate auxiliary aid or service necessary, or reasonable accommodation will depend on the specific circumstances and requirements. As with in -person reviews, Limited English Proficiency (LEP) requirements also apply to remote informal hearings, including the use of interpretation services and document translation. See Chapter 2 for a more thorough discussion of accessibility and LEP requirements, all of which apply in the context of remote informal hearings. - Pl 025 City Council — 693 5 2 25 EXHIBIT 1 Conducting Informal Hearings Remotely The PHA must ensure that the lack of technology or inability to use technology for remote informal hearings does not pose a disadvantage to families that may not be apparent to the PHA. The PHA should determine through a survey or other means if these barriers exist prior to conducting the remote informal hearing and, if the family does not have the proper technology to fully participate, either postpone the informal hearing or provide an alternative means of access. As with in -person informal hearings, the PHA must provide all materials presented, whether paper or electronic, to the family prior to the remote informal hearing. The family must also be provided with an accessible means by which to transmit their own evidence. The PHA's essential responsibility is to ensure informal hearings meet the requirements of due process and comply with HUD regulations. Therefore, all PHA policies and processes for remote informal hearings will be conducted in accordance with due process requirements and will be in compliance with HUD regulations at 24 CFR 982.555 and the guidance for conducting remote hearings specified in Notice PIH 2O20-32. O: ■: 'I M SAHA will conduct remote informal hearings via a video conferencing platform, when available. If, after attempting to resolve any barriers, participants are unable to adequately access the video conferencing platform at any point, or upon request, the informal hearing will be conducted by telephone conferencing call -in. If the family is unable to adequately access the telephone conferencing call -in at any point, the remote informal hearing will be postponed, and an in -person alternative will be provided promptly within a reasonable time. At least five business days prior to the scheduled remote hearing, SAHA will provide the family with login information and/or conferencing call -in information and an electronic copy of all materials being presented via first class mail and/or email. The notice will advise the family of technological requirements for the hearing and request the family notify SAHA of any known barriers. SAHA will resolve any barriers using the guidance in Section 6 of Notice PIH 2O20-32, including offering the family the opportunity to attend an in -person hearing. SAHA will follow up with a phone call and/or email to the family at least one business day prior to the remote informal hearing to ensure that the family received all information and is comfortable accessing the video conferencing or call -in platform. SAHA will ensure that all electronic information stored or transmitted with respect to the informal hearing is secure, including protecting personally identifiable information (PII), and meets the requirements for accessibility for persons with disabilities and persons with LEP. Pagv - 025 City Council — 694 5 2 25 EXHIBIT 1 Informal Hearing Procedures Notice to the Family [24 CFR 982.555(c)] When the PHA makes a decision that is subject to informal hearing procedures, the PHA must inform the family of its right to an informal hearing at the same time that it informs the family of the decision. For decisions related to the family's annual or adjusted income, the determination of the appropriate utility allowance, and the determination of the family unit size, the PHA must notify the family that they may ask for an explanation of the basis of the determination, and that if they do not agree with the decision, they may request an informal hearing on the decision. For decisions related to the termination of the family's assistance, or the denial of a family's request for an exception to the PHA's subsidy standards, the notice must contain a brief statement of the reasons for the decision, a statement that if the family does not agree with the decision, the family may request an informal hearing on the decision, and a statement of the deadline for the family to request an informal hearing. SAHA Policv In cases where SAHA makes a decision for which an informal hearing must be offered, the notice to the family will include all of the following: The proposed action or decision of SAHA. A brief statement of the reasons for the decision, including the regulatory reference. The date the proposed action will take place. A statement of the family's right to an explanation of the basis for the SAHA's decision. A statement that if the family does not agree with the decision the family may request an informal hearing of the decision. A deadline for the family to request the informal hearing. To whom the hearing request should be addressed. A copy of SAHA's hearing procedures. That the family may request a remote informal hearing. ftgc 025 City Council — 695 5 2 25 EXHIBIT 1 Scheduling an Informal Hearing [24 CFR 982.555(d)] When an informal hearing is required, the PHA must proceed with the hearing in a reasonably expeditious manner upon the request of the family. SAHA Policy A request for an informal hearing must be made in writing and delivered to SAHA either in person, email, fax or by first class mail, by the close of the business day, no later than 14 calendar days from the date of the PHA's decision or notice to terminate assistance. SAHA must schedule and send written notice of the informal hearing to the family within 14 calendar days of the family's request. If SAHA hearing will be conducted remotely, at the time the notice is sent to the family, the family will be notified: Regarding the processes involved in a remote informal hearing; That SAHA will provide technical assistance prior to and during the informal hearing, if needed; and That if the family or any individual witness has any technological, resource, or accessibility barriers, the family may inform SAHA and SAHA will assist the family in either resolving the issue or allow the family to participate in an in - person hearing, as appropriate. The family may request to reschedule a hearing for good cause, or if it is needed as a reasonable accommodation for a person with disabilities. Good cause is defined as an unavoidable conflict which seriously affects the health, safety or welfare of the family. Requests to reschedule a hearing must be made orally or in writing prior to the hearing date. At its discretion, SAHA may request documentation of the "good cause" prior to rescheduling the hearing. If the family does not appear within 15 minutes of the scheduled time, and was unable to reschedule the hearing in advance due to the nature of the conflict, the family must contact SAHA within 24 hours of the scheduled hearing date, excluding weekends and holidays. SAHA will reschedule the hearing only if the family can show good cause for the failure to appear, or if it is needed as a reasonable accommodation for a person with disabilities. If the family cannot show good cause for the failure to appear, or a rescheduling is not needed as a reasonable accommodation, SAHA's decision will stand. Pag 025 City Council — 696 5 2 25 EXHIBIT 1 Pre -Hearing Right to Discovery [24 CFR 982.555(e)] Participants and the PHA are permitted pre -hearing discovery rights. The family must be given the opportunity to examine before the hearing any PHA documents that are directly relevant to the hearing. The family must be allowed to copy any such documents at their own expense. If the PHA does not make the document available for examination on request of the family, the PHA may not rely on the document at the hearing. For the purpose of informal hearings, documents include records and regulations. SAHA Policv The family will be allowed to copy any documents related to the hearing at cost to the family. The City of Santa Ana's current copy rate will be used. The family must request discovery of SAHA documents, three working days prior to the scheduled hearing date. Documents will be shared electronically whenever possible. SAHA hearing procedures may provide that SAHA must be given the opportunity to examine at SAHA offices before the hearing any family documents that are directly relevant to the hearing. SAHA must be allowed to copy any such document at the SAHA's expense. If the family does not make the document available for examination on request of SAHA, the family may not rely on the document at the hearing. SAHA Policv For in -person hearings, SAHA will not require pre -hearing discovery by SAHA of family documents directly relevant to the hearing. If the informal hearing is to be conducted remotely, SAHA will require the family to provide any documents directly relevant to the informal hearing at least three business days before the scheduled hearing through the mail, via email, fax or in person. SAHA will scan and email copies of these documents to the hearing officer and SAHA representative. Documents will be shared electronically whenever possible. Participant's Right to Bring Counsel [24 CFR 982.555(e)(3)] At its own expense, the family may be represented by a lawyer or other representative at the informal hearing. Informal Hearing Officer [24 CFR 982.555(e)(4)] Informal hearings will be conducted by a person or persons approved by the PHA, other than the person who made or approved the decision or a subordinate of the person who made or approved the decision. 025 City Council — 697 5 2 25 EXHIBIT 1 Attendance at the Informal Hearing SAHA Policv Hearings may be attended by a hearing officer and the following applicable persons: A SAHA representative(s) and any witnesses for SAHA The family may bring witnesses, legal, or other representation at the family's expense. SAHA must be notified if the family intends to have legal counsel, an advocate, or another party no later than three (3) business days before the hearing date. Conduct at Hearings The person who conducts the hearing may regulate the conduct of the hearing in accordance with the PHA's hearing procedures [24 CFR 982.555(4)(ii)]. SAHA Policv The hearing officer is responsible to manage the order of business and to ensure that hearings are conducted in a professional and businesslike manner. Attendees are expected to comply with all hearing procedures established by the hearing officer and guidelines for conduct. Any person demonstrating disruptive, abusive or otherwise inappropriate behavior will be excused from the hearing at the discretion of the hearing officer. 025 City Council — 698 5 2 25 EXHIBIT 1 Evidence [24 CFR 982.555(e)(5)] The PHA and the family must be given the opportunity to present evidence and question any witnesses. In general, all evidence is admissible at an informal hearing. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. SAHA Policy Any evidence to be considered by the hearing officer must be presented at the time of the hearing. There are four categories of evidence. Oral evidence: the testimony of witnesses Documentary evidence: a writing which is relevant to the case, for example, a letter written to SAHA. Writings include all forms of recorded communication or representation, including letters, words, pictures, sounds, videotapes or symbols or combinations thereof. Demonstrative evidence: Evidence created specifically for the hearing and presented as an illustrative aid to assist the hearing officer, such as a model, a chart or other diagram. Real evidence: A tangible item relating directly to the case. Hearsay Evidence is evidence based not on a witness' personal knowledge. In and of itself, hearsay evidence carries no weight when making a finding of fact. The hearing officer may include hearsay evidence when considering their decision if it is corroborated by other evidence. Even though hearsay evidence is generally admissible in a hearing, the hearing officer will not base a hearing decision on hearsay alone unless there is clear probative value and credibility of the evidence, and the party seeking the change has met the burden of proof. If either SAHA(or the family, if required in a remote hearing) fail to comply with the discovery requirements described above, the hearing officer will refuse to admit such evidence. Other than the failure of a party to comply with discovery, the hearing officer has the authority to overrule any objections to evidence. Procedures for Rehearing or Further Hearing SAHA Policy The hearing officer may ask the family for additional information and/or might adjourn the hearing in order to reconvene at a later date, before reaching a decision. If the family misses an appointment or deadline ordered by the hearing officer, the action of SAHA will take effect and another hearing will not be granted. 025 City Council — 699 5 2 25 EXHIBIT 1 Hearing Officer's Decision [24 CFR 982.555(e)(6)] The person who conducts the hearing must issue a written decision, stating briefly the reasons for the decision. Factual determinations relating to the individual circumstances of the family must be based on a preponderance of evidence presented at the hearing. SAHA Policy In rendering a decision, the hearing officer will consider the following matters: SAHA Notice to the Family: The hearing officer will determine if the reasons for SAHA's decision are factually stated in the Notice. Discovery: The hearing officer will determine if SAHA and the family were given the opportunity to examine any relevant documents in accordance with SAHA policy. SAHA Evidence to Support SAHA Decision: The evidence consists of the facts presented. Evidence is not conclusion and it is not argument. The hearing officer will evaluate the facts to determine if they support SAHA's conclusion. Validity of Grounds for Termination of Assistance (when applicable): The hearing officer will determine if the termination of assistance is for one of the grounds specified in the HUD regulations and SAHA policies. If the grounds for termination are not specified in the regulations or in compliance with SAHA policies, then the decision of SAHA will be overturned. The hearing officer will issue a written decision to the family and SAHA no later than 14 calendar days after the hearing. The report will contain the following information: Hearing information: Name of the participant; Date, time and place of the hearing; Name of the hearing officer; Name of the SAHA representative; and Name of family representative (if any). Background: A brief, impartial statement of the reason for the hearing. Summary of the Evidence: The hearing officer will summarize the testimony of each witness and identify any documents that a witness produced in support of their testimony and that are admitted into evidence. Findings of Fact: The hearing officer will include all findings of fact, based on a preponderance of the evidence. Preponderance of the evidence is defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not. Preponderance of the evidence may not be determined by the number of witnesses, but by the greater weight of all evidence. 025 City Council 16-r-- 700 5 2 25 EXHIBIT 1 Conclusions: The hearing officer will render a conclusion derived from the facts that were found to be true by a preponderance of the evidence. The conclusion will result in a determination of whether these facts uphold the PHA's decision. Order: The hearing report will include a statement of whether the PHA's decision is upheld or overturned. If it is overturned, the hearing officer will instruct the PHA to change the decision in accordance with the hearing officer's determination. In the case of termination of assistance, the hearing officer will instruct the PHA to restore the participant's program status. Issuance of Decision [24 CFR 982.555(e)(6)] A copy of the hearing order must be furnished promptly to the family. SAHA Policv The hearing officer will mail a "Notice of Hearing Decision" to SAHA and to the participant on the same day. This notice will be sent by first-class mail. The participant will be mailed the original "Notice of Hearing Decision" and a copy of the proof of mailing. A copy of the "Notice of Hearing Decision" will be maintained in SAHA's file. Effect of Final Decision [24 CFR 982.555(f)] The PHA is not bound by the decision of the hearing officer for matters in which the PHA is not required to provide an opportunity for a hearing, decisions that exceed the authority of the hearing officer, decisions that conflict with or contradict HUD regulations, requirements, or are otherwise contrary to federal, state, or local laws. If the PHA determines it is not bound by the hearing officer's decision in accordance with HUD regulations, the PHA must promptly notify the family of the determination and the reason for the determination. SAHA Policv The Executive Director has the authority to determine that SAHA is not bound by the decision of the hearing officer because SAHA was not required to provide a hearing, the decision exceeded the authority of the hearing officer, the decision conflicted with or contradicted HUD regulations, requirements, or the decision was otherwise contrary to federal, state, or local laws. In such a case, SAHA will mail a "Notice of Final Decision" to SAHA program director and the participant on the same day. The "Notice of Final Decision" will be sent by first- class mail. A copy of this notice will be maintained in SAHA's file. 025 City Council 16-r-7 701 5 2 25 EXHIBIT 1 16-III.D. HEARING AND APPEAL PROVISIONS FOR NONCITIZENS [24 CFR 5.514] Denial or termination of assistance based on immigration status is subject to special hearing and notice rules. Applicants who are denied assistance due to immigration status are entitled to an informal hearing, not an informal review. Assistance to a family may not be delayed, denied, or terminated on the basis of immigration status at any time prior to a decision under the United States Citizenship and Immigration Services (USCIS) appeal process. Assistance to a family may not be terminated or denied while the PHA hearing is pending, but assistance to an applicant may be delayed pending the completion of the informal hearing. A decision against a family member, issued in accordance with the USCIS appeal process or the PHA informal hearing process, does not preclude the family from exercising the right, that may otherwise be available, to seek redress directly through judicial procedures. Notice of Denial or Termination of Assistance [24 CFR 5.514(d)] The notice of denial or termination of assistance for noncitizens must advise the family: • That financial assistance will be denied or terminated and provide a brief explanation of the reasons for the proposed denial or termination of assistance. • The family may be eligible for proration of assistance. • In the case of a participant, the criteria and procedures for obtaining relief under the provisions for preservation of families [24 CFR 5.514 and 5.518]. • That the family has a right to request an appeal to the USCIS of the results of secondary verification of immigration status and to submit additional documentation or explanation in support of the appeal. • That the family has a right to request an informal hearing with the PHA either upon completion of the USCIS appeal or in lieu of the USCIS appeal. • For applicants, assistance may not be delayed until the conclusion of the USCIS appeal process, but assistance may be delayed during the period of the informal hearing process. 025 City Council — 702 5 2 25 EXHIBIT 1 USCIS Appeal Process [24 CFR 5.514(e)] When the PHA receives notification that the USCIS secondary verification failed to confirm eligible immigration status, the PHA must notify the family of the results of the USCIS verification. The family will have 30 days from the date of the notification to request an appeal of the USCIS results. The request for appeal must be made by the family in writing directly to the USCIS. The family must provide the PHA with a copy of the written request for appeal and the proof of mailing. SAHA Policv SAHA will notify the family in writing of the results of the USCIS secondary verification within 14 calendar days of receiving the results. The family must provide SAHA with a copy of the written request for appeal and proof of mailing within 14 calendar days of sending the request to the USCIS. The family must forward to the designated USCIS office any additional documentation or written explanation in support of the appeal. This material must include a copy of the USCIS document verification request (used to process the secondary request) or such other form specified by the USCIS, and a letter indicating that the family is requesting an appeal of the USCIS immigration status verification results. The USCIS will notify the family, with a copy to the PHA, of its decision. When the USCIS notifies the PHA of the decision, the PHA must notify the family of its right to request an informal hearing. SAHA Policv SAHA will send written notice to the family of its right to request an informal hearing within 14 calendar days of receiving notice of the USCIS decision regarding the family's immigration status. Informal Hearing Procedures for Applicants [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of denial, or within 30 days of receipt of the USCIS appeal decision. The informal hearing procedures for applicant families are described below. Informal Hearing Officer The PHA must provide an informal hearing before an impartial individual, other than a person who made or approved the decision under review, and other than a person who is a subordinate of the person who made or approved the decision. See Section 16-III.C. for a listing of positions that serve as informal hearing officers. 025 City Council — 703 5 2 25 EXHIBIT 1 Evidence The family must be provided the opportunity to examine and copy at the family's expense, at a reasonable time in advance of the hearing, any documents in the possession of the PHA pertaining to the family's eligibility status, or in the possession of the USCIS (as permitted by USCIS requirements), including any records and regulations that may be relevant to the hearing. SAHA Policv The family will be allowed to copy any additional documents that were not included in SAHA's hearing packet mailed to the family. The City of Santa Ana's current copy rate will be used. The family must request discovery of SAHA documents no later than three business days prior to the hearing. The family must be provided the opportunity to present evidence and arguments in support of eligible status. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings. The family must also be provided the opportunity to refute evidence relied upon by the PHA, and to confront and cross-examine all witnesses on whose testimony or information the PHA relies. Representation and Interpretive Services The family is entitled to be represented by an attorney or other designee, at the family's expense, and to have such person make statements on the family's behalf. The family is entitled to request an interpreter. Upon request, the PHA will provide competent interpretation services, free of charge. Recording of the Hearing The family is entitled to have the hearing recorded by audiotape. The PHA may, but is not required to provide a transcript of the hearing. SAHA Policv SAHA will not provide a transcript of an audio taped hearing. Hearing Decision The PHA must provide the family with a written final decision, based solely on the facts presented at the hearing, within 14 calendar days of the date of the informal hearing. The decision must state the basis for the decision. 025 City Council 161'— 704 5 2 25 EXHIBIT 1 Informal Hearing Procedures for Residents [24 CFR 5.514(f)] After notification of the USCIS decision on appeal, or in lieu of an appeal to the USCIS, the family may request that the PHA provide a hearing. The request for a hearing must be made either within 30 days of receipt of the PHA notice of termination, or within 30 days of receipt of the USCIS appeal decision. For the informal hearing procedures that apply to participant families whose assistance is being terminated based on immigration status, see Section 16-III.C. Retention of Documents [24 CFR 5.514(h)] The PHA must retain for a minimum of 5 years the following documents that may have been submitted to the PHA by the family, or provided to the PHA as part of the USCIS appeal or the PHA informal hearing process: • The application for assistance • The form completed by the family for income reexamination • Photocopies of any original documents, including original USCIS documents • The signed verification consent form • The USCIS verification results • The request for a USCIS appeal • The final USCIS determination • The request for an informal hearing • The final informal hearing decision 025 City Council — 705 5 2 25 EXHIBIT 1 PART IV: OWNER OR FAMILY DEBTS TO THE PHA 16-IV.A. OVERVIEW PHAs are required to include in the administrative plan, policies concerning repayment by a family of amounts owed to the PHA [24 CFR 982.54]. If the family breaches an agreement with the PHA to pay amounts owed to a PHA, or amounts paid to an owner by a PHA, the PHA, at its discretion, may offer a family the opportunity to enter an agreement to pay amounts owed to a PHA or amounts paid to an owner by a PHA. The PHA may prescribe the terms of the agreement [24 CFR 982.552(c)(1)(vii). This part describes the PHA's policies for recovery of monies owed to the PHA by families or owners. SAHA Policv When an action or inaction of an owner or participant results in the overpayment of housing assistance, SAHA holds the owner or participant liable to return any overpayments to SAHA. SAHA will enter into repayment agreements in accordance with the policies contained in this part as a means to recover overpayments. 16-IV.B. REPAYMENT POLICY Owner Debts to the PHA SAHA Policv Any amount due to SAHA by an owner must be repaid by the owner within 30 days of SAHA determination of the debt. If the owner fails to repay the debt within the required time frame and is entitled to future HAP payments, SAHA will reduce the future HAP payments by the amount owed until the debt is paid in full. If the owner is not entitled to future HAP payments SAHA may, in its sole discretion, offer to enter into a repayment agreement on terms prescribed by SAHA. If the owner refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, SAHA will ban the owner from future participation in the program and pursue other modes of collection. When an owner refuses to repay monies owed to SAHA, SAHA will utilize other available collection alternatives including, but not limited to, the following: Collection agencies Small claims court Civil lawsuit State income tax set-off program ftgc 025 City Council — 706 5 2 25 EXHIBIT 1 Family Debts to the PHA Families are required to reimburse the PHA if they were charged less rent than required because the family either underreported or failed to report income. PHAs are required to determine retroactive rent amounts as far back as the PHA has documentation of family unreported income [Notice PIH 2O18-18]. SAHA Policv Any amount owed to SAHA by an HCV family must be repaid by the family. If the family is unable to repay the debt within 30 days, SAHA will offer to enter into a repayment agreement in accordance with the policies below. Criminal Prosecution for Program Fraud/Abuse Local, state or federal criminal prosecution should be considered by the PHA in flagrant cases, if the abuse was committed over several years, the fraud and/or underpayments are substantial and the PHA documents that a family and/or owner willfully intended to misrepresent the truth [HUD OIG Integrity Bulletin, Summer 2015]. SAHA Policv SAHA will consult with the HUD Field Office and regional OIG Special Agent in Charge (SAC) to determine whether it will refer the matter to the state or local district attorney to pursue criminal fraud charges. Refusal to Enter into an Agreement If the family refuses to repay the debt, does not enter into a repayment agreement, or breaches a repayment agreement, the PHA must terminate assistance [Notice PIH 2O18-18]. SAHA Policv When a family refuses to repay monies owed to SAHA, in addition to termination of program assistance, SAHA may utilize other available collection alternatives including, but not limited to, the following: Collection agencies Small claims court Civil lawsuit State income tax set-off program Repayment Agreement [24 CFR 792.1031 The term repayment agreement refers to a formal written document signed by a tenant or owner and provided to the PHA in which a tenant or owner acknowledges a debt in a specific amount and agrees to repay the amount due at specific time periods. General Repayment Agreement Guidelines for Families 025 City Council — 707 5 2 25 EXHIBIT 1 Down Payment Requirement SAHA Policy Before executing a repayment agreement with a family, SAHA will generally require a down payment of 10 percent of the total amount owed. If the family can provide evidence satisfactory to SAHA that a down payment of 10 percent would impose an undue hardship, SAHA may, in its sole discretion, require a lesser percentage or waive the requirement. 025 City Council — 708 5 2 25 EXHIBIT 1 Payment Thresholds Notice PIH 2O18-18 recommends that the total amount that a family must pay each month —the family's monthly share of rent plus the monthly debt repayment amount —should not exceed 40 percent of the family's monthly adjusted income. However, a family may already be paying 40 per cent or more of its monthly adjusted income in rent. Moreover, Notice PIH 2O18-18 acknowledges that PHAs have the discretion to establish "thresholds and policies" for repayment agreements with families [24 CFR 982.552(c)(1)(vii)]. SAHA Policy SAHA has established the following thresholds for repayment of debts: The maximum amount for which SAHA will enter into a repayment agreement with a family is $5,000. Debts larger must be paid down prior to making payments on the repayment agreement. • The maximum length of time SAHA will enter into a repayment agreement with a family is 48 months. The minimum monthly payment amount for any repayment agreement is $10.00. Family has the right to submit a one-time written request to change the terms of the repayment agreement if they can provide evidence satisfactory to SAHA that the amount due would impose a financial hardship. However, the total debt owed cannot be reduced or the length of the repayment plan be extended. SAHA has the right to increase the monthly payment portion if SAHA determines the new monthly amount would not impose a financial hardship. Execution of the Agreement All repayment agreements must be in writing, dated, and signed by both the family and the PHA [Notice PIH 2O18-18]. SAHA Policy Any repayment agreement between SAHA and a family must be signed and dated by SAHA and by the head of household and spouse/cohead (if applicable). Due Dates SAHA Policy Payment due date is indicated on the monthly invoice 025 City Council — 709 5 2 25 EXHIBIT 1 Late or Missed Payments SAHA Policv If a payment is not received by the end of the business day on the date due, and prior approval for the missed payment has not been given by SAHA, SAHA will send the family a delinquency notice giving the family until the next scheduled payment to make the note current. If the payment is not received by the second and final due date, it will be considered a breach of the agreement and SAHA will proceed with proposed termination of assistance in accordance with the policies in Chapter 12. For families requesting to exercise portability, all debts owed to SAHA must be paid in full prior to SAHA approval of portability. No Offer of 'Repayment Agreement SAHA Policv SAHA will not enter into a repayment agreement with a family if the family has a current or past repayment agreement. Any amount that is owed by the family will need to be paid in full within 60 days of meeting with SAHA to sign acknowledgement of debt owed. Family may request an extension due to financial hardship for an additional 30- days. Repayment Agreement Terms All repayment agreements must be in writing, dated, signed by both the family and the PHA, include the total retroactive rent amount owed, any amount of lump sum payment made at time of execution, if applicable, and the monthly repayment amount. Notice PIH 2O18-18 requires certain provisions, at a minimum, be included in any repayment agreement involving amounts owed by a family because it underreported or failed to report income: • A reference to the items in the family briefing packet that state the family's obligation to provide true and complete information at every reexamination and the grounds on which the PHA may terminate assistance because of a family's action or failure to act • A statement clarifying that each month the family not only must pay to the PHA the monthly payment amount specified in the agreement but must also pay to the owner the family's monthly share of the rent to owner • A statement that the terms of the repayment agreement may be renegotiated if the family's income decreases or increases • A statement that late or missed payments constitute default of the repayment agreement and may result in termination of assistance 025 City Council — 710 5 2 25 EXHIBIT 1 PART V: SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) 16-V.A. OVERVIEW The Section 8 Management Assessment Program (SEMAP) is a tool that allows HUD to measure PHA performance in key areas to ensure program integrity and accountability. SEMAP scores translate into a rating for each PHA as high performing, standard, or troubled. Scores on individual SEMAP indicators, as well as overall SEMAP ratings, can affect the PHA in several ways. • High -performing PHAs can be given a competitive advantage under notices of funding availability [24 CFR 985.103]. • PHAs with deficiencies on one or more indicators are required to correct the deficiencies and report to HUD [24 CFR 985.106]. • PHAs with an overall rating of "troubled" are subject to additional HUD oversight, including on -site reviews by HUD staff, a requirement to develop a corrective action plan, and monitoring to ensure the successful implementation of the corrective action plan. In addition, PHAs that are designated "troubled" may not use any part of the administrative fee reserve for other housing purposes [24 CFR 985.107]. • HUD may determine that a PHA's failure to correct identified SEMAP deficiencies or to prepare and implement a corrective action plan required by HUD constitutes a default under the ACC [24 CFR 985.109]. 025 City Council — 711 5 2 25 EXHIBIT 1 16-V.B. SEMAP CERTIFICATION [24 CFR 985.1011 PHAs must submit the HUD -required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. PHAs with less than 250 voucher units are only required to be assessed every other PHA fiscal year. HUD will assess such PHAs annually if the PHA elects to have its performance assessed on an annual basis; or is designated as "troubled" [24 CFR 985.105]. Failure of a PHA to submit its SEMAP certification within the required time frame will result in an overall performance rating of "troubled." A PHA's SEMAP certification is subject to HUD verification by an on -site confirmatory review at any time. For small PHAs, HUD may conduct a remote confirmatory review. Upon receipt of the PHA's SEMAP certification, HUD will rate the PHA's performance under each SEMAP indicator in accordance with program requirements. HUD Verification Method Several of the SEMAP indicators are scored based on a review of a quality control sample selected for this purpose. The PHA or the Independent Auditor must select an unbiased sample that provides an adequate representation of the types of information to be assessed, in accordance with SEMAP requirements [24 CFR 985.2]. If the HUD verification method for the indicator relies on data in the Form-50058 module (formerly known as MTCS) in the PIH Information Center (PIC), and HUD determines that those data are insufficient to verify the PHA's certification on the indicator due to the PHA's failure to adequately report family data, HUD will assign a zero rating for the indicator [24 CFR 985.3]. 025 City Council — 712 5 2 25 EXHIBIT 1 16-V.C. SEMAP INDICATORS [24 CFR 985.3 and Form HUD-526481 The table below lists each of the SEMAP indicators, contains a description of each indicator, and explains the basis for points awarded under each indicator. A PHA that expends less than $300,000 in Federal awards and whose Section 8 programs are not audited by an independent auditor, is not to be rated under SEMAP indicators 1-7. SEMAP Indicators Indicator 1: Selection from the waiting list Maximum Score: 15 • This indicator shows whether the PHA has written policies in its administrative plan for selecting applicants from the waiting list and whether the PHA follows these policies when selecting applicants from the waiting list. • Points are based on the percent of families that are selected from the waiting list in accordance with the PHA's written policies, according to the PHA's quality control samples. Indicator 2: Rent reasonableness Maximum Score: 20 • This indicator shows whether the PHA has and implements a reasonable written method to determine and document for each unit leased that the rent to owner is reasonable based on current rents for comparable unassisted units at the required times. • Points are based on the percent of units for which the PHA follows its written method to determine reasonable rent and has documented its determination that the rent to owner is reasonable, according to the PHA's quality control sample. Indicator 3: Determination of adjusted income Maximum Score: 20 • This indicator measures whether the PHA verifies and correctly determines adjusted income for each assisted family, and where applicable, uses the appropriate utility allowances for the unit leased in determining the gross rent. • Points are based on the percent of files that are calculated and verified correctly, according to the PHA's quality control sample. Indicator 4: Utility allowance schedule Maximum Score: 5 • This indicator shows whether the PHA maintains an up-to-date utility allowance schedule. • Points are based on whether the PHA has reviewed the utility allowance schedule and adjusted it when required, according to the PHA's certification. 025 City Council — 713 5 2 25 EXHIBIT 1 Indicator 5: HQS quality control inspections Maximum Score: 5 • This indicator shows whether a PHA supervisor reinspects a sample of units under contract during the PHA fiscal year, which meets the minimum sample size requirements for quality control of HQS inspections. • Points are based on whether the required quality control reinspections were completed, according to the PHA's certification. Indicator 6: HQS enforcement Maximum Score: 10 • This indicator shows whether, following each inspection of a unit under contract where the unit fails to meet housing quality standards, any cited life -threatening deficiencies are corrected within 24 hours from the inspection and all other deficiencies are corrected within no more than 30 calendar days from the inspection or any PHA -approved extension. • Points are based on whether the PHA corrects all deficiencies in accordance with required time frames, according to the PHA's certification. Indicator 7: Expanding housing opportunities Maximum Points: 5 • Only applies to PHAs with jurisdiction in metropolitan FMR areas. • This indicator shows whether the PHA has adopted and implemented a written policy to encourage participation by owners of units located outside areas of poverty or minority concentration; informs voucher holders of the full range of areas where they may lease units both inside and outside the PHA's jurisdiction; and supplies a list of landlords or other parties who are willing to lease units or help families find units, including units outside areas of poverty or minority concentration. • Points are based on whether the PHA has adopted and implemented written policies in accordance with SEMAP requirements, according to the PHA's certification. Indicator 8: FMR limit and payment standards Maximum Points: 5 points • This indicator shows whether the PHA has adopted a payment standard schedule that establishes payment standard amounts by unit size for each FMR area in the PHA's jurisdiction, that are within the basic range of 90 to 110 percent of the published FMR. • Points are based on whether the PHA has appropriately adopted a payment standard schedule(s), according to the PHA's certification. Indicator 9: Annual reexaminations Maximum Points: 10 • This indicator shows whether the PHA completes a reexamination for each participating family at least every 12 months. • Points are based on the percent of reexaminations that are less than two months overdue, according to data from PIC. 025 City Council — 714 5 2 25 EXHIBIT 1 Indicator 10: Correct tenant rent calculations Maximum Points: 5 • This indicator shows whether the PHA correctly calculates the family's share of the rent to owner. • Points are based on the percent of correct calculations of family share of the rent, according to data from PIC. Indicator 11: Pre -contract inspections Maximum Points: 5 • This indicator shows whether newly leased units pass inspection on or before the effective date of the assisted lease and HAP contract. • Points are based on the percent of newly leased units that passed inspection on or before the effective date of the lease and HAP contract, according to data from PIC. Indicator 12: Annual inspections Maximum Points: 10 • This indicator shows whether the PHA inspects each unit under contract at least annually. • Points are based on the percent of annual inspections of units under contract that are more than 2 months overdue, according to data from PIC. Indicator 13: Lease -up Maximum Points: 20 points • This indicator shows whether the PHA enters HAP contracts for at least 98 percent of the number of the PHA's baseline voucher units in the ACC for the calendar year ending on or before the PHA's fiscal year, or whether the PHA has expended at least 98 percent of its allocated budget authority for the same calendar year. The PHA can receive 15 points if 95 to 97 percent of vouchers are leased or budget authority is utilized. • Points are based on utilization of vouchers and HAP expenditures as reported in the voucher management system (VMS) for the most recently completed calendar year. Indicator 14: Family self-sufficiency (FSS) enrollment and escrow account balances Maximum Points: 10 • Only applies to PHAs with mandatory FSS programs. • This indicator shows whether the PHA has enrolled families in the FSS program as required and measures the percent of current FSS participants that have had increases in earned income which resulted in escrow account balances. • Points are based on the percent of mandatory FSS slots that are filled and the percent of families with escrow account balances, according to data from PIC. - Pl 025 City Council — 715 5 2 25 EXHIBIT 1 Success Rate of Voucher Holders Maximum Points: 5 • Only applies to PHAs that have received approval to establish success rate payment standard amounts, and isn't effective until the second full PHA fiscal year following the date of HUD approval of success rate payment standard amounts. • This indicator shows whether voucher holders were successful in leasing units with voucher assistance. • Points are based on the percent of families that were issued vouchers, and that became participants in the voucher program. Deconcentration Bonus Indicator Maximum Points: 5 Submission of data for this indicator is mandatory for a PHA using one or more payment standard amount(s) that exceed(s) 100 percent of the published FMR set at the 501h percentile rent, starting with the second full PHA fiscal year following initial use of payment standard amounts based on the FMRs set at the 50th percentile. Additional points are available to PHAs that have jurisdiction in metropolitan FMR areas and that choose to submit the required data. Points are based on whether the data that is submitted meets the requirements for bonus ftgc - 025 City Council — 716 5 2 25 EXHIBIT 1 PART VI: RECORD KEEPING 16-VI.A. OVERVIEW The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. All such records must be made available to HUD or the Comptroller General of the United States upon request. In addition, the PHA must ensure that all applicant and participant files are maintained in a way that protects an individual's privacy rights. 16-VI.B. RECORD RETENTION [24 CFR 982.158; 24 CFR 908.1011 During the term of each assisted lease, and for at least three years thereafter, the PHA must keep: • A copy of the executed lease; • The HAP contract; and • The application from the family. In addition, the PHA must keep the following records for at least three years: • Records that provide income, racial, ethnic, gender, and disability status data on program applicants and participants; • An application from each ineligible family and notice that the applicant is not eligible; • HUD -required reports; • Unit inspection reports; • Lead -based paint records as required by 24 CFR 35, Subpart B. • Accounts and other records supporting PHA budget and financial statements for the program; • Records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract); and • Other records specified by HUD. The PHA must keep the last three years of the Form HUD-50058 and supporting documentation during the term of each assisted lease, and for a period of at least three years from the end of participation (EOP) date [24 CFR 908.101]. The PHA must maintain Enterprise Income Verification (EIV) system Income Reports in the tenant file for the duration of the tenancy but for a period not to exceed three years from the EOP date [Notice PIH 2O18-18]. ftgc - 025 City Council — 717 5 2 25 EXHIBIT 1 Notice PIH 2O14-20 requires PHAs to keep records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act or the equal access final rule. SAHA Policv SAHA will keep for at least three years records of all complaints, investigations, notices, and corrective actions related to violations of the Fair Housing Act, the equal access final rule, or VAWA. The PHA must keep confidential records of all emergency transfer requested by victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking under the PHA's Emergency Transfer Plan, as well as the outcomes of such requests, and retain the records for a period of three years [see 24 CFR 5.2002(e)(12)]. If an informal hearing to establish a family's citizenship status is held, longer retention requirements apply for some types of documents. For specific requirements, see Section 16- III.D., Retention of Documents. 16-VI.C. RECORDS MANAGEMENT PHAs must maintain applicant and participant files and information in accordance with the regulatory requirements described below. SAHA Policv All applicant and participant information will be kept in a secure location and access will be limited to authorized SAHA staff. SAHA staff will not discuss personal family information unless there is a business reason to do so. Inappropriate discussion of family information or improper disclosure of family information by staff will result in disciplinary action. Privacy Act Requirements [24 CFR 5.212 and Form-9886-A] The collection, maintenance, use, and dissemination of social security numbers (SSN), employer identification numbers (EIN), any information derived from these numbers, and income information of applicants and participants must be conducted, to the extent applicable, in compliance with the Privacy Act of 1974, and all other provisions of Federal, State, and local law. Applicants and participants, including all adults in the household, are required to sign a consent form, HUD-9886-A, Authorization for Release of Information. This form incorporates the Federal Privacy Act Statement and describes how the information collected using the form may be used, and under what conditions HUD or the PHA may release the information collected. ftgc - 025 City Council — 718 5 2 25 EXHIBIT 1 Upfront Income Verification (UIV) Records PHAs that access UIV data through HUD's Enterprise Income Verification (EIV) system are required to adopt and follow specific security procedures to ensure that all EIV data is protected in accordance with federal laws, regardless of the media on which the data is recorded (e.g. electronic, paper). These requirements are contained in the HUD -issued document, Enterprise Income Verification (EIV) System, Security Procedures for Upfront Income Verification data. SAHA Policv Prior to utilizing HUD's EIV system, SAHA will adopt and implement EIV security procedures required by HUD. Criminal Records The PHA may only disclose the criminal conviction records which the PHA receives from a law enforcement agency to officers or employees of the PHA, or to authorized representatives of the PHA who have a job -related need to have access to the information [24 CFR 5.903(e)]. The PHA must establish and implement a system of records management that ensures that any criminal record received by the PHA from a law enforcement agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation [24 CFR 5.903(g)]. The PHA must establish and implement a system of records management that ensures that any sex offender registration information received by the PHA from a State or local agency is maintained confidentially, not misused or improperly disseminated, and destroyed, once the purpose for which the record was requested has been accomplished, including expiration of the period for filing a challenge to the PHA action without institution of a challenge or final disposition of any such litigation. However, a record of the screening, including the type of screening and the date performed must be retained [Notice PIH 2O12-28]. This requirement does not apply to information that is public information or is obtained by a PHA other than under 24 CFR 5.905. Medical/Disability Records PHAs are not permitted to inquire about the nature or extent of a person's disability. The PHA may not inquire about a person's diagnosis or details of treatment for a disability or medical condition. If the PHA receives a verification document that provides such information, the PHA should not place this information in the tenant file. The PHA should destroy the document. Documentation of Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking For requirements and PHA policies related to management of documentation obtained from victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking see section 16-IX.E. ftgc - — 025 City Council 719 5 2 25 EXHIBIT 1 PART VII: REPORTING AND RECORD KEEPING FOR CHILDREN WITH ELEVATED BLOOD LEAD LEVEL 16-VII.A. OVERVIEW The PHA has certain responsibilities relative to children with elevated blood lead levels that are receiving HCV assistance. The notification, verification, and hazard reduction requirements are discussed in Chapter 8. This part deals with the reporting requirements, and data collection and record keeping responsibilities that the PHA is subject to. 16-VII.B. REPORTING REQUIREMENT [24 CFR 35.1225(e); Notice PIH 2O17-131 The owner must report the name and address of a child identified as having an elevated blood lead level to the public health department within five business days of being so notified by any other medical health care professional. The owner must also notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child's address within five business days. The PHA may collaborate with the owner on the notification process, such as by agreeing with the owner to provide the required notifications on the owner's behalf. SAHA Policy Upon notification by the owner, SAHA will provide the public health department written notice of the name and address of any child identified as having an elevated blood lead level within five business days. Upon notification by the owner, SAHA will notify the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes (OLHCHH) of the child's address within five business days. 16-VII.C. DATA COLLECTION AND RECORD KEEPING [24 CFR 35.1225(f)] At least quarterly, the PHA must attempt to obtain from the public health department(s) with a similar area of jurisdiction, the names and/or addresses of children less than 6 years old with an elevated blood lead level. If the PHA obtains names and addresses of elevated blood lead level children from the public health department(s), the PHA must match this information with the names and addresses of families receiving HCV assistance, unless the public health department performs such a procedure. If a match occurs, the PHA must carry out the notification, verification, and hazard reduction requirements discussed in Chapter 8, and the reporting requirement discussed above. At least quarterly, the PHA must also report an updated list of the addresses of units receiving assistance under the HCV program to the same public health department(s), unless the public health department(s) states that it does not wish to receive such a report. SAHA Policy SAHA provides an updated list of the addresses of units receiving assistance under the HCV program to the local public health department(s) on a quarterly basis. The reports are provided for the periods ending March 30th, June 30th, September 30th, and December 31 st ftgc - 025 City Council — 720 5 2 25 EXHIBIT 1 PART VIII: DETERMINATION OF INSUFFICIENT FUNDING 16-VIII.A. OVERVIEW The HCV regulations allow PHAs to deny families permission to move and to terminate Housing Assistance Payments (HAP) contracts if funding under the consolidated ACC is insufficient to support continued assistance [24 CFR 982.354(e)(1) and 982.454]. If a PHA denies a family a portability move based on insufficient funding, the PHA is required to notify the local HUD office within 10 business days [24 CFR 982.354]. Insufficient funding may also impact the PHA's ability to issue vouchers to families on the waiting list. This part discusses the methodology the PHA will use to determine whether or not the PHA has sufficient funding to issue vouchers, approve moves, and to continue subsidizing all families currently under a HAP contract. The PHA must identify in the administrative plan, in the event of insufficient funding, considering any cost saving measures taken by the PHA, a description of the factors the PHA will consider when determining which HAP contracts to terminate first. See Chapter 12 for a description of these factors. 16-VIII.B. METHODOLOGY SAHA Policy SAHA will determine whether there is adequate funding to issue vouchers, approve moves to higher cost units and areas, and continue subsidizing all current participants by comparing SAHA's annual budget authority to the annual total HAP needs on a monthly basis. The total HAP needs for the calendar year will be projected by establishing the actual HAP costs year to date. To that figure, SAHA will add anticipated HAP expenditures for the remainder of the calendar year. Projected HAP expenditures will be calculated by multiplying the projected number of units leased per remaining months by the most current month's average HAP. The projected number of units leased per month will take into account the average monthly turnover of participant families. If the total annual HAP needs equal or exceed the annual budget authority, or if SAHA cannot support the cost of the proposed subsidy commitment (voucher issuance or move) based on the funding analysis, SAHA will be considered to have insufficient funding. SAHA will complete this analysis using HUD's Two -Year Forecasting Tool. SAHA will determine whether there is sufficient funding to pay for currently assisted families according to the policies in Part VIII of Chapter 16. If SAHA determines there is a shortage of funding, prior to terminating any HAP contracts, SAHA will determine if any other actions can be taken to reduce program costs. Those include but are not limited to the following: o Deny portability to higher payment standard areas o Lower payment standards o Request landlords to reduce or delay rent increase requests If after implementing all reasonable cost cutting measures there is not enough funding available to provide continued assistance for current participants, SAHA will terminate HAP contracts as a last resort. ftgc - 025 City Council — 721 5 2 25 EXHIBIT 1 Prior to terminating any HAP contracts, SAHA will inform the local HUD field office. SAHA will terminate the minimum number needed in order to reduce HAP costs to a level within SAHA's annual budget authority. If SAHA must terminate HAP contracts due to insufficient funding, SAHA will do so in accordance with the following criteria and instructions: The following program -type priority order will first be applied: 1. Housing Choice Voucher (HCV), including Non -Elderly Disabled 2. Special Purpose Vouchers (FYI and VASH) Tenant -Based 3. Project -Based Vouchers including Special Purpose Vouchers For each program type the following order will then be followed: 1. SAHA will stop selection from the waiting list (or referral list), discontinue the issuance of initial vouchers, and put previously issued initial vouchers on hold until funding is available. 2. Families who have been assisted in the program the longest will be the first to be terminated, excluding elderly or disabled families, and families with minor children and disabled dependent. 3. SAHA will terminate participants based on highest income (lowest housing assistance needed), excluding elderly and disabled families and families with minor children and disabled dependent. 4. SAHA will terminate remaining participants based on highest income (lowest housing assistance needed), including families with minor children and disabled dependent, disabled, and then elderly families (in that order). When SAHA resumes issuing vouchers, SAHA will issue vouchers first to the special purpose voucher families on its waiting list until it has reached the required number of special purpose vouchers, when applicable. Due to contractual obligations, Project -Based Vouchers will be the last to be terminated due to insufficient funds. ftgc - 025 City Council — 722 5 2 25 EXHIBIT 1 PART IX: VIOLENCE AGAINST WOMEN ACT (VAWA): NOTIFICATION, DOCUMENTATION, CONFIDENTIALITY 16-IX.A. OVERVIEW The Violence Against Women Act (VAWA) provides special protections for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking who are applying for or receiving assistance under the housing choice voucher (HCV) program. If your state or local laws provide greater protection for such victims, those laws apply in conjunction with VAWA. Although the VAWA 2022 statute does not specifically include human trafficking in the list of victims protected under VAWA, in 2022 HUD began including human trafficking as part of the list of victims protected under VAWA (as seen in Notices PIH 2O22-06, PIH 2O22-22, and PIH 2O22-24). In the absence of a final rule implementing VAWA 2022 and to mirror HUD's recent usage, this policy includes human trafficking in addition to domestic violence, dating violence, sexual assault, and stalking anywhere such a list appears. In addition to definitions of key terms used in VAWA, this part contains general VAWA requirements and PHA policies in three areas: notification, documentation, and confidentiality. Specific VAWA requirements and PHA policies are located primarily in the following sections: 3-I.C, "Family Breakup and Remaining Member of Tenant Family"; 3-III.1-1, "Prohibition against Denial of Assistance to Victims of Domestic Violence, Dating Violence, Sexual Assault, Stalking and Human Trafficking"; 10-I.A, "Allowable Moves"; 10-I.13, "Restrictions on Moves"; 12-II.E, "Terminations Related to Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking"; and 12-II.17, "Termination Notice." 16-IX.B. DEFINITIONS [24 CFR 5.2003, 42 USC 139251 As used in VAWA: • The term affiliated individual means, with respect to a person: - A spouse, parent, brother or sister, or child of that individual, or an individual to whom that individual stands in the position or place of a parent; or Any other individual, tenant, or lawful occupant living in the household of the victim of domestic violence, dating violence, sexual assault, or stalking. The term bifurcate means, with respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members' lease and occupancy rights are allowed to remain intact. • The term dating violence means violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship ftgc - 025 City Council — 723 5 2 25 EXHIBIT 1 The term domestic violence includes felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: - The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim - A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner - A person with whom the victim shares a child in common - A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction • The term economic abuse means behavior that is coercive, deceptive, or unreasonably controls or restrains a person's ability to acquire, use, or maintain economic resources to which they are entitled, including using coercion, fraud, and manipulation to: - Restrict a person's access to money, assets, credit, or financial information - Unfairly use a person's personal economic resources, including money, assets, and credit, for one's own advantage - Exert undue influence over a person's financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty • The term sexual assault means: Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks the capacity to consent • The term stalking means: - To engage in a course of conduct directed at a specific person that would cause a reasonable person to fear for their safety or the safety of others, or suffer substantial emotional distress. Pag - 025 City Council — 724 5 2 25 EXHIBIT 1 The term technological abuse means an act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies 16-IX.C. NOTIFICATION [24 CFR 5.2005(a)] Notification to Public The PHA adopts the following policy to help ensure that all actual and potential beneficiaries of its HCV program are aware of their rights under VAWA. SAHA Policy SAHA will post the following information regarding VAWA in its offices and on its website. It will also make the information readily available to anyone who requests it. A copy of Form HUD-5380, Notice of Occupancy Rights under VAWA, to housing choice voucher program applicants and participants who are or have been victims of domestic violence, dating violence, sexual assault, or stalking (Exhibit 16-1) A copy of Form HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking and Alternate Documentation (Exhibit 16-2) A copy of the PHA's emergency transfer plan (Exhibit 16-3) A copy of Form HUD-5383, HUD's Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Exhibit 16-4) The National Domestic Violence Hot Line: 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY) (included in Exhibits 16-1 and 16-2) Contact information for local victim advocacy groups or service providers - 025 City Council — 725 5 2 25 EXHIBIT 1 Notification to Program Applicants and Participants [24 CFR 5.2005(a)(1)] PHAs are required to inform program applicants and participants of their rights under VAWA, including their right to confidentiality and the limits thereof, when they are denied assistance, when they are admitted to the program, and when they are notified of an eviction or termination of housing benefits. SAHA Policv SAHA will provide all applicants with information about VAWA at the time they request an application for housing assistance, as part of the written briefing packet, and at the time the family is admitted to the program. SAHA will also include information about VAWA in all notices of denial of assistance (see section 3-III.1-1). SAHA will provide all participants with information about VAWA at the time of admission (see section 5-I.13) and at annual reexamination. SAHA will also include information about VAWA in notices of termination of assistance, as provided in section 12-II.F. The VAWA information provided to applicants and participants will consist of the notices in Exhibits 16-1 and 16-2. The PHA is not limited to providing VAWA information at the times specified in the above policy. If the PHA decides to provide VAWA information to a participant following an incident of domestic violence, Notice PIH 2O17-08 cautions against sending the information by mail, since the abuser may be monitoring the mail. The notice recommends that in such cases the PHA make alternative delivery arrangements that will not put the victim at risk. SAHA Policv Whenever SAHA has reason to suspect that providing information about VAWA to a participant might place a victim of domestic violence at risk, it will attempt to deliver the information by hand directly to the victim or by having the victim come to an office or other space that may be safer for the individual, making reasonable accommodations as necessary. For example, SAHA may decide not to send mail regarding VAWA protections to the victim's unit if SAHA believes the perpetrator may have access to the victim's mail, unless requested by the victim. When discussing VAWA with the victim, SAHA will take reasonable precautions to ensure that no one can overhear the conversation, such as having conversations in a private room. The victim may, but is not required to, designate an attorney, advocate, or other secure contact for communications regarding VAWA protections. ftgc - 025 City Council — 726 5 2 25 EXHIBIT 1 Notification to Owners and Managers While PHAs are no longer required by regulation to notify owners and managers participating in the HCV program of their rights and obligations under VAWA, the PHA may still choose to inform them. SAHA Policy SAHA may provide owners and managers with information about their rights and obligations under VAWA when they begin their participation in the program. 16-IX.D. DOCUMENTATION [24 CFR 5.20071 A PHA presented with a claim for initial or continued assistance based on status as a victim of domestic violence, dating violence, sexual assault, stalking, human trafficking, or criminal activity related to any of these forms of abuse may —but is not required to —request that the individual making the claim document the abuse. Any request for documentation must be in writing, and the individual must be allowed at least 14 business days after receipt of the request to submit the documentation. The PHA may extend this time period at its discretion. [24 CFR 5.2007(a)] The individual may satisfy the PHA's request by providing any one of the following three forms of documentation [24 CFR 5.2007(b)]: (1) A completed and signed HUD -approved certification form (HUD-5382, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking), which must include the name of the perpetrator only if the name of the perpetrator is safe to provide and is known to the victim. The form may be filled out and submitted on behalf of the victim. (2) A federal, state, tribal, territorial, or local police report or court record, or an administrative record (3) Documentation signed by a person who has assisted the victim in addressing domestic violence, dating violence, sexual assault, stalking, human trafficking, or the effects of such abuse. This person may be an employee, agent, or volunteer of a victim service provider; an attorney; a mental health professional; or a medical professional. The person signing the documentation must attest under penalty of perjury to the person's belief that the incidents in question are bona fide incidents of abuse. The victim must also sign the documentation. The PHA may not require third -party documentation (forms 2 and 3) in addition to certification (form 1), except as specified below under "Conflicting Documentation," nor may it require certification in addition to third -party documentation [FR Notice 11/16/16]. SAHA Policy Any request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking will be in writing, will specify a deadline of 14 business days following receipt of the request, will describe the three forms of acceptable documentation, will provide explicit instructions on where and to whom the documentation must be submitted, and will state the consequences for failure to submit the documentation or request an extension in writing by the deadline. Pdgc - 025 City Council — 727 5 2 25 EXHIBIT 1 SAHA may, in its discretion, extend the deadline for 14 business days. In determining whether to extend the deadline, SAHA will consider factors that may contribute to the victim's inability to provide documentation in a timely manner, including cognitive limitations, disabilities, limited English proficiency, absence from the unit, administrative delays, the danger of further violence, and the victim's need to address health or safety issues. Any extension granted by SAHA will be in writing. Once the victim provides documentation, SAHA will acknowledge receipt of the documentation within 14 calendar days. Conflicting Documentation [24 CFR 5.2007(e)] In cases where the PHA receives conflicting certification documents from two or more members of a household, each claiming to be a victim and naming one or more of the other petitioning household members as the perpetrator, the PHA may determine which is the true victim by requiring each to provide acceptable third -party documentation, as described above (forms 2 and 3). The PHA may also request third -party documentation when submitted documentation contains information that conflicts with existing information already available to the PHA. Individuals have 30 calendar days to return third -party verification to the PHA. If the PHA does not receive third -party documentation, and the PHA will deny or terminate assistance as a result, the PHA must hold separate hearings for the tenants [Notice PIH 2O17-08]. The PHA must honor any court orders issued to protect the victim or to address the distribution of property. M: ■: 'MI6 If presented with conflicting certification documents from members of the same household, SAHA will attempt to determine which is the true victim by requiring each of them to provide third -party documentation in accordance with 24 CFR 5.2007(e) and by following any HUD guidance on how such determinations should be made. When requesting third -party documents, SAHA will provide contact information for local domestic violence and legal aid offices. In such cases, applicants or tenants will be given 30 calendar days from the date of the request to provide such documentation. If SAHA does not receive third -party documentation within the required timeframe (and any extensions) SAHA will deny VAWA protections and will notify the applicant or tenant in writing of the denial. If, as a result, the applicant or tenant is denied or terminated from the program, SAHA will hold separate hearings for the applicants or tenants. Discretion to Require No Formal Documentation [24 CFR 5.2007(d)] The PHA has the discretion to provide benefits to an individual based solely on the individual's statement or other corroborating evidencei.e., without requiring formal documentation of abuse in accordance with 24 CFR 5.2007(b). HUD recommends documentation in a confidential manner when a verbal statement or other evidence is accepted. SAHA Policy If SAHA accepts an individual's statement or other corroborating evidence (as determined by the victim) of domestic violence, dating violence, sexual assault, stalking, Pagv - 025 City Council — 728 5 2 25 EXHIBIT 1 or human trafficking, SAHA will document acceptance of the statement or evidence in the individual's file. Pag - — 025 City Council 729 5 2 25 EXHIBIT 1 Failure to Provide Documentation [24 CFR 5.2007(c)] In order to deny relief for protection under VAWA, a PHA must provide the individual requesting relief with a written request for documentation of abuse. If the individual fails to provide the documentation within 14 business days from the date of receipt, or such longer time as the PHA may allow, the PHA may deny relief for protection under VAWA. 16-IX.E. CONFIDENTIALITY [24 CFR 5.2007(b)(4)] All information provided to the PHA regarding domestic violence, dating violence, sexual assault, stalking, or human trafficking, including the fact that an individual is a victim, must be retained in confidence. This means that the PHA (1) may not enter the information into any shared database, (2) may not allow employees or others to access the information unless they are explicitly authorized to do so and have a need to know the information for purposes of their work, and (3) may not provide the information to any other entity or individual, except to the extent that the disclosure is (a) requested or consented to by the individual in writing, (b) required for use in an eviction proceeding, or (c) otherwise required by applicable law. SAHA Policy If disclosure is required for use in an eviction proceeding or is otherwise required by applicable law, SAHA will inform the victim before disclosure occurs so that safety risks can be identified and addressed. ftgc - — 025 City Council 730 5 2 25 EXHIBIT 1 EXHIBIT 16-1: SAMPLE NOTICE OF OCCUPANCY RIGHTS UNDER THE VIOLENCE AGAINST WOMEN ACT, FORM HUD-5380 [Insert Name of Housing Provider] Notice of Occupancy Rights under the Violence Against Women Act' To all Tenants and Applicants The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating violence, sexual assault, or stalking. VAWA protections are not only available to women, but are available equally to all individuals regardless of sex, gender identity, or sexual orientation.2 The U.S. Department of Housing and Urban Development (HUD) is the federal agency that oversees that the housing choice voucher program is in compliance with VAWA. This notice explains your rights under VAWA. A HUD -approved certification form is attached to this notice. You can fill out this form to show that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your rights under VAWA." Protections for Applicants If you otherwise qualify for assistance under the housing choice voucher program, you cannot be denied admission or denied assistance because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Protections for Tenants If you are receiving assistance under the housing choice voucher program, you may not be denied assistance, terminated from participation, or be evicted from your rental housing because you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence, sexual assault, or stalking by a member of your household or any guest, you may not be denied rental assistance or occupancy rights under the housing choice voucher program solely on the basis of criminal activity directly relating to that domestic violence, dating violence, sexual assault, or stalking. Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any individual, tenant, or lawful occupant living in your household. ' Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation. z Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD -assisted and HUD -insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. ftgc - — 025 City Council 731 5 2 25 EXHIBIT 1 Removing the Abuser or Perpetrator from the Household The PHA may divide (bifurcate) your lease in order to evict the individual or terminate the assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating to domestic violence, dating violence, sexual assault, or stalking. If the PHA chooses to remove the abuser or perpetrator, the PHA may not take away the rights of eligible tenants to the unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have established eligibility for assistance under the program, the PHA must allow the tenant who is or has been a victim and other household members to remain in the unit for a period of time, in order to establish eligibility under the program or under another HUD housing program covered by VAWA, or, find alternative housing. In removing the abuser or perpetrator from the household, the PHA must follow federal, state, and local eviction procedures. In order to divide a lease, the PHA may, but is not required to, ask you for documentation or certification of the incidences of domestic violence, dating violence, sexual assault, or stalking. Moving to Another Unit Upon your request, the PHA may permit you to move to another unit, subject to the availability of other units, and still keep your assistance. In order to approve a request, the PHA may ask you to provide documentation that you are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or stalking. If the request is a request for emergency transfer, the housing provider may ask you to submit a written request or fill out a form where you certify that you meet the criteria for an emergency transfer under VAWA. The criteria are: 1. You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation, as described in the documentation section below. 2. You expressly request the emergency transfer. Your housing provider may choose to require that you submit a form, or may accept another written or oral request. 3. You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar- day period before you expressly request the transfer. - 025 City Council — 732 5 2 25 EXHIBIT 1 The PHA will keep confidential requests for emergency transfers by victims of domestic violence, dating violence, sexual assault, or stalking, and the location of any move by such victims and their families. The PHA's emergency transfer plan provides further information on emergency transfers, and the PHA must make a copy of its emergency transfer plan available to you if you ask to see it. Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or Stalking The PHA can, but is not required to, ask you to provide documentation to "certify" that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. Such request from the PHA must be in writing, and the PHA must give you at least 14 business days (Saturdays, Sundays, and federal holidays do not count) from the day you receive the request to provide the documentation. The PHA may, but does not have to, extend the deadline for the submission of documentation upon your request. You can provide one of the following to the PHA as documentation. It is your choice which of the following to submit if the PHA asks you to provide documentation that you are or have been a victim of domestic violence, dating violence, sexual assault, or stalking. • A complete HUD -approved certification form given to you by the PHA with this notice, that documents an incident of domestic violence, dating violence, sexual assault, or stalking. The form will ask for your name, the date, time, and location of the incident of domestic violence, dating violence, sexual assault, or stalking, and a description of the incident. The certification form provides for including the name of the abuser or perpetrator if the name of the abuser or perpetrator is known and is safe to provide. • A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency that documents the incident of domestic violence, dating violence, sexual assault, or stalking. Examples of such records include police reports, protective orders, and restraining orders, among others. • A statement, which you must sign, along with the signature of an employee, agent, or vounteer of a victim service provider, an attorney, a medical professional or a mental helth professional (collectively, "professional") from whom you sought assistance in addressing domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse, and with the professional selected by you attesting under penalty of perjury that they believe that the incident or incidents of domestic violence, dating violence, sexual assault, or stalking are grounds for protection. • Any other statement or evidence that the PHA has agreed to accept. If you fail or refuse to provide one of these documents within the 14 business days, the PHA does not have to provide you with the protections contained in this notice. If the PHA receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or stalking has been committed (such as certification forms from two or more members of a household each claiming to be a victim and naming one or more of the other petitioning household members as the abuser or perpetrator), the PHA has the right to request that you provide third -party documentation within thirty 30 calendar days in order to resolve the conflict. If you fail or refuse to provide third -party documentation where there is conflicting evidence, the PHA does not have to provide you with the protections contained in this notice. Pag - — 025 City Council 733 5 2 25 EXHIBIT 1 Confidentiality The PHA must keep confidential any information you provide related to the exercise of your rights under VAWA, including the fact that you are exercising your rights under VAWA. The PHA must not allow any individual administering assistance or other services on behalf of the PHA (for example, employees and contractors) to have access to confidential information unless for reasons that specifically call for these individuals to have access to this information under applicable Federal, State, or local law. The PHA must not enter your information into any shared database or disclose your information to any other entity or individual. The PHA, however, may disclose the information provided if: • You give written permission to the PHA to release the information on a time limited basis. • The PHA needs to use the information in an eviction or termination proceeding, such as to evict your abuser or perpetrator or terminate your abuser or perpetrator from assistance under this program. • A law requires the PHA or your landlord to release the information. VAWA does not limit the PHA's duty to honor court orders about access to or control of the property. This includes orders issued to protect a victim and orders dividing property among household members in cases where a family breaks up. Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be Terminated You can be evicted and your assistance can be terminated for serious or repeated lease violations that are not related to domestic violence, dating violence, sexual assault, or stalking committed against you. However, the PHA cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or stalking to a more demanding set of rules than it applies to tenants who have not been victims of domestic violence, dating violence, sexual assault, or stalking. The protections described in this notice might not apply, and you could be evicted and your assistance terminated, if the PHA can demonstrate that not evicting you or terminating your assistance would present a real physical danger that: 1. Would occur within an immediate time frame, and 2. Could result in death or serious bodily harm to other tenants or those who work on the property. If the PHA can demonstrate the above, the PHA should only terminate your assistance or evict you if there are no other actions that could be taken to reduce or eliminate the threat. Other Laws VAWA does not replace any federal, state, or local law that provides greater protection for victims of domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing protections for victims of domestic violence, dating violence, sexual assault, or stalking under other Federal laws, as well as under State and local laws. - Pl 025 City Council — 734 5 2 25 EXHIBIT 1 Non -Compliance with The Requirements of This Notice You may report a covered housing provider's violations of these rights and seek additional assistance, if needed, by contacting or filing a complaint with [insert contact information for any intermediary, if applicable] or [insert HUD field office]. For Additional Information You may view a copy of HUD's final VAWA rule at: https://www.gpo. og v/fdsys/pk /FR-2016- 11-16/pdf/2016-25 8 8 8 .p df. Additionally, the PHA must make a copy of HUD's VAWA regulations available to you if you ask to see them. For questions regarding VAWA, please contact [insert name of program or rental assistance contact information able to answer questions on VAWA]. For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact [Insert contact information for relevant local organizations]. For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime's Stalking Resource Center at https://www.victimsofcrime.org/our- programs/stalking-resource-center. For help regarding sexual assault, you may contact [Insert contact information for relevant organizations] Victims of stalking seeking help may contact [Insert contact information for relevant organizations]. Attachment: Certification Form HUD-5382 [form approved for this program to be included] Pag - — 025 City Council 735 5 2 25 EXHIBIT 1 EXHIBIT 16-2: CERTIFICATION OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING AND ALTERNATE DOCUMENTATION, FORM HUD-5382 CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286 DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017 DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, AND ALTERNATE DOCUMENTATION Purpose of Form: The Violence Against Women Act ("VAWA") protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalking. In response to this request, you or someone on your behalf may complete this optional form and submit it to your housing provider, or you may submit one of the following types of third -party documentation: (1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, "professional") from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse. The document must specify, under penalty of perjury, that the professional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of "domestic violence," "dating violence," "sexual assault," or "stalking" in HUD's regulations at 24 CFR 5.2003. (2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or (3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant. Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification. Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to ftgc - 025 City Council — 736 5 2 25 EXHIBIT 1 by you in writing in a time -limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. Pag - — 025 City Council 737 5 2 25 EXHIBIT 1 TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING 1. Date the written request is received by victim: 2. Name of victim: 3. Your name (if different from victim's): 4. Name(s) of other family member(s) listed on the lease: 5. Residence of victim: 6. Name of the accused perpetrator (if known and can be safely disclosed): 7. Relationship of the accused perpetrator to the victim: 8. Date(s) and times(s) of incident(s) (if known): 10. Location of incident(s): In your own words, briefly describe the incident(s): This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature Signed on (Date) Public Reporting Burden: The public reporting burden for this collection of information is estimated to average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The information provided is to be used by the housing provider to request certification that the applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid Office of Management and Budget control number. ftgc - — 025 City Council 738 5 2 25 EXHIBIT 1 EXHIBIT 16-3: EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING (HCV VERSION) Attachment: Certification form HUD-5382 [Insert name of covered housing provider] Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking Housing Choice Voucher Program Emergency Transfers The PHA is concerned about the safety of its tenants, and such concern extends to tenants who are victims of domestic violence, dating violence, sexual assault, or stalking. In accordance with the Violence Against Women Act (VAWA),3 the PHA allows tenants who are victims of domestic violence, dating violence, sexual assault, or stalking to request an emergency transfer from the tenant's current unit to another unit. The ability to request a transfer is available regardless of sex, gender identity, or sexual orientation.4 The ability of the PHA to honor such request for tenants currently receiving assistance, however, may depend upon a preliminary determination that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, and on whether the PHA has another dwelling unit that is available and is safe to offer the tenant for temporary or more permanent occupancy. This plan identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security. This plan is based on a model emergency transfer plan published by the U.S. Department of Housing and Urban Development (HUD), the federal agency that oversees that the public housing and housing choice voucher (HCV) programs are in compliance with VAWA. Eligibility for Emergency Transfers A tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking, as provided in HUD's regulations at 24 CFR part 5, subpart L, is eligible for an emergency transfer if the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant remains within the same unit. If the tenant is a victim of sexual assault, the tenant may also be eligible to transfer if the sexual assault occurred on the premises within the 90-calendar- day period preceding a request for an emergency transfer. 'Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation. 'Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD -assisted and HUD -insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status. ftgc - — 025 City Council 739 5 2 25 EXHIBIT 1 A tenant requesting an emergency transfer must expressly request the transfer in accordance with the procedures described in this plan. Tenants who are not in good standing may still request an emergency transfer if they meet the eligibility requirements in this section. Emergency Transfer Request Documentation To request an emergency transfer, the tenant shall notify the PHA's management office and submit a written request for a transfer to any PHA office. The PHA will provide reasonable accommodations to this policy for individuals with disabilities. The tenant's written request for an emergency transfer should include either: 1. A statement expressing that the tenant reasonably believes that there is a threat of imminent harm from further violence if the tenant were to remain in the same dwelling unit assisted under the PHA's program; OR 2. A statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-calendar-day period preceding the tenant's request for an emergency transfer. Confidentiality The PHA will keep confidential any information that the tenant submits in requesting an emergency transfer, and information about the emergency transfer, unless the tenant gives the PHA written permission to release the information on a time -limited basis, or disclosure of the information is required by law or required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program. This includes keeping confidential the new location of the dwelling unit of the tenant, if one is provided, from the person or persons that committed an act of domestic violence, dating violence, sexual assault, or stalking against the tenant. See the Notice of Occupancy Rights under the Violence against Women Act for All Tenants for more information about the PHA's responsibility to maintain the confidentiality of information related to incidents of domestic violence, dating violence, sexual assault, or stalking. Emergency Transfer Timing and Availability The PHA cannot guarantee that a transfer request will be approved or how long it will take to process a transfer request. The PHA will, however, act as quickly as possible to move a tenant who is a victim of domestic violence, dating violence, sexual assault, or stalking to another unit, subject to availability and safety of a unit. If a tenant reasonably believes a proposed transfer would not be safe, the tenant may request a transfer to a different unit. If a unit is available, the transferred tenant must agree to abide by the terms and conditions that govern occupancy in the unit to which the tenant has been transferred. The PHA may be unable to transfer a tenant to a particular unit if the tenant has not or cannot establish eligibility for that unit. If the PHA has no safe and available units for which a tenant who needs an emergency transfer is eligible, the PHA will assist the tenant in identifying other housing providers who may have safe and available units to which the tenant could move. At the tenant's request, the PHA will also assist tenants in contacting the local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking that are attached to this plan. Pag - — 025 City Council 740 5 2 25 EXHIBIT 1 Emergency Transfers: Housing Choice Voucher (HCV) Program Tenant -based assistance: If you are a participant in the tenant -based HCV program and request an emergency transfer as described in this plan, the PHA will assist you to move to a safe unit quickly using your existing voucher assistance. The PHA will make exceptions to program regulations restricting moves as required. At your request, the PHA will refer you to organizations that may be able to further assist you. Project -based assistance: If you are assisted under the project -based voucher (PBV) program, you may request an emergency transfer under the following programs for which you are not required to apply: • Tenant -based voucher, if available • Project -based assistance in the same project (if a vacant unit is available and you determine that the vacant unit is safe) • Project -based assistance in another development owned by the PHA Emergency transfers under VAWA will take priority over waiting list admissions for these types of assistance. You may also request an emergency transfer under the following programs for which you are required to apply: • Public housing program • PBV assistance in another development not owned by the PHA • [Insert other programs the PHA provides, such as LIHTC or HOME] Emergency transfers will not take priority over waiting list admissions for these programs. At your request, the PHA will refer you to organizations that may be able to further assist you. Safety and Security of Tenants Pending processing of the transfer and the actual transfer, if it is approved and occurs, the tenant is urged to take all reasonable precautions to be safe. Tenants who are or have been victims of domestic violence are encouraged to contact the National Domestic Violence Hotline at 1-800-799-7233, or a local domestic violence shelter, for assistance in creating a safety plan. For persons with hearing impairments, that hotline can be accessed by calling 1-800-787-3224 (TTY). Tenants who have been victims of sexual assault may call the Rape, Abuse, and Incest National Network's National Sexual Assault Hotline at 1-800-656-HOPE, or visit the online hotline at: https:Hohl.rainn.org/online/. Tenants who are or have been victims of stalking seeking help may visit the National Center for Victims of Crime's Stalking Resource Center at: https://www.victimsofcrime.or our- programs/stalking-resource-center. Attachment: Local organizations offering assistance to victims of domestic violence, dating violence, sexual assault, or stalking. ftgc - — 025 City Council 741 5 2 25 EXHIBIT 1 EXHIBIT 16-4: EMERGENCY TRANSFER REQUEST FOR CERTAIN VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING, FORM HUD-5383 EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286 REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017 VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider's emergency transfer plan for more information about the availability of emergency transfers. The requirements you must meet are: (1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form. (2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form, or may accept another written or oral request. Please see your housing provider's emergency transfer plan for more details. (3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future. OR You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer. Submission of Documentation: If you have third -party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts. ftgc - — 025 City Council 742 5 2 25 EXHIBIT 1 Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking, and concerning your request for an emergency transfer shall be kept confidential. Such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections or an emergency transfer to you. Such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time -limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED BY OR ON BEHALF OF THE PERSON REQUESTING A TRANSFER 1. Name of victim requesting an emergency transfer: 2. Your name (if different from victim's) 3. Name(s) of other family member(s) listed on the lease: 4. Name(s) of other family member(s) who would transfer with the victim: 5. Address of location from which the victim seeks to transfer: 6. Address or phone number for contacting the victim: 7. Name of the accused perpetrator (if known and can be safely disclosed): 8. Relationship of the accused perpetrator to the victim: 9. Date(s), Time(s) and location(s) of incident(s): 10. Is the person requesting the transfer a victim of a sexual assault that occurred in the past 90 days on the premises of the property from which the victim is seeking a transfer? If yes, skip question 11. If no, fill out question 11. 11. Describe why the victim believes they are threatened with imminent harm from further violence if they remain in their current unit. 12. If voluntarily provided, list any third -party documentation you are providing along with this notice: Pag - — 025 City Council 743 5 2 25 EXHIBIT 1 This is to certify that the information provided on this form is true and correct to the best of my knowledge, and that the individual named above in Item 1 meets the requirement laid out on this form for an emergency transfer. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Signature Signed on (Date) Pag - — 025 City Council 744 5 2 25 EXHIBIT 1 XHIBIT 16-5: MODEL OWNER NOTIFICATION OF RIGHTS AND OBLIGATIONS [Insert Name of Housing Provider] NOTIFICATION OF YOUR RIGHTS AND OBLIGATIONS UNDER THE VIOLENCE AGAINST WOMEN ACT (VAWA) VAWA provides protections for Section 8 Housing Choice Voucher (HCV) and PBV applicants, tenants, and participants from being denied assistance on the basis or as a direct result of being a victim of domestic violence, dating violence, sexual assault, stalking and human trafficking. Purpose Many of VAWA's protections to victims of domestic violence, dating violence, sexual assault stalking, and human trafficking involve action by the public housing agency (PHA), but some situations involve action by owners of assisted housing. The purpose of this notice (herein called "Notice") is to explain your rights and obligations under VAWA, as an owner of housing assisted through [insert name of housing provider] HCV program. Each component of this Notice also provides citations to HUD's applicable regulations. Denial of Tenancy Protections for applicants: Owners cannot deny tenancy based on the applicant having been or currently being a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking. However, the applicant must be otherwise eligible for tenancy. (See 24 Code of Federal Regulations (CFR) 982.452(b)(1).) Eviction Protections for HCV participants: Incidents or threats of domestic violence, dating violence, sexual assault, stalking, or human trafficking will not be considered a serious or repeated lease violation by the victim, or good cause to terminate the tenancy of the victim (see 24 CFR 5.2005(c)). Protection also applies to criminal activity related directly to domestic violence, dating violence, sexual assault, stalking, or human trafficking, conducted by a member of a tenant's household or any guest or other person under the tenant's control, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating violence, sexual assault, stalking, or human trafficking (24 CFR 5.2005(b)(2)). Limitations of VAWA protections: a. Nothing in VAWA limits the authority of an owner, when notified of a court order, to comply with a court order with respect to (24 CFR 5.2005(d)(1)): 1) The rights of access or control of property, including civil protection orders issued to protect a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking; or 2) The distribution or possession of property among members of a household in a case. b. Nothing in VAWA limits an owner from evicting a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking for a lease violation that is not premised on an act of domestic violence, dating violence, sexual assault, stalking, or human trafficking, as long as the owner does not subject the victim to more demanding standards than other tenants when deciding whether to evict. (See 24 CFR 5.2005(d)(2).) ftgc - 025 City Council — 745 5 2 25 EXHIBIT 1 c. Nothing in VAWA limits an owner from evicting a tenant (including the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking) if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to the HCV property would be present if the tenant or lawful occupant is not evicted. (See 24 CFR 5.2005(d)(3).) i. In this context, words, gestures, actions, or other indicators will be considered an "actual and imminent threat" if they meet the following standards: An actual and imminent threat consists of a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. (See 24 CFR 5.2003.) ii. Any eviction due to "actual and imminent threat" should be utilized by an owner only when there are no other actions that could be taken to reduce or eliminate the threat, including, but not limited to, transferring the victim to a different unit, barring the perpetrator from the property, contacting law enforcement to increase police presence or develop other plans to keep the property safe, or seeking other legal remedies to prevent the perpetrator from acting on a threat. Restrictions predicated on public safety cannot be based on stereotypes, but must be tailored to particularized concerns about individual residents. (See 24 CFR 5.2005(d)(4).) Documentation of Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking If an applicant or tenant requests VAWA protection based on status as a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the owner has the option to request that the victim document or provide written evidence to demonstrate that the violence occurred. However, nothing in HUD's regulation requires a covered housing provider to request this documentation. (See 24 CFR 5.2007(b)(3).) If the owner chooses to request this documentation, the owner must make such request in writing. The individual may satisfy this request by providing any one document type listed under 24 CFR 5.2007(b)(1): a. Form HUD-55383 (Self -Certification Form); or b. A document: 1) Signed by an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional or a mental health professional (collectively, "professional") from whom the victim has sought assistance relating to domestic violence, dating violence, sexual assault, stalking, or human trafficking, or the effects of abuse: 2) Signed by the applicant or tenant; and 3) That specifies, under penalty of perjury, that the professional believes in the occurrence of the incident of domestic violence, dating violence, sexual assault, stalking, or human trafficking that is the ground for protection and remedies under 24 CFR part 5, subpart L, and that the incident meets the applicable definition of domestic violence, dating violence, sexual assault, stalking, or human trafficking under 24 CFR 5.2003; or c. A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or d. At the discretion of a covered housing provider, a statement or other evidence provided by the applicant or tenant. - 025 City Council — 746 5 2 25 EXHIBIT 1 The owner must accept any of the above items (a — c). The owner has discretion to accept a statement or other evidence (d). The owner is prohibited from requiring third -parry documentation of the domestic violence, dating violence, sexual assault, stalking, or human trafficking, unless the submitted documentation contains conflicting information. If the owner makes a written request for documentation, the owner may require submission of that documentation within 14 business days after the date that the individual received the written request for documentation. (24 CFR 5.2007(a)(2)). The owner may extend this time period at its discretion. During the 14 business day period and any granted extensions of that time, no adverse actions, such as evictions or terminations, can be taken against the individual requesting VAWA protection. Once a victim provides documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the owner is encouraged to acknowledge receipt of the documentation in a timely manner. If the applicant or tenant fails to provide documentation that meets the criteria in 24 CFR 5.2007 within 14 business days after receiving the written request for that documentation or within the designated extension period, nothing in VAWA may be construed to limit the authority of the covered housing provider to: a. Deny admission by the applicant or tenant to the housing or program; b. Deny assistance under the covered housing program to the applicant or tenant; c. Terminate the participation of the tenant in the covered housing program; or d. Evict the tenant, or a lawful occupant that commits a violation of a lease. An individual's failure to timely provide documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking does not result in a waiver of the individual's right to challenge the denial of assistance or termination, nor does it preclude the individual's ability to raise an incident of domestic violence, dating violence, sexual assault, stalking, or human trafficking at eviction or termination proceedings. Owners may not coerce, intimidate, threaten, interfere with, or retaliate against any person who exercises or assists or encourages a person to exercise any rights or protections under VAWAs (See FR Notice 1/4/23.) Moves A victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking may move in violation of their lease if the move is required to protect their safety. If a move results in the termination of the Housing Assistance Payment Contract, the lease is automatically terminated. t'dgc - 025 City Council — 747 5 2 25 EXHIBIT 1 Lease Bifurcation Owners may choose to bifurcate a lease, or remove a household member from a lease in order to evict, remove, terminate occupancy rights, or terminate assistance to such member who engages in criminal activity directly relating to domestic violence, dating violence, sexual assault, stalking, or human trafficking against an affiliated individual or other individual. (See 24 CFR 5.2009(a).) If an owner chooses to bifurcate the lease, the owner must comply with the reasonable time to establish eligibility under the covered housing program or find alternative housing following lease bifurcation provision in 24 CFR 5.2009(b). VAWA protections, including bifurcation, do not apply to guests or unreported members of a household or anyone else residing in a household who is not a tenant. Eviction, removal, termination of occupancy rights, or termination of assistance must be effected in accordance with the procedures prescribed by federal, state, or local law for termination of leases. To avoid unnecessary delay in the bifurcation process, HUD recommends that owners seek court -ordered eviction of the perpetrator pursuant to applicable laws. This process results in the underlying lease becoming null and void once the owner regains possession of the unit. The owner would then execute a new lease with the victim. Evictions Due to "Actual and Imminent Threat" or Violations Not Premised on Abuse VAWA generally prohibits eviction on the basis or as a direct result of the fact that the applicant or tenant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, if the applicant or tenant otherwise qualifies for assistance, participation or occupancy. (See 24 CFR 5.2005.) However, VAWA does not prohibit an owner from evicting a tenant for any violation not premised on an act of domestic violence, dating violence, sexual assault, stalking, or human trafficking that is in question against the tenant or an affiliated individual of the tenant. Nor does VAWA prohibit an owner from evicting a tenant if the owner can demonstrate an actual and imminent threat to other tenants or those employed at or providing services to property of the owner would be present if that tenant or lawful occupant is not evicted or terminated from assistance. (See 5.2005(d)(2) and (3).) In order to demonstrate an actual and imminent threat to other tenants or employees at the property, the covered housing provider must have objective evidence of words, gestures, actions, or other indicators that meet the standards in the following definition: Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: • The duration of the risk; • The nature and severity of the potential harm; • The likelihood that the potential harm will occur; and • The length of time before the potential harm would occur. (See 24 CFR 5.2003 and 5.2005(d)(2).) ftgv - 025 City Council — 748 5 2 25 EXHIBIT 1 Confidentiality Any information submitted to a covered housing provider under 24 CFR 5.2007, including the fact that an individual is a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, must be maintained in strict confidence by the covered housing provider. (See 24 CFR 5.2007(c).) Employees of the owner (or those within their employ, e.g., contractors) must not have access to the information unless explicitly authorized by the owner for reasons that specifically call for these individuals to have access to this information under applicable federal, state, or local law (e.g., the information is needed by an employee to provide the VAWA protections to the victim). The owner must not enter this information into any shared database, or disclose this information to any other entity or individual, except to the extent that disclosure is: a. Requested or consented to in writing by the individual (victim) in a time -limited release; b. Required for use in an eviction proceeding or hearing regarding termination of assistance from the covered program; or c. Otherwise required by applicable law. When communicating with the victim, owners must take precautions to ensure compliance with these confidentiality requirements. Service Providers [insert name of housing provider] has extensive relationships with local service providers. [insert name of housing provider] staff are available to provide referrals to shelters, counselors, and advocates. These resources are also provided in [insert name of housing provider] Annual and 5-Year Plan, Administrative Plan, VAWA Notice of Occupancy Rights, and Emergency Transfer Plan. A list of local service providers is attached to this Notice. Definitions Actual and imminent threat refers to a physical danger that is real, would occur within an immediate time frame, and could result in death or serious bodily harm. In determining whether an individual would pose an actual and imminent threat, the factors to be considered include: the duration of the risk, the nature and severity of the potential harm, the likelihood that the potential harm will occur, and the length of time before the potential harm would occur. Affiliated individual, with respect to an individual, means: (1) A spouse, parent, brother, sister, or child of that individual, or a person to whom that individual stands in the place of a parent or guardian (for example, the affiliated individual is a person in the care, custody, or control of that individual); or (2) Any individual, tenant, or lawful occupant living in the household of that individual. Bifurcate means to divide a lease as a matter of law, subject to the permissibility of such process under the requirements of the applicable HUD -covered program and State or local law, such that certain tenants or lawful occupants can be evicted or removed and the remaining tenants or lawful occupants can continue to reside in the unit under the same lease requirements or as may be revised depending upon the eligibility for continued occupancy of the remaining tenants and lawful occupants. Pag - 025 City Council — 749 5 2 25 EXHIBIT 1 Dating violence means violence committed by a person: (1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and (2) Where the existence of such a relationship shall be determined based on a consideration of the following factors: (i) The length of the relationship; (ii) The type of relationship; and (iii) The frequency of interaction between the persons involved in the relationship. Domestic violence includes felony or misdemeanor crimes of committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: • The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim • A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner • A person with whom the victim shares a child in common • A person who commits acts against an youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction Sexual assault means any nonconsensual sexual act proscribed by Federal, tribal, or State law, including when the victim lacks capacity to consent. Stalking means engaging in a course of conduct directed at a specific person that would cause a reasonable person to: (1) Fear for the person's individual safety or the safety of others; or (2) Suffer substantial emotional distress. VAWA means the Violence Against Women Act of 1994, as amended (42 U.S.C. 13925 and 42 U.S.C. 14043e et seq.). Attached: Legal services and the domestic violence resources for the Metro area Form HUD-5382 Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking [insert name of housing provider] VAWA Notice of Occupancy Rights Pag - 025 City Council — 750 5 2 25 EXHIBIT 1 Chapter 17 PROJECT -BASED VOUCHERS INTRODUCTION This chapter describes HUD regulations and PHA policies related to the project -based voucher (PBV) program in nine parts: Part I: General Requirements. This part describes general provisions of the PBV program including maximum budget authority requirements, the cap on the number of assisted units in each project, relocation requirements, and equal opportunity requirements. Part II: PBV Owner Proposals. This part includes policies related to the submission and selection of owner proposals for PBV assistance. It describes the factors the PHA will consider when selecting proposals, the type of housing that is eligible to receive PBV assistance, subsidy layering requirements, site selection standards, and environmental review requirements. Part III: Dwelling Units. This part describes requirements related to inspections, the type and frequency of inspections, and housing accessibility for persons with disabilities. Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements and policies related to the development and completion of rehabilitated and newly constructed housing units that will be receiving PBV assistance. Part V: Housing Assistance Payments Contract. This part discusses HAP contract requirements and policies including the execution, term, and termination of the HAP contract. In addition, it describes how the HAP contract may be amended and identifies provisions that may be added to the HAP contract at the PHA's discretion. Part VI: Selection of PBV Program Participants. This part describes the requirements and policies governing how the PHA and the owner will select a family to receive PBV assistance. Part VII: OccupancX. This part discusses occupancy requirements related to the lease and describes under what conditions families are allowed or required to move. Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is determined, and how rent will be redetermined throughout the life of the HAP contract. Rent reasonableness requirements are also discussed. Part IX: Payments to Owner. This part describes the types of payments owners may receive under this program. 025 City Council 5 — 751 5 2 25 EXHIBIT 1 PART I: GENERAL REQUIREMENTS 17-I.A. OVERVIEW [24 CFR 983.51 The project -based voucher (PBV) program allows a PHA that already administers a tenant -based voucher program under an annual contributions contract (ACC) with HUD to take up to 20 percent of its authorized units (plus an additional 10 percent for units meeting certain criteria) and attach the funding to specific units rather than using it for tenant -based assistance [24 CFR 983.6]. Assistance may be tied to a multifamily building or a single-family building. PHAs may only operate a PBV program if doing so is consistent with the PHA's Annual Plan, and the goal of deconcentrating poverty and expanding housing and economic opportunities [42 U.S.C. 1437f(o)(13)]. A PHA has discretion whether to operate a PBV program. HUD approval is not required, except that the PHA must notify HUD of its intent to project -base its vouchers and when the PHA executes, amends, or extends a HAP contract. The PHA must also state in its administrative plan that it will engage in project -basing and must amend its administrative plan to include all PBV-related matters over which the PHA is exercising its discretion. SAHA Policy SAHA will operate a project -based voucher program. The PHA may enter into a HAP contract for existing housing, newly constructed or rehabilitated housing (see definitions below). During the term of the HAP contract, the PHA makes housing assistance payments to the owner for units leased and occupied by eligible families. 025 City Council 5 — 752 5 2 25 EXHIBIT 1 17-I.B. PBV DEFINITIONS [24 CFR 983.31 The following terms apply to the PBV program and are used throughout this chapter: Excepted units are units in a project not counted toward the project cap because they exclusively serve or are made available to certain families in accordance with 24 CFR 983.54(c)(2). Excluded units are units in a project not counted toward the program cap or project cap because they meet certain criteria in accordance with 24 CFR 983.59. Existing housing is a project that meets the following criteria: • All the proposed contract units in the project either fully comply or substantially comply with HQS on the proposal or project selection date, as determined per 24 CFR 983.103(a). (The units must fully comply with HQS at the time required by 24 CFR 983.103(c). The units substantially comply with HQS if- - The units only require repairs to current components or replacement of equipment and/or materials by items of substantially the same kind to correct deficiencies; and - The PHA determines all deficiencies can reasonably be corrected within a 30-day period, taking into consideration the totality of the deficiencies in the project. • The PHA determines the project is not reasonably expected to require substantial improvement and the owner certifies it has no plans to undertake substantial improvement from the proposal submission date (for projects subject to competitive selection) or the project selection date (for projects excepted from competitive selection) through the first two years of the HAP contract. • The following units do not qualify as existing housing: - Units for which rehabilitation or new construction began after proposal submission or the date of board resolution but prior to the effective date of an AHAP (if applicable); and - Units that were newly constructed or rehabilitated in violation of program requirements. An independent entity is either: • The unit of general local government; however, if the PHA itself is the unit of general local government or an agency of such government, then only the next level of general local government (or an agency of such government) or higher may serve as the independent entity; or • A HUD -approved entity that is autonomous and recognized under state law as a separate legal entity from the PHA. The entity must not be connected financially (except regarding compensation for services performed for PHA -owned units) or in any other manner that could result in the PHA improperly influencing the entity. An in place family is a family residing in a proposed contract unit on the proposal or project selection date. Newly constructed housing is a project containing housing units that do not exist on the proposal or project selection date and are developed after the date of selection for use under the PBV program. 025 City Council 5 — 753 5 2 25 EXHIBIT 1 A PHA -owned unit is a dwelling unit in a project that is: Owned by the PHA (including having a controlling interest in the entity that owns the project); • Owned by an entity wholly controlled by the PHA; or • Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general partner. - A controlling interest is: • Holding more than 50 percent of the stock of any corporation; • Having the power to appoint more than 50 percent of the members of the board of directors of a non -stock corporation (such as a nonprofit corporation); • Where more than 50 percent of the members of the board of directors of any corporation also serve as directors, officers, or employees of the PHA; • Holding more than 50 percent of all managing member interests in an LLC; • Holding more than 50 percent of all general partner interests in a partnership; or • Equivalent levels of control in other ownership structures. A project can be a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of land. "Contiguous" in this definition includes "adjacent to," as well as touching along a boundary or a point. A PHA may, in its administrative plan, establish the circumstances under which it will define a project as only one of the following: a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of land. PHA Policy SAHA will not define circumstances that limit the definition of the term project. Rehabilitated housing is a project which is developed for use under the PBV program, in which all proposed contract units exist on the proposal or project selection date, but which does not qualify as existing housing. A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Income (AMI), or where the poverty rate is at least 25 percent and where the census tract is designated as a qualified census tract by HUD. 025 City Council 5 — 754 5 2 25 EXHIBIT 1 Substantial improvement is one of the following activities undertaken at a time beginning from the proposal submission date (for projects subject to competitive selection) or from the project selection date (for projects excepted from competitive selection), or undertaken during the term of the PBV HAP contract: • Remodeling that alters the nature or type of housing units in a project; Reconstruction; or A substantial improvement in the quality or kind of equipment and materials. The replacement of equipment and/or materials rendered unsatisfactory because of normal wear and tear by items of substantially the same kind does not constitute substantial improvement. 025 City Council 5 — 755 5 2 25 EXHIBIT 1 17-I.C. MAXIMUM NUMBER OF PBV UNITS (PERCENTAGE LIMITATION) [24 CFR 983.61 Program Cap If a PHA decides to operate a PBV program, the PHA's PBV program is funded with a portion of appropriated funding (budget authority) available under the PHA's voucher Annual Contributions Contract (ACC). Except for certain units discussed below, a PHA may commit project -based assistance to no more than 20 percent of its authorized voucher units, as adjusted, at the time of commitment, with the ability to proj ect-base an additional 10 percent of units that meet certain requirements. An analysis of impact must be conducted if a PHA is project -basing 50 percent or more of the PHA's authorized voucher units. All PBV units which the PHA has selected (from the time of the proposal or project selection date) or which are under an Agreement to Enter into a HAP Contract (AHAP) or HAP contract for PBV assistance count toward the 20 percent maximum or increased cap. The PHA is responsible for determining the amount of budget authority that is available for project -based vouchers and for ensuring that the amount of assistance that is attached to units is within the amounts available under the ACC. Appendix I of Notice PIH 2O17-21 contains a sample PBV program cap calculation worksheet. If PBV units are already selected for project -based assistance either under an AHAP or a HAP contract, the PHA is not required to reduce the number of units if the number of authorized units is subsequently reduced. Increased Cap [24 CFR 983.6(d)] The PHA may project -base an additional 10 percent of its authorized voucher units above the 20 percent program limit, provided the units meet requirements outlined in 24 CFR 983.6(d)(1) or (2). The units may be distributed among one, all, or a combination of the categories described below, as long as the total number of units does not exceed the 10 percent cap. The PBV HAP contract must specify, and the owner must set aside, the number of units meeting the conditions to qualify for the increased program cap. To qualify for the increased program cap, the unit must be occupied by the type of family specified in the applicable paragraph below. For units under a HAP contract that was first executed on or after April 18, 2017, or added on or after that date to a current HAP contract entered into prior to April 19, 2017, units qualify under the increased program cap if the units meet one or more of the conditions below [24 CFR 983.6(d)(1)]: • The units are specifically made available to house individuals and families that meet the definition of homeless under section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) and contained in the Continuum of Care Interim Rule at 24 CFR 578.3. - A family qualifies if they were homeless at the time the family first occupies the unit. • The units are specifically made available to house families that are comprised of or include a veteran at the time the family first occupies a unit. - A veteran is person who served in the active military, naval, air, or space service, and who was discharged or released therefrom. 025 City Council 5 — 756 5 2 25 EXHIBIT 1 • The units provide supportive housing to persons with disabilities or elderly persons as defined in 24 CFR 5.403. - A disabled or elderly member of the family must be eligible for one or more of the supportive services at the time the family first occupies the unit. The member of the family may choose not to participate in the services. - Supportive housing means that the project makes supportive services available for all of the assisted families in the project and provides a range of services tailored to the needs of the residents occupying such housing. - Such supportive services need not be provided by the owner or onsite but must be reasonably available to the families receiving PBV assistance in the project. - The PHA's administrative plan must describe the type and availability of supportive services the PHA will consider as qualifying for the 10 percent increased cap. • The units are located in areas where vouchers are difficult to use. The units replace, on a different site, units listed in 24 CFR 983.59(b)(1) and (2) for which the PHA had authority under 24 CFR 983.59 to commit PBV assistance on the original site without the units counting toward the program cap or project cap. The increased program cap also applies to units that are part of a HAP contract executed on or after December 27, 2020, or are added on or after that date to any current HAP contract, including a contract entered into prior to December 27, 2020, and meet the following requirements [24 CFR 983.6(d)(2)]: • The units are exclusively made available to eligible youth receiving Family Unification Program (FUP) or Foster Youth to Independence (FYI) assistance; and • If the units exclusively made available to eligible youth use FUP assistance that is normally available for eligible families and youth, the PHA determines and documents that the limitation of the units to youth is consistent with the local housing needs of both eligible FUP populations (families and youth) and amends its administrative plan to specify that FUP PBV assistance is solely for eligible youth. SAHA Policy SAHA will not project -base units under the increased program cap. 025 City Council 5 — 757 5 2 25 EXHIBIT 1 17-I.D. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT [24 CFR 983.54] Project Cap [24 CFR 983.54(a)] In general, the PHA may not select a proposal for units in a project or enter into an AHAP or a HAP contract to provide PBV assistance for units in a project if the total number of dwelling units in the project that will receive PBV assistance is more than the greater of 25 units or 25 percent of the number of dwelling units (assisted or unassisted, as adjusted) in the project. Higher Project Cap [24 CFR 983.54(b)] The PHA may provide PBV assistance to the greater of 25 units or 40 percent of the number of dwelling units (assisted and unassisted, as adjusted) in the project if the project is located in an area where vouchers are difficult to use [24 CFR 983.54(b)]. An area where a voucher is difficult to use is defined as: • A census tract with a poverty rate of 20 percent or less, as determined by HUD; • A ZIP code area where the rental vacancy rate is less than 4 percent, as determined by HUD; or • A ZIP code area where 90 percent of the Small Area FMR is more than 110 percent of the metropolitan area or county FMR. Exceptions to the Project Cap [24 CFR 983.54(c)] Certain units are removed from the number of dwelling units for purposes of calculating the project cap. These are known as excepted units, which are defined as units in a project not counted toward the project cap because they exclusively service or are made available to certain families. The PHA determines the number of units in the project for which the PHA will provide project - based assistance, including whether and how many units will be excepted. The PBV HAP contract must specify, and the owner must set aside, the number of excepted units made available for occupancy by families who qualify for the exception. For a unit to be considered excepted, it must be occupied by a family who qualifies for the exception. Which units are considered excepted differs depending on when the HAP contract was executed. Contracts executed prior to April 18, 2017, follow the "old" statutory PBV requirements for excepted units. Projects where the HAP contract was executed on or after April 18, 2017, follow new requirements. In this case, PBV units are not counted toward the project cap if the units are: • Exclusively for elderly families; • Exclusively made available to eligible youth receiving FUP or FYI assistance; or • For households eligible for supportive services available to all families receiving PBV assistance in the project. 025 City Council 5 — 758 5 2 25 EXHIBIT 1 A project is not limited to a single exception category but may include excepted units from any of the exception categories. SAHA Policy SAHA will have excepted units in certain PBV projects for the following: Supportive Services SAHA will provide excepted units that offer optional supportive services available to all PBV-assisted families in a project. Families are not required to participate in services as a condition of living in excepted units. The exception applies to any household eligible for the supportive services and is not limited to households with a family member with a disability. When families opt in to supportive services, such services will be made available to the family as quickly as reasonably practicable, but no longer than 120 calendar days from the family's request. A unit is excepted from the project cap if any member of the family is eligible for one or more of the supportive services, even if the family chooses not to participate in the services. If a family member chooses to participate in and successfully completes the supportive services, the unit continues to count as an excepted unit for as long as the family resides in the unit, even if the members that continue to reside in the unit are ineligible during tenancy for all available supportive services. The unit loses its excepted status only if the entire family becomes ineligible during the tenancy for all supportive services available to the family. This provision does not apply where any member of the family has successfully completed the supportive services. A family cannot be terminated from the program or evicted from the unit because they become ineligible for all supportive services during the tenancy. FUP/FYI Assistance SAHA will provide excepted units made available exclusively for youth receiving FUP or FYI assistance. SAHA has determined that the limitation of PBV units to youth is consistent with the local housing needs of both eligible FUP populations (families and youth). A unit is excepted from the project cap or qualifies under the increased program cap, as applicable, if the unit is occupied by an eligible youth receiving FUP assistance. The youth must vacate the unit once the FUP assistance has expired. The unit loses its excepted status or no longer qualifies under the increased program cap, as applicable, if the youth does not move from the unit upon the expiration of the FUP assistance. Disabled Families SAHA will provide excepted units for disabled families (which is defined as a family whose head, spouse, cohead or sole member is a person with disabilities). SAHA will allow families who initially qualified to live in an excepted unit to remain when circumstances change due to circumstances beyond the remaining family members' control. 025 City Council 5 — 759 5 2 25 EXHIBIT 1 In all other cases, SAHA will provide written notice to the family and owner within 14 calendar days of making the determination. The family will be given 30 days from the date of the notice to move out of the PBV unit. If the family does not move out within this 30-day time frame, SAHA will terminate the housing assistance payments at the expiration of this 30-day period. SAHA may make exceptions to this 30-day period if needed for reasons beyond the family's control such as death, serious illness, or other medical emergency of a family member. 025 City Council 5 — 760 5 2 25 EXHIBIT 1 Units that No Longer Qualify as Excepted Units or Units under the Increased Program Cap [24 CFR 983.262(b)] In order to qualify as either excepted units or units under the increased program cap, units must be occupied by a family that meets the exception criteria applicable to the unit. Once the family vacates the unit, the PHA must select a new family from the waiting list via an admission preference, and the unit must be made available to and occupied by a family that meets the applicable exception. The PHA must specify in its administrative plan which of the options below the PHA will take if a unit is no longer qualified due to circumstances beyond the control of the family (e.g., death of an elderly family member or long-term permanent hospitalization or nursing care). The unit may continue to count as an excepted unit or unit on the increased program cap as long as the family resides in the unit. However, the requirements on wrong -sized units apply. If the PHA chooses not to exercise this discretion, the unit is no longer considered excepted or a unit under the increased program cap (as applicable) and the family is not required to move from the unit. The PHA must specify which of the following actions it will take if the unit is no longer qualified: Substitute the unit for another unit if it is possible to do so in accordance with 24 CFR 983.207(a), so that the overall number of excepted units or units under the increased program cap in the project is not reduced. The PHA may, in conjunction with such substitution, add the original unit to the HAP contract if it is possible to do so in accordance with 24 CFR 983.207(b), including that such addition does not cause the PHA to exceed the program cap or become non -compliant with the project cap. Remove the unit from the PBV HAP contract. In conjunction with the removal, the PHA may provide the family with tenant -based assistance, if the family is eligible for tenant -based assistance. The family and the owner may agree to use the tenant -based voucher in the unit; otherwise, the family must move from the unit with the tenant -based voucher. If the family later vacates the unit, the PHA may add the unit to the PBV HAP contract in accordance with 24 CFR 983.207. 025 City Council 5 — 761 5 2 25 EXHIBIT 1 • Change the unit's status under the project cap or program cap, as applicable, provided that the change does not cause the PHA to exceed the program cap or become non -compliant with the project cap. SAHA Policy If, due to circumstances beyond the control of the family, the unit is no longer qualified as an excepted unit or unit under the increased program cap, the unit will continue to count as long as the family resides in the unit. However, requirements for wrong -sized units will apply. 025 City Council 5 — 762 5 2 25 EXHIBIT 1 17-I.E. UNITS NOT SUBJECT TO THE PBV PROGRAM CAP OR PROJECT CAP [FR Notice 1/18/17 and 24 CFR 983.591 For HAP contracts that first became effective on or after April 18, 2017, the PHA may commit project -based assistance to units that meet the requirements below without the units counting toward the program cap (including the 10 percent exception) or project cap. These are known as excluded units and fall into two different categories: • Existing or Rehabilitation Units: In the five years prior to the request for proposals (RFP) or the proposal or project selection date (in the case of selection without RFP), these units fall into one of the categories described below, provided that the units are removed from all categories prior to the effective date of the HAP contract. These units include units that received one of the following forms of HUD assistance: - Public Housing Capital or Operating Funds; - Project -Based Rental Assistance (Section 8), including units assisted under Section 8 Moderate Rehabilitation (Mod Rehab) and Mod Rehab Single -Room Occupancy (SRO) programs; - Housing for Elderly (Section 202); - Housing for Persons with Disabilities (Section 811); - Rental Assistance Program (RAP) (Section 236(f)(2) of the National Housing Act); or Flexible Subsidy Program (Section 201 of the Housing and Community Development Amendments of 1978). Or the units have been subject to a federally required rent restriction under one of the following programs: - The Low -Income Housing Tax Credit program (26 U.S.C. 42); - Section 515 Rural Rental Housing Loans (42 U.S.C. 1485); or - The following HUD programs: - Section 236; - Section 221(d)(3) Below Market Interest Rate; - Housing For the Elderly (Section 202 of the Housing Act of 1959); - Housing for Persons with Disabilities (Section 811 of the Cranston -Gonzalez National Affordable Housing Act); - Flexible Subsidy Program (Section 201 of the Housing and Community Development Amendments Act of 1978); or - Any other program identified by HUD through Federal Register notice subject to public comment. 411 025 City Council 5 — 763 7HW2b255 EXHIBIT 1 Replacement Units: Newly constructed units developed under the PBV program are also considered excluded units if the primary purpose of the newly constructed units is or was to replace units that meet the criteria listed above. The newly constructed unit must be located on the same site as the unit it is replacing; however, an expansion of or modification to the prior project's site boundaries as a result of the design of the newly constructed project is acceptable as long as a majority of the replacement units are built back on the site of the original project and any replacement units that are not located on the existing site are part of a project that shares a common border with, are across a public right of way from, or touch that site. In addition, in order for the replacement units to be excluded from the program and project caps, one of the following must be true: - Former residents of the original project must be provided with a selection preference that provides the residents with the right of first occupancy at the PBV newly constructed project when it is ready for occupancy; or - Prior to the demolition of the original project, the PBV newly constructed project must have been identified as replacement housing for that original project as part of a documented plan for the redevelopment of the site. 17-I.F. PHA -OWNED UNITS [24 CFR 982.4 and 983.571 For PHA -owned units (as defined in 24 CFR 982.4), an independent entity (as defined in 24 CFR 982.4) must perform the following functions: • Determine rent to owner, including rent reasonableness and calculating any rent adjustments by HUD's Operating Cost Adjustment Factor (OCAF) (where applicable), in accordance with 24 CFR 983.301 through 983.305; • Perform unit inspections in accordance with 24 CFR 983.103(g); • When the owner carries out development activity or substantial improvement, the independent entity must review the evidence and work completion certification submitted by the owner and determine if the units are complete in accordance with 24 CFR 983.156; and • Determine whether to approve substantial improvement to units under a HAP contract in accordance with 24 CFR 983.212. The PHA may only compensate the independent entity from PHA ongoing administrative fee income (including amounts credited to the administrative fee reserve). The PHA may not use other program receipts to compensate the independent entity for its services. The PHA and independent entity may not charge the family any fee for the appraisal, or the services provided by the independent entity. 025 City Council 5 — 764 5 2 25 EXHIBIT 1 17-I.G. TENANT -BASED VS. PROJECT -BASED VOUCHER ASSISTANCE [24 CFR 983.21 Much of the tenant -based voucher program regulations also apply to the PBV program. Consequently, many of the PHA policies related to tenant -based assistance also apply to PBV assistance. The provisions of the tenant -based voucher regulations that do not apply to the PBV program are listed at 24 CFR 983.2(c). SAHA Policy Except as otherwise noted in this chapter, or unless specifically prohibited by PBV program regulations, SAHA policies for the tenant -based voucher program contained in this administrative plan also apply to the PBV program. 17-I.H. RELOCATION REQUIREMENTS [24 CFR 983.71 Any persons displaced as a result of implementation of the PBV program must be provided relocation assistance in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA)[42 U.S.C. 4201-4655] and implementing regulations at 49 CFR part 24. The cost of required relocation assistance may be paid with funds provided by the owner, local public funds, or funds available from other sources. PHAs may not use voucher program funds to cover relocation costs, except that PHAs may use their administrative fee reserve to pay for relocation expenses after all other program administrative expenses are satisfied, and provided that payment of the relocation benefits is consistent with state and local law. Use of the administrative fee for these purposes must also be consistent with other legal and regulatory requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances. The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24, subpart B. It is the responsibility of the PHA to ensure the owner complies with these requirements. 17-I.I. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.81 The PHA must comply with all equal opportunity requirements under federal law and regulations in its implementation of the PBV program. This includes the requirements and authorities cited at 24 CFR 5.105(a). In addition, the PHA must comply with the PHA Plan certification on civil rights and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o). 025 City Council 5 — 765 5 2 25 EXHIBIT 1 PART II: PROPOSAL AND PROJECT SELECTION 17-II.A. OVERVIEW The PHA must include a description of the circumstances under which the PHA will use noncompetitive selection for PBV projects and competitive selection for PBV proposals, including the procedures for submission and selection of such proposals, in the administrative plan [24 CFR 983. 1 0(b)(3)]. Before selecting a PBV proposal, the PHA must determine that the PBV proposal complies with HUD program regulations and requirements, including a determination that the property is eligible housing [24 CFR 983.52 and 983.53], complies with the cap on the number of PBV units per project [24 CFR 983.54], and meets the site selection standards [24 CFR 983.55]. The PHA may not commit PBVs until or unless it has followed the proposal selection requirements defined in 24 CFR 983.51. The PHA may allow for entities that have site control to submit proposals provided the entity will be the owner prior to entering into the AHAP or HAP contract. An owner may submit, and a PHA may select, a single proposal covering multiple projects where each project consists of a single-family building, provided all projects are the same housing type (existing, rehabilitated, or newly constructed) [24 CFR 983.51(a)]. A PHA may not commit project -based assistance to a project if the owner or any principal or interested party is debarred, suspended subject to a limited denial of participation, or otherwise excluded under 2 CFR Part 2424 or is listed on the U.S. General Services Administration list of parties excluded from federal procurement or non -procurement programs. HUD approval of specific projects or owners is not required. For example, owner proposal selection does not require submission of form HUD-2530 (Previous Participation Certification) or other HUD previous participation clearance. Selection of PHA -Owned Units [24 CFR 983.51(h)] A PHA -owned unit (as defined in 24 CFR 982.4) may be assisted under the PBV program only if the HUD field office or HUD -approved independent entity reviews the selection process and determines that the PHA -owned units were appropriately selected based on the selection procedures specified in the PHA's administrative plan. With the exception of projects selected in accordance with 24 CFR 983.51(c) (projects that meet the criteria to be excepted from competitive selection), the PHA's selection procedures must be designed in a manner that does not effectively eliminate the submission of proposals for non - PHA -owned units or give preferential treatment (e.g., additional points) to PHA -owned units. 025 City Council 5 — 766 5 2 25 EXHIBIT 1 17-II.B. COMPETITIVE SELECTION OF PROPOSALS [24 CFR 983.51(b)] The PHA must select PBV proposals in accordance with the selection procedures in the PHA administrative plan. The PHA must select PBV proposals by either of the following two methods: PHA request for PBV Proposals. The PHA may solicit proposals by using a RFP to select proposals on a competitive basis in response to the PHA request. The PHA may not limit proposals to a single site or impose restrictions that explicitly or practically preclude owner submission of proposals for PBV housing on different sites. The PHA may establish selection procedures that combine or are in conjunction with other federal, state, or local government housing assistance, community development, or supportive services competitive selection processes. If the PHA selection process is combined and administered in conjunction with another RFP process, the PHA remains responsible for complying with proposal selection procedures as described in 24 CFR 983.51. The PHA may select, without issuing an RFP, proposals that were previously selected based on a competition. This may include selection of a proposal for housing assisted under a federal, state, or local government housing assistance, community development, or supportive services program that was subject to a competition in accordance with the requirements of the applicable program where the proposal has been selected in accordance with such program's competitive selection requirements within three years of the PBV proposal selection date, and the earlier competition did not involve any consideration that the project would receive PBV assistance. Solicitation and Selection of PBV Proposals [24 CFR 983.51(d)] PHA procedures for selecting PBV proposals must be designed and actually operated to provide broad public notice of the opportunity to offer PBV proposals for consideration by the PHA. The public notice procedures may include publication of the public notice in a local newspaper of general circulation and other means designed and actually operated to provide broad public notice. The public notice of the PHA request for PBV proposals must specify the submission deadline. Detailed application and selection information must be provided at the request of interested parties. 025 City Council 5 — 767 5 2 25 EXHIBIT 1 SAHA Policy SAHA Request for Proposals for Rehabilitated, Newly Constructed Units, or Existing Housing SAHA will advertise its request for proposals (RFP) for rehabilitated, newly constructed or existing housing in newspapers of general circulation (to be identified at the time of publication). In addition, SAHA will post the RFP and proposal submission and rating and ranking procedures on its website. The advertisement will remain on SAHA's website until such time as the application period is closed. The advertisement will state the number of vouchers available to be project -based, the type of units that will be considered, the submission deadline, and will note how to obtain the full RFP with information on the application and selection process. Advertisements will also contain a statement that participation in the PBV program requires compliance with Fair Housing and Equal Opportunity (FHEO) requirements and that the Federal Labor Standard provisions maybe applicable for new and rehabilitation projects. SAHA will date and time stamp all applications upon receipt. Applications received after the published deadline date will not be accepted for consideration under the RFP process. Postmarks are not acceptable. In order for the proposal to be considered, the owner must submit the proposal to SAHA by the published deadline date, and the proposal must respond to all requirements as outlined in the RFP and be in compliance with all HUD program requirements. Incomplete proposals will not be reviewed. SAHA reserves the right to reject applications at any time for misinformation, errors, or omissions of any kind. SAHA may rate and rank proposals using the following criteria, including but not limited to: Owner experience and capability to build or rehabilitate housing as identified in the RFP; If applicable, the extent to which services for special populations are provided on site or in the immediate area for occupants of the property. 025 City Council 5 — 768 5 2 25 EXHIBIT 1 SAHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or Local Housing Assistance Program SAHA will accept proposals for PBV assistance from owners that were competitively selected under another federal, state or local housing assistance program, including but not limited to projects that were competitively awarded Low -Income Housing Tax Credits (if the earlier competition did not involve any consideration that the project would receive PBV assistance), HOME Program, or another source of Federal, State or Local affordable funds on an ongoing basis. 025 City Council 5 — 769 5 2 25 EXHIBIT 1 17-II.C. NON-COMPETITIVE PROJECT SELECTION [24 CFR 983.51(c)] The PHA may select units without a competitive selection process in certain circumstances described in 24 CFR 983.51(c) and FR Notice 8/13/24. Prior to selecting units based on the below criteria, the PHA must notify the public of its intent to noncompetitively select one or more projects for PBV assistance through its 5-Year Plan. If this requirement is not met, the PHA may not select units non -competitively. The PHA may select units for PBV assistance without following a competitive process in the following circumstances: • The PHA may select existing, newly constructed, or rehabilitated public housing projects where the PHA has an ownership interest or over which the PHA has control, when the PHA is engaged in an initiative to improve, develop, or replace a public housing property or site. - The public housing units may either currently be in the public housing inventory or may have been removed from the public housing inventory through any available legal removal tool within five years of the project selection date. • The PHA may select for future PBV assistance a project currently under the public housing program, or a project that is replacing the public housing project, in which a PHA has no ownership interest, or which a PHA has no control over, provided: - The public housing project is either still in the public housing inventory or had been removed from the public housing inventory through any available legal removal tool within five years of the project selection date; - The PHA that owned or owns the public housing project does not administer the HCV program; - The project selected for PBV assistance was specifically identified as replacement housing for the impacted public housing residents as part of the public housing demolition/disposition application, voluntary conversion application, or any other application process submitted to and approved by HUD to remove the public housing project from the public housing inventory; and - With respect to replacement housing, the PHA does not have to replace the housing on the same site as the original public housing, but the number of contract units in the replacement project may not exceed the number of units in the original public housing project by more than a de minimis amount for this exception to apply. • The PHA may select a project consisting of PHA -owned units as defined at 24 CFR 982.4. - The units must continue to meet the definition of PHA -owned for the initial two years of the HAP contract unless there is a transfer of ownership approved by HUD. • The PHA may select a project that underwent an eligibility event within five years of the project selection date, in which a family (or families) qualifies for enhanced voucher assistance and provided informed consent to relinquish its enhanced voucher for PBV assistance. 025 City Council 5 — 770 5 2 25 EXHIBIT 1 • The PHA may select one or more PBV projects with units made exclusively available to VASH families on the site of a VA facility [FR Notice 8/13/24]. - The method of project selection must comply with all other requirements under 24 CFR 983.51, including that the PHA must notify the public of its intent to noncompetitively select one or more projects for PBV assistance through its 5-Year Plan and to ensure any project selection is consistent with the PHA administrative plan. SAHA Policy SAHA will not attach PBVs to projects as described above. 025 City Council 5 — 771 5 2 25 EXHIBIT 1 17-ILD. PROJECT OR PROPOSAL SELECTION [24 CFR 983.51(f) and 24 CFR 983.153(c)(3)] Inspections Required Prior to Project or Proposal Selection [24 CFR 983.51(e)] The PHA must examine the proposed site before the proposal or project selection date to determine whether the site complies with the site selection standards outlined in 24 CFR 983.55. The PHA may execute a HAP contract for existing housing if: • All proposed contract units in the project fully or substantially comply with housing quality standards on the proposal or project selection date, which the PHA must determine via inspection; • The project meets the environmental review requirements at 24 CFR 983.56, if applicable; and • The project meets the initial inspection requirements in accordance with 24 CFR 983.103(c). PHA Written Notice of Proposal or Project Selection [24 CFR 983.51(f) and (h) and 24 CFR 983.153(c)(3)] Regardless of the method of selection, the PHA is required to provide written notice of proposal or project selection, which must include: • If the project contains PHA -owned units, the PHA must provide the written notice of proposal or project selection to the responsible PHA official, and that official must certify in writing that the PHA accepts the terms and requirements stated in the notice. The PHA must make documentation available for public inspection regarding the basis for the PHA selection of a PBV proposal. • When an environmental review is required, if the review has not been conducted prior to the project or proposal selection date, the PHA's written notice that the selection is subject to completion of a favorable environmental review and that the project or proposal may be rejected based on the results of the environmental review. • For newly constructed housing and rehabilitated housing in projects to which labor standards apply, the PHA's written notice to the party that submitted the selected proposal or board resolution approving project -basing of assistance at the specific project must state that any construction contracts must incorporate a Davis -Bacon contract clause and the current applicable prevailing wage determination [24 CFR 983.153(c)(3)]. In addition to the requirements above, for selection of proposals through competitive methods, the PHA must give prompt written notice to the party that submitted a selected proposal and must also give prompt public notice of such selection. Public notice procedures may include publication of public notice in a local newspaper of general circulation and other means designed and actually operated to provide broad public notice. The proposal selection date is the date on which the PHA provides written notice to the party that submitted the selected proposal. The written notice of proposal selection must require the owner or party that submitted the selected proposal to provide a written response to the PHA accepting the terms and requirements stated in the notice. The PHA must make documentation available for public inspection regarding the basis for the PHA selection of a PBV proposal. 025 City Council 5 — 772 5 2 25 EXHIBIT 1 SAHA Policy If the project does not contain SAHA-owned units, SAHA will notify the selected owner in writing of the owner's selection for the PBV program within 14 calendar days of SAHA making the selection. SAHA will also notify in writing all owners that submitted proposals that were not selected and advise such owners of the name of the selected owner. If the project contains SAHA-owned units, within 14 calendar days of SAHA making the selection, SAHA will provide the written notice of proposal selection to the responsible SAHA official, and that official must certify in writing that SAHA accepts the terms and requirements stated in the notice within 14 calendar days of receiving SAHA's written notice. When an environmental review is required, if the review has not been conducted prior to the proposal selection date, SAHA's written notice of proposal selection will state that the selection is subject to completion of a favorable environmental review and that the proposal may be rejected based on the results of the environmental review. For any project to which labor standards apply, SAHA's written notice will state that any construction contracts must incorporate a Davis -Bacon contract clause and the current applicable prevailing wage determination. SAHA will make available to any interested party its rating and ranking sheets and documents that identify SAHA basis for selecting the proposal. These documents will be available for review by the public and other interested parties for one month after publication of the notice of owner selection. SAHA will not make available sensitive owner information that is privileged, such as financial statements and similar information about the owner. SAHA will make these documents available for review at SAHA during normal business hours. The cost for reproduction of allowable documents will be based on the City of Santa Ana current copy rate. The owner must submit a written response to SAHA accepting the terms and requirements stated in the notice within 14 calendar days of SAHA's written notification to the owner. 025 City Council 5 — 773 5 2 25 EXHIBIT 1 In addition to the requirements above, for projects selected under an exception to the competitive process under 24 CFR 983.51(c), the PHA must give prompt written notice of project selection to the owner following the PHA board's resolution approving the project -basing of assistance at the specific project. The project selection date is the date of the PHA's board resolution approving the project -basing of assistance at the specific project. The written notice of project selection must require the owner of the project selected to provide a written response to the PHA accepting the terms and requirements stated in the notice. SAHA Policy If the project contains SAHA-owned units, within 14 calendar days of the board's resolution approving the project -basing of assistance at a specific project, SAHA will provide the written notice of project selection to the responsible SAHA official, and that official must certify in writing that SAHA accepts the terms and requirements stated in the notice within 14 calendar days of receiving SAHA's written notice. If the project does not contain SAHA-owned units, within 14 calendar days of the board's resolution approving the project -basing of assistance at a specific project, SAHA will notify the owner in writing of the project's selection. The owner must submit a written response to SAHA accepting the terms and requirements stated in the notice within 14 calendar days of SAHA's written notification to the owner. In addition, when an environmental review is required, if the review has not been conducted prior to the project selection date, SAHA's written notice of project selection will state that the selection is subject to completion of a favorable environmental review and that the project may be rejected based on the results of the environmental review. Further, for any project to which labor standards apply, SAHA's written notice will state that any construction contracts must incorporate a Davis -Bacon contract clause and the current applicable prevailing wage determination. 025 City Council 5 — 774 5 2 25 EXHIBIT 1 17-II.E. HOUSING TYPE [24 CFR 983.521 The PHA must decide what housing type, new construction, rehabilitation, or existing housing, will be used to develop project -based housing. The PHA choice of housing type must be reflected in its solicitation for proposals. With certain exceptions, the PHA may not execute a HAP contract for units: • On which construction or rehabilitation commenced after the date of proposal submission (for housing subject to competitive selection) or the date of the PHA's board resolution approving the project -basing of assistance at the project (for housing excepted from competitive selection); and • Prior to the effective date of an AHAP. However, HUD makes an exception in the following circumstances: • The PHA has exercised its discretion under 24 CFR 983.154(f) to undertake development activity without an AHAP; or The PHA has executed an AHAP after construction or rehabilitation that complied with applicable requirements of 24 CFR 983.153 has commenced; or • The PHA will undertake development activity after execution of the HAP contract as authorized under 24 CFR 983.157. At HUD's sole discretion, HUD may approve a PHA's request for additional exceptions to this prohibition. 025 City Council 5 — 775 5 2 25 EXHIBIT 1 17-II.F. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS Ineligible Units [24 CFR 983.521 A HAP contract must not be effective and no PBV assistance may be provided for any of the following: shared housing units; units on the grounds of a penal reformatory, medical, mental, or similar public or private institution; nursing homes or facilities providing continuous psychiatric, medical, nursing services, board and care, or intermediate care (except that assistance may be provided in assisted living facilities); units that are owned or controlled by an educational institution or its affiliate and are designated for occupancy by students; and transitional housing. Manufactured homes are ineligible only if the manufactured home is not permanently affixed to a permanent foundation or the owner does not own fee title to the real property (land) on which the manufactured home is located. In addition, the PHA may not attach or pay PBV assistance for a unit occupied by an owner of the housing. A member of a cooperative who owns shares in the project assisted under the PBV program is not considered an owner for purposes of participation in the PBV program. Before a PHA places a specific unit under a HAP contract, the PHA must determine whether the unit is occupied and, if occupied, whether the unit's occupants are eligible for assistance in accordance with 24 CFR 982.201. For a family to be eligible for assistance in the specific unit, the unit must be appropriate for the size of the family under the PHA's subsidy standards and the total tenant payment (TTP) for the family must be less than the gross rent for the unit. The PHA must not enter into a HAP contract for a unit occupied by a family ineligible for participation in the PBV program. However, unlike in the regular PBV program, the PHA may opt to select an occupied unit or admit a family to a unit if such unit is made exclusively available to VASH families if the PBV project is either on the grounds of a VA facility or there are VASH supportive services provided on -site at the project. See Chapter 19 for more information. 025 City Council 5 — 776 5 2 25 EXHIBIT 1 Subsidized Housing [24 CFR 983.531 A HAP contract must not be effective and no PBV assistance may be provided in any of the following types of subsidized housing: • A public housing unit; • A unit subsidized with any other form of Section 8 assistance; • A unit subsidized with any governmental rent subsidy (a subsidy that pays all or any part of the rent); • A unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing; • A unit subsidized with rental assistance payments under Section 521 of the Housing Act of 1949, 42 U.S.C. 1490a (a Rural Housing Service Program). However, the PHA may attach assistance for a unit subsidized with Section 515 interest reduction payments (42 U.S.C. 1485); • A Section 202 project for non -elderly with disabilities; • Section 811 project -based supportive housing for persons with disabilities; • Section 202 supportive housing for the elderly; • A Section 101 rent supplement project; • A unit subsidized with any form of tenant -based rental assistance; or • A unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or the PHA in accordance with HUD requirements. For this purpose, housing subsidy does not include the housing component of a welfare payment; a social security payment; or a federal, state, or local tax concession (such as relief from local real property taxes). 025 City Council 5 — 777 5 2 25 EXHIBIT 1 17-II.G. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.11, 24 CFR 983.153(b), 24 CFR 4.13, Notice PIH 2O13-11, and FR Notice 3/13/231 Development Activity Before HAP Contract [24 CFR 983.153(b)] As part of the PBV project or proposal selection process, the project owner must disclose information regarding all HUD and/or other federal, state, or local governmental assistance committed to the project, as well as other governmental assistance, using Form HUD-2880 (even if no other governmental assistance is received or anticipated) [FR Notice 3/3/23]. HUD requires a subsidy layering review (SLR) be conducted when new construction or rehabilitation housing will include PBVs in combination with other governmental housing assistance from federal, state, or local agencies, including assistance such as tax concessions or tax credits. The SLR must occur before the PHA attaches PBV assistance to a project. This means when an SLR is required, the PHA may not execute an AHAP or HAP contract until HUD or a HUD -approved housing credit agency (HCA) has conducted the required subsidy layering review and determined the project compliance with 24 CFR 4.13 and other related regulation requirements with regards to attaching PBV assistance. Subsidy layering requirements also do not apply to existing housing when PBV is the only governmental assistance. Conducting the SLR [FR Notice 3/3/23 and Notice PIH 2O23-151 PHAs request an SLR through their local HUD Field Office or, if eligible, through a participating HCA. The PHA is responsible for collecting all required documentation for the SLR from the project owner. Appendix A of FR Notice 3/23/23 contains a list of all required documentation. The owner must inform the PHA if any information changes during or after the application process. If new information becomes available after initial submission, the PHA is responsible for submitting updated information to HUD or the HCA. If HUD completes the SLR and determines the PBV assistance complies with all requirements, HUD will notify the PHA in writing. If the SLR request is submitted to an approved HCA, and the proposed project -based voucher assistance meets HUD subsidy layering requirements, the HCA must submit a certification to HUD and notify the PHA. The PHA may proceed to execute an AHAP at that time if the environmental approval is received. 025 City Council 5 — 778 5 2 25 EXHIBIT 1 Additional Assistance after HAP Contract [24 CFR 983.11(d)] The HAP contract must contain the owner's certification that the project has not received and will not receive (before or during the term of the HAP contract) any public assistance for acquisition, development, or operation of the housing other than assistance disclosed in the subsidy layering review in accordance with HUD requirements, unless the owner discloses additional assistance in accordance with HUD requirements [24 CFR 983.11(d)]. For newly constructed or rehabilitated housing under a HAP contract, the owner must disclose to the PHA information regarding any additional related assistance from the federal government, a state, or a unit of general local government, or any agency or instrumentality thereof. Related assistance includes but is not limited to any loan, grant, guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or any other form of direct or indirect assistance. If the additional related assistance meets certain threshold and other requirements established by HUD, a subsidy layering review may be required to determine if it would result in excess public assistance to the project. The PHA must adjust the amount of the housing assistance payments to the owner to compensate in whole or in part for such related assistance. 025 City Council 5 — 779 5 2 25 EXHIBIT 1 17-II.11. SITE SELECTION STANDARDS Compliance with PBV Goals, Civil Rights Requirements, and Site and Neighborhood Standards [24 CFR 983.55(b)] The PHA may not select a project or proposal for existing, newly constructed, or rehabilitated PBV housing on a site or enter into an AHAP or HAP contract for units on the site, unless the PHA has determined that PBV assistance for housing at the selected site is consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities. The standard for deconcentrating poverty and expanding housing and economic opportunities must be consistent with the PHA Plan under 24 CFR 903 and the PHA administrative plan. In addition, prior to selecting a proposal, the PHA must determine that the site is suitable from the standpoint of facilitating and furthering full compliance with the applicable Civil Rights Laws, regulations, and Executive Orders, and that the site meets the housing quality standards and neighborhood standards at 24 CFR 5.703. SAHA Policy It is SAHA goal to select sites for PBV housing that provide for deconcentrating poverty and expanding housing and economic opportunities. In complying with this goal SAHA will seek to limit approval of sites for PBV housing in census tracts that have poverty concentrations of 20 percent or less. However, SAHA will grant exceptions to the 20 percent standard where SAHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in: A census tract in which the proposed PBV development will be located in a HUD - designated Enterprise Zone, Economic Community, Choice Neighborhood, or Renewal Community; A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment; A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; A census tract where new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; A census tract where there has been an overall decline in the poverty rate within the past five years; or A census tract where there are meaningful opportunities for educational and economic advancement. 025 City Council 5 — 780 5 2 25 EXHIBIT 1 SAHA will also consider whether the site is suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d(4)) and HUD's implementing regulations at 24 CFR Part 1; Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601-3629) and HUD's implementing regulations at 24 CFR Parts 100 through 199; Executive Order 11063 (27 FR 11527; 3 CFR, 1959-1963 Comp., p. 652), and HUD's implementing regulations at 24 CFR Part 107. The site must also be suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of the Americans with Disabilities Act (42 U.S.C. 12131-12134) and implementing regulations (28 CFR Part 35), and Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and HUD's implementing regulations at 24 CFR Part 8, including meeting the Section 504 site selection requirements described in 24 CFR 8.4(b)(5). SAHA will also consider whether the site and neighborhood are reasonably free from disturbing noises and reverberations and other dangers to the health, safety, and general welfare of the occupants. The site and neighborhood may not be subject to serious adverse environmental conditions, natural or manmade, that could affect the health or safety of the project occupants, such as dangerous walks or steps; contamination; instability; flooding, poor drainage, septic tank back-ups or sewage hazards; mudslides; abnormal air pollution, smoke or dust; excessive noise, vibration or vehicular traffic; excessive accumulations of trash; vermin or rodent infestation; or fire hazards. Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.55(d)] The PHA may not enter into an AHAP or HAP contract for existing or rehabilitated housing until it has determined that the site complies with the HUD required site and neighborhood standards. The site must: • Be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • Have adequate utilities and streets available to service the site; • Promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • Be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 025 City Council 5 1 781 5 2 25 EXHIBIT 1 New Construction Site and Neighborhood Standards [24 CFR 983.55(e)] In order to be selected for PBV assistance, a site for newly constructed housing must meet the following HUD required site and neighborhood standards: • The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed; • The site must have adequate utilities and streets available to service the site; • The site must not be located in an area of minority concentration unless the PHA determines that sufficient, comparable opportunities exist for housing for minority families in the income range to be served by the proposed project outside areas of minority concentration or that the project is necessary to meet overriding housing needs that cannot be met in that housing market area; • The site must not be located in a racially mixed area if the project will cause a significant increase in the proportion of minority to non -minority residents in the area. • The site must promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; • The neighborhood must not be one that is seriously detrimental to family life or in which substandard dwellings or other undesirable conditions predominate, unless there is actively in progress a concerted program to remedy the undesirable conditions; • The housing must be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and • Except for housing designed for elderly persons, the housing must be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 025 City Council 5 — 782 5 2 25 EXHIBIT 1 17-II.I. ENVIRONMENTAL REVIEW [24 CFR 983.56] The PHA activities under the PBV program are subject to HUD environmental regulations in 24 CFR parts 50 and 58, other than where exceptions are provided in the PBV regulations. For projects or proposals that were selected in accordance with the site selection standards at 24 CFR 983.55 in effect on or after June 6, 2024, no environmental review is required to be undertaken before entering into a HAP contract for existing housing, except to the extent a Federal environmental review is required by law or regulation relating to funding other than PBV. When an environmental review is required, the responsible entity is responsible for performing the federal environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). If the review has not been conducted prior to the proposal or project selection date, then the PHA's written notice of proposal or project selection must state that the selection is subject to completion of a favorable environmental review and that the project may be rejected based on the results of the environmental review. The PHA may not enter into an AHAP or HAP contract until the responsible entity has complied with the environmental review requirements. The PHA may not enter into an AHAP or a HAP contract with an owner, and the PHA, the owner, and its contractors may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct real property or commit or expend program or local funds for PBV activities under this part, until one of the following occurs: • The responsible entity has determined that the activities to be undertaken are exempt under 24 CFR 85.34(a) or categorically excluded and not subject to compliance with environmental laws under 24 CFR 58.35(b); • The responsible entity has completed the environmental review procedures required by 24 CFR Part 58, and HUD has approved the PHA's Request for Release of Funds and Certification (form HUD-7015.15) - HUD approves the Request for Release of Funds and Certification by issuing a Letter to Proceed or form HUD-7015.16, thereby authorizing the PHA to execute an AHAP or HAP contract, as applicable; or • HUD has performed an environmental review under 24 CFR Part 50 and has notified the PHA in writing of environmental clearance. The PHA must supply all available, relevant information necessary for the responsible entity to perform any required environmental review for any site. The PHA must require the owner to carry out mitigating measures required by the responsible entity (or HUD, if applicable) as a result of the environmental review. 025 City Council 5 — 783 5 2 25 EXHIBIT 1 PART III: DWELLING UNITS 17-III.A. OVERVIEW This part identifies the special housing quality standards that apply to the PBV program, housing accessibility for persons with disabilities, and special procedures for conducting inspections. 17-III.13. HOUSING QUALITY STANDARDS [24 CFR 983.1011 Housing quality standards for the tenant -based program, including those for special housing types, generally apply to the PBV program. Housing quality standards requirements for shared housing, and the homeownership option do not apply because these housing types are not assisted under the PBV program. The owner is required to maintain and operate the contract units and premises in accordance with housing quality standards, including performance of ordinary and extraordinary maintenance. The owner must provide all the services, maintenance, equipment, and utilities specified in the HAP contract with the PHA and in the lease with each assisted family. In addition, maintenance, replacement and redecoration must be in accordance with the standard practice for the building as established by the owner. Lead -based Paint [24 CFR 983.101(c)] The lead -based paint requirements for the tenant -based voucher program do not apply to the PBV program. Instead, the Lead -based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead -based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 CFR Part 35, Subparts A, B, H, and R, and 40 CFR 745.227, apply to the PBV program. Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)] The PHA may elect to establish additional requirements for quality, architecture, or design of PBV housing. Any such additional requirements must be specified in the AHAP and the HAP contract. These requirements must be in addition to, not in place of, compliance with housing quality standards. The PHA must specify the conditions under which it will require additional housing quality requirements in the administrative plan. SAHA Policy SAHA will identify the need for any special features on a case -by -case basis depending on the intended occupancy of the PBV project. SARA will specify any special design standards or additional requirements in the invitation for PBV proposals (if applicable), the AHAP, and the HAP contract. 025 City Council 5 — 784 5 2 25 EXHIBIT 1 17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES [24 CFR 983.1021 The housing must comply with program accessibility requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. SAHA must ensure that the percentage of accessible dwelling units complies with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented by HUD's regulations at 24 CFR 8, subpart C. Housing first occupied after March 13, 1991, must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 CFR 100.205, as applicable. (24 CFR 983.102) 17-III.D. INSPECTING UNITS [24 CFR 983.1031 The PHA must inspect contract units whenever needed to determine that the contract units comply with housing quality standards and that the owner is providing maintenance, utilities, and other services in accordance with the HAP contract. The PHA must take into account complaints and any other information coming to its attention in scheduling inspections. Pre -selection Inspection [24 CFR 983.103(a)] If the units to be assisted already exist, the PHA must inspect all the units before the proposal selection date and must determine if the project meets the definition of existing housing. If the project is existing housing, the PHA may not execute the HAP contract until the units meet the initial inspection requirements in accordance with 24 CFR 983.103(c). Initial Inspection: Newly Constructed and Rehabilitated Projects That Underwent Substantial Improvement [24 CFR 983.103(b)] Following completion of work pursuant to 24 CFR 983.155, the PHA must complete the following inspections, as applicable: • For rehabilitated housing that is developed prior to the HAP contract term or newly constructed housing, the PHA must inspect each proposed newly constructed and rehabilitated PBV unit before execution of the HAP contract. Each proposed PBV unit must fully comply with housing quality standards prior to HAP contract execution. • For rehabilitated housing that will undergo development activity after HAP contract execution, the PHA must conduct unit inspections in accordance with the requirements of 24 CFR 983.157. • For units that underwent substantial improvement pursuant to 24 CFR 983.207(d) or 983.212, inspect each unit. Each PBV unit that underwent substantial improvement must fully comply with housing quality standards prior to the PHA adding the unit to the HAP contract, returning the unit temporarily removed to the HAP contract, allowing re -occupancy of the unit, and resuming housing assistance payments, as applicable. 025 City Council 5 — 785 5 2 25 EXHIBIT 1 Initial Inspection: Existing Housing [24 CFR 983.103(c)] The PHA must inspect and determine that all of the proposed PBV units fully comply with housing quality standards before entering into the HAP contract, unless the PHA has adopted a policy to enter into a HAP contract for units that fail the initial inspection as a result of only non- life -threatening conditions (NLT option), or if the unit passed an alternative inspection, or both. The PHA must establish in its administrative plan the amount of time that may elapse between the initial inspection of existing housing and execution of a HAP contract for that unit. SAHA Policv SAHA will not provide assistance on behalf of the family until the unit fully complies with housing quality standards. SAHA will not rely on alternative inspections for initial inspections. The HAP contract for existing housing must be executed within 60 calendar days of the initial inspection. Turnover Inspections [24 CFR 983.103(d)] Before providing assistance to a new family in a contract unit, the PHA must inspect the unit. The PHA may not provide assistance on behalf of the family until the unit fully complies with housing quality standards. Periodic Inspections [24 CFR 983.103(e); FR Notice 6/25/14] At least once every 24 months during the term of the HAP contract (or at least triennially for small rural PHAs), the PHA must inspect a random sample consisting of at least 20 percent of the contract units in each building to determine if the contract units and the premises are maintained in accordance with housing quality standards. Turnover inspections are not counted toward meeting this inspection requirement. SAHA Policv SAHA will inspect on an annual basis 100 percent of the contract units in each building to determine if the contract units and the premises are maintained in accordance with housing quality standards. For permanent supportive housing projects, SAHA may inspect 100 percent of the contract units in each build twice a year to determine if the contract units and the premises are maintained in accordance with housing quality standards If more than 20 percent of the sample of inspected contract units in a building fail the initial inspection, the PHA must reinspect 100 percent of the contract units in the building. This requirement also applies in the case of a HAP contract that is undergoing development activity after HAP contract execution; however, if the periodic inspection occurs during the period of development activity covered by the rider and fewer than 20 percent of contract units in each building are designated in the rider as available for occupancy, the PHA is only required to inspect the units in that building that are designated as available for occupancy. 025 City Council 5 — 786 5 2 25 EXHIBIT 1 Alternative Inspections for Periodic Inspections [24 CFR 983.103(g); Notice PIH 2O16-05] In the case of mixed finance properties that are subject to alternative inspections, the PHA may rely upon an alternative inspection conducted at least triennially to demonstrate compliance with inspection requirements. SAHA Policv SAHA will not rely on alternative inspection standards. Interim Inspections [24 CFR 983.103(f)] If a participant or government official notifies the PHA of a potential deficiency in a PBV unit or development, the following applies: If the reported deficiency is life -threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the life -threatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non -life -threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA -approved extension. SAHA Policv During an interim inspection, SAHA generally will inspect only those deficiencies that were reported. However, the inspector will record any additional deficiencies that are observed and will require the responsible party to make the necessary repairs. If the periodic inspection has been scheduled or is due within 90 days of the date the special inspection is scheduled SAHA may elect to conduct a full inspection. Follow Up Inspections [24 CFR 983103(f)(2)] The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable, the family) has corrected a housing quality standards violation and must conduct inspections to determine the basis for exercise of contractual and other remedies for owner or family violations of housing quality standards. Supervisory Quality Control Inspections [24 CFR 983.103(f)(3)] In conducting PHA supervisory quality control inspections, the PHA should include a representative sample of both tenant -based and project -based units. Inspecting PHA -Owned Units [24 CFR 983.103(g)] In the case of PHA -owned units, the inspections must be performed by an independent entity designated by the PHA and approved by HUD. The independent entity must furnish a copy of each inspection report to the PHA. The PHA must take all necessary actions in response to inspection reports from the independent entity, including exercise of contractual remedies for violation of the HAP contract by the PHA -owner. 025 City Council 5 — 787 5 2 25 EXHIBIT 1 PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS 17-IV.A. OVERVIEW [24 CFR 983.151 and 983.1521 There are specific requirements that apply to PBV assistance for newly constructed or rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes the requirements unique to this type of assistance. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. 17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT (AHAP) [24 CFR 983.1541 Except where the PHA decides not to use an AHAP or chooses to execute an AHAP after construction or rehabilitation has commenced, the PHA and owner must enter into an AHAP that will govern development activity. In the AHAP, the owner agrees to develop the PBV contract units to comply with housing quality standards, and the PHA agrees that upon timely completion of development in accordance with the terms of the AHAP, the PHA will enter into a HAP contract with the owner for the contract units. The AHAP must cover a single project, except one AHAP may cover multiple projects that each consist of a single-family building. The effective date of the AHAP must be on or after the date the AHAP is executed. The AHAP must be executed and effective prior to the commencement of development activity as described in 24 CFR 983.154(d), except where the PHA decides not to use an AHAP or chooses to execute an AHAP after construction or rehabilitation has commenced. The AHAP must be in the form required by HUD. The PHA and owner may agree to amend the contents of the AHAP by executing an addendum, so long as such amendments are consistent with all PBV requirements. The PHA and owner may only execute an addendum affecting a unit prior to the PHA accepting the completed unit. Development activity must not commence after the date of proposal submission (for housing subject to competitive selection) or the date of the PHA's board resolution approving the project - basing of assistance at the project (for housing excepted from competitive selection) and before the effective date of the AHAP, except where the PHA decides not to use an AHAP or chooses to execute an AHAP after construction or rehabilitation has commenced. In the case of new construction, development activity begins with excavation or site preparation (including clearing of the land). Rehabilitation begins with the physical commencement of rehabilitation activity on the housing. PHA Discretion Not to Use an AHAP [24 CFR 983.154(f)] The PHA may decide not to use an AHAP or may choose to execute an AHAP after construction or rehabilitation that complied with applicable requirements of 24 CFR 983.153 has commenced. To do so, the PHA must explain the circumstances (if any) under which the PHA will enter into a PBV HAP contract for newly constructed or rehabilitated housing without first entering into an AHAP and under which the PHA will enter into an AHAP after construction or rehabilitation has commenced. 025 City Council 5 — 788 5 2 25 EXHIBIT 1 SAHA Policv SAHA may on a case -by -case basis exercise its discretion to not use an AHAP or to execute an AHAP after construction or rehabilitation for newly constructed or rehabilitated housing. Content of the AHAP [24 CFR 983.154(e)] At a minimum, the AHAP must describe the following features of the housing to be developed and assisted under the PBV program: • Site and the location of the contract units; • Number of contract units by area (square footage) and number of bedrooms and bathrooms; • Services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent to owner; • Utilities available to the contract units, including a specification of utility services to be paid by the owner (without charges in addition to rent) and utility services to be paid by the tenant; • An indication of whether or not the design and construction requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 apply to units under the AHAP. If applicable, any required work item resulting from these requirements must be included in the description of work to be performed under the AHAP; • A description of any required work item if the requirement to install broadband infrastructure applies; • Estimated initial rents to owner for the contract units; • Description of the work to be performed under the AHAP. - For rehabilitated units, the description must include the rehabilitation work write up and, where determined necessary by the PHA, specifications and plans. - For new construction units, the description must include the working drawings and specifications. • The deadline for completion of the work to be performed under the AHAP; and • Any additional requirements for quality, architecture, or design over and above housing quality standards. The PHA must specify the conditions under which it will require additional housing quality requirements in the administrative plan. Execution of the AHAP [FR Notice 11/24/081 The AHAP must be executed promptly after PHA notice of proposal selection to the selected owner. SAHA Policv SAHA will enter into the AHAP with the owner after receiving both environmental approval and notice that subsidy layering requirements have been met, and before construction or rehabilitation work is started. 025 City Council 5 — 789 5 2 25 EXHIBIT 1 17-IV.C. DEVELOPMENT REQUIREMENTS Labor Standards [24 CFR 983.153(c)] If an AHAP covers the development of nine or more contract units (whether or not completed in stages), the owner and the owner's contractors and subcontractors must pay Davis -Bacon wages to laborers and mechanics employed in the development of housing. Further, these Davis -Bacon requirements apply to existing PBV units when the nature of any work to be performed either before the execution of the HAP contract or within 18-months after execution constitutes project development. Any development initiated on existing units within 18-months after the effective date of the HAP contract on projects with nine or more contract units triggers Davis -Bacon requirements. When the PHA exercises its discretion at 24 CFR 983.154(f) or 983.157(a) to allow the owner to conduct some or all development activity while the proposed PBV units are not under an AHAP or HAP contract, the applicable parties must comply with the labor standards outlined above from the date of proposal submission (for housing subject to competitive selection) or from the date of the PHA's board resolution approving the project -basing of assistance at the project (for housing excepted from competitive selection). The AHAP will include the labor standards clauses required by HUD, such as those involving Davis -Bacon wage rates. The addendum to the HAP contract, Form HUD-5679, also includes the required labor standards clauses. The owner, contractors, and subcontractors must also comply with the Contract Work Hours and Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable federal labor relations laws and regulations. The PHA must monitor compliance with labor standards. For any project to which labor standards apply, the PHA's written notice to the party that submitted the selected proposal or board resolution approving project -basing of assistance at the specific project must state that any construction contracts must incorporate a Davis -Bacon contract clause and the current applicable prevailing wage determination. Development activity is also subject to the federal equal employment opportunity requirements of Executive Orders 11246 as amended (3 CFR, 1964-1965 Comp., p. 339), 11625 (3 CFR, 1971-1975 Comp., p. 616), 12432 (3 CFR, 1983 Comp., p. 198), and 12138 (3 CFR, 1977 Comp., p. 393). Accessibility [24 CFR 983.153(e)] As applicable, the design and construction requirements of the Fair Housing Act and implementing regulations at 24 CFR 100.205; the accessibility requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR Part 8, including 8.22 and 8.23; and Title II of the Americans with Disabilities Act (42 U.S.C. 12131- 12134) and implementing regulations at 28 CFR Part 35, including 24 CFR 35.150 and 35.151, apply to development activity. A description of any required work item resulting from these requirements must be included in the AHAP (if applicable) or HAP contract (if applicable). 025 City Council 5 — 790 5 2 25 EXHIBIT 1 Broadband Infrastructure [24 CFR 983.153(f)] Any development activity that constitutes substantial rehabilitation (as defined by 24 CFR 5.100) of a building with more than four rental units and where the proposal or project selection date or the start of the development activity while under a HAP contract is after January 19, 2017, must include installation of broadband infrastructure, as defined in 24 CFR 5.100, except where the owner determines and documents the determination that: • The location of the new construction or substantial rehabilitation makes installation of broadband infrastructure infeasible; The cost of installing broadband infrastructure would result in a fundamental alteration in the nature of its program or activity or in an undue financial burden; or The structure of the housing to be substantially rehabilitated makes installation of broadband infrastructure infeasible. A description of any required work item resulting from this requirement must be included in the AHAP (if applicable) or HAP contract (if applicable). Owner Disclosure [24 CFR 983.153(g)] The AHAP and HAP contract must include a certification by the owner that the owner and other project principals are not on the U.S. General Services Administration list of parties excluded from federal procurement and non -procurement programs. The owner must also disclose any possible conflict of interest that would be a violation of the AHAP, the HAP contract, or HUD regulations. 025 City Council 5 — 791 5 2 25 EXHIBIT 1 17-IV.D. COMPLETION OF WORK [24 CFR 983.1551 Evidence of Completion [24 CFR 983.1551 The owner must submit evidence and certify to the PHA, in the form and manner required by the PHA's administrative plan, that development activity or substantial improvement has been completed, and that all such work was completed in accordance with the applicable requirements. The PHA must review the evidence to determine whether the development activity or substantial improvement was completed in accordance with the applicable requirements. In the case of PHA -owned units, the owner must submit evidence and certify to the independent entity, in the form and manner required by the PHA's administrative plan, that development activity or substantial improvement has been completed, and that all such work was completed in accordance with the applicable requirements. The independent entity must review the evidence to determine whether the development activity or substantial improvement was completed in accordance with the applicable requirements. SAHA Policy At a minimum, the owner must submit the following evidence of completion to SAHA or independent entity, as applicable: Owner certification that the work has been completed in accordance with housing quality standards and all requirements of the AHAP; and Owner certification that the owner has complied with labor standards and equal opportunity requirements in development of the housing. At the discretion of SAHA, the AHAP may specify additional documentation that must be submitted by the owner as evidence of housing completion. For example, such documentation may include: A certificate of occupancy or other evidence that the units comply with local requirements (such as code and zoning requirements); and An architect's certification that the housing complies with: HUD housing quality standards; State, local, or other building codes; Zoning; The rehabilitation work write-up (for rehabilitated housing) or the work description (for newly constructed housing); or Any additional design or quality requirements pursuant to the AHAP. SAHA will determine the need for the owner to submit additional documentation as evidence of housing completion on a case -by -case basis depending on the nature of the PBV project. SAHA will specify any additional documentation requirements in the AHAP. 025 City Council 5 — 792 5 2 25 EXHIBIT 1 PHA Acceptance of Completed Units [24 CFR 983.156(a) and (b)] After the PHA has received all required evidence of completion and the owner's certification that all work was completed in accordance with the applicable requirements, the PHA must inspect to determine if the housing has been completed in accordance with the AHAP, including compliance with housing quality standards and any additional design, architecture, or quality requirements imposed under the AHAP. For PHA -owned units, the independent entity must perform the inspection. The PHA must also determine if the owner has submitted all required evidence of completion. If the work has not been completed in accordance with the AHAP, the PHA must not enter into the HAP contract. If the PHA determines the work has been completed in accordance with the AHAP and all applicable requirements and that the owner has submitted all required evidence of completion, the PHA must: • For units which will not undergo development activity after HAP contract execution, submit the HAP contract for execution by the owner and then execute the HAP contract; • For rehabilitated housing projects for which development activity has commenced prior to HAP contract execution under 24 CFR 983.157(b), submit the HAP contract for execution by the owner and then execute the HAP contract; • For development activity after the HAP contract execution, amend the HAP contract rider to designate the completed units as available for occupancy, or if the owner has completed all development activity as provided in the rider, amend the HAP contract to delete the rider; or • For units that underwent substantial improvement in order to be added to the HAP contract, amend the HAP contract to add the units to the HAP contract. Staged Completion of Contract Units [24 CFR 983.156(c)] Contract units that will not undergo development activity after HAP contract execution may be placed under the HAP contract in stages commencing on different dates. In such a case, the PHA must determine separately for each stage whether the development activity was completed in accordance with the applicable requirements and that the units meet housing quality standards and any additional design, architecture, or quality requirements specified by the PHA. If the first stage is determined compliant, then the PHA must submit the HAP contract for execution by the owner and must execute the HAP contract for PBV rehabilitated housing and newly constructed housing projects. As each subsequent stage is determined compliant, the PHA and owner must amend the HAP contract to add the units to the HAP contract. 025 City Council 5 — 793 5 2 25 EXHIBIT 1 PART V: HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT 17-V.A. OVERVIEW [24 CFR 983.202(a)] The PHA must enter into a HAP contract with an owner for units that are receiving PBV assistance. The purpose of the HAP contract is to provide housing assistance payments for eligible families leasing PBV units during the term of the HAP contract. With some exceptions, a HAP contract must cover a single project. If multiple projects exist, each project is covered by a separate HAP contract. However, a PHA and owner may agree to place multiple projects, each consisting of a single-family building, under one HAP contract. The HAP contract must be in the form required by HUD. 17-V.B. HAP CONTRACT REQUIREMENTS Contract Information [24 CFR 983.2031 The HAP contract must specify the following information: • The total number of contract units by number of bedrooms; • The project's name, street address, city or county, state and ZIP code, block and lot number (if known), and any other information necessary to clearly identify the site and the building; • The number of contract units in each building, the location of each contract unit, the area of each contract unit, and the number of bedrooms and bathrooms in each contract unit; • Services, maintenance, and equipment to be supplied by the owner and included in the rent to owner; • Utilities available to the contract units, including a specification of utility services to be paid by the owner (included in rent) and utility services to be paid by the tenant; • Features provided to comply with program accessibility requirements of Section 504 of the Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8 and the Americans with Disabilities Act, as applicable; • The HAP contract term; • The number of units under the increased program cap or excepted from the project cap that will be set aside for occupancy by families who qualify for such a unit; • The initial rent to owner for the first 12 months of the HAP contract term; and • Whether the PHA has elected not to reduce rents below the initial rent to owner. 025 City Council 5 — 794 5 2 25 EXHIBIT 1 Execution of the HAP Contract [24 CFR 983.204] Before execution of the HAP contract, the PHA must determine that applicable pre -HAP contract housing quality standards requirements have been met in accordance with 24 CFR 983.103(b) or (c) as applicable. The PHA may not execute the HAP contract for any contract unit that does not meet the pre -HAP contract housing quality standards requirements. For existing housing, the HAP contract must be executed promptly after the PHA selects the owner proposal and the PHA determines that applicable pre -HAP contract housing quality standards requirements have been met. For newly constructed or rehabilitated housing that will not undergo development activity after HAP contract execution, the HAP contract must be executed promptly after the PHA has inspected the completed units and has determined that the units have been completed in accordance with the AHAP, and the owner furnishes all required evidence of completion. For rehabilitated housing that will undergo development activity after HAP contract execution, the HAP contract must be executed and effective promptly after all proposed PBV units are added to the contract at this time, including units that do not comply with HQS or that will undergo development activity. SAHA Policy For existing housing, the HAP contract will be executed within 14 calendar days of SAHA determining that all units pass inspection. For rehabilitated or newly constructed housing, the HAP contract will be executed within 14 calendar days of SAHA determining that the units have been completed in accordance with the AHAP, all units meet housing quality standards, and the owner has submitted all required evidence of completion. Effective Date of the HAP Contract [24 CFR 983.204(d)] The effective date of the HAP contract must be on or after the date the HAP contract is executed. The HAP contract must be effective before the effective date of the first lease covering a contract unit occupied by an assisted family, and the PHA may not pay any housing assistance payment to the owner until the HAP contract is effective. 025 City Council 5 — 795 5 2 25 EXHIBIT 1 Term of HAP Contract [24 CFR 983.205, FR Notice 1/18/17, and Notice PIH 2O17-211 The PHA may enter into a HAP contract with an owner for an initial term of no less than one year and no more than 20 years for each contract unit. The length of the term of the HAP contract for any contract unit may not be less than one year, nor more than 20 years. SAHA Policy The term of all PBV HAP contracts will be negotiated with the owner on a case -by -case basis. The Housing Opportunity through Modernization Act of 2016 (HOTMA) changes the limitation on the initial term of the HAP contract from 15 years to 20 years. For PHAs and owners with HAP contracts in effect prior to the implementation of this provision of HOTMA (April 18, 2017), if contracts are still in the initial term, the term may be extended to a maximum initial term of 20 years by mutual consent, and then may subsequently be extended for additional 20 years, for a maximum of 40 years. PHAs and owners with HAP contracts that are no longer in the initial term may mutually agree to extend the contract for total extension term of 20 years. The PHA and owner may agree at any time before expiration of the HAP contract to execute one or more extensions of the HAP contract term, but the following conditions apply: • Each extension executed must have a term that does not exceed 20 years; • At no time may the total remaining term of the HAP contract, with extensions, exceed 40 years; • Before agreeing to an extension, the PHA must determine that the extension is appropriate to continue providing affordable housing for low-income families or to expand housing opportunities; and • Each extension must be on the form and subject to the conditions prescribed by HUD at the time of the extension. SAHA Policy When determining whether or not to extend an expiring PBV contract, SAHA will consider several factors including, but not limited to: The cost of extending the contract and the amount of available budget authority; The condition of the contract units; The owner's record of compliance with obligations under the HAP contract and leases; Whether the location of the units continues to support the goals of deconcentrating poverty and expanding housing opportunities; and Whether the funding could be used more appropriately for tenant -based assistance. 025 City Council 5 — 796 5 2 25 EXHIBIT 1 17-V.C. TERMINATION OF THE HAP CONTRACT Termination by Agreement of PHA and Owner [24 CFR 983.206(e)] The PHA and owner may agree to terminate the HAP contract prior to the end of the term. The owner is required to give notice in accordance 24 CFR 983.206(a) prior to termination, and families must be provided tenant -based assistance and may elect to remain in the project. Termination by PHA [24 CFR 983.205(c)] The HAP contract must provide that the PHA may terminate the contract for insufficient funding, subject to HUD requirements. The PHA has the option of terminating a PBV HAP contract based on "insufficient funding" only if: • The PHA determines in accordance with HUD requirements that it lacks sufficient HAP funding (including HAP reserves) to continue to make housing assistance payments for all voucher units currently under a HAP contract; • The PHA has taken cost -saving measures specified by HUD; • The PHA notifies HUD of its determination and provides the information required by HUD; and • HUD determines that the PHA lacks sufficient funding and notifies the PHA it may terminate HAP contracts as a result. If the PHA determines that the owner has breached the HAP contract, the PHA may exercise any of its rights or remedies under the HAP contract, including but not limited to contract termination. The provisions of 24 CFR 983.208 apply for HAP contract breaches involving failure to comply with housing quality standards. For any other contract termination due to breach, 24 CFR 983.206(b) on provision of tenant -based assistance applies. Non -extension by Owner — Notice Requirements [24 CFR 983.206(a)] Not less than one year before the HAP contract terminates, the owner must notify the PHA and assisted tenants of the termination. The notice must be provided in the form prescribed by HUD. The term termination for applicability of this notice requirement means the expiration of the HAP contract, termination of the HAP contract by agreement of PHA and owner, or an owner's refusal to renew the HAP contract. If the owner does not give timely notice, the owner must permit the tenants in assisted units to remain in their units for the required notice period with no increase in the tenant portion of their rent, and with no eviction as a result of the owner's inability to collect an increased tenant portion of rent. An owner and the PHA may agree to renew the terminating contract for a period of time sufficient to give tenants one-year advance notice under such terms as HUD may require. 025 City Council 5 — 797 5 2 25 EXHIBIT 1 Termination by Owner — Reduction Below Initial Contract Rent [24 CFR 983.206(d)] If the amount of the rent to owner for any contract unit, as adjusted, is reduced below the amount of the initial rent to owner, the owner may terminate the HAP contract, upon notice to the PHA no fewer than 90 calendar days prior to the planned termination, and families must be provided tenant -based assistance and may elect to remain in the project. The owner is not required to provide the one-year notice of the termination of the HAP contract to the family and the PHA when terminating the HAP contract due to rent reduction below the initial rent to owner. Termination or Expiration without Extensions — Required Provision of Tenant -Based Assistance [24 CFR 983.206(b)] Unless a termination or expiration without extension occurs due to a determination of insufficient funding or other extraordinary circumstances determined by HUD, upon termination or expiration of the contract, a family living at the property is entitled to receive a tenant -based voucher no fewer than 60 calendar days prior to the planned termination or expiration of the PBV HAP contract. However, the PHA is not required to issue the family a voucher if the PHA has offered the family an alternative housing option (e.g., an assisted unit in another PBV project), and the family chooses to accept the alternative housing option instead of the voucher. Tenant -based assistance would not begin until the owner's required notice period ends. The PHA must provide the family with a voucher and the family must also be given the option by the PHA and owner to remain in their unit with HCV tenant -based assistance subject to the following: • The unit must comply with housing quality standards; • The PHA must determine or have determined that the rent for the unit is reasonable; • The family must pay its required share of the rent and the amount, if any, by which the unit rent (including the amount allowed for tenant -based utilities) exceeds the applicable payment standard (the limitation at 24 CFR 982.508 regarding maximum family share at initial occupancy does not apply); and 025 City Council 5 — 798 5 2 25 EXHIBIT 1 • The owner may not refuse to initially lease a unit in the project to a family that elects to use their tenant -based assistance to remain in the same project, except where the owner will use the unit for a purpose other than a residential rental unit. The owner may not later terminate the tenancy of such a family, except for the following grounds: - The grounds in 24 CFR 982.310, except paragraphs 24 CFR 982.310(d)(1)(iii) and (iv); - The owner's desire to use the unit for a purpose other than a residential rental unit; and - The owner's desire to renovate the unit, subject to the following: • The owner must consider whether a reasonable alternative to terminating the lease exists. If a reasonable alternative exists, the owner must not terminate the lease. The owner must consider the following alternatives: Completing renovations without the family vacating the unit, if the renovations can be completed in a manner that does not result in life -threatening conditions, does not result in deficiencies under housing quality standards that are not corrected within 30 days, and is mutually agreeable to the owner and the family; and - Temporarily relocating the family to complete the renovations, if the relocation and renovations can be completed within a single calendar month (beginning no sooner than the first day of a month and ending no later than the last day of the same month) and the family can be relocated to a location and in a manner mutually agreeable to the owner and the family; • If the owner terminates the lease for renovation, the owner must make every reasonable effort to make available and lease the family another unit within the project that meets the tenant -based voucher program requirements; and • If no other unit within the project is available for the family to lease during the renovation period or the family chooses to move from the project during the renovation period, the owner must make every reasonable effort to make available and lease the family a unit within the project upon completion of renovations. The family has the right to remain in the project as long as the units are used for rental housing and are otherwise eligible for HCV assistance. Families that receive a tenant -based voucher at the expiration or termination of the PBV HAP contract are not new admissions to the PHA HCV tenant -based program and are not subject to income eligibility requirements or any other admission requirements. If the family chooses to remain in their unit with tenant -based assistance, the family may do so regardless of whether the family share would initially exceed 40 percent of the family's adjusted monthly income. The voucher issued to the family is the voucher attached to its unit under the expiring or terminating PBV contract. Consequently, if the family vacates the contract unit following the issuance of the tenant -based voucher and prior to the contract termination or expiration date, the PHA must remove the unit from the PBV HAP contract at the time the family vacates the unit. The PBV HAP contract must provide that, if the units continue to be used for rental housing upon termination or expiration without extension of a PBV HAP contract, each assisted family may elect to use its tenant -based assistance to remain in the same project. 025 City Council 5 — 799 5 2 25 EXHIBIT 1 Remedies for Housing Quality Standards Deficiencies [24 CFR 983.2081 The following is applicable to HAP contracts executed or renewed June 5, 2024, or earlier: The PHA may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with housing quality standards. If the PHA determines that a contract does not comply with housing quality standards, the PHA may exercise any of its remedies under the HAP contract, for any or all of the contract units. Available remedies include termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract. SAHA Policy SAHA will abate and terminate PBV HAP contracts for noncompliance with housing quality standards in accordance with the policies used in the tenant -based voucher program. These policies are contained in Section 8-II.G., Enforcing Owner Compliance. The following is applicable to HAP contracts executed or renewed June 6, 2024, or later. Enforcement of Housing Quality Standards [24 CFR 983.208(b)] The PHA must vigorously enforce the owner's obligation to maintain contract units in accordance with housing quality standards. If the owner fails to maintain the dwelling unit in accordance with housing quality standards, the PHA must take enforcement action. The unit is in noncompliance with housing quality standards if - The PHA or other inspector authorized by the state or local government determines the unit has housing quality standards deficiencies based upon an inspection; The agency or inspector notifies the owner in writing of the unit housing quality standards deficiencies; and • The deficiencies are not remedied within the following timeframes: - For life -threatening deficiencies, the owner must correct the deficiency within 24 hours of notification; - For other deficiencies, the owner must correct the deficiency within 30 calendar days of notification (or any reasonable PHA -approved extension). In the case of a housing quality standards deficiency that the PHA determines is caused by the tenant, any member of the household, or any guest or other person under the tenant's control, other than any damage resulting from ordinary use, the PHA may waive the owner's responsibility to remedy the violation. Housing assistance payments to the owner may not be withheld or abated if the owner responsibility has been waived. However, the PHA may terminate assistance to a family because of a housing quality standards breach beyond damage resulting from ordinary use caused by any member of the household or any guest or other person under the tenant's control, which may result in removing the unit from the HAP contract. 025 City Council 5 — 800 5 2 25 EXHIBIT 1 SAHA Polic SAHA will waive the owner's responsibility for housing quality standards deficiencies that have been determined to have been caused by the tenant, any member of the household, or any guest or other person under the tenant's control, to the extent the tenant can be held responsible for ensuring that the deficiencies are corrected: the tenant must take all necessary steps permissible under the lease and state and local law to remedy the deficiency. This may include paying the owner for the cost of the necessary repairs in accordance with the lease. In the case of a housing quality standards deficiency that is caused by fire, natural disaster, or similar extraordinary circumstances, the PHA may permit the owner to undertake substantial improvement in accordance with 24 CFR 983.212. However, so long as the contract unit with deficiencies is occupied, the PHA must withhold or abate housing assistance payments and remove units from or terminate the HAP contract as described in this section. In the case of a project that is undergoing development activity after HAP contract execution, the remedies of 24 CFR 983.208(d) do not apply to units designated as unavailable for occupancy during the period of development activity in accordance with the rider. However, in the case of any contract unit with deficiencies that is occupied, the PHA must withhold or abate housing assistance payments and remove units from or terminate the HAP contract as described in this section. Family Obligation [24 CFR 983.208(c)] The family may be held responsible for a breach of housing quality standards caused by any of the following: • Tenant -paid utilities not in service; • Failure to provide or maintain appliances owned by the family; and • Damage to the dwelling unit or premises caused by a household member or guest beyond ordinary wear and tear. SAHA Policy Damages beyond ordinary wear and tear will be considered to be damages which could be assessed against the security deposit under state law or in court practice. If the PHA has waived the owner's responsibility to remedy the violation, the following applies: • If the housing quality standards breach caused by the family is life -threatening, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 24 hours of notification. • For other family -caused deficiencies, the family must take all steps permissible under the lease and state and local law to ensure the deficiency is corrected within 30 calendar days of notification (or any PHA -approved extension). If the family has caused a breach of the housing quality standards, the PHA must take prompt and vigorous action to enforce the family obligations. The PHA may terminate assistance for the family in accordance with 24 CFR 982.552. 025 City Council 5 — 801 5 2 25 EXHIBIT 1 PHA Remedies [24 CFR 983.208(d)] The remedies listed below apply when housing quality standards deficiencies are identified as the result of an inspection other than a pre -selection, initial, or turnover inspection. The PHA must identify in its administrative plan the conditions under which it will withhold HAP and the conditions under which it will abate HAP or terminate the HAP contract for units other than the unit with housing quality standards deficiencies. SAHA Policy The owner and the family will be notified in writing of the results of all inspections. When an inspection identifies housing quality standards failures, SAHA will determine (1) whether or not the failure is a life -threatening condition and (2) whether the family or owner is responsible. SAHA will not withhold assistance payments upon notification to the owner of the deficiencies. When life -threatening conditions are identified, SAHA will immediately notify both parties by telephone or email. The notice will specify who is responsible for correcting the violation. The corrective actions must be taken within 24 hours of SAHA's notice. When failures that are not life -threatening are identified, SAHA will send the owner and the family a written notification of the inspection results within five business days of the inspection. The written notice will specify who is responsible for correcting the violation, and the time frame within which the failure must be corrected. Generally, not more than 30 days will be allowed for the correction. If the owner is responsible for correcting the deficiency, the notice of inspection results will inform the owner that if life -threatening conditions are not corrected within 24 hours, and non -life -threatening conditions are not corrected within the specified time frame (or any PHA -approved extension), the owner's HAP will be abated. Likewise, if the family is responsible for correcting the deficiency, the notice will inform the family that if corrections are not made within the specified time frame (or any PHA - approved extension, if applicable) the family's assistance will be terminated in accordance with PHA policy (see Chapter 12). 025 City Council 5 — 802 5 2 25 EXHIBIT 1 HAP Withholding [24 CFR 983.208(d)(1) A PHA may withhold assistance payments for units that have housing quality standards deficiencies once the PHA has notified the owner in writing of the deficiencies. The PHA's administrative plan must identify the conditions under which the PHA will withhold HAP. In this case, if the unit is brought into compliance during the applicable cure period, the PHA resumes assistance payments and provides assistance payments to cover the time period for which the payments were withheld. SAHA Policy SAHA will not withhold assistance payments upon notification to the owner of the deficiencies. HAP Abatement [24 CFR 983.208(d)(2)] The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period. The PHA may choose to abate payments for all units covered by the HAP contract due to a contract unit's noncompliance with the housing quality standards, even if some of the contract units continue to meet housing quality standards. In this case, the PHA must notify the family and the owner that it is abating payments and, if the unit does not meet housing quality standards within 60 days (or a reasonable longer period established by the PHA), the PHA will either terminate the HAP contract or remove the unit with deficiencies from the HAP contract, and any family residing in a unit that does not comply with housing quality standards will have to move if the family wishes to receive continued assistance. The owner may not terminate the tenancy of any family due to the withholding or abatement of assistance. SAHA Policy SAHA will make all HAP abatements effective the first of the month following the expiration of SAHA-specified correction period (including any extension). SAHA will abate payments only for those contract units that do not meet housing quality standards. SAHA will inspect abated units within five business days of the owner's notification that the work has been completed. Payment will resume effective on the day the unit passes inspection. During any abatement period the family continues to be responsible for its share of the rent. 025 City Council 5 — 803 5 2 25 EXHIBIT 1 Failure to Make Repairs If an owner fails to make required repairs within 60 days (or a reasonable longer period established by the PHA) of the notice of abatement, the PHA must either remove the unit from the HAP contract or terminate the HAP contract in its entirety. The PHA must issue the family whose unit will be removed or all families residing in contract units, if the PHA is terminating the HAP contract, a tenant -based voucher to move at least 30 days prior to the removal of the unit from the HAP contract or termination of the HAP contract. A family may elect to remain in the project if the project contains a unit that meets the requirements of that section, with priority given to families who will remain in the same unit if there are insufficient units available to accommodate all families that wish to remain. The PHA must give any family residing in a unit that is either removed from the HAP contract or for which the HAP contract is terminated due to a failure to correct housing quality standards deficiencies at least 90 days or a longer period as the PHA determines is reasonably necessary following the termination of the HAP contract or removal of the unit from the HAP contract to lease a unit with tenant -based assistance. SAHA Policy SAHA will issue a family whose HAP contract is being terminated due to an owner failing to make required repairs within the required time frame a voucher no later than 30 days prior to the termination of the HAP contract. The initial term of the voucher will be 120 calendar days. In order to receive tenant -based assistance under the HCV program, the family must submit a Request for Tenancy Approval and proposed lease within the 120-day period, unless SAHA grants an extension. SAHA will follow the policies set forth in Chapter 5 on voucher extension and expiration. Offer of Public Housing [24 CFR 983.208(d)(6)(ii)] If the family is unable to lease a new unit within the term of the voucher, and the PHA owns or operates public housing, the PHA must offer, and, if accepted, provide the family a selection preference for an appropriate -size public housing unit that first becomes available for occupancy after the time period expires. SAHA Policy SAHA does not operate any public housing units. 11 025 City Council 5 — 804 5 2 25 EXHIBIT 1 Relocation Assistance [24 CFR 983.208(d)(6)(iii)] PHAs may assist families relocating due to the HAP contract being terminated as a result of the owner failing to make required repairs within the required time frame in finding a new unit, including using up to two months of the withheld and abated assistance payments for costs directly associated with relocating to a new unit, including security deposits, temporary housing costs, or other reasonable moving costs as determined by the PHA based on their locality. If the PHA uses withheld and abated payments to assist with relocation costs, the PHA must provide security deposit assistance to the family as necessary. The PHA must assist families with disabilities with locating available accessible units in accordance with 24 CFR 8.28 (a)(3). If the family receives security deposit assistance from the PHA for the new unit, the PHA may require the family to remit the security deposit returned by the owner of the new unit as such time that the lease is terminated, up to the amount of security deposit provided by the PHA for that unit. SAHA Polic SAHA will assist families with disabilities with locating available accessible units in accordance with program requirements. SAHA will use up to two months of withheld and abated payment to assist with any required security deposit at the new unit. Funds will not be used for any other relocation assistance. If the family receives a refund of a security deposit for the new unit, SAHA will not require any amount to be remitted to SAHA. 411 025 City Council 5 — 805 5 2 25 EXHIBIT 1 17-V.D. AMENDMENTS TO THE HAP CONTRACT TO ADD OR SUBSTITUTE UNITS [24 CFR 983.2071 At the PHA's discretion, the PHA and owner may execute an amendment to the HAP contract to substitute a different unit with the same number of bedrooms in the same project for a previously covered contract unit or to add additional contract units to the existing HAP contract without a new proposal selection. The proposed substituted or added units may be vacant or occupied (subject to the requirements of 24 CFR 983.207(c) described below). Before any such substitution or addition can take place: • The units must comply with housing quality standards; • The rent to owner must be reasonable; and • One of the following conditions must apply: - The units existed at the time of HAP contract execution; or - In the case of a project completed in stages, the units existed at the time of PHA acceptance of the last completed units; or - A unit, office space, or common area within the interior of a building containing contract units existed at the time described above, as applicable, and is reconfigured without impacting the building envelope, subject to 24 CFR 983.207(d), into one or more units to be added or substituted. The PHA must describe in the administrative plan the circumstances under which it will add or substitute contract units, and how those circumstances support the goals of the PBV program. SAHA Policy SAHA will add units to the contract on a case -by -case basis to ensure the availability of affordable housing as long as the addition of units does not exceed allowable project caps. Addition of Contract Units [24 CFR 983.207(b)] Before adding any contract units, the units must comply with housing quality standards and the rent to owner must be reasonable. The additional PBV units, however, are still subject to the PBV program cap and project cap. However, added units that qualify for an exclusion from the program cap (as described in 24 CFR 983.59) or an exception to or exclusion from the project cap (as described in 24 FR 983.54(c) and 24 CFR 983.59, respectively) do not count toward such caps. 025 City Council 5 — 806 5 2 25 EXHIBIT 1 Substituting or Adding Occupied Units [24 CFR 983.207(c)] The PHA may place occupied units on the HAP contract subject to the following: • The family occupying the unit must be eligible for assistance; • The unit must be the appropriate for the size of the family occupying the unit under the PHA's subsidy standards; • The family must be selected from the waiting list in accordance with applicable selection policies; and • The unit may be occupied by a family who was assisted with a tenant -based voucher immediately prior to the unit being placed on the PBV HAP contract. The tenant -based HAP contract for the unit must terminate before the unit may be placed under the PBV HAP contract. The family occupying the unit is not a new admission to the voucher program. - If the family is in the initial term of the tenant -based lease, the family agreed to mutually terminate the tenant -based lease with the owner and enter into a PBV lease. - If the initial term of the tenant -based lease has passed or the end of that term coincides with the time at which the unit will be placed on the PBV HAP contract, upon the owner's decision not to renew the tenant -based lease or to terminate the tenant -based lease in accordance with 24 CFR 982.308 or 982.310, respectively, the family agreed to relinquish the tenant -based voucher and enter into a PBV lease. 17-V.E. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24 CFR 983.207(b)(2) and (g) and 983.302(e)] The HAP contract year is the period of 12 calendar months preceding each annual anniversary of the HAP contract during the HAP contract term. The initial contract year is calculated from the first day of the first calendar month of the HAP contract term. The annual anniversary of the HAP contract is the first day of the first calendar month after the end of the preceding contract year. There is a single annual anniversary and expiration date for all units under a particular HAP contract, even in cases where contract units are placed under the HAP contract in stages (on different dates) or units are added by amendment. The anniversary and expiration dates for all units coincide with the dates for the contract units that were originally placed under contract. 025 City Council 5 — 807 5 2 25 EXHIBIT 1 17-V.F. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT [24 CFR 983.2101 When the owner executes the HAP contract, the owner certifies that at such execution and at all times during the term of the HAP contract: • The owner is maintaining the premises and contract units in accordance with housing quality standards; • The owner is providing all services, maintenance, equipment and utilities as agreed to under the HAP contract and the leases; • Each contract unit for which the owner is receiving HAP is leased to an eligible family referred by the PHA or selected from the owner -maintained waiting list, and the lease is in accordance with the HAP contract and HUD requirements; • To the best of the owner's knowledge the family resides in the contract unit for which the owner is receiving HAP, and the unit is the family's only residence; • The owner (including a principal or other interested party) is not the spouse, parent, child, grandparent, grandchild, sister, or brother of any member of a family residing in a contract unit (unless needed as a reasonable accommodation); • The amount of the HAP the owner is receiving is correct under the HAP contract; • The rent for contract units does not exceed rents charged by the owner for comparable unassisted units; • Except for HAP and tenant rent, the owner has not received and will not receive any other payment or consideration for rental of the contract unit; • The family does not own or have any interest in the contract unit (does not apply to family's membership in a cooperative); and • Repair work on the project selected as an existing project that is performed after HAP execution within such post -execution period as specified by HUD may constitute development activity, and if determined to be development activity, the repair work undertaken shall be in compliance with Davis -Bacon wage requirements. 025 City Council 5 — 808 5 2 25 EXHIBIT 1 PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS 17-VI.A. OVERVIEW Many of the provisions of the tenant -based voucher regulations [24 CFR 982] also apply to the PBV program. This includes requirements related to determining eligibility and selecting applicants from the waiting list. Even with these similarities, there are requirements that are unique to the PBV program. This part describes the requirements and policies related to eligibility and admission to the PBV program. 17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)] The PHA may select families for the PBV program from those who are participants in the PHA's tenant -based voucher program and from those who have applied for admission to the voucher program. For voucher participants, eligibility was determined at original admission to the voucher program and does not need to be redetermined at the commencement of PBV assistance. For all others, eligibility for admission must be determined at the commencement of PBV assistance using information received and verified by the PHA within a period of 60 days before commencement of PBV assistance. For all families, the PHA must determine the total tenant payment for the family is less than the gross rent, such that the unit will be eligible for a monthly HAP. Applicants for PBV assistance must meet the same eligibility requirements as applicants for the tenant -based voucher program. Applicants must qualify as a family as defined by HUD and the PHA, have income at or below HUD -specified income limits, and qualify on the basis of citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24 CFR 983.2(a)]. In addition, an applicant family must provide social security information for family members [24 CFR 5.216 and 5.218] and consent to the PHA's collection and use of family information regarding income, expenses, and family composition [24 CFR 5.230]. The PHA may also not approve a tenancy if the owner (including a principal or other interested party) of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the family, unless needed as a reasonable accommodation. An applicant family must also meet HUD requirements related to current or past criminal activity. SAHA Policy SAHA will determine an applicant family's eligibility for the PBV program in accordance with the policies in Chapter 3. Each PBV project may have income limits at or below fifty -percent AMI. To determine the specific projects income limits, refer to either of these documents, Resident Selection Plan or Tenant Selection Plan. 025 City Council 5 — 809 5 2 25 EXHIBIT 1 In -Place Families [24 CFR 983.251(b)] A family residing in a proposed contract unit on the proposal or project selection date is considered an in place family. If an in -place family is determined to be eligible prior to placement of the family's unit on the HAP contract, the in -place family must be placed on the PHA's waiting list (if the family is not already on the list). Once the family's continued eligibility is determined (the PHA may deny assistance to an in -place family for the grounds specified in 24 CFR 982.552 and 982.553), the family must be given an absolute selection preference and the PHA must refer families to the applicable project owner for an appropriately sized PBV unit in the specific project. Admission of eligible in -place families is not subject to income targeting requirements. During the initial term of the lease under the tenant -based tenancy, an in -place tenant -based voucher family may agree, but is not required, to mutually terminate the lease with the owner and enter into a lease and tenancy under the PBV program. If the family chooses to continue the tenant -based assisted tenancy, the unit may not be added to the PBV HAP contract. The owner may not terminate the lease for other good cause during the initial term unless the owner is terminating the tenancy because of something the family did or failed to do in accordance with 24 CFR 982.3 1 0(d)(2). The owner is expressly prohibited from terminating the tenancy during the initial term of the lease based on the family's failure to accept the offer of a new lease or revision, or for a business or economic reason. If, after the initial term, the owner chooses not to renew the lease or terminates the lease for other good cause (as defined in 24 CFR 982.310(d)) to end the tenant -based assisted tenancy, the family would be required to move with continued tenant -based assistance or relinquish the tenant -based voucher and enter into a new lease to receive PBV assistance in order to remain in the unit. 025 City Council 5 — 810 5 2 25 EXHIBIT 1 17-VI.C. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(c)] Applicants who will occupy units with PBV assistance must be selected from the waiting list for the PBV program. The PHA or owner (as applicable) may establish selection criteria or preferences for occupancy of particular PBV units. The PHA may place families referred by the PBV owner on its PBV waiting list. The PHA must establish in the administrative plan the options it will use to structure the PBV waiting list. The PHA may: • Use a separate, central, waiting list comprised of more than one or all PBV projects; • Use the same waiting list for both tenant -based and some or all PBV projects; • Use a separate waiting list for PBV units in individual projects or buildings (or for sets of such units) (which may be used in combination with either of the above options and may be maintained by the owner); or • Merge the PBV waiting list with a waiting list for other assisted housing programs offered by the PHA. If the PHA chooses to offer a separate waiting list for PBV assistance, the PHA must offer to place applicants who are listed on the tenant -based waiting list on the waiting list for PBV assistance. The PHA must specify the name of the PBV projects in its administrative plan. SAHA Policy SAHA will use separate, site -based waiting lists for all projects or buildings that are receiving PBV assistance, except for the projects or buildings where the permanent supportive housing units require referrals from the Orange County Coordinated Entry System. While some waiting lists will be maintained by the owner as described below, SAHA will maintain waiting lists for the following PBV projects: Andalucia Crossroads at Washington This list of PBV projects above maybe expanded without the need for an amendment to the HCV Administrative Plan. PHA Waiting List Preferences [24 CFR 983.251(c)(3)] The PHA may establish in its administrative plan any preferences for occupancy of particular units including the name of the projects and the specific preferences that are to be used by project. Criteria for occupancy of units (e.g., elderly families) may also be established, however, selection of families must be done through admission preference. The PHA may use the same selection preferences that are used for the tenant -based voucher program, establish selection criteria or preferences for the PBV program as a whole, or for occupancy of particular PBV developments or units. The PHA must provide an absolute selection preference for eligible in - place families as described in Section 17-VI.B. above. For both excepted units and units under the increased program cap, 24 CFR 983.262(b)(2) requires that the PHA must select families from the waiting list though an admission preference for these types of units. SAHA Policy 025 City Council Ti- 811 5 2 25 EXHIBIT 1 SAHA will offer waiting list preferences for PHA -maintained waiting lists in accordance with the policies in Chapter 4, except for the projects or buildings where the permanent supportive housing units require referrals from the Orange County Coordinated Entry System. 025 City Council 5 — 812 5 2 25 EXHIBIT 1 17-VI.D. OWNER -MAINTAINED WAITING LISTS [24 CFR 983.251(c)(7)] When the PHA uses separate waiting lists for individual projects or buildings, the PHA may establish in the administrative plan that owners will maintain the waiting lists. All HCV waiting list administration requirements that apply to the PBV program also apply to owner -maintained waiting lists [24 CFR part 982, subpart E, other than 24 CFR 982.201(e), 982.202(b)(2), and 982.204(d)]. Under an owner -maintained waiting list, the owner is responsible for carrying out responsibilities including, but not limited to: • Processing changes in applicant information; • Removing an applicant's name from the waiting list; • Opening and closing the waiting list; - If the owner -maintained waiting list is open and additional applicants are needed to fill vacant units, the owner must give public notice in accordance with the requirements of 24 CFR 982.206 and the owner waiting list policy. • Maintaining complete and accurate records as described in 24 CFR 982.158; and • Giving the PHA, HUD, and the Comptroller General full and free access to its offices and records concerning waiting list management, as described in 24 CFR 982.158(c). Applicants already on the PHA's waiting list (including the tenant -based waiting list) must be permitted to place their names on the project's waiting lists. Applicants may apply directly at the project, or the applicant may request that the PHA refer the applicant to the owner for placement on the project's waiting list. The PHA must disclose to the applicant all the PBV projects available to the applicant, including the projects' contact information and other basic information about the project. SAHA Policy SAHA will establish owner -maintained waiting lists at the following PBV projects: Vista Del Rio This list of PBV projects above maybe expanded without the need for an amendment to the HCV Administrative Plan. SAHA will disclose information to all applicants about all the PBV projects, including the projects' contact information and other basic information such as the location, number of accessible units, types of excepted units (if any), amenities, and anticipated waiting time. 025 City Council 5 3 813 5 2 25 EXHIBIT 1 Owner Waiting List Policy [24 CFR 983.251(c)(7)(i)] The owner must develop and submit to the PHA a written owner waiting list policy that must include: • Policies and procedures concerning waiting list management and selection of applicants from the project's waiting list, including any admission preferences; • Procedures for removing applicant names from the waiting list; and • Procedures for closing and reopening the waiting list. The owner must receive approval from the PHA in accordance with the process established in the PHA's administrative plan, and the PHA must include the owner's waiting list policy in the PHA's administrative plan. SAHA Polic Prior to any owner initially managing a waiting list, the owner must develop and submit a written owner waiting list policy to SAHA. Owners may not operate a waiting list without prior PHA approval. SAHA will review the owner's policy to ensure that, at a minimum, it includes policies and procedures concerning waiting list management and selection of applicants from the project's waiting list, including any admission preferences; procedures for removing applicant names from the waiting list; and procedures for closing and reopening the waiting list. Further, if the owner will maintain waiting list preferences, the owner must also receive written approval from SAHA for any preferences that will be applicable to the project (see Preferences below). SAHA will not approve any owner waiting list policies that do not meet minimum requirements as described in the regulations and PHA policy. Owner policies must be submitted electronically to SAHA. If, upon review, SAHA is unable to approve the policy, SAHA will send the owner written notice via email specifying the reasons the policy is being disapproved. The owner will have 14 calendar days to amend and resubmit the policy to SAHA, subject to extensions for good cause, which the owner must request prior to the end of the 14-calendar day period. The owner must receive final written approval from SAHA prior to maintaining a waiting list. Once an owner's policy is approved, SAHA will email the owner a copy of the approval and will maintain a copy of the approval in the project records. SAHA will also amend its administrative plan to include the name of the project and the owner's waiting list policy. All owner waiting list policies are included at the end of this chapter as Exhibit 17-3. The owner must submit any changes to the waiting list policy to SAHA in writing electronically 30 days prior to implementing the changes. SAHA will review the proposed changes and will provide the owner with a written approval or denial letter via email. The owner may not implement any changes to the waiting list policy without prior PHA approval. Changes to the owner's policy will be included in SAHA's administrative plan. 025 City Council 5 — 814 5 2 25 EXHIBIT 1 Owner -Maintained Waiting List Preferences [24 CFR 983.251(c)(7)(ii)] For any owner -maintained waiting lists, the owner may not give selection preferences to families without prior PHA approval. The PHA will review and approve owner preferences as part of its owner waiting list policy approval process. All owner preferences must be consistent with the PHA Plan. If applicable, the owner must give an absolute preference to eligible families residing in a proposed PBV contract unit on the date the proposal or project is selected by the PHA ("in - place families") in accordance with 24 CFR 983.251(b). If the project offers services for a particular type of disability, the owner's preference must be provided to all applicants who qualify for the voluntary services offered in conjunction with the assisted units and may not require families to accept the particular services offered at the project nor require families to provide their own equivalent services if they decline the project's services. The owner may not grant a preference for persons with specific disabilities. In advertising the project, the owner may advertise the project as offering services for a particular type of disability; however, the preference must be provided to all applicants who qualify for the voluntary services offered in conjunction with the assisted units. The owner is responsible for notifying the family of any determination that the family is not eligible for a preference. Preliminary Eligibility Determinations [24 CFR 983.251(c)(7)(vi)] At the discretion of the PHA, the owner may make preliminary eligibility determinations for purposes of placing the family on the waiting list and preference eligibility determinations. The PHA may choose to make this determination rather than delegating it to the owner. Once an owner selects the family from the waiting list, the owner refers the family to the PHA who then determines the family's final program eligibility. The owner may not offer a unit to the family until the PHA determines that the family is eligible for the program. SAHA Policy SAHA will allow the owner to make preliminary eligibility determinations for purposes of placing the family on the waiting list. The owner must review each completed application received and make a preliminary assessment of the family's eligibility. Applicants for whom the waiting list is open must be placed on the waiting list unless the owner determines the family to be ineligible. If the owner determines from the information provided that a family is ineligible, the family will not be placed on the waiting list. The owner is responsible for notifying the family and SAHA of the owner's determination not to place the applicant on the waiting list. In such a case, the owner is responsible for providing notice in accordance with 24 CFR 982.554(a). The owner must give the applicant prompt notice of a decision denying assistance to the applicant. The notice must contain a brief statement of the reasons for the owner decision and must also state that the applicant may request an informal review by SAHA. 025 City Council 5 5 815 5 2 25 EXHIBIT 1 PHA Oversight [24 CFR 983.251(c)(7)(x)] The PHA is responsible for oversight of owner -maintained waiting lists to ensure that they are administered properly and in accordance with program requirements, including but not limited to nondiscrimination and equal opportunity requirements under 24 CFR 5.105(a). The PHA must identify in the administrative plan the oversight procedures the PHA will use to ensure these requirements are met. SAHA Policy SAHA will review owner waiting list and waiting list procedures as needed. The owner must maintain an electronic waiting list and provide SAHA electronic records upon request. SAHA will review the owner's waiting list policy to ensure the following: No changes were made to the owner's waiting list policy without prior PHA approval; Applicants were selected from the waiting list in the proper order, recognizing applicable preferences; If applicable, when preferences were applied, they were properly documented; If the owner opens the waiting list, the owner complied with requirements of 24 CFR 982.206; The owner's waiting list complies with all equal opportunity requirements listed under 24 CFR 5.105(a); and Families in need of vacant accessible units were identified on the waiting list (as applicable). SAHA will communicate any deficiencies found during the waiting list review to the owner in writing via email within 14 calendar days after SAHA completes its review. The owner must provide SAHA with a written response detailing how deficiencies were remedied within 30 calendar days of SAHA's email notification. By signing the HAP contract, the owner certifies that at all times during the term of the HAP contract, each contract unit for which the owner is receiving housing assistance payments is leased to an eligible family selected from the owner -maintained waiting list. Serious noncompliance identified by SAHA may result in the owner losing the ability to maintain the waiting list. If SAHA determines that the owner has breached the HAP contract, SAHA may exercise any of its rights or remedies under the HAP contract, including but not limited to contract termination. 025 City Council 5 — 816 5 2 25 EXHIBIT 1 17-VI.E. SELECTION FROM THE WAITING LIST [24 CFR 983.251(c)] Income Targeting [24 CFR 983.251(c)(9)] At least 75 percent of the families admitted to the PHA's tenant -based and project -based voucher programs during the PHASAHA fiscal year from the waiting list (including owner -maintained PBV waiting lists) must be extremely low-income families. The income targeting requirement applies to the total of admissions to both programs. Units with Accessibility Features [24 CFR 983.251(c)(9)] Families who require particular accessibility features for persons with disabilities must be selected first to occupy PBV units with such accessibility features. The PHA must have some mechanism for referring to accessible PBV units a family that includes a person with a mobility or sensory impairment. 025 City Council 5 — 817 5 2 25 EXHIBIT 1 17-VI.F. OFFER OF PBV ASSISTANCE OR OWNER'S REJECTION Refusal of Offer [24 CFR 983.251(e)] If a family refuses the PHA's offer of PBV assistance or the owner rejects a family for admission, the family's position on the PHA waiting list for tenant -based assistance is not affected regardless of the type of PBV waiting list used by the PHA. The impact (of a family's rejection of the offer or the owner's rejection of the family) on a family's position on the PBV waiting list will be determined as follows: If a central PBV waiting list is used, the PHA's administrative plan must address the number of offers a family may reject without good cause before the family is removed from the PBV waiting list and whether the owner's rejection will impact the family's place on the PBV waiting list. • If a project -specific PBV waiting list is used, the family's name is removed from the project's waiting list connected to the family's rejection of the offer without good cause or the owner's rejection of the family. The family's position on any other project -specific PBV waiting list is not affected. The PHA must define good cause in its administrative plan. The PHA's definition of good cause must include, at minimum, that: - The family determines the unit is not accessible to a household member with a disability or otherwise does not meet the member's disability -related needs; - The unit has housing quality standards deficiencies; - The family is unable to accept the offer due to circumstances beyond the family's control (such as hospitalization, temporary economic hardship, or natural disaster); and - The family determines the unit presents a health or safety risk to a household member who is or has been a victim of domestic violence, dating violence, sexual assault, or stalking. SAHA Policy SAHA will define good cause for rejection of a unit offer as any of the factors listed above. 025 City Council 5 — 818 5 2 25 EXHIBIT 1 The PHA must not take any of the following actions against a family who has applied for, received, or refused an offer of PBV assistance: • Refuse to list the applicant on the waiting list for tenant -based voucher assistance; - The PHA (or owner in the case of owner -maintained waiting lists) is not required to open a closed waiting list to place the family on that waiting list. • Deny any admission preference for which the applicant is currently qualified; • Change the applicant's place on the waiting list based on preference, date, and time of application, or other factors affecting selection from the waiting list; • Remove the applicant from the tenant -based voucher waiting list. Acceptance of Offer [24 CFR 983.252(a) and (b)] Family Briefing When a family accepts an offer for PBV assistance, the PHA must give the family an oral briefing. The briefing must include information on how the program works, the responsibilities of the family and owner, and the family's right to move. In addition to the oral briefing, the PHA must provide a briefing packet that contains the following information: • How the PHA determines the total tenant payment for a family; • The family obligations under the program; • Information on federal, state, and local equal opportunity laws, the contact information for the Section 504 coordinator, a copy of the housing discrimination complaint form, and information on how to request a reasonable accommodation or modification under Section 504, the Fair Housing Act, and the Americans with Disabilities Act; • PHA subsidy standards, including when the PHA will consider granting exceptions to the standards, and when exceptions are required as a reasonable accommodation for a person with disabilities under Section 504, the Fair Housing Act, or the Americans with Disabilities Act; and • The family's right to move. The PHA and family must sign the statement of family responsibility. Persons with Disabilities The PHA must take appropriate steps to ensure effective communication, in accordance with 24 CFR 8.6 and 28 CFR Part 35, subpart E, and must provide information on the reasonable accommodation process in conducting the oral briefing and in providing the written information packet. This may include making alternative formats available (see Chapter 2). In addition, the PHA must have a mechanism for referring a family that includes a member with a mobility impairment to an appropriate accessible PBV unit. 025 City Council 5 — 819 5 2 25 EXHIBIT 1 Persons with Limited English Proficiency [24 CFR 983.252(d)] The PHA must take reasonable steps to ensure meaningful access by persons with limited English proficiency in accordance with Title VI of the Civil Rights Act of 1964, HUD's implementing regulation at 24 CFR Part 1, Executive Order 13166 (see Chapter 2), and HUD's Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons (72 FR 2732) or successor authority. 17-VI.G. LEASING OF CONTRACT UNITS [24 CFR 983.2521 The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income families and reasonably related to program eligibility and an applicant's ability to fulfill their obligations under the lease. An owner must promptly notify in writing any rejected applicant of the grounds for any rejection [24 CFR 983.253(a)(2) and (a)(3)]. The owner must provide a copy of the rejection notice to the PHA. During the term of the HAP contract, the owner must lease contract units to eligible families that are selected from the waiting list for the PBV program. The contract unit leased to the family must be the appropriate size unit for the size of the family, based on the PHA's subsidy standards. Filling Vacancies [24 CFR 983.254(a)] The PHA and the owner must make reasonable, good -faith efforts to minimize the likelihood and length of any vacancy in a contract unit. However, contract units in a rehabilitated housing project undergoing development activity after HAP contract execution that are not available for occupancy are not subject to this requirement. If an owner -maintained waiting list is used, the owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit and refer the family to the PHA for final eligibility determination. The PHA must make every reasonable effort to make such final eligibility determination within 30 calendar days. 025 City Council 5 — 820 5 2 25 EXHIBIT 1 If a PHA -maintained waiting list is used, the owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit. After receiving such notice, the PHA must make every reasonable effort to promptly refer a sufficient number of families for the owner to fill such vacancies within 30 calendar days. SAHA Polic For units where the waiting list is owner -maintained, the owner must notify SAHA in writing via email within five business days of learning about any vacancy or expected vacancy. The owner is responsible for notifying the family of their selection from the waiting list. SAHA will make every reasonable effort to notify the owner in writing via email of SAHA's eligibility determination within 30 calendar days of receiving such notice from the owner. If the family is determined eligible, SAHA will notify the family and refer them back to the owner for a suitability screening. If the owner rejects the family after conducting a suitability screening, the owner must provide a copy of the rejection notice to SAHA. The owner may not offer a unit to a family until SAHA determines that the family is eligible for the program and has given the owner written confirmation. For units where the waiting list is PHA -maintained, the owner must notify SAHA in writing via email within five business days of learning about any vacancy or expected vacancy. SAHA will refer families determined eligible to the owner for a suitability determination within 30 calendar days of receiving such notice from the owner. If the owner rejects the family after conducting a suitability screening, the owner must provide a copy of the rejection notice to SAHA. The owner may not offer a unit to a family until SAHA determines that the family is eligible for the program and has given the owner written confirmation. Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)] If any contract units have been vacant for 120 or more days since owner notice of the vacancy, and notwithstanding the reasonable good -faith efforts of the PHA and the owner to fill such vacancies, the PHA may give notice to the owner amending the HAP contract to reduce the number of contract units by subtracting the number of contract units (according to the bedroom size) that have been vacant for this period. SAHA Policy If any contract units have been vacant for 120 days, SAHA will give notice to the owner that the HAP contract will be amended to reduce the number of contract units that have been vacant for this period. SAHA will provide the notice to the owner within 14 calendar days of the 120th day of the vacancy. The amendment to the HAP contract will be effective the 1st day of the month following the date of SAHA's notice. 025 City Council 5 — 821 5 2 25 EXHIBIT 1 17-VI.H. TENANT SCREENING [24 CFR 983.2551 PHA Option The PHA is not responsible or liable to the owner or any other person for the family's behavior or suitability for tenancy. However, the PHA may opt to screen applicants for family behavior or suitability for tenancy and may deny applicants based on such screening. SAHA Policy SAHA will not conduct screening to determine a PBV applicant family's suitability for tenancy. The PHA must provide the owner with an applicant family's current and prior address (as shown in PHA records) and the name and address (if known by the PHA) of the family's current landlord and any prior landlords. In addition, the PHA may offer the owner other information the PHA may have about a family, including information about the tenancy history of family members or about drug trafficking and criminal activity by family members. The PHA must provide applicant families a description of the PHA policy on providing information to owners, and the PHA must give the same types of information to all owners. The protections for victims of domestic violence, dating violence, sexual assault, stalking, or human trafficking in 24 CFR part 5, subpart L, apply to tenant screening. The PHA may not disclose to the owner any confidential information provided in response to a request for documentation of domestic violence, dating violence, sexual assault, stalking, or human trafficking, except at the written request or with the written consent of the individual providing the documentation [see 24 CFR 5.2007(a)(4)]. SAHA Policy SAHA will inform owners of their responsibility to screen prospective tenants and will provide owners with the required known name and address information, at the time of the turnover inspection or before. SAHA will not provide any additional information to the owner, such as tenancy history, criminal history, etc. Owner Responsibility The owner is responsible for screening and selection of the family to occupy the owner's unit. When screening families the owner may consider a family's background with respect to the following factors: • Payment of rent and utility bills; • Caring for a unit and premises; • Respecting the rights of other residents to the peaceful enjoyment of their housing; • Drug -related criminal activity or other criminal activity that is a threat to the health, safety, or property of others; and • Compliance with other essential conditions of tenancy. 025 City Council 5 — 822 5 2 25 EXHIBIT 1 PART VII: OCCUPANCY 17-VII.A. OVERVIEW After an applicant has been selected from the waiting list, determined eligible by the PHA, referred to an owner and determined suitable by the owner, the family will sign the lease and occupancy of the unit will begin. 17-VII.B. LEASE [24 CFR 983.2561 The tenant must have legal capacity to enter a lease under state and local law. Legal capacity means that the tenant is bound by the terms of the lease and may enforce the terms of the lease against the owner [24 CFR 983.256(a)]. Form of Lease [24 CFR 983.256(b)] The tenant and the owner must enter into a written lease agreement that is signed by both parties. If an owner uses a standard lease form for rental units to unassisted tenants in the locality or premises, the same lease must be used for assisted tenants, except that the lease must include a HUD -required tenancy addendum. The tenancy addendum must include, word-for-word, all provisions required by HUD. If the owner does not use a standard lease form for rental to unassisted tenants, the owner may use another form of lease, such as a PHA model lease. The PHA may review the owner's lease form to determine if the lease complies with state and local law. If the PHA determines that the lease does not comply with state or local law, the PHA may decline to approve the tenancy. SAHA Policv SAHA will not review the owner's lease for compliance with state or local law. Lease Requirements [24 CFR 983.256(c)] The lease for a PBV unit must specify all of the following information: • The names of the owner and the tenant; • The unit rented (address, apartment number, if any, and any other information needed to identify the leased contract unit); • The term of the lease (initial term and any provision for renewal); • The amount of the tenant rent to owner, which is subject to change during the term of the lease in accordance with HUD requirements; • A specification of the services, maintenance, equipment, and utilities that will be provide by the owner; and • The amount of any charges for food, furniture, or supportive services. 025 City Council 5 — 823 5 2 25 EXHIBIT 1 Tenancy Addendum [24 CFR 983.256(d)] The tenancy addendum in the lease must state: • The program tenancy requirements; • The composition of the household as approved by the PHA (the names of family members and any PHA -approved live-in aide); • All provisions in the HUD -required tenancy addendum must be included in the lease. The terms of the tenancy addendum prevail over other provisions of the lease. Initial Term and Lease Renewal [24 CFR 983.256(f)] The initial lease term must be for at least one year. The lease must provide for automatic renewal after the initial term of the lease in either successive definitive terms (e.g. month -to -month or year-to-year) or an automatic indefinite extension of the lease term. For automatic indefinite extension of the lease term, the lease terminates if any of the following occur: • The owner terminates the lease for good cause • The tenant terminates the lease • The owner and tenant agree to terminate the lease • The PHA terminates the HAP contract • The PHA terminates assistance for the family Changes in the Lease [24 CFR 983.256(e)] If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give the PHA a copy of all changes. The owner must notify the PHA in advance of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by the PHA and in accordance with the terms of the lease relating to its amendment. The PHA must redetermine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant. The redetermined reasonable rent will be used in calculation of the rent to owner from the effective date of the change. 025 City Council 5 — 824 5 2 25 EXHIBIT 1 Owner Termination of Tenancy [24 CFR 983.2571 With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an owner may in the tenant -based voucher program (see Section 12-III.13. and 24 CFR 982.310). In the PBV program, terminating tenancy for "good cause" does not include doing so for a business or economic reason, or a desire to use the unit for personal or family use or other non-residential purpose. The regulations at 24 CFR 5.858 through 5.861 on eviction for drug and alcohol abuse and 24 CFR Part 5, subpart L (Protection for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking) apply to the PBV program. In addition, the owner may terminate the tenancy in accordance with the requirements related to lease terminations for development activity on units under a HAP contract and for substantial improvement to units under a HAP contract. Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)J The lease may specify a maximum period of family absence from the unit that may be shorter than the maximum period permitted by PHA policy. According to program requirements, the family's assistance must be terminated if they are absent from the unit for more than 180 consecutive days. PHA termination of assistance actions due to family absence from the unit are subject to 24 CFR 981.312, except that the unit is not terminated from the HAP contract if the family is absent for longer than the maximum period permitted. Continuation of Housing Assistance Payments [24 CFR 982.2581 Housing assistance payments shall continue until the tenant rent equals the rent to owner. The cessation of housing assistance payments at such point will not affect the family's other rights under its lease, nor will such cessation preclude the resumption of payments as a result of later changes in income, rents, or other relevant circumstances if such changes occur within 180 days following the date of the last housing assistance payment by the PHA. After the 180-day period, the unit shall be removed from the HAP contract pursuant to 24 CFR 983.211. SAHA Policy If a participating family receiving zero assistance experiences a change in circumstances that would result in a HAP payment to the owner, the family must notify SAHA of the change and request an interim reexamination before the expiration of the 180-day period. 025 City Council 5 — 825 5 2 25 EXHIBIT 1 Security Deposits [24 CFR 983.259] The owner may collect a security deposit from the tenant. The PHA may prohibit security deposits in excess of private market practice, or in excess of amounts charged by the owner to unassisted tenants. SAHA Policy SAHA will allow the owner to collect a security deposit amount the owner determines is appropriate and legal under California tenant -landlord law. When the tenant moves out of a contract unit, the owner, subject to state and local law, may use the security deposit, including any interest on the deposit, in accordance with the lease, as reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the tenant under the lease. The owner must give the tenant a written list of all items charged against the security deposit and the amount of each item. After deducting the amount used to reimburse the owner, the owner must promptly refund the full amount of the balance to the tenant. If the security deposit does not cover the amount owed by the tenant under the lease, the owner may seek to collect the balance from the tenant. The PHA has no liability or responsibility for payment of any amount owed by the family to the owner. 025 City Council 5 — 826 5 2 25 EXHIBIT 1 17-VILC. MOVES Overcrowded, Under -Occupied, and Accessible Units [24 CFR 983.2601 If the PHA determines that a family is occupying a wrong size unit, based on the PHA's subsidy standards, or a unit with accessibility features that the family does not require, and the unit is needed by a family that does require the features, the PHA must promptly notify the family and the owner of this determination, and within 60 days of the determination, the PHA must offer the family the opportunity to receive continued housing assistance in another unit. SAHA Policy SAHA will notify the family and the owner of the family's need to move based on the occupancy of a wrong -size or accessible unit within 60 days of SAHA's determination. SAHA will offer the family the following types of continued assistance in the following order, based on the availability of assistance: PBV assistance in an appropriately sized unit in the same building or project; PBV assistance an appropriately sized unit in in another project; and Tenant -based voucher assistance. If no continued housing assistance is available, the PHA must remove the wrong -sized or accessible unit from the HAP contract to make voucher assistance available to issue the family a tenant -based voucher. If the PHA offers the family a tenant -based voucher, the PHA must terminate the housing assistance payments for a wrong -sized or accessible unit at the earlier of the expiration of the term of the family's voucher (including any extension granted by the PHA) or the date upon which the family vacates the unit. If the family does not move out of the wrong -sized unit or accessible unit by the expiration of the term of the family's voucher, the PHA must remove the unit from the HAP contract. If the PHA offers the family another form of assistance that is not a tenant -based voucher, the PHA must terminate the housing assistance payments for the wrong -sized or accessible unit and remove the unit from the HAP contract when: • The PHA has offered PBV assistance or other project -based assistance in an appropriately sized unit, and the family does not accept the offer, does not move out of the PBV unit within a reasonable time as determined by the PHA (not to exceed 90 days); or The PHA has offered other comparable tenant -based rental assistance, the family either accepts or does not accept the offer but does not move out of the PBV unit within a reasonable time as determined by the PHA (not to exceed 90 days). In either of the above situations, the family may request, and the PHA may grant, one extension not to exceed up to an additional 90 days to accommodate the family's efforts to locate affordable, safe, and geographically proximate replacement housing. 411 025 City Council 5 — 827 5 2 25 EXHIBIT 1 The PHA must terminate the housing assistance payments for the wrong -sized or accessible unit and remove the unit from the HAP contract when the PHA has offered PBV assistance or other project -based assistance in an appropriately sized unit, and the family accepts the offer but does not move out of the PBV unit within a reasonable time as determined by the PHA (not to exceed 90 days). No extensions may be granted in this case. The PHA may reinstate a removed unit to the HAP contract after the family vacates the property, in accordance with 24 CFR 983.207(b). SAHA Policy When SAHA offers a family another form of assistance that is not a tenant -based voucher, the family will be given 90 days from the date of the offer to accept the offer and move out of the PBV unit. If the family does not move out within this 90-day time frame, SAHA will terminate the housing assistance payments at the expiration of this 90- day period. Except in the case of an offer by SAHA of PBV assistance or other project -based housing assistance in an appropriate size unit, the family accepts the offer but does not move out, SAHA may make exceptions to this 90-day period if needed for reasons beyond the family's control such as death, serious illness, or other medical emergency of a family member or to accommodate the family's efforts to locate affordable, safe, and geographically proximate replacement housing. The family must make such a request in writing prior to the end of the 90-day period. SAHA will only grant one extension which will not exceed an additional 90 days. 025 City Council 5 — 828 5 2 25 EXHIBIT 1 Family Right to Move [24 CFR 983.2611 The family may terminate the lease at any time after one year of PBV assistance. The family must give advance written notice to the owner in accordance with the lease and provide a copy of such notice to the PHA. If the family wishes to move with continued tenant -based assistance, the family must contact the PHA to request the rental assistance prior to providing notice to terminate the lease. The right to request a move with tenant -based assistance does not expire, and the family may request a move at any time after the one-year period has expired. If the family terminates the lease in accordance with these requirements, the PHA is required to offer the family the opportunity for continued tenant -based assistance, in the form of a voucher or other comparable tenant -based rental assistance. The PHA must specify in the administrative plan whether it will offer families assistance under the voucher program or other comparable tenant -based rental assistance. If voucher assistance is offered to the family and the search term expires, the PHA must issue the voucher to the next eligible family before issuing another voucher to the family that requested to move. If voucher or other comparable tenant -based assistance is not immediately available upon the family's request to the PHA, the PHA must give the family priority to receive the next available opportunity for continued tenant -based assistance. The PHA must describe in its Administrative Plan its policies and procedures for how the family must contact the PHA and how the PHA documents families waiting for continued tenant -based rental assistance. If the family terminates the assisted lease before one year of PBV assistance, the family relinquishes the opportunity for continued tenant -based assistance. SAHA Polic Except for families seeking protection under VAWA as described below, prior to providing notice to the owner to terminate the lease, any eligible family may submit a written request to SAHA for a voucher at any time after completing the 12-month occupancy requirement. SAHA will process the request within 14 calendar days of receiving the family's request. SAHA will verify that the family has met the 12-month occupancy requirement. No additional screening will be performed. If the request is approved by SAHA, the family will receive the next available tenant - based voucher. If a tenant -based voucher is not immediately available, SAHA will maintain a combined, agency -wide waiting list for all standard PBV and RAD PBV families wishing to move after one year of PBV assistance. A RAD resident does not have priority for tenant -based assistance over a non-RAD PBV resident and vice versa. The list will be maintained separately from the tenant -based HCV list. Families on this list will be given priority over families on the tenant -based waiting list. The list will be organized by date and time of the family's written request. The list will also identify whether families live in standard or RAD PBV units. Once a family is placed on the list, SAHA will send the family an acknowledgement of receipt of their request and successful placement on the list. If a family requests a tenant -based voucher and then is unable or unwilling to move once SAHA offers the family a tenant -based voucher, the family's name will be removed from the list. The family may resubmit a new request to move at any time. 025 City Council 5 — 829 5 2 25 EXHIBIT 1 While the family will not be required to attend a standard HCV briefing in order to receive a voucher, SAHA will promptly schedule a meeting with each family at the time of voucher issuance. Families exercising their right to move are not required to vacate their units before a lease has been entered into using their tenant -based voucher so long as the resident has not yet provided notice to vacate to the owner. At the time SAHA issues the tenant -based voucher, SAHA will notify the family of their right to remain in their unit if they are unable find a rental unit using the tenant -based voucher. If family's search term (and any extensions) expires, SAHA must issue the voucher to the next eligible family. The family's name will be removed from the priority list, and the family will be able to resubmit a request at a later time. Emergency Transfers under VAWA [Notice PIH 2O17-08 and 24 CFR 983.261(f) and (g)] In the case of a move due to domestic violence, dating violence, sexual assault, stalking, or human trafficking, PHAs must describe policies for facilitating emergency transfers for families with PBV assistance in their Emergency Transfer Plan, including when a victim has been living in a unit for less than a year or when a victim seeks to move sooner than a tenant -based voucher is available. When the family or a member of the family is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and the move is needed to protect the health or safety of the family or family member, the family is not required to give the owner advance written notice or contact the PHA before moving from the unit. Additionally, when any family member has been the victim of a sexual assault that occurred on the premises during the 90-calendar-day period preceding the family's request to move, the family is not required to give the owner advance written notice or contact the PHA before moving from the unit. A PHA may not terminate the assistance of a family due to a move occurring under these circumstances and must offer the family the opportunity for continued tenant -based assistance if the family had received at least one year of PBV assistance prior to moving. If a family break-up results from an occurrence of domestic violence, dating violence, sexual assault, stalking or human trafficking, the PHA must ensure that the victim retains assistance. 025 City Council 5 — 830 5 2 25 EXHIBIT 1 SAHA Polic Except where special consideration is needed for the project -based voucher program, SAHA will follow VAWA policies as outlined in Chapter 16 Part IX of this administrative plan, including using the Emergency Transfer Plan as the basis for PBV transfers under VAWA (Exhibit 16-4). When the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking has lived in the unit for less than one year, SAHA will provide several options for continued assistance. SAHA will first try to transfer the participant to another PBV unit in the same development or transfer to a different development where SAHA has PBV units. SAHA will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. If no units are available for an internal transfer, or if there is reasonable cause to believe that such a transfer would put the victim in jeopardy, the participant may receive continued assistance through an external transfer to either tenant -based rental assistance (HCV). Such a decision will be made by SAHA based on the availability of tenant -based vouchers. Such families must be selected from the waiting list for the applicable program. SAHA has adopted a waiting list preference for victims of domestic violence, dating violence, sexual assault, stalking, and human trafficking in both its HCV and public housing programs in order to expedite this process. See Section 4-III.C. of this administrative plan. If a victim wishes to move after a year of occupancy in the unit, but no tenant -based vouchers are available, SAHA will offer the participant an internal transfer to another PBV unit in the same development or a transfer to a different development where SAHA has PBV units. SAHA will expedite the administrative processes in this case in an effort to conduct the transfer as quickly as possible. 025 City Council Ti 831 5 2 25 EXHIBIT 1 PART VIII: DETERMINING RENT TO OWNER 17-VIII.A. OVERVIEW [24 CFR 983.301(a)] The amount of the initial rent to an owner of units receiving PBV assistance is established at the beginning of the HAP contract term. Although for rehabilitated or newly constructed housing, the AHAP states the estimated amount of the initial rent to owner, the actual amount of the initial rent to owner is established at the beginning of the HAP contract term. 17-VIII.B. AMOUNT OF RENT TO OWNER [24 CFR 983.301(b)] Except for certain tax credit units (discussed below), the rent to owner must not exceed the lowest of the following amounts: • An amount determined by the PHA in accordance with the administrative plan not to exceed 110 percent of the applicable fair market rent (or amount of any applicable exception payment standard) for the unit bedroom size minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. Rent to Owner for Certain Tax Credit Units [24 CFR 983.301(c)] For certain tax credit units, the rent limits are determined differently than for other PBV units. Tax credit units that do not meet the criteria below will have their rents determined by the PHA pursuant to 24 CFR 983.301(b) as stated above. Rents are set differently in contract units that meet all of the following criteria: • The contract unit receives a low-income housing tax credit under the Internal Revenue Code of 1986; • The contract unit is not located in a qualified census tract; • In the same building, there are comparable tax credit units of the same bedroom size as the contract unit and the comparable tax credit units do not have any form of rental assistance other than the tax credit; and • The tax credit rent exceeds 110 percent of the fair market rent (or any exception payment standard) as determined in 24 CFR 983.301(b); For contract units that meet these criteria, the rent to owner must not exceed the lowest o£ • An amount determined by the PHA in accordance with the administrative plan, not to exceed the tax credit rent minus any utility allowance; • The reasonable rent; or • The rent requested by the owner. The tax credit rent is the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., additional assistance such as tenant -based voucher assistance). 025 City Council 5 — 832 5 2 25 EXHIBIT 1 Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)] When determining the initial rent to owner, the PHA must use the most recently published FMR in effect and the utility allowance schedule in effect at execution of the HAP contract. When redetermining the rent to owner, the PHA must use the most recently published FMR and the utility allowance schedule in effect at the time of redetermination. At its discretion, the PHA may for initial rent, use the amounts in effect at any time during the 30-day period immediately before the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period immediately before the redetermination date. For PBV projects that are not located in a designated SAFMR area or located in a ZIP code where the PHA has opted in to SAFMRs, any exception payment standard amount under the tenant -based voucher program also applies to the project -based voucher program. HUD will not approve a different exception payment standard amount for use in the PBV program. For PBV projects that are located in a designated SAFMR area or located in a ZIP code where the PHA has opted in to SAFMRs, an exception payment standard amount under the tenant - based voucher program applies when setting rents under 24 CFR 983.301(b)(1) for PBV units and 983.301(c)(1)(iv) for certain tax credit units only if the PHA has adopted a policy applying SAFMRs to its PBV program and met all other requirements in 24 CFR 888.113(h), which are described below. The PHA may not establish or apply different utility allowance amounts for the PBV program. The same utility allowance schedule applies to both the tenant -based and project -based voucher programs. SAHA Policy Upon written request by the owner, SAHA will consider using the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or redetermination of rent. The owner must explain the need to use the previous FMRs or utility allowances and include documentation in support of the request. SAHA will review and make a decision based on the circumstances and merit of each request. In addition to considering a written request from an owner, SAHA may decide to use the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or redetermination of rent, if SAHA determines it is necessary due to PHA budgetary constraints. 025 City Council 5 — 833 5 2 25 EXHIBIT 1 Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h) and 24 CFR 983.301(f)(3)] Unless one of the following exceptions apply, SAFMRs do not apply to PBV projects regardless of whether HUD designates the metropolitan area or the PHA notifies HUD and implements the SAFMRs under paragraph 883.113(c)(3). Where the proposal or project selection date was on or before the effective dates of either or both the SAFMR designation/implementation and the PHA administrative policy, the PHA and owner may mutually agree to apply the SAFMR. The application of the SAFMRs must be prospective and consistent with the PHA administrative plan. The owner and PHA may not subsequently choose to revert back to the use of the metropolitan -wide or county -wide FMRs for the PBV project. If the rent to owner will increase as a result of the mutual agreement to apply the SAFMRs to the PBV project, the rent increase must not be effective until the next annual anniversary of the HAP contract. Where the proposal or project selection date was after the effective dates of both the SAFMR designation/implementation and the PHA administrative policy, the SAFMR must apply to the PBV project if the PHA administrative plan provides that SAFMRs are used for all future PBV projects. If the PHA chooses to implement this administrative policy, the SAFMRs must apply to all future PBV projects located within the same metropolitan area or non - metropolitan county where the SAFMRs are in effect for the PHA's HCV program. An owner and the PHA may not subsequently choose to apply the metropolitan area or county FMR to the project, regardless of whether the PHA subsequently changes its administrative plan to revert to the use of metropolitan -wide or county -wide FMR for future PBV projects. For purposes of this section, the term effective date of the Small Area FMR designation means: • The date that HUD designated a metropolitan area as a SAFMR area; or • The date that HUD approved a PHA request to voluntarily opt to use Small Area FMRs for its HCV program, as applicable. For purposes of this section, the term effective date of the PHA administrative policy means the date the administrative policy was formally adopted as part of the PHA administrative plan by the PHA Board of Commissioners or other authorized PHA officials. SAHA Policy SAHA will not apply SAFMRs to SAHA's PBV program. 025 City Council 5 — 834 5 2 25 EXHIBIT 1 17-VIII.C. REDETERMINATION OF RENT TO OWNER [24 CFR 983.3021 The PHA must redetermine the rent to owner: • When there is a 10 percent or greater decrease in the published FMR; • Upon the owner's request consistent with requirements established in the PHA's administrative plan; or • At the time of the automatic adjustment by an operating cost adjustment factor (OCAF) in accordance with 24 CFR 983.302(b)(3). Adjusted rent to owner amount applies for the period of 12 calendar months from the annual anniversary of the HAP contract. Rent Increase [24 CFR 983.302(b)] During the term of the HAP contract, any increase in rent to owner is effective on the annual anniversary of the HAP contract. A rent increase may occur either through automatic adjustment by an OCAF or as the result of an owner request for a rent increase. The owner does not need to request a rent adjust when a rent increase occurs through an OCAF since the PHA redetermines the rent automatically under that option. OCAF[24 CFR 983.302(b)(3)J If the PHA and owner agree, the HAP contract may provide for rent adjustments using an OCAF established by the HUD pursuant to Section 524(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) at each annual anniversary of the HAP contract and published annually in the Federal Register. Further, the HAP contract may require an additional increase up to an amount determined by the PHA (pursuant to 24 CFR 983.301(b) and (c)) if requested by the owner in writing, periodically during the term of the contract. The HAP contract must require an additional increase up to an amount determined by the PHA at the point of contract extension, pursuant to 24 CFR 983.301(b) and (c), if requested by the owner in writing. SAHA Policy SAHA will not allow for rent increases via OCAF. All rent increases must be requested by the owner as outlined below. 025 City Council 5 — 835 5 2 25 EXHIBIT 1 Owner -Requested Rent Increases [24 CFR 983.302(b)(4)J If the HAP contract does not provide for automatic adjustment by an OCAF, and if an owner wishes to request an increase in the rent to owner from the PHA, it must be requested at the annual anniversary of the HAP contract (see Section 17N.E.). The request must be in writing and in the form and manner required by the PHA. The PHA may only make rent increases in accordance with the rent limits described previously. There are no provisions in the PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs). The administrative plan must specify any advance notice the owner must give the PHA and the form the request must take. SAHA Policy An owner's request for a rent increase must be submitted to SAHA in writing (or via email) 60 days prior to the anniversary date of the HAP contract and must include the new rent amount the owner is proposing. The PHA may not approve, and the owner may not receive any increase of rent to owner, until and unless the owner has complied with requirements of the HAP contract, including compliance with housing quality standards, except that housing quality standards compliance is not required for units undergoing development activity that complies with 24 CFR 983.157 or substantial improvement that complies with 24 CFR 983.212. The owner may not receive any retroactive increase of rent for any period of noncompliance. Rent Decrease [24 CFR 983.302(c)] If the HAP contract does not provide for adjustment by an OCAF and there is a decrease in the rent to owner, as established in accordance with program requirements such as a change in the FMR or exception payment standard, or reasonable rent amount, the rent to owner must be decreased regardless of whether the owner requested a rent adjustment. If the HAP contract provides for rent adjustments by an OCAF and there is a decrease in the fair market rent, tax credit rent, or reasonable rent that requires a decrease to the rent to owner, the rent to owner must be decreased. However, at any time during the term of the HAP contract, the PHA may elect within the HAP contract to not reduce rents below the initial rent to owner. Where a PHA makes such an election, the rent to owner shall not be reduced below the initial rent to owner, except: • To correct errors in calculations in accordance with HUD requirements; If additional housing assistance has been combined with PBV assistance after the execution of the initial HAP contract and a rent decrease is required; or • If a decrease in rent to owner is required based on changes in the allocation of responsibility for utilities between the owner and the tenant. 025 City Council 5 — 836 5 2 25 EXHIBIT 1 Notice of Rent Change to Owner [24 CFR 983.203(d)] Whenever there is a change in rent to owner, the PHA must provide written notice to the owner specifying the amount of the new rent to owner. The PHA notice of rent adjustment constitutes an amendment of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the HAP contract. SAHA Policy SAHA will provide the owner with at least 30 days written notice of any change in the amount of rent to owner. PHA -Owned Units [24 CFR 983.301(g)] For PHA -owned PBV units, the initial rent to owner and the annual redetermination of rent at the anniversary of the HAP contract are determined by the independent entity approved by HUD. The PHA must use the rent to owner established by the independent entity. 025 City Council 5 — 837 5 2 25 EXHIBIT 1 17-VIII.D. REASONABLE RENT [24 CFR 983.301(d) and 983.303] At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by the PHA, except where the PHA has elected within the HAP contract to not reduce rents below the initial rent under the initial HAP contract. When Rent Reasonable Determinations Are Required The PHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever any of the following occur: • There is a 10 percent or greater decrease in the published FMR in effect 60 days before the contract anniversary (for the unit sizes specified in the HAP contract) as compared with the FMR that was in effect one year before the contract anniversary date; • The PHA approves a change in the allocation of responsibility for utilities between the owner and the tenant; • The HAP contract is amended to add a contract unit or substitute a different contract unit in the same building or project; • The PHA accepts a completed unit after development activity that is conducted after HAP contract execution in accordance with 24 CFR 983.156(b)(3); and • There is any other change that may substantially affect the reasonable rent. The PHA must determine reasonable rent in accordance with 24 CFR 983.303. Rent Floor The rent to owner for each contract unit may at no time exceed the reasonable rent, except in cases where the PHA has elected within the HAP contract not to reduce rents below the initial rent to owner, and upon redetermination of the rent to owner, the reasonable rent would result in a rent below the initial rent. However, the rent to owner must be reduced in the following cases: • To correct errors in calculations in accordance with HUD requirements; • If additional housing assistance has been combined with PBV assistance after the execution of the initial HAP contract and a rent decrease is required pursuant to 24 CFR 983.55; and • If a decrease in rent to owner is required based on changes in the allocation of the responsibility for utilities between owner and tenant. If the PHA has not elected within the HAP contract to establish the initial rent to owner as the rent floor, the rent to owner shall not at any time exceed the reasonable rent. SAHA Policy SAHA will elect within the HAP contract not to reduce rents below the initial level, with the exception of the circumstances listed in 24 CFR 983.302(c)(2). If, upon redetermination of the rent to owner, the reasonable rent would result in a rent below the initial rent, SAHA will use the higher initial rent to owner amount. 411 025 City Council 5 — 838 5 2 25 EXHIBIT 1 How to Determine Reasonable Rent [24 CFR 983.303(c)] The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, the PHA must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner. The reasonable rent determination must be based on the condition of the assisted unit at the time of the determination and not on anticipated future unit conditions. Comparability Analysis [24 CFR 983.303(d)] For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving project - based assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by the PHA. The comparability analysis may be performed by PHA staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property. PHA -Owned Units [24 CFR 983.303(f)] For PHA -owned units, the amount of the reasonable rent must be determined by an independent agency approved by HUD in accordance with PBV program requirements. The independent entity must provide a copy of the determination of reasonable rent for PHA -owned units to the PHA. Owner Certification of Reasonable Rent [24 CFR 983.303(e)] By accepting each monthly housing assistance payment, the owner certifies that the rent to owner is not more than rent charged by the owner for other comparable unassisted units in the premises. At any time, the PHA may require the owner to submit information on rents charged by the owner for other units in the premises or elsewhere. 025 City Council 5 — 839 5 2 25 EXHIBIT 1 17-VIII.E. EFFECT OF OTHER SUBSIDY AND RENT CONTROL In addition to the rent limits discussed in Section 17-VIII.13 above, other restrictions may limit the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are not even eligible to receive PBV assistance (see Section 17-II.1)). Other Subsidy [24 CFR 983.304] To comply with HUD subsidy layering requirements, at the discretion of HUD or its designee, a PHA shall reduce the rent to owner because of other governmental subsidies, including tax credits or tax exemptions, grants, or other subsidized funding. For units receiving assistance under the HOME program, rents may not exceed rent limits as required by that program. For units in any of the following types of federally subsidized projects, the rent to owner may not exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with requirements for the applicable federal program: • An insured or non-insured Section 236 project; • A formerly insured or non-insured Section 236 project that continues to receive Interest Reduction Payment following a decoupling action; • A Section 221(d)(3) below market interest rate (BMIR) project; • A Section 515 project of the Rural Housing Service; • Any other type of federally subsidized project specified by HUD. Combining Subsidy Rent to owner may not exceed any limitation required to comply with HUD subsidy layering requirements. Rent Control [24 CFR 983.305] In addition to the rent limits set by PBV program regulations, the amount of rent to owner may also be subject to rent control or other limits under local, state, or federal law. 025 City Council 5 — 840 5 2 25 EXHIBIT 1 PART IX: PAYMENTS TO OWNER 17-IX.A. HOUSING ASSISTANCE PAYMENTS 124 CFR 983.3511 During the term of the HAP contract, the PHA must make housing assistance payments to the owner in accordance with the terms of the HAP contract. During the term of the HAP contract, payments must be made for each month that a contract unit complies with housing quality standards and is leased to and occupied by an eligible family. The housing assistance payment must be paid to the owner on or about the first day of the month for which payment is due, unless the owner and the PHA agree on a later date. Except for discretionary vacancy payments, the PHA may not make any housing assistance payment to the owner for any month after the month when the family moves out of the unit (even if household goods or property are left in the unit). The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant rent (total tenant payment minus the utility allowance). In order to receive housing assistance payments, the owner must comply with all provisions of the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner does not have a right to receive housing assistance payments. 025 City Council 5 — 841 5 2 25 EXHIBIT 1 17-IX.B. VACANCY PAYMENTS [24 CFR 983.3521 Payment at Move -Out Month [24 CFR 983.352(a)] If an assisted family moves out of the unit, the owner may keep the housing assistance payment for the calendar month when the family moves out. However, the owner may not keep the payment if the PHA determines that the vacancy is the owner's fault. SAHA Policv If SAHA determines that the owner is responsible for a vacancy and, as a result, is not entitled to the keep the housing assistance payment, SAHA will notify the owner of the amount of housing assistance payment that the owner must repay. SAHA will require the owner to repay the amount owed in accordance with the policies in Section 16-IV.B. Vacancy Payments [24 CFR 983.352(b)] At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner for a PHA -determined period of vacancy extending from the beginning of the first calendar month after the move -out month for a period not exceeding two full months following the move - out month. The PHA must include in its administrative plan the PHA's policy on the conditions under which it will allow vacancy payments in a HAP contract, the duration of the payments, amount of vacancy payments it will make to an owner, and the required form and manner of requests for vacancy payments. SAHA Policv SAHA will decide on a case -by -case basis if SAHA will provide vacancy payments to the owner. The HAP contract with the owner will contain any such agreement, including the amount of the vacancy payment and the period for which the owner will qualify for these payments. The PHA may only make vacancy payments i£ • The owner gives the PHA prompt, written notice certifying that the family has vacated the unit and identifies the date when the family moved out (to the best of the owner's knowledge and belief); • The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant during the period for which payment is claimed; • The owner certifies that it has taken every reasonable action to minimize the likelihood and length of vacancy; and • The owner provides any additional information required and requested by the PHA to verify that the owner is entitled to the vacancy payment. The owner must submit a request for vacancy payments in the form and manner required by the PHA and must provide any information or substantiation required by the PHA to determine the amount of any vacancy payment. 025 City Council 5 — 842 5 2 25 EXHIBIT 1 The vacancy payment to the owner for each month of the maximum two -month period is determined by the PHA, and cannot exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner (including amounts available from the tenant's security deposit). Any vacancy payment may cover only the period the unit remains vacant. SAHA Policy If an owner's HAP contract calls for vacancy payments to be made, and the owner wishes to receive vacancy payments, the owner must have properly notified SAHA of the vacancy in accordance with the policy in Section 17-VI.G. regarding filling vacancies. In order for a vacancy payment request to be considered, it must be made in writing (including via email) within 14 calendar days of the end of the period for which the owner is requesting the vacancy payment. The request must include the required owner certifications and SAHA may require the owner to provide documentation to support the request. If the owner does not provide the information requested by SAHA within 14 calendar days of SAHA's request, no vacancy payments will be made. If vacancy payments are made, SAHA will make vacancy payments for the period of vacancy extending from the beginning of the first calendar month after the move -out month for a period not exceeding two full months following the move -out month. The amount of the vacancy payment will not exceed the monthly rent to owner under the assisted lease, minus any portion of the rental payment received by the owner (including amounts available from the tenant's security deposit). Any vacancy payment will cover only the period the unit remains vacant. 025 City Council 5 — 843 5 2 25 EXHIBIT 1 17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353] The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent is determined by the PHA in accordance with HUD requirements. Any changes in the amount of tenant rent will be effective on the date stated in the PHA notice to the family and owner. The family is responsible for paying the tenant rent (total tenant payment minus the utility allowance). The amount of the tenant rent determined by the PHA is the maximum amount the owner may charge the family for rental of a contract unit. The tenant rent covers all housing services, maintenance, equipment, and utilities to be provided by the owner. The owner may not demand or accept any rent payment from the tenant in excess of the tenant rent as determined by the PHA. The owner must immediately return any excess payment to the tenant. Tenant and PHA Responsibilities The family is not responsible for the portion of rent to owner that is covered by the housing assistance payment and the owner may not terminate the tenancy of an assisted family for nonpayment by the PHA. Likewise, the PHA is responsible only for making the housing assistance payment to the owner in accordance with the HAP contract. The PHA is not responsible for paying tenant rent, or any other claim by the owner, including damage to the unit. The PHA may not use housing assistance payments or other program funds (including administrative fee reserves) to pay any part of the tenant rent or other claim by the owner. Utility Reimbursements [24 CFR 983.353(d)] If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the amount of such excess to the tenant as a reimbursement for tenant -paid utilities, and the tenant rent to the owner must be zero. The PHA may pay the utility reimbursement directly to the family or to the utility supplier on behalf of the family. If the PHA chooses to pay the utility supplier directly, the PHA must notify the family of the amount paid to the utility supplier. SAHA Policv SAHA will make utility reimbursements to the family. 025 City Council 5 — 844 5 2 25 EXHIBIT 1 17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.3541 Meals and Supportive Services With the exception of PBV assistance in assisted living developments, the owner may not require the tenant to pay charges for meals or supportive services. Non-payment of such charges is not grounds for termination of tenancy. In assisted living developments receiving PBV assistance, the owner may charge for meals or supportive services. These charges may not be included in the rent to owner, nor may the value of meals and supportive services be included in the calculation of the reasonable rent. However, non-payment of such charges is grounds for termination of the lease by the owner in an assisted living development. Other Charges by Owner The owner may not charge extra amounts for items customarily included in rent in the locality or provided at no additional cost to unsubsidized tenants in the premises. 17-IX.E. PROJECT RECORD RETENTION [24 CFR 983.121 The regulation at 24 CFR 982.158 applies to both the PHA's tenant -based and project -based programs. In addition, for each PBV project, the PHA must maintain the following records throughout the HAP contract term and for three years thereafter: • Records to document the basis for PHA selection of the proposal, if selection is competitive, or project, if selection is noncompetitive, including records of the PHA's site selection determination (see 24 CFR 983.55) and records to document the completion of the review of the selection process in the case of PHA -owned units, and copies of the written notice of proposal selection and response of the appropriate party; • The analysis of impact, if applicable; • The subsidy layering determination, if applicable; • The environmental review record, if applicable; • The Agreement to enter into HAP contract (AHAP), if applicable; • Evidence of completion, if applicable; • The HAP contract and any rider and/or amendments, including amendments to extend the term of the contract; • Records to document the basis for PHA determination and redetermination of rent to owner; • Records to document HUD approval of the independent entity or entities, in the case of PHA - owned units; • Records of the accessibility features of the project and each contract unit; and • Other records as HUD may require. 025 City Council 5 — 845 5 2 25 EXHIBIT 1 025 City Council 5 — 846 5 2 5 EXHIBIT 1 EXHIBIT 17-1: PBV DEVELOPMENT INFORMATION (Fill out one for each development) DEVELOPMENT INFORMATION Development Name: [Insert name of PBV development] Address: [Insert full address of PBV development] Owner Information: [Insert PBV development owner name and contact information. If development is PHA -owned, enter "PHA -owned."] Property Management Company: [Insert property management company name and contact information, or enter "None"] PHA -Owned: [Enter "Yes" or "No." If yes, enter name of independent entity] Mixed Finance Development: [Enter "Yes" or "No." If yes, list other types of funding (i.e., LIHTC, HOME, etc.) and units to which other funding applies.] HAP CONTRACT Effective Date of Contract: [Enter start date of HAP contract] HOTMA Requirements: [If HAP contract was signed prior to April 18, 2017, enter "Pre- HOTMA." If HAP contract was signed on or after April 18, 2017, enter "Post-HOTMA."] Term of HAP Contract: [Enter term from HAP contract] Expiration Date of Contract: [Enter expiration date from HAP contract] PBV UNITS 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Total # of Units Initial Contract $ $ $ $ $ Rent Structure Type: [Identify the structure type, i.e. Single Family Detached, Duplex or Two Family, Row House or Town House, Low Rise (3,4 Stories, including Garden Apartment), Highrise (5 or more stories) Housing Type: [Identify if the units are an Independent Group Residence or Single Room Occupancy] 025 City Council 5 — 847 5 2 25 EXHIBIT 1 UTILITY RESPONSIBILITY [Enter in Accordance with the HAP Exhibit C] Utility IL Fuel Type (Gas, Electric, Oil, Coal, Other Paid By (Tenant/Owner) Provided By (Tenant/Owner) Heating Electric Tenant Owner Cooking Electric Tenant Owner Water Heating Electric Tenant Owner Other Electric Tenant Owner Water Owner Owner Sewer Owner Owner Trash Collection Owner Owner Air Conditioning Tenant Owner Refrigerator Range/Microwave Other (specify) Accessible Units and Features: [Identify which units are accessible and describe accessibility features or enter "None"] Target Population: [Describe targeted population in accordance with HAP contract or enter "None"] Excepted Units: [Identify excepted unit types below or enter "None"] • Supportive Services: [Enter "Yes, see Exhibit D of HAP Contract" or enter "No"] • Elderly Units: [Enter "Yes" or "No." If yes, identify which units are elderly units • Disabled Units (only for HAP contracts executed prior to April 18, 2017) [Enter "Yes" or "No." If yes, identify which units are for persons with disabilities.] • FUPY/FYI Units: [Enter "Yes" or "No." If yes, identify which units are FUP units] • Are units excepted because they are located in a low -poverty census tract area?: [Enter "Yes" or "No"] 025 City Council 5 — 848 5 2 25 EXHIBIT 1 WAITING LIST AND SELECTION Waiting List Type: [ Enter "Site -based waiting list," "Combined with HCV," "Waiting list for entire PBV program," or "Merged with another assisted housing program"] Preferences: [Enter "Same as HCV; see Chapter 4" or describe preferences offered. If different from HCV, also note in Section 17.1.13 of this policy.] Preference Verification: [Enter "Same as HCV; see Chapter 7" or describe for each preference listed above. If different from HCV, note in Section 17.1.13 of this policy.] For the PBV program, is the income limit the same as the HCV program? (Note: In mixed finance developments, other income limits may also apply.) [Enter "Same as HCV; see Chapter 3" or clearly describe. If different from HCV, note in Section 17. LB of this policy.] OCCUPANCY Subsidy Standards: [Enter "Same as HCV; see Chapter 5" or describe. If different from HCV, note in Section 17.1.13 of this policy] Vacancy Payments: [Enter in accordance with HAP contract Part 1, e, 2 and Section 17-V.F. within this chapter] 025 City Council 5 — 849 5 2 25 EXHIBIT 1 EXHIBIT 17-2: Special Provisions Applying to TPVs Awarded as Part of a Voluntary Conversion of Public Housing Units in Projects that Include RAD PBV Units [24 CFR Part 972.200; Notice PIH 2O19-05; Notice PIH 2O19-23] Under certain circumstances, HUD allows small PHAs to reposition a public housing project (or portion of a project) by voluntarily converting units to tenant -based housing choice voucher assistance. In order to preserve affordable housing for residents of the project, the PHA is given priority to receive replacement tenant protection vouchers (TPVs). As part of the voluntary conversion, the PHA has the option to continue to operate it as rental housing. If so, the PHA or subsequent owner must allow existing families to remain in their units using the TPV in the form of tenant -based assistance. In this situation, however, the PHA may choose to project -base these TPVs in the former public housing project. Families must still be provided with the option to remain in their unit using tenant -based assistance. In order for the PHA to project -base the assistance and include these units on the PBV HAP contract, the family must voluntarily consent in writing to PBV assistance following the requirements in Appendix A of Notice PIH 2O19-05. If the family fails to consent to PBV assistance and chooses to remain using tenant -based assistance, the family's unit is excluded from the PBV HAP contract until the family moves out or consents to switching to PBV assistance. In general, all applicable program regulations and guidance for the standard PBV program apply to these units. The PHA may also convert units in the same former public housing project to the PBV program under the rental assistance demonstration (RAD) program. The RAD statute authorizes HUD to waive certain statutory and regulatory provisions governing the standard PBV program and specify alternative requirements. In order to facilitate the uniform treatment of residents and units at the project, Notice PIH 2O19-23 extended some of the alternative requirements to non- RAD PBV units in the converted project (i.e., the TPV units in the project). As such, while PBV TPV units in the converted project generally follow the requirements for the standard PBV program listed in this chapter, where HUD has specified alternative requirements for non-RAD PBV units in the project, PBV TPV units will instead follow the requirements outlined in Chapter 18 of this policy for the RAD PBV program. RAD Requirements Applicable to Non-RAD units in the Project Alternative Requirement under RAD as Listed in Notice PIH 2O19-23 Standard PBV Policy That Does Not Apply Applicable Policy in Chapter 18 1.6.A.4. Site Selection— 17-II.G. SITE 18-II.F. SITE SELECTION Compliance with PBV Goals SELECTION STANDARDS STANDARDS applies with the exception of deconcentration of poverty and expanding housing and economic opportunity requirements. 025 — City Council 5 50 5 2 25 EXHIBIT 1 1.6.B.5.d. PBV Site -Specific Alternative requirement 18-VII.C. UTILITY Utility Allowances under RAD. No ALLOWANCES corresponding policy in Chapter 17. 1.6.C.1. No Rescreening of Policies contained in 18-V.B. PROHIBITED Tenants upon Conversion Chapter 3 relating to RESCREENING OF EXISTING eligibility do not apply TENANTS UPON to existing tenants who CONVERSION receive TPVs. 1.6.C.2. Right to Return Alternative requirement 18-I.D. RELOCATION under RAD. No REQUIREMENTS corresponding policy in Chapter 17. 1.6.C.3. Phase -in of Tenant Alternative requirements 18-VIII.D. PHASE -IN OF Rent Increases under RAD. No TENANT RENT INCREASES corresponding policy in Chapter 17. 1.6.C.4. Family Self Not covered in 18-VI.C. PUBLIC HOUSING Sufficiency (FSS) and administrative plan. FSS AND ROSS Resident Opportunities and PARTICIPANTS Self -Sufficiency Service Coordinator (ROSS-SC) Programs 1.6.C.5. Resident Participation Alternative requirement 18-VI.D. RESIDENT and Funding under RAD. No PARTICIPATION AND corresponding policy in FUNDING Chapter 17. 1.6.C.6. Resident Procedural Policies related to 18-VI.H. RESIDENTS' Rights hearings in Chapter 16 PROCEDURAL RIGHTS apply, with added procedural rights and notice requirements as outlined in Chapter 18. 1.6.C.7. Earned Income Alternative requirements 18-VI.G. EARNED INCOME Disregard (EID) under RAD for in -place DISALLOWANCE residents. New admissions follow policies in Chapter 6. 1.6.C.8. Jobs Plus Not covered in No corresponding policy. administrative plan. 1.6.C.9. When Total Tenant Alternative requirements 18-VI.B. LEASE, Continuation 025 City Council 5 2 25 EXHIBIT 1 Payment Exceeds Gross Rent under RAD for in -place of Housing Assistance Payments residents. New admissions follow policies in 17-VII.B. LEASE, Continuation of Housing Assistance Payments. 1.6.C.10. Under -Occupied Alternative requirements 18-VI.E. MOVES, Overcrowded, Unit under RAD for in -place Under -Occupied, and Accessible residents. Units New admissions follow 17-VII.C. MOVES, Overcrowded, Under - Occupied, and Accessible Units 1.6.D.4. Establishment of Alternative requirements 18-V.D. ORGANIZATION OF Waiting List under RAD for initial THE WAITING LIST establishment of the waiting list. Once waiting list is established, follow 17- VI.E. SELECTION FROM THE WAITING LIST 1.6.D.10. Initial Certifications Alternative requirements 18-VIII.C. TENANT RENT TO and Tenant Rent Calculations under RAD for in -place OWNER, Initial Certifications residents. No corresponding policy in Chapter 17. Note, while Notice PIH 2O19-05 states that the PHA must screen families for eligibility for a tenant protection voucher and that families must be below the low-income limit (80 percent of AMI), Notice PIH 2O19-23 waives these requirements for residents in projects that include RAD PBV units. 025 — City Council 5 52 5 2 25 EXHIBIT 1 Chapter 18 SPECIAL PURPOSE VOUCHERS INTRODUCTION Special purpose vouchers are specifically funded by Congress in separate appropriations from regular HCV program funding in order to target specific populations. Special purpose vouchers include vouchers for the following programs: • Family Unification Program (FUP) • Foster Youth to Independence (FYI) program • Veterans Affairs Supportive Housing (VASH) • Mainstream • Non -Elderly Disabled (NED) • Stability Voucher program SAHA Policy SAHA will administer the following types of special purpose vouchers: - Foster Youth to Independence (FYI) program - Veterans Affairs Supportive Housing (VASH) - Mainstream (MS5) - Non -Elderly Disabled (NED) This chapter describes HUD regulations and PHA policies for administering special purpose vouchers. The policies outlined in this chapter are organized into four sections, as follows: Part I: Foster Youth to Independence (FYI) program Part II: Veterans Affairs Supportive Housing (VASH) Part III: Mainstream voucher program Part IV: Non -Elderly Disabled (NED,) vouchers Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to special purpose vouchers. 025 City Council 5 — 853 5 2 25 EXHIBIT 1 PART I: FOSTER YOUTH TO INDEPENDENCE INITIATIVE 18-I.A. PROGRAM OVERVIEW [Notice PIH 2O20-28; Notice PIH 2O23-04; FR Notice 1/24/221 The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows PHAs who partner with a Public Child Welfare Agency (PCWA) to request targeted HCVs to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of between 36 and 60 months. The PHA must have an existing ACC with HUD for HCVs. Funding is available either competitively though an FYI NOFA or noncompetitively on a rolling basis in accordance with the application requirements outlined in Notice PIH 2O20-28, Notice PIH 2O21-26, or Notice PIH 2O23-04, as applicable. Under the noncompetitive process, PHAs are limited to 25 vouchers in a fiscal year with the ability to request additional vouchers. Where the PHA has a combined FYI and/or FUP size of no more than 10 vouchers, the PHA may request FYI vouchers with at least 50 percent utilization of its FUP and/or FYI vouchers. Where the PHA has a combined FYI and/or FUP size of 11 or more vouchers, the PHA may request FYI vouchers with 90 percent or greater utilization of its FUP and/or FYI vouchers. PHAs may be eligible for an exception to the utilization criteria with the submission to HUD of a narrative that explains why the PHA does not meet the utilization criteria and requires the award of FYI vouchers. 025 City Council 5 — 854 5 2 25 EXHIBIT 1 18-I.B. PARTNERING AGENCIES [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar] Public Child Welfare Agency (PCWA) The PHA must enter into a partnership agreement with a PCWA in the PHA's jurisdiction in the form of a Memorandum of Understanding (MOU) or letter of intent. The minimum contents of the partnership agreement are outlined in Notice PIH 2O23-04. The PCWA is responsible for identifying and referring eligible youth to the PHA and providing or securing a commitment for the provision of supportive services once youth are admitted to the program. SAHA Policv SAHA will implement a Foster Youth to Independence (FYI) program in partnership with County of Orange Social Services Agency. The PCWA is responsible for: • Identifying FYI -eligible youth; • Developing a system of prioritization based on the level of need of the youth and the appropriateness of intervention; • Providing a written certification to the PHA that the youth is eligible; and • The PCWA must provide or secure a commitment for the provision of supportive services that are required to be offered. Continuum of Care (CoC) and Other Partners HUD strongly encourages PHAs to add other partners into the partnership agreement with the PCWA such as state, local, philanthropic, faith -based organizations, and the CoC, or a CoC recipient it designates. The CoC plays a role in identifying eligible youth in the community at risk of or experiencing homelessness that are no longer part of the child welfare system. Through the CoC's coordinated entry process, referrals of eligible youth to the PCWA are made based on prioritization of need and appropriateness of the intervention. Further, CoC recipients may provide supportive services using CoC program funds to youth who qualify for CoC program assistance. Youth who are part of the PCWA's active caseload do not have to be added to the CoC's coordinated entry process. SAHA Policy In addition to the County of Orange Social Service Agency, SAHA will implement the FYI program in partnership with the Orangewood Foundation and Orange County United Way. 025 City Council 5 — 855 5 2 25 EXHIBIT 1 18-I.C. YOUTH ELIGIBILITY CRITERIA [Notice PIH 2O23-04; FYI Q&As; FYI FAQs] The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. As determined by the PCWA, eligible youth: • Are at least 18 years of age and not more than 24 years of age (have not yet reached their 25th birthday); Youth must be no more than 24 years of age at the time the PCWA certifies them as eligible and at the time of HAP contract execution. 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 - Placements can include, but are not limited to, placements in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities, childcare institutions, and pre -adoptive homes in accordance with 24 CFR 5.576; • Are homeless or at risk of becoming homeless at age 16 and older. - At risk of being homeless is fully defined at 24 CFR 576.2. o This includes a person that is exiting a publicly funded institution, or system of care (such as a healthcare facility, a mental health facility, foster care or other youth facility, or correction program or institution). Therefore, youth being discharged from an institution may be eligible for an FYI voucher [FYI FAQs]. Eligibility is not limited to single persons. For example, pregnant and/or parenting youth are eligible to receive assistance assuming they otherwise meet eligibility requirements. PHAs may not exclude pregnant or parenting youth from service. 025 City Council 5 — 856 5 2 25 EXHIBIT 1 18-I.D. SUPPORTIVE SERVICES [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar; FYI Q&As] Supportive services may be provided by the PHA, PCWA, or a third party. The PCWA must provide or secure a commitment to provide supportive services for participating youth for the period of time defined in the NOFA/O for which the funding was made available. At a minimum, the following supportive services must be offered: • Basic life skills information/counseling on money management, use of credit, housekeeping, proper nutrition/meal preparation, and access to health care (e.g., doctors, medication, and mental and behavioral health services); • Counseling on compliance with rental lease requirements and with HCV program participant requirements, including assistance/referrals for assistance on security deposits, utility hook- up fees, and utility deposits; • Providing such assurances to owners of rental property as are reasonable and necessary to assist eligible youth to rent a unit with a voucher; • Job preparation and attainment counseling (where to look/how to apply, dress, grooming, relationships with supervisory personnel, etc.); and • Educational and career advancement counseling regarding attainment of general equivalency diploma (GED) or attendance/financing of education at a technical school, trade school, or college, including successful work ethic and attitude models. SAHA Policy Additional supportive services will not be offered. Since participation in supportive services is optional, but strongly encouraged, an FYI participant may decline supportive services. Administrative fee reserves may be used to cover costs for the supportive services listed above with HUD approval in accordance with Notice PIH 2O22-14 and Notice PIH 2O22-18. 025 City Council 5 — 857 7MW2b25 EXHIBIT 1 18-I.E. REFERRALS AND WAITING LIST MANAGEMENT [Notice PIH 2O23-04; FYI Updates and Partnering Opportunities Webinar FYI FAQs] Referrals The PCWA is responsible for certifying that the youth has prior qualifying foster care involvement. Once the PCWA sends the PHA the referral certifying the youth is program - eligible, the PHA determines HCV eligibility. The PCWA must have a system for identifying eligible youth within the agency's caseload and reviewing referrals from other partners, as applicable. The PCWA must also have a system for prioritization of referrals to ensure that youth are prioritized for an FYI voucher based upon their level of need and appropriateness of the intervention. For youth still involved in the child welfare system, the permanency goals of the young person should be taken into account. Prioritization must be designed in a way that is consistent with fair housing and civil rights requirements. Referrals may come from other organizations in the community who work with the population, but the PCWA must certify that the youth meets eligibility requirements, unless the PCWA has vested another organization with this authority. The PHA is not required to maintain full documentation that demonstrates the youth's eligibility as determined by the PCWA but should keep the referral or certification from the PCWA. The PCWA is not required to provide the PHA with HCV eligibility documents. SAHA Polic SAHA and County of Orange Social Service Agency (OCSSA) have identified staff positions to serve as lead FYI liaisons. These positions will be responsible for transmission and acceptance of referrals. OCSSA must commit sufficient staff and resources to ensure eligible youths are identified, prioritized, and determined eligible in a timely manner. When vouchers are available, SAHA liaison responsible for acceptance of referrals will contact the OCSSA liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than 14 calendar days from the date OCSSA receives this notification, the OCSSA liaison must provide SAHA with a list of eligible referrals, a completed release form, and a written certification for each referral indicating the referral is eligible. The list will include the name, address, and contact phone number for each adult individual who is being referred. SAHA will maintain a copy of each certification from OCSSA in the participant's file along with other eligibility paperwork. 025 City Council 5 — 858 5 2 25 EXHIBIT 1 Waiting List Placement [Notice PIH 2O23-04 and FYI FAQs] The PHA must use the HCV waiting list for the FYI program. Youth already on the HCV program may not be transferred to an FYI voucher since they are not homeless or at -risk of homelessness. Once a referral is made, the PHA must compare the list of PCWA referrals to its HCV waiting list to determine if any applicants on the PCWA's referral list are already on the PHA's HCV waiting list. Applicants already on the PHA's HCV waiting list retain the order of their position on the list. Applicants not already on the PHA's HCV waiting list must be placed on the HCV waiting list. If the PHA's HCV waiting list is closed, the PHA must open its HCV waiting list in order to accept new referrals. The PHA may reopen the waiting list to accept an FYI eligible youth without opening the waiting list for other applicants; however, the requirements at 24 CFR 982.206 for giving public notice when opening and closing the waiting list apply (see section 4- II.C., Opening and Closing the Waiting List of this administrative plan). SAHA Policv Within 14 calendar days of receiving the referral from OCSSA, SAHA will review the HCV waiting list and will send OCCSA a list confirming whether or not referrals are on the waiting list. Referrals who are already on the list will retain their position and the list will be notated to indicate the applicant is FYI -eligible. The waiting list for FYI vouchers is continually open for referrals from Orange County Social Services Agency as long as there are FYI vouchers available. PHAs may choose to create a preference in their regular HCV program for persons whose FYI assistance is expiring and will lack adequate housing as a result of their termination ftom the program, or other similar category. As required by statute, an FYI voucher may only be used to provide housing assistance for youth for a maximum of 36 months. However, youth who first lease a unit with an FYI voucher after the date of enactment of the Fostering Stable Housing Opportunities (FSHO) amendments may receive an extension of the 36- month time limit of assistance for up to an additional 24 months if they meet the requirements of FSHO. FSHO applies to eligible youth who first leased or leases a unit after the date of enactment of FSHO, December 27, 2020, which includes youth who will be assisted with funding under this Notice. See HUD's FSHO implementation notice published in the Federal Register on January 24, 2022 (87 FR 3570). SAHA will provide a selection preference for FYI voucher holders who are terminated due to the time limit on assistance in accordance with this policy. 025 City Council — 859 M5 2 25 EXHIBIT 1 Waiting List Selection The PHA selects eligible youths based on the PHA's regular HCV waiting list selection policies in Chapter 4, including any preferences that may apply. 025 City Council 5 — 860 5 2 25 EXHIBIT 1 18-I.F. PHA HCV ELIGIBILITY DETERMINATION [FYI FAQs] Once an eligible youth is selected from the HCV waiting list, the PHA must determine whether the youth meets HCV program eligibility requirements. Applicants must be eligible under both FYI eligibility requirements and HCV eligibility requirements as outlined in Chapter 3 of this policy. The PCWA may, but is not obligated to, provide information to the PHA on the youth's criminal history. SAHA Policv SAHA will perform a criminal background check for every adult household member. SAHA will consider the information in making its eligibility determination in accordance with SAHA's policies in Chapter 3, Part III. Additional Eligibility Factors Youth must be no more than 24 years old both at the time of PCWA certification and at the time of the HAP execution. If a youth is 24 at the time of PCWA certification but will turn 25 before the HAP contract is executed, the youth is no longer eligible for a FYI voucher. SAHA Policv Any applicant that does not meet the eligibility criteria for the HCV program listed in Chapter 3 or any eligibility criteria listed in this section will be notified by SAHA in writing following policies in Section 3-III.17, including stating the reasons the applicant was found ineligible and providing an opportunity for an informal review. 025 City Council 5 — 861 5 2 25 EXHIBIT 1 18-I.G. LEASE UP [FR Notice 1/24/221 Once the PHA determines that the family or youth meets HCV eligibility requirements, the youth will be issued an FYI voucher in accordance with PHA policies. During the family briefing, PHAs must inform the FYI voucher holder of: • The extension of assistance provisions and requirements; • The availability of the FSS program and offer them an FSS slot, if available, or offer to place them on the FSS waiting list (provided the PHA has an FSS program); and • The supportive services available to them, the existence of any other programs or services, and their eligibility for such programs and services. However, participation in supportive services cannot be required as a condition of receiving FYI assistance. SAHA Policy Eligible applicants will be notified by SAHA in writing following policies in Section 3- III.F. of this policy. FYI youth will be briefed individually or in a group setting. SAHA will provide all aspects of the written and oral briefing as outlined in Part I of Chapter 5. Vouchers will be issued in accordance with PHA policies in Chapter 5, Part II, except that SAHA will consider one additional 30-day extension beyond the first automatic extension for any reason, not just those listed in the policy in Section 5-II.E. Once the youth locates a unit, the PHA conducts all other processes relating to voucher issuance and administration per HCV program regulations and the PHA policy in Chapter 9. Should a youth fail to use the voucher, the PHA may issue the voucher to another eligible youth if one has been identified [Notice PIH 2O23-04]. When providing education or counseling on renting housing that may include pre- 1978 housing, the PHA must inform participating youth of their rights under the Lead Disclosure Rule (24 CFR part 35, subpart A) and the Lead Safe Housing Rule (subparts B, R, and, as applicable, F-M). Turnover Awards of FYI Tenant Protection Vouchers (TPVs) continue to be administered under the requirements of Notice PIH 2O19-20. This includes turnover requirements and the requirement to inform HUD should a youth not use a voucher or leave the program. For example, FYI TPVs awarded under Notice PIH 2O19-20 "sunset" when a youth leaves the program. This means that the PHA cannot reissue FYI TPV assistance issued under that notice to another youth when an initial youth exits the HCV program. HUD does not have the authority to allow the voucher to be used for a youth other than the one identified in the request. For awards under Notice PIH 2O23-04, if another eligible youth is not available, the PHA must notify HUD before the end of the calendar year, and HUD will reduce the PHA's HCV assistance to account for the removal of the FYI assistance from the PHA's HCV baseline. - 025 City Council 5 — 862 5 2 25 EXHIBIT 1 18-I.H. MAXIMUM ASSISTANCE PERIOD [Notice PIH 2O23-04 and FYI FAQs; FR Notice 1/24/221 Vouchers are limited by statute to a total of between 36 months and 60 months of housing assistance. At the end of the statutory time period, assistance must be terminated. However, any period of time for which no subsidy (HAP) is being paid on behalf of the youth does not count toward the limitation. It is not permissible to reissue another FYI TPV to the same youth upon expiration of their FYI assistance. Participants do not "age out" of the program. A participant may continue with the program until they have received the period of assistance for which they are eligible. Age limits are only applied for entry into the program. Extension of Assistance FYI voucher holders who first leased or lease a unit after December 27, 2020, may be eligible for an extension of assistance up to 24 months beyond the 36-month time limit (for a total of 60 months of assistance). While FYI voucher holders cannot be required to participate in the Family Self -Sufficiency (FSS) program as a condition of receipt of assistance, an eligible youth who participates in the FSS program and is in compliance with the applicable terms and conditions of the program is entitled to receive assistance for up to an additional 24 months. A FYI voucher holders must accept an FSS slot if it is offered to them prior to the 36-month mark in order to receive an extension of assistance (unless the youth meets one of the statutory exceptions described below). Statutory Exceptions FYI voucher holders will be entitled to receive an extension of assistance for up to 24 months beyond the 36-month time limit without participating in the PHA's FSS program if they certify that they meet one of the exceptions below: • The FYI voucher holder is a parent or other household member responsible for the care of a dependent child under the age of six or for the care of an incapacitated person. SAHA Policy SAHA defines incapacitated person per California Probate Code Section 1801 (a):An incapacitated person is someone who, due to a physical or mental condition, lacks the ability to provide for their own well-being or manage their finances. SAHA will apply this exception in a manner that provides extensions of FYI assistance to the broadest population possible consistent with the statutory requirements. The FYI voucher holder will be required to self -certify that they meet this exception on a SAHA-provided form. This certification is the only documentation that the FYI voucher holder must submit. The child or incapacitated person is not required to reside in the household in order for the FYI voucher holder to certify they meet this exception. For example, a child in a joint custody arrangement under the age of six who resides in the household only part time may qualify the FYI voucher holder for this exception. - 025 City Council 5 — 863 5 2 25 EXHIBIT 1 • The FYI voucher holder is a person who is regularly and actively participating in a drug addiction or alcohol treatment and rehabilitation program. SAHA Policv SAHA will define regular and active participation in a manner that provides extensions of FYI voucher holder assistance to the broadest population possible consistent with the statutory requirements. The FYI voucher holder will be required to self -certify that they meet this exception on a SAHA-provided form. This certification is the only documentation that the FYI voucher holder must submit. • The FYI voucher holder is a person who is incapable of complying with the requirement to participate in a FSS program as described above or engage in education, workforce development, or employment activities as described below, as applicable, due to a documented medical condition. SAHA Policv SAHA will apply this requirement in a manner that provides extensions of FYI voucher holder assistance to the broadest population possible consistent with statutory requirements. The FYI voucher holder will be required to self -certify that they meet this exception on a SAHA-provided form. This certification is the only documentation that the FYI voucher holder must submit. An FYI voucher holder that meets one of the above exceptions must still be offered an opportunity to enroll in the PHA's FSS program (if it is available to them) and receive any supportive services available to FYI voucher holders. An FYI voucher holder may choose to participate in an FSS program or engage in education, workforce development, or employment activities, even if they meet one of the above statutory exceptions. - 025 City Council 5 — 864 7M5 2 25 EXHIBIT 1 Education, Workforce Development, or Employment Activities If a PHA that carries out an FSS program is unable to offer a FYI voucher holder an FSS slot during their first 36 months of receiving FYI assistance, the FYI voucher holder is considered to have been "unable to enroll" in the program and may have their voucher extended by meeting the education, workforce development, or employment criteria described below: • The FYI voucher holder was engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent. SAHA Policv SAHA will use the definitions of recognized postsecondary credential and secondary school diploma or its recognized equivalent under the Workforce Innovation and Opportunity Act (WIOA). WIOA defines a recognized postsecondary credential as a credential consisting of an industry -recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the state involved or federal government, or an associate or baccalaureate degree (29 U.S.C. 3102). Examples of a recognized postsecondary credential include, but are not limited to, an associate's degree, bachelor's degree, occupational licensure, or occupational certification (see U.S. Department of Labor, Training and Employment Guidance Letter No. 10-16, Change 1). For the purpose of WIOA, the U.S. Department of Labor defines a secondary school diploma or its recognized equivalent as a secondary school diploma (or alternate diploma) that is recognized by a state and that is included for accountability purposes under the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA). A secondary school equivalency certification signifies that a student has completed the requirement for a high school education. Examples of a secondary school diploma or its recognized equivalent include, but are not limited to, obtaining certification of attaining passing scores on a state -recognized high school equivalency test, earning a secondary school diploma or state -recognized equivalent, or obtaining certification of passing a state -recognized competency -based assessment. • The FYI voucher holder was enrolled in an institution of higher education, as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) or an institution that meets the definition of a proprietary institution of higher education or a postsecondary vocational institution under sections 102(b)(1) and (c)(1) of the Higher Education Act of 1965 (20 U.S.C. 1002(b)(1) and (c)(1)), respectively. SAHA Policv The FYI voucher holder must be enrolled in education activities on at least a half-time basis, as defined by the institution which they attend. However, SAHA may make exceptions to this requirement if the FYI voucher holder is unable to enroll in a sufficient number of classes due to a lack of course offerings by the educational institution where they are enrolled. - 025 City Council 5 — 865 5 2 25 EXHIBIT 1 • The FYI voucher holder was participating in a career pathway, as such term is defined in Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102). • The FYI voucher holder was employed. SAHA Policv SAHA will consider the FYI voucher holder to be employed if they work a minimum of 20 hours per week. SAHA may make exceptions to this requirement if the FYI voucher holder's hours are reduced due to circumstances beyond their control or the FYI voucher holder must temporarily reduce their work hours due to a verified family emergency. FSS Enrollment at 24 Months If the FYI voucher holder has not been provided an opportunity to enroll in the FSS program during the first 24 months of FYI assistance, HUD encourages the PHA to remind the FYI voucher holder at the 24-month reexamination of the education, workforce development, and employment requirements described above so that they have enough time to meet these requirements prior to the expiration of the 36-month time period for FYI assistance. SAHA Policv If the FYI voucher holder has not been provided an opportunity to enroll in the FSS program during the first 24 months of FYI assistance, SAHA will remind the FYI voucher holder at their second regular reexamination of the education, workforce development, and employment requirements described above. FSS Enrollment Between 36 and 48 Months If an FSS slot becomes available between the 36-month and 48-month mark: • The PHA must offer the slot to an FYI voucher holder who had their voucher extended based on meeting the education, workforce development, or employment requirement listed above, or one of the statutory exceptions listed above (even if the FYI voucher holder previously declined an FSS slot because they met one of the statutory exceptions). • The PHA must work with the FYI voucher holder to determine whether enrollment in FSS is feasible and in their best interest given any education, workforce development, or employment activities that the FYI voucher holder is engaged in and any statutory exceptions that apply to the FYI voucher holder, as well as the remaining time on their voucher. • If the FYI voucher holder accepts the FSS slot, the PHA must work with them to establish Contract of Participation goals and an Individual Training and Services Plan (ITSP) that can be accomplished within the time period left on the voucher. If the FYI voucher holder is offered an FSS slot prior to the 36-month mark, the FYI voucher holder: • Will be required to enroll in the FSS program in order to receive an extension of assistance at the end of the 36-month time period (unless they meet one of the statutory exceptions described above). - 025 City Council 5 — 866 5 2 25 EXHIBIT 1 • Will not be considered to have been "unable to enroll" in the FSS program, and as a result, will not be eligible to receive an extension of assistance based on meeting the education, workforce development, or employment requirements described above. FSS Enrollment After 48 Months The PHA may, but is not required, to offer an FYI voucher holder an FSS slot that becomes available between the 48-month mark and the 60-month mark, since the FYI voucher holder will have already received their second and final extension. SAHA Policy If an FSS slot becomes available between the 48 and 60-month marks, SAHA will offer the FSS slot to an FYI voucher holder. Extensions of Assistance At the 36-month and 48-month reexamination, the PHA must extend FYI assistance if the FYI voucher holder is participating in and in compliance with the FSS program as long as the FYI voucher holder is still eligible for the HCV program. In any case, the FYI voucher holder cannot receive more than a total of 60 months of FYI assistance even if the FSS Contract of Participation time period extends beyond the voucher 60- month mark. No FSS Program or Unable to Enroll in FSS If a PHA does not carry out an FSS program or the FYI voucher holder has been unable to enroll in the program during the first 36 months of receiving FYI assistance, the FYI voucher holder is entitled to receive an extension of assistance for up to two successive 12-month periods beyond the 36-month time limit provided that the FYI voucher holder engaged in at least one of the education, workforce development, or employment activities described above for not less than nine months of the 12-month period preceding each extension. In order to meet the nine months out of the preceding 12 months requirement, the FYI voucher holder may have engaged in one of the education, workforce development, or employment activities described above or a combination of these activities. Verification Prior to Annual Reexam In order to provide an extension of assistance, the PHA must verify compliance with the above requirements at the end of the 36-month time period and the 48-month time periods. The PHA does not need to verify compliance with these requirements at the end of the 60-month time period since the maximum length of assistance is 60 months. To verify compliance with the education, workforce development, or employment requirement or one of the statutory exceptions, the PHA must provide the FYI voucher holder written notification informing them that they may receive an extension of their FYI assistance and providing instructions on how the FYI voucher holder may demonstrate that they meet one of these conditions. This notification must be provided sufficiently in advance of the end of the 36- month or 48-month time periods, as applicable, to allow the FYI voucher holder to demonstrate that they meet the education, workforce development, or employment requirement, or one of the statutory exceptions, and for the PHA to conduct an annual reexamination prior to the expiration of the FYI assistance. - 025 City Council 5 — 867 5 2 25 EXHIBIT 1 SAHA Polic SAHA will verify compliance with the education, workforce development, or employment requirement, or one of the statutory exceptions, at the end of the 36-month and 48-month time periods prior to the FYI voucher holder's scheduled annual reexamination. SAHA will not verify compliance at the end of the 60-month time period. SAHA will provide each FYI voucher holder on SAHA's program with a written notification informing them that they may receive an extension of their FYI assistance if they meet conditions outlined in this chapter and providing them with instructions on how they may demonstrate compliance at least 60 days prior to their scheduled annual reexamination date. When necessary, SAHA will provide this notification in a format accessible to FYI voucher holders with disabilities and in a translated format for FYI voucher holders with limited English proficiency in accordance with Chapter 2. SAHA will use the following verification methods to verify an FYI voucher holder's eligibility for voucher extensions: To verify compliance with the FSS requirement, SAHA will examine its records to confirm, or obtain confirmation from SAHA's FSS program staff, that the FYI participant is in compliance with FSS program requirements and has not been terminated from the FSS program. To meet the education, workforce development, or employment requirement, SAHA will verify that the FYI voucher holder was engaged in at least one education, workforce development, or employment activity for at least nine months of the 12-month period immediately preceding the end of the 36-month or 48-month time period, as applicable. Due to the timing of when SAHA verifies compliance and conducts the annual reexamination, the FYI voucher holder may have not yet met the nine -month requirement but may be able to demonstrate that they will meet the nine -month requirement as of the end of the 36-month or 48- month time period. In such cases, the FYI voucher holder will still be considered to have met the requirements. In order for the FYI voucher holder to meet one of the statutory exceptions described above, the FYI voucher holder must submit a certification to SAHA that they meet one of these exceptions. This certification is the only documentation that the FYI voucher holder must submit in order to demonstrate that they meet one of the statutory exceptions. An FYI voucher holder who received an extension of voucher assistance at the end of the 36- month time period based on meeting one of the conditions described in this chapter does not have to meet the same conditions when they reach the end of the 48-month time period. The FYI voucher holder may demonstrate that they meet a different condition in order to receive an extension of their assistance. Page - 025 City Council 5 — 868 5 2 25 EXHIBIT 1 If the PHA determines that the FYI voucher holder meets one of the statutory conditions, the PHA would then conduct an annual reexamination. If the annual reexamination determines that the FYI voucher holder is still eligible for the HCV program, the PHA must provide the FYI voucher holder the extension of voucher assistance. Termination of Assistance for Failure to Meet Conditions Failure of the FYI voucher holder to meet one of the above conditions will only impact their ability to receive subsequent extensions of assistance. It will not serve as a basis for terminating the FYI assistance prior to the annual reexam. If the FYI voucher holder does not meet any of the statutory conditions described in in this chapter, the youth is subject to the statutory time limit of 36 months or the time limit of any extension that the youth has already received, and the FYI voucher must be terminated once they reach this time limit. The calculation of the time limit begins from the date the first HAP contract is signed (for tenant -based vouchers) or from the date the FYI voucher holder entered into the initial lease agreement (for project -based vouchers). The number of months is calculated based on the number of months that HAP subsidy is being paid on behalf of the FYI voucher holder, not the number of months that they are in the FYI program. Prior to termination, the PHA must offer the FYI voucher holder the opportunity to request an informal hearing, in accordance with Chapter 16. 18-I.I. TERMINATION OF ASSISTANCE [FYI FAQs] Termination of a FYI voucher is handled in the same way as with any HCV; therefore, termination of a FYI voucher must be consistent with HCV regulations at 24 CFR Part 982, Subpart L and PHA policies in Chapter 12. Given the statutory time limit that requires FYI vouchers to sunset, a PHA must terminate the youth's assistance once the limit on assistance has expired. A PHA cannot terminate a FYI youth's assistance for noncompliance with PCWA case management, nor may the PHA terminate assistance for a FYI youth for not accepting services from the PCWA. The PHA may not transfer the assistance of FYI voucher holders to regular HCV assistance upon the expiration of the limit on assistance. However, the PHA may issue a regular HCV to FYI voucher holders if they were selected from the waiting list in accordance with PHA policies. The PHA may also adopt a waiting list preference for FYI voucher holders who are being terminated for this reason. SAHA Policy SAHA will provide a waiting list preference for FYI voucher holders who are terminated due to the time limit on assistance in accordance with PHA policy in Section 4-III.C. of the Administrative Plan. - 025 City Council 5 — 869 5 2 25 EXHIBIT 1 18-I.J. PORTABILITY [FYI FAQs] Portability for an FYI youth is handled in the same way as for a regular HCV family. A PHA may not restrict or deny portability for an FYI youth for reasons other than those specified in the HCV program regulations, as reflected in Chapter 10 of the administrative plan. An FYI youth does not have to port to a jurisdiction that administers FYI vouchers. If the receiving PHA absorbs the voucher, the PHA may absorb the youth into its regular HCV program if it has vouchers available to do so. If the receiving PHA absorbs the youth into its regular HCV program, that youth becomes a regular HCV participant with none of the limitations of an FYI voucher. The initial and receiving PHA must work together to initiate termination of assistance upon expiration of the time limit on assistance. 18-I.K. PROJECT -BASING FYI VOUCHERS [FYI FAQs; FR Notice 1/24/22; Notice PIH 2O24-031 PHAs that have initiated the selection process to project -base FYI and/or FUP vouchers may be eligible to project -base FYI and FUP units formally identified for project basing in accordance with all applicable PBV regulations and PHA policies in Chapter 17. This includes FYI vouchers awarded under Notices PIH 2O20-28, PIH 2O21-26, and PIH 2O23-04. Assistance awarded under Notice PIH 2O19-20 is prohibited from being project -based. SAHA Policy SAHA may project -base FYI vouchers in the following developments: • Bewley Street Intergenerational Housing Project The HAP contract will specify that the PBV unit is specifically made available to FYI voucher holders. This list of developments may be expanded without requiring an amendment to the HCV Administrative Plan. SAHA may allow the youth to remain in the unit with non -FYI HCV assistance (either tenant -based or project -based, as applicable) if the FYI voucher holder was selected from the applicable waiting list in accordance with PHA policies. is-is025 City Council 5 — 870 5 2 25 EXHIBIT 1 PART II: VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROGRAM 18-II.A. PROGRAM OVERVIEW Since 2008, HCV program funding has provided rental assistance under a supportive housing program for homeless veterans. The Veterans Affairs Supportive Housing (VASH) program combines HCV rental assistance with case management and clinical services provided by the Department of Veterans Affairs (VA) at VA medical centers (VAMCs) and Community -Based Outpatient Clinics (CBOCs), or through a designated service provider (DSP) as approved by the VA Secretary. Eligible families are homeless veterans and their families that agree to participate in VA case management and are referred to the VAMC's partner PHA for HCV assistance. The VAMC or DSP's responsibilities include: • Screening homeless veterans to determine whether they meet VASH program participation criteria; • Referring homeless veterans to the PHA; - The term homeless veteran means a veteran who is homeless (as that term is defined in subsection (a) or (b) of Section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302)). See 38 U.S.C. 2002. • Providing appropriate treatment and supportive services to potential VASH participants, if needed, prior to PHA issuance of a voucher; • Providing housing search assistance to VASH participants; • Identifying the social service and medical needs of VASH participants, and providing or ensuring the provision of regular ongoing case management, outpatient health services, hospitalization, and other supportive services as needed throughout the veterans' participation period; and • Maintaining records and providing information for evaluation purposes, as required by HUD and the VA. VASH vouchers are awarded noncompetitively based on geographic need and PHA administrative performance. Eligible PHAs must be located within the jurisdiction of a VAMC and in an area of high need based on data compiled by HUD and the VA. When Congress funds a new allocation of VASH vouchers, HUD invites eligible PHAs to apply for a specified number of vouchers. Generally, the HUD-VASH program is administered in accordance with regular HCV program requirements. However, HUD is authorized to waive or specify alternative requirements to allow PHAs to effectively deliver and administer VASH assistance. Alternative requirements are established in the HUD-VASH Operating Requirements, which were originally published in the Federal Register on May 6, 2008, and updated September 27, 2021, and then again in 2024. Unless expressly waived by HUD, all regulatory requirements and HUD directives regarding the HCV program requirements are applicable to VASH vouchers, including the use of all HUD - required contracts and other forms, and all civil rights and fair housing requirements. In addition, the PHA may request additional statutory or regulatory waivers that it determines are necessary for the effective delivery and administration of the program. - 025 City Council — 871 5 2 25 EXHIBIT 1 The VASH program is administered in accordance with applicable Fair Housing requirements since civil rights requirements cannot be waived under the program. These include applicable authorities under 24 CFR 5.105(a) and 24 CFR 982.53 including, but not limited to, the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination Act and all PHA policies as outlined in Chapter 2 of this document. When HUD-VASH recipients include veterans with disabilities or family members with disabilities, reasonable accommodation requirements in Part II of Chapter 2 of this policy apply. 18-II.B. REFERRALS [FR Notice 8/13/24 and HUD-VASH Qs and As] VAMC case managers will screen all families in accordance with VA screening criteria and refer eligible families to the PHA for determination of program eligibility and voucher issuance. The PHA has no role in determining or verifying the veteran's eligibility under VA screening criteria, including determining the veteran's homelessness status. The PHA must accept referrals from the partnering VAMC and must maintain written documentation of referrals in VASH tenant files. Upon turnover, VASH vouchers must be issued to eligible veteran families as identified by the VAMC. SAHA Policy In order to expedite the screening process, SAHA will provide all forms and a list of documents required for the VASH application to the VAMC. Case managers will work with veterans to fill out the forms and compile all documents prior to meeting with SAHA and submitting an application. When feasible, the VAMC case manager should email copies of all documents to SAHA prior to the meeting in order to allow SAHA time to review them and start a file for the veteran. After the VAMC has given SAHA a complete referral, SAHA will perform an eligibility screening within 14 business days of receipt of a VAMC referral. 025 City Council 5 — 872 7MV2b25 EXHIBIT 1 18-II.C. HCV PROGRAM ELIGIBILITY [FR Notice 8/13/24] Eligible participants are homeless veterans and their families who agree to participate in case management from the VAMC. • A VASH Veteran or veteran family refers to either a single veteran or a veteran with a household composed of two or more related persons. It also includes one or more eligible persons living with the veteran who are determined to be important to the veteran's care or well-being. • A veteran for the purpose of VASH is a person whose length of service meets statutory requirements, and who served in the active military, naval, or air service, was discharged or released under conditions other than dishonorable, and is eligible for VA health care. Under VASH, PHAs do not have authority to determine family eligibility in accordance with HCV program rules and PHA policies. The only reasons for denial of assistance by the PHA are failure to meet the income eligibility requirements and/or that a family member is subject to a lifetime registration requirement under a state sex offender registration program. Under portability, the receiving PHA must also comply with these VASH screening requirements. Social Security Numbers When verifying Social Security numbers (SSNs) for homeless veterans and their family members, PHAs must use available flexibilities in accordance with 24 CFR 5.216(g)(1)(iii) to accept self -certification of SSNs and at least one third -party document, such as a bank statement, utility or cell phone bill, or benefit letter that contains the name of the individual in the absence of other documentation. In the case of the homeless veteran, the PHA must accept the Certificate of Release or Discharge from Active Duty (DD-214) or the VA -verified Application for Health Benefits (10-10EZ) as verification of SSN if these forms are available and cannot require the veteran to provide a Social Security card. A VA -issued identification card may also be used to verify the SSN of a homeless veteran. Proof of Age The DD-214 or 10-10EZ must be accepted as proof of age in lieu of birth certificates or other PHA -required documentation as outlined in Section 7-II.C. of this policy. A VA -issued identification card may also be used to verify the age of a homeless veteran. Photo Identification A VA -issued identification card must be accepted in lieu of another type of government -issued photo identification. These cards also serve as verification of SSNs and date of birth. 025 City Council 5 — 873 7H5 2 25 EXHIBIT 1 Income Eligibility [FR Notice 8/13/241 With some exceptions, the PHA must determine income eligibility for VASH families in accordance with 24 CFR 982.201 and policies in Section 3-II.A. Low-income families (80 percent of AMI) are eligible for assistance under VASH, and PHAs may not condition eligibility based on additional eligibility criteria specified in its administrative plan. If the family is over - income based on the most recently published income limits for the family size, the family will be ineligible for assistance. The following alternative requirements related to income apply to VASH families: The PHA must determine the applicant's annual income for purposes of income eligibility by excluding all VA service -connected benefits received by the applicant. This special income exclusion only applies to the definition of annual income for purposes of determining income eligibility. If the HUD-VASH applicant qualifies as a low-income family under the alternative requirement, the VA service -connected benefits (with the exception of the normally excluded deferred VA disability payments under 24 CFR 5.609(b)(16) and the payments related to aid and attendance under 24 CFR 5.609(b)(17)) must still be included as annual income when calculating the family's adjusted income. In other words, the VA service -connected disability benefits are excluded for purposes of determining income eligibility but included for purposes of calculating the family's total tenant payment (TTP), housing assistance payment (HAP), and family share. When a veteran family reports that they have zero income, the PHA must accept a self - certification of zero income from the family at admission and at reexamination without taking any additional steps to verify the family is indeed zero income. The self -certification does not need to be notarized. The PHA must verify families' income in the Enterprise Income Verification (EIV) system within 120 days after admission. The PHA may not deny zero income families. Regardless of PHA policy, in determining compliance with the asset limitation at admission, for the VASH program, the PHA must accept a self -certification by the family that the family's total assets are equal to or less than the HUD -published asset limitation amount (adjusted annually) and that the family does not have any present ownership interest in real property, without taking additional steps to verify the accuracy of the declaration. • The PHA must not enforce the asset limitation for VASH families at reexamination. In addition, because there needs to be a monthly housing assistance payment (HAP) in order to enter into a HAP contract on behalf of a tenant -based voucher family, the utilization of tenant -based VASH assistance by families determined income -eligible is limited to those areas where the family's (TTP) is less than the applicable payment standard or exception payment standard (including any VASH-specific exception payment standard established by the PHA). The family must select a unit with a gross rent that is above the family's TTP in order to lease a unit with the tenant -based VASH voucher. 025 City Council 5 — 874 7M5 2 25 EXHIBIT 1 While income -targeting does not apply to VASH vouchers, the PHA may include the admission of extremely low-income VASH families in its income targeting numbers for the fiscal year in which these families are admitted. SAHA Policv While income -targeting requirements will not be considered by SAHA when families are referred by the partnering VAMC, SAHA will include any extremely low-income VASH families that are admitted in its income targeting numbers for the fiscal year in which these families are admitted. Minimum Rent [FR Notice 8/13/24] PHAs must consider hardship circumstances before charging a minimum rent in accordance with 24 CFR 5.630(b). The PHA may choose to charge a lower minimum rent (including a minimum rent of $0) specifically for their VASH program regardless of the minimum rent policies established in their administrative plan for other HCV families. SAHA Policv SAHA will establish a minimum rent of $50 for VASH families. Screening [FR Notice 8/13/241 The PHA may not screen any potentially eligible family members or deny assistance for any grounds permitted under 24 CFR 982.552 and 982.553 with one exception: the PHAs is still required to prohibit admission if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. Accordingly, with the exception of denial for registration as a lifetime sex offender under state law and PHA policies on how sex offender screenings will be conducted, PHA policy in Sections 3-III.13. through 3-III.E. do not apply to VASH. The prohibition against screening families for anything other than lifetime sex offender status applies to all family members, not just the veteran. If a family member is subject to lifetime registration under a state sex offender registration program, the remaining family members may be served if the family agrees to remove the sex offender from its family composition. This is true unless the family member subject to lifetime registration under a state sex offender registration program is the homeless veteran, in which case the family would be denied admission to the program [FR Notice 8/13/24]. Denial of Assistance [Notice PIH 2O08-371 Once a veteran is referred by the VAMC, the PHA must either issue a voucher or deny assistance. If the PHA denies assistance, it must provide the family with prompt notice of the decision and a brief statement of the reason for denial in accordance with Section 3-III.F. Like in the standard HCV program, the family must be provided with the opportunity for an informal review in accordance with policies in Section 3-III.F. In addition, a copy of the denial notice must be sent to the VAMC case manager. 025 City Council 5 — 875 7HV2b25 EXHIBIT 1 18-II.D. CHANGES IN FAMILY COMPOSITION Adding Family Members [FR Notice 8/13/241 When adding a family member after the family has been admitted to the program, PHA policies in Section 34I.13. apply. Other than the birth, adoption, or court -awarded custody of a child, the PHA must approve additional family members and will apply its regular screening criteria in doing so. Remaining Family Members [HUD-VASH Qs and As] If the homeless veteran dies while the family is being assisted, the voucher would remain with the remaining members of the tenant family. The PHA may use one of its own regular vouchers, if available, to continue assisting this family and free up a VASH voucher for another VASH- eligible family. If a regular voucher is not available, the family would continue utilizing the VASH voucher. Once the VASH voucher turns over, however, it must go to a homeless veteran family. Family Break Up [HUD-VASH Qs and As] In the case of divorce or separation, since the set -aside of VASH vouchers is for veterans, the voucher must remain with the veteran. This overrides the PHA's policies in Section 3-I.C. on how to determine who remains in the program if a family breaks up. 025 City Council 5 — 876 7HW2b25 EXHIBIT 1 18-II.E. LEASING [FR Notice 8/13/24] Waiting List The PHA does not have the authority to maintain a waiting list or apply local preferences for HUD—VASH vouchers. Policies in Chapter 4 relating to applicant selection from the waiting list, local preferences, special admissions, cross -listing, and opening and closing the waiting list do not apply to VASH vouchers. Exception Payment Standards [FR Notice 8/13/24] To assist VASH participants in finding affordable housing, especially in competitive markets, HUD allows PHAs to establish a HUD-VASH exception payment standard. PHAs may go up to but no higher than 120 percent of the published metropolitan area -wide fair market rent (FMR) or small area fair market rent (SAFMR) specifically for VASH families. PHAs who want to establish a VASH exception payment standard over 120 percent are allowed but must still request a waiver from HUD through the regular waiver process outlined in Notice PIH 2O18-16, or any successor notices. Exception payment standards implemented by the PHA under this section also apply in determining rents under 24 CFR 983.301(b) for PBV projects only when the project is comprised solely of units exclusively made available to VASH families. The PHA may also establish an exception payment standard up to 140 percent of the published FMR or SAFMR only to be applied if required as a reasonable accommodation for a family that includes a person with a disability. Any unit approved under an exception payment standard must still meet reasonable rent requirements. The PHA may use a payment standard that is greater than 140 percent of FMR as a reasonable accommodation for a person with a disability, but only with HUD approval. Voucher Issuance [FR Notice 8/13/241 Unlike the standard HCV program which requires an initial voucher term of at least 60 days, VASH vouchers must have a search term of at least 120 days. This applies both to the initial search term and moves. PHA policies on extensions as outlined in Section 5-II.E. will apply. SAHA Policy All VASH vouchers will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless SAHA grants an extension. The PHA must track issuance of HCVs for families referred by the VAMC or DSP in HUD systems as required in FR Notice 8/13/24. - 025 City Council 5 — 877 5 2 25 EXHIBIT 1 Special Housing Types [FR Notice 8/13/24] The PHA must permit VASH clients to use the following special housing types for tenant -based VASH assistance, regardless of whether these types are permitted in their administrative plan for other families: • Single room occupancy (SRO); • Congregate housing; • Group home; • Shared housing; and • Cooperative housing. Initial Lease Term [FR Notice 8/13/241 Unlike in the standard the HCV program, VASH voucher holders may enter into an initial lease that is for less than 12 months. Accordingly, PHA policy in Section 9-I.E., Term of Assisted Tenancy, does not apply. Ineligible Housing [FR Notice 8/13/241 Unlike in the standard HCV program, VASH families are permitted to live on the grounds of a VA facility in units developed to house homeless veterans. This applies to both tenant -based assistance and PBV. Therefore, 24 CFR 982.352(a)(5) and 983.53(a)(2), which prohibit units on the physical grounds of a medical, mental, or similar public or private institution, do not apply to VASH for this purpose only. Accordingly, PHA policy in 9-I.D., Ineligible Units, does not apply for this purpose only. Pre -Inspections [FR Notice 8/13/24] To expedite the leasing process, PHAs may pre -inspect available units that veterans may be interested in leasing in order to maintain a pool of eligible units. If a VASH family selects a unit that passed inspection (without intervening occupancy) within 90 days of the date of the Request for Tenancy Approval (Form HUD-52517), the unit may be approved if it meets all other conditions under 24 CFR 982.305. However, the veteran must be free to select their unit and cannot be steered to these units. All regulatory requirements pertaining to housing quality standards found at 24 CFR 5.703 apply to HUD-VASH. SAHA Policy To expedite the leasing process, SAHA may pre -inspect available units that veterans may be interested in leasing to maintain a pool of eligible units. If a VASH family selects a unit that passed a pre -inspection (without intervening occupancy) within 45 days of the date of the RTA, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The veteran will be free to select their unit. When a pre -inspected unit is not selected, SAHA will make every effort to fast -track the inspection process, including adjusting the normal inspection schedule for both initial and any required reinspections. 025 City Council 5 — 878 7M5 2 25 EXHIBIT 1 18-II.F. PORTABILITY [Notice PIH 2O11-53 and FR Notice 8/13/24] General Requirements Portability policies under VASH depend on whether the family wants to move within or outside of the initial VA facility's catchment area (the area in which the VAMC or DSP operates). In all cases, the initial VA facility must be consulted prior to the move and provide written confirmation that case management will continue to be provided in the family's new location. VASH participant families may only reside in jurisdictions that are accessible to case management services, as determined by case managers at the partnering VAMC or DSP. Under VASH, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied. As a result, PHA policies in Section 10-II.13. about nonresident applicants do not apply. A family that moves under the portability procedures must not be subject to rescreening by the receiving PHA. If the family no longer requires case management, there are no portability restrictions. Normal portability rules apply. Portability within the Initial VAMC or DSP's Catchment Area A VASH family can move within the VAMC's catchment area as long as case management can still be provided, as determined by the VA. If the initial PHA's partnering VAMC will still provide the case management services, the receiving PHA must process the move in accordance with portability procedures: • If the receiving PHA has been awarded VASH vouchers, it can choose to either bill the initial PHA or absorb the family if it has a VASH voucher available to do so. - If the PHA absorbs the family, the VAMC or DSP providing the initial case management must agree to the absorption and the transfer of case management. • If the receiving PHA does not administer a VASH program, it must always bill the initial PHA. Portability Outside of the Initial VAMC or DSP's Catchment Area If a family wants to move to another jurisdiction where it will not be possible for the initial PHA's partnering VAMC or DSP to provide case management services, the initial VAMC or DSP must first determine that the VASH family could be served by another VAMC or DSP that is participating in the VASH program, and the receiving PHA has an available VASH voucher. In these cases, the family must be absorbed by the receiving PHA either as a new admission or as a portability move -in, as applicable. Upon absorption, the initial PHA's VASH voucher will be available to lease to a new VASH-eligible family, and the absorbed family will count toward the number of VASH slots awarded to the receiving PHA. 025 City Council 5 — 879 5 2 25 EXHIBIT 1 Portability Outside of the Initial VAMC or DSP's Catchment Area under VAWA Veterans who request to port beyond the catchment area of the VAMC or DSP where they are receiving case management to protect the health or safety of a person who is or has been the victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking, and who reasonably believes they are threatened with imminent harm from further violence by remaining in the unit may port prior to receiving approval from the receiving VAMC or DSP. The initial PHA must follow its emergency transfer plan (see Exhibit 16-3). PHAs may require verbal self -certification or a written request from a participant seeking a move beyond the catchment area of the VAMC or DSP. The verbal self -certification or written request must include either a statement expressing why the participant reasonably believes that there is a threat of imminent harm from further violence if they were to remain in the same unit or a statement that the tenant was a sexual assault victim and that the sexual assault occurred on the premises during the 90-day period preceding the participants request for the move. The participant must still port to a PHA that has a VASH program. If the receiving PHA does not have a VASH voucher available to lease, they may bill the initial PHA until a VASH voucher is available, at which point the porting veteran must be absorbed into the receiving PHA's program. 025 City Council 5 — 880 5 2 25 EXHIBIT 1 18-II.G. TERMINATION OF ASSISTANCE [FR Notice 8/13/241 Prior to terminating VASH participants, HUD strongly encourages PHAs to exercise their discretion under 24 CFR 982.552(c)(2) as outlined in Section 12-II.D. of this policy and consider all relevant circumstances of the specific case. This includes granting reasonable accommodations for persons with disabilities, as well as considering the role of the case manager and the impact that ongoing case management services can have on mitigating the conditions that led to the potential termination. VASH participant families may not be terminated after admission for a circumstance or activities that occurred prior to admission and were known to the PHA but could not be considered at the time of admission due to VASH program requirements. The PHA may terminate the family's assistance only for program violations that occur after the family's admission to the program. There are two alternative requirements for termination of assistance for VASH participants. Cessation of Case Management As a condition of receiving HCV rental assistance, a HUD-VASH-eligible family must receive case management services from the VAMC or DSP. A VASH participant family's assistance must be terminated for failure to participate, without good cause, in case management as verified by the VAMC or DSP. However, the PHA may offer the family continued assistance through one of its regular vouchers or a PBV unit not exclusively made available for HUD-VASH. However, a VAMC or DSP determination that the participant family no longer requires case management is not grounds for termination of voucher or PBV assistance. In such a case, at its option, the PHA may offer the family continued assistance through one of its regular vouchers. The decision to transfer assistance to a regular voucher must consider veteran preference and must be communicated to the VA prior to occurring. If the PHA has no voucher to offer, the family will retain its VASH voucher, or PBV unit, until such time as the PHA has an available voucher (or PBV unit not exclusively made available for VASH) for the family. If the PHA has no voucher to offer, the family will retain its VASH voucher or PBV unit until such time as the PHA has an available voucher for the family. Serious Violation of the Lease The regulation at 24 CFR 982.552(b)(2) states that the PHA must terminate program assistance for a family evicted from housing assisted under the program for serious violation of the lease. HUD waived this provision, and establishing the alternative requirement that the PHA may terminate program assistance in this case. Prior to terminating VASH participants for this reason, HUD strongly encourages PHAs to exercise their discretion under 24 CFR 982.552(c)(2) and consider all relevant circumstances of the specific case, as well as including the role of the case manager and the impact that ongoing case management services can have on mitigating the conditions that led to the potential termination, prior to determining whether to terminate assistance. 025 City Council 5 — 881 7H5 2 25 EXHIBIT 1 VAWA [FR Notice 8/13/241 When a veteran's family member is receiving protection under VAWA because the veteran is the perpetrator of domestic violence, dating violence, sexual assault, stalking, or human trafficking, the victim must continue to be assisted. Upon termination of the perpetrator's VASH assistance, the victim must be given a regular HCV if one is available, and the perpetrator's VASH voucher must be used to serve another eligible veteran family. If a regular HCV is not available, the perpetrator must be terminated from assistance and the victim will continue to use the VASH voucher. - 025 City Council 5 — 882 5 2 25 EXHIBIT 1 18-II.H. PROJECT -BASING VASH VOUCHERS General Requirements [Notice PIH 2O17-21 and FR Notice 8/13/24] PHAs are authorized to project -base their tenant -based VASH vouchers without additional HUD review or approval in accordance with Notice PIH 2O17-21 and all PBV program requirements provided that the VAMC will continue to make supportive services available. In addition, since 2010, HUD has awarded VASH vouchers specifically for project -based assistance in the form of PBV HUD-VASH set -aside vouchers. While these vouchers are excluded from the PBV program cap as long as they remain under PBV HAP contract at the designated project, all other VASH vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. Note that VASH supportive services only need to be provided to VASH families receiving PBV assistance in the project, not all families receiving PBV assistance in the project. If a VASH family does not require or no longer requires case management, the unit continues to count as an excepted PBV unit as long as the family resides in the unit. In the description of units in Exhibit A of the HAP contract, PHAs must indicate the number of units that will be exclusively made available to VASH families. The PHA must refer only VASH families to PBV units exclusively made available to VASH families and to PBV units funded through a VASH PBV set -aside award. If the PHA project -bases VASH vouchers, the PHA must consult with the partnering VAMC or DSP to ensure approval of the project or projects. PHAs may project -base VASH vouchers in projects alongside other PBV units and may execute a single HAP contract covering both the VASH PBVs and the other PBVs. The PHA must refer only VASH families to PBV units exclusively made available to VASH families and to PBV units funded through a HUD set -aside award. If a VASH family is referred to the PHA and there is an available PBV unit that is not exclusively made available to VASH families, the PHA may offer to refer the family to the owner if allowable under the selection policy for that project, and the owner and PHA may amend the HAP contract to designate the PBV unit as a VASH PBV unit. The PHA and owner may agree to amend a PBV HAP contract to redesignate a regular PBV unit as a unit specifically designated for VASH families so long as the PHA first consults with the VAMC or DSP. Additionally, the PHA and owner may agree to amend a PBV HAP contract to redesignate a unit specifically designated for VASH families as a regular PBV unit, so long as the unit is not funded through a VASH PBV set -aside award and is eligible for regular PBV (i.e., the unit is not on the grounds of a medical facility and the unit is eligible under the PHA's program and project caps). Policies for VASH PBV units will generally follow PHA policies for the standard PBV program as listed in Chapter 17, with the exception of the policies listed below. Ineligible Units Unlike in the regular PBV program, the PHA may opt to select an occupied unit or admit a family to a unit if such unit is made exclusively available to VASH families if the PBV project is either on the grounds of a VA facility or there are VASH supportive services provided on -site at the project. - 025 City Council 5 — 883 5 2 25 EXHIBIT 1 Termination of Assistance A VASH family's PBV assistance must be terminated for failure to participate in case management when required by the VA. However, the PHA may allow the veteran family to receive a regular (non-VASH) tenant -based voucher or PBV unit instead of the family's assistance being terminated. In this case, the PHA may: Substitute the family's unit on the PBV HAP contract for another unit (the PHA may, in conjunction with such substitution, add the original unit to the PBV HAP contract with a non-VASH voucher if it is possible to do so; • Remove the unit from the PBV HAP contract so the family may remain with tenant -based assistance, if the family and the owner agree to use the tenant -based voucher in the unit; or • Change the unit's status in the PBV HAP contract from a unit exclusively made available for VASH to a regular PBV unit, if doing so is allowable under program rules. If the PHA will not allow the veteran to receive a regular (non-VASH) tenant -based voucher or PBV unit instead of the family's assistance being terminated, then upon notification by the VA of the family's failure to participate in VA -required case management, the PHA must provide the family a reasonable period of time (as established by the PHA) to vacate the unit. SAHA Policy If the family fails to participate in case management when required by the VA, SAHA will terminate the family's assistance. The family will have 120 days to vacate the unit, starting from the proposed termination action. SAHA will terminate assistance to the family at the earlier of (1) the time the family vacates or (2) the expiration of the 120-day period. If the family fails to vacate the unit within the established time, the owner may evict the family. If the owner does not evict the family, SAHA will remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. SAHA may add the removed unit back onto the HAP contract after the ineligible family vacates the property. Moves If a VASH family is eligible to move from its PBV unit after a year of PBV assistance, the PHA will generally follow policies in Chapter 17. However, if there is no VASH tenant -based voucher available at the time the family requests to move, the PHA's actions depend on whether the family still requires case management. The PHA may require a family that still requires case management to wait for a VASH tenant -based voucher for a period not to exceed 180 days. If a HUD-VASH tenant -based voucher is still not available after 180 days, the family must be allowed to move using its VASH voucher as tenant -based assistance. Alternatively, the PHA may allow the family to move using its VASH voucher as tenant -based assistance without having to meet this 180- day waiting period. In either case, the PHA may either amend the PBV HAP contract to replace the assistance in the PBV unit with one of its regular vouchers if the unit is eligible for a regular PBV or the PHA and owner may agree to temporarily remove the unit from the HAP contract. - 025 City Council 5 — 884 5 2 25 EXHIBIT 1 • If a VASH veteran has been determined to no longer require case management, the PHA must allow the family to move with the first available tenant -based voucher. If no VASH voucher is immediately available, the PHA may not require the family to wait for a VASH voucher to become available. Wrong -Sized or Accessible Units If the PHA determines that a VASH family is occupying a wrong -size PBV unit or a PBV unit with accessibility features that the family does not require and the PBV unit is needed by a family that requires the accessibility features, the PHA must notify the family and the owner within 30 days of the PHA's determination. The PHA's offer of continued housing assistance (that must be made within 60 days of the PHA's determination) must be in the form of either a VASH tenant -based voucher or another VASH PBV unit. If no VASH assistance is available for the PHA to offer within 60 days of the PHA's determination, the PHA must remove the wrong - sized or accessible unit from the HAP contract to make VASH voucher assistance available to the family. Contract Terminations The regulation at 24 CFR 983.206(b), which covers the required provision of tenant -based assistance and requires that the family may elect to use its tenant -based assistance to remain in the same project when a PBV HAP contract terminates or expires, does not apply to families issued a HUD-VASH tenant -based voucher under this circumstance. The PHA may use another voucher to add the unit removed under this alternative requirement to the HAP contract after the family vacates the property, in accordance with 24 CFR 983.207(b). Rents Contract rents may not be different based on whether the unit is a VASH PBV unit or a non- VASH PBV unit. In determining the rent to owner for the PBV project, if the cap on the amount of rent to owner under 24 CFR 983.301(b)(1) is lower for non-HUD-VASH units than it is for the HUD-VASH units (e.g., the PHA has established a HUD-VASH exception payment standard and there is either no exception payment standard or a lower exception payment standard for the regular HCV program for the area in question), that lower cap is applicable when setting the rent to owner for the PBV units in the project, including the HUD-VASH units. Removing Units from the HAP Contract for Ineligible Families The PHA and owner may also agree to temporarily remove a unit from the HAP contract in cases where a HUDVASH eligible veteran has been identified by the VA as appropriate for a VASH PBV unit, but the veteran is not income eligible to receive voucher assistance or may not be selected for the PBV unit because the family's TTP exceeds the gross rent of the unit. Although the family would not be a program participant in the housing portion of the VASH program in such a case, the family would still benefit from the project's location on the grounds of a VA facility or from the VASH supportive services on -site at the project, while the VASH voucher would be available to assist another VASH family. The PHA and owner may agree to add a VASH voucher back onto the PBV HAP contract if the family's income subsequently decreased to the point that there would be a HAP or when the family vacates the unit. - 025 City Council 5 — 885 5 2 25 EXHIBIT 1 Zero HAP Families Under normal PBV requirements, the PHA may select an occupied unit to be included under a PBV HAP contract only if the unit's occupants are eligible for assistance under 24 CFR 982.201, and the TTP for the family is less than the gross rent for the unit. Furthermore, in selecting a family for an available PBV unit, typically the PHA must determine the TTP for the family is less than the gross rent, meaning that the unit will be eligible for a monthly HAP. However, if the PBV project is either on the grounds of a VA facility or there are HUD-VASH supportive services provided onsite at the project, the PHA may opt to select a unit occupied by a zero HAP VASH eligible family or admit a zero HAP VASH family to a unit if such unit is made exclusively available to VASH families. Until such time that the VASH family's TTP falls below the gross rent, the family is responsible for paying the entire rent to owner in addition to being responsible for paying all tenant -supplied utilities. During any period that the family's TTP falls below the gross rent, normal PBV requirements apply. Further, under normally applicable rules, units occupied by families whose incomes have increased during their tenancy resulting in their TTP equaling the gross rent (zero HAP) must be removed from the HAP contract 180 days following the last housing assistance payment to the owner on the family's behalf. These regulations do not apply to zero HAP families admitted to the PBV project under this waiver and alternative requirement because there is no last housing assistance payment that would trigger the unit removal date of 180 days. As an alternative requirement, PHAs have the option of removing the unit in which the zero HAP family resides from the HAP contract, but no earlier than 180 days from the start of the family PBV tenancy. If the PHA exercises this option, the family may not be required to move from the unit as a consequence and continues to receive the VASH supportive services. If the project is fully assisted, the PHA may reinstate the unit removed to the HAP contract after the family either vacates the unit or their income decreases to the point that there would be a HAP. If the project is partially assisted, the PHA may substitute a different unit for the unit removed from the HAP contact when the first eligible substitute unit becomes available. Alternatively, the PHA may choose to simply leave the unit on the HAP contract while the zero HAP family continues to reside there. Proposal/Project Selection PBV proposal and/or project selection for VASH must follow all regular proposal and/or project selection regulations, with one exception. HUD permits noncompetitive selection of one or more PBV projects with units made exclusively available to VASH families on the site of a VA facility. Note that the method of project selection must comply with all other requirements under 24 CFR 983.51, including that the PHA must notify the public of its intent to noncompetitively select one or more projects for PBV assistance through its 5-Year Plan and to ensure any project selection is consistent with the PHA administrative plan. - 025 City Council 5 — 886 5 2 25 EXHIBIT 1 Failure to Participate in Case Management [FR Notice 8/13/241 Upon notification by the VAMC or DSP of the family's failure to participate, without good cause, in case management, the PHA must provide the family a reasonable time period to vacate the unit. The PHA must terminate assistance to the family at the earlier of either the time the family vacates or the expiration of the reasonable time period given to vacate. SAHA Policy If the family fails to participate in case management when required by the VA, SAHA will terminate the family's assistance. The family will have 120 days to vacate the unit, starting from the proposed termination action. SAHA will terminate assistance to the family at the earlier of (1) the time the family vacates or (2) the expiration of the 120-day period. If the family fails to vacate the unit within the established time, the owner may evict the family. If the owner does not evict the family, SAHA will remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. SAHA may add the removed unit back onto the HAP contract after the ineligible family vacates the property. If the family fails to vacate the unit within the established time, the owner may evict the family. If the owner does not evict the family, the PHA must remove the unit from the HAP contract or amend the HAP contract to substitute a different unit in the project if the project is partially assisted. The PHA may add the removed unit to the HAP contract after the ineligible family vacates the property. Moves [HUD-VASH Qs and As, FR Notice 8/13/241 When a VASH PBV family is eligible to move from its PBV unit in accordance with Section 17- VIII.C. of this policy, but there is no other comparable tenant -based rental assistance, the following procedures must be implemented: If a VASH tenant -based voucher is not available at the time the family wants (and is eligible) to move, the PHA may require a family who still requires case management to wait for a VASH tenant -based voucher for a period not to exceed 180 days; If a VASH tenant -based voucher is still not available after that period, the family must be allowed to move with its VASH voucher. Alternatively, the PHA may allow the family to move with its VASH voucher without having to meet this 180-day period. In either case, the PHA is required to replace the assistance in the PBV unit with one of its regular vouchers, unless the PHA and owner agree to temporarily remove the unit from the HAP contract; and If a VASH veteran is determined to no longer require case management, the PHA must allow the family to move with the first available tenant -based voucher if no VASH voucher is immediately available and cannot require the family to wait for a VASH voucher to become available. - 025 City Council 5 — 887 5 2 25 EXHIBIT 1 PART III: MAINSTREAM VOUCHER PROGRAM 18-III.A. PROGRAM OVERVIEW [Notice PIH 2O20-01 and Notice PIH 2O24-301 Mainstream vouchers assist non -elderly persons with disabilities and their families (particularly those transitioning out of institutions or at serious risk of institutionalization) in the form of either project -based or tenant -based voucher assistance. The Mainstream voucher program, (previously referred to as the Mainstream 5-Year program or the Section 811 voucher program) was originally authorized under the National Affordable Housing Act of 1990. Mainstream vouchers operated separately from the regular HCV program until the passage of the Frank Melville Supportive Housing Investment Act of 2010. Funding for Mainstream voucher renewals and administrative fees was first made available in 2012. In 2017 and 2019, incremental vouchers were made available for the first time since the Melville Act (in addition to renewals and administrative fees), and PHAs were invited to apply for a competitive award of Mainstream vouchers under the FYI and FYI NOFAs. In 2020, Notice PIH 2O20-22 provided an opportunity for any PHA administering an HCV program to apply for Mainstream vouchers noncompetitively, while Notice PIH 2O20-09 authorized an increase in Mainstream voucher units and budget authority for those PHAs already awarded Mainstream vouchers under the FY 17 and FY 19 NOFAs. Funding and reporting for Mainstream vouchers is separate from the HCV program. Funds for Mainstream vouchers may be recaptured and reallocated if the PHA does not comply with all program requirements or fails to maintain a utilization rate of 80 percent for the PHA's Mainstream vouchers. The Consolidated Appropriations Act, 2024 (Public Law 118-42) authorized HUD to establish waivers and alternative requirements for Mainstream Vouchers related to the administration of waiting lists, local preferences, and the initial term and extensions of tenant -based vouchers. HUD is not permitted to waive requirements related to tenant rights and protections, rent setting, fair housing, nondiscrimination, labor standards, and the environment. Prior to this, Mainstream vouchers follow the same program requirements as standard vouchers. - 025 City Council 5 — 888 5 2 25 EXHIBIT 1 18-IV.B. ELIGIBLE POPULATION [Notice PIH 2O20-01 and Notice PIH 2O20-221 All Mainstream vouchers must be used to serve non -elderly persons with disabilities and their families, defined as any family that includes a person with disabilities who is at least 18 years old and not yet 62 years old as of the effective date of the initial HAP contract. The eligible disabled household member does not need to be the head of household. The definition of person with disabilities for purposes of Mainstream vouchers is the statutory definition under section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy. Existing families receiving Mainstream vouchers, where the eligible family member is now age 62 or older, will not "age out" of the program as long as the family was eligible on the day it was first assisted under a HAP contract. The PHA may not implement eligibility screening criteria for Mainstream vouchers that is different from that of the regular HCV program. 18-III.C. PARTNERSHIP AND SUPPORTIVE SERVICES [Notice PIH 2O20-011 PHAs are encouraged but not required to establish formal and informal partnerships with a variety of organizations that assist persons with disabilities to help ensure eligible participants find and maintain stable housing. SAHA Policy SAHA will implement a Mainstream program, in partnership with, Mercy House Illumination Foundation CityNet - 025 City Council 5 — 889 5 2 25 EXHIBIT 1 18-III.D. WAITING LIST ADMINISTRATION [Notice PIH 2O24-30] For Mainstream vouchers, HUD has waived 24 CFR 982.204(f), which requires one waiting list for the HCV program and allows PHA the discretion to operate a Mainstream voucher waiting list that is separate from the general HCV waiting list. This is optional. If the PHA chooses to create a separate Mainstream waiting list, the PHA must notify families on the HCV waiting list of the separate Mainstream waiting list and provide an opportunity for families on the HCV list to be placed on the Mainstream list. If the PHA does not pursue the optional waiver to maintain a separate Mainstream waiting list, the PHA must still ensure program access for individuals with disabilities. Upon turnover, vouchers must be provided to Mainstream -eligible families. SAHA Policy SAHA will request matches from Orange County's Coordinated Entry System in lieu of maintaining a separate waiting list for the Mainstream program. - 025 City Council 5 — 890 5 2 25 EXHIBIT 1 18-III.E. PREFERENCES [Notice PIH 2O24-301 While PHAs may establish local preferences based on local housing needs and priorities in accordance with 24 CFR 982.207(a), HCV regulations do not permit PHAs to establish separate preferences for Mainstream voucher applicants. HUD waived 24 CFR 982.207(a)(1) and allows PHAs to establish separate preferences for Mainstream voucher applicants. However, PHAs may not apply a residency preference to Mainstream voucher applicants. PHAs with outstanding Olmstead -related litigation or enforcement activities, as well as those undertaking affirmative Olmstead planning and implementation efforts, who wish to establish preferences that target individuals with specific disabilities must request HUD approval. The process for requesting approval for a remedial preference targeting individuals with specific disabilities is outlined in Notice PIH 2012-31. Regardless of whether a PHA chooses to adopt separate Mainstream voucher preferences, if the PHA claimed points for a preference in a NOFO application for Mainstream vouchers, the PHA must adopt a preference for at least one of the targeted groups identified in the NOFO. PHAs may choose to apply NOFO preferences to the entire HCV waiting list or only to Mainstream voucher applicants as a separate Mainstream voucher preference. PHAs may use either date and time of application or a drawing or other random choice technique in selecting families from the Mainstream waiting list among applicants with the same preference status in accordance with the PHA's administrative plan. SAHA Policy SAHA will not offer any preferences on its Mainstream waiting list. - 025 City Council 5 — 891 7H5 2 25 EXHIBIT 1 18-III.F. VOUCHER ISSUANCE Initial Search Term [Notice PIH 2O24-301 For Mainstream vouchers, HUD waived 24 CFR 982.303(a), which requires an initial search term of at least 60 days, and established an alternative requirement that the initial search term for a Mainstream voucher be at least 120 days. The initial 120-day term also applies when a family chooses to move to a new unit with continued assistance inside or outside the PHA's jurisdiction. When issuing a Mainstream voucher, the PHA also must provide a current listing of available accessible units known to the PHA and, if necessary, otherwise assist the family in identifying an accessible unit. SAHA Policy The initial voucher term for all Mainstream vouchers, including those issued when a family wishes to exercise portability, will be 120 days. Voucher Extension [Notice PIH 2O24-301 The PHA's administrative plan must describe the PHA's policies for granting extensions to the initial 120-day voucher term and provide clear instructions to families on the procedures for requesting an extension. If a family requires additional time, the PHA is required to provide an extension as a reasonable accommodation. PHAs must adopt an extension policy for Mainstream vouchers that includes the following: • Each extension must be for a minimum of 90 days; • The PHA must approve the first extension request, regardless of how the request is made (written or verbal) or when it is made, as long as the request is made on or before the expiration date of the voucher and is consistent with applicable requirements (subsequent requests should be processed in accordance with the PHA's administrative plan); and • The PHA must, on at least one occasion after voucher issuance, notify the family prior to the expiration of the initial term to remind them of the expiration date, the process for requesting an extension, and to inquire if the family is in need of assistance with their housing search. - 025 City Council 5 — 892 5 2 25 EXHIBIT 1 As part of its search extension policy, the PHA may not restrict a first extension approval to certain circumstances or require documentation from applicants. For all extension requests, a written or verbal request is sufficient. In providing notice to families of the expiration date and extension request process, PHAs must ensure effective communication with persons with disabilities, including those with vision, hearing, speech, intellectual or other developmental disabilities, or any other communication -related disabilities. PHAs must approve all extensions made as a reasonable accommodation, and PHAs must provide this information during the family briefing. SAHA Policy At least 30 days prior to the expiration of the initial term of the voucher, SAHA will contact the family to remind them of the expiration date of their voucher, the process for requesting an extension, and to inquire if the family needs assistance with their housing search. Depending on the family's preferred method of communication, SAHA may contact the family via telephone, text message, email, or other accessible communication method. SAHA will ensure effective communication with persons with disabilities, including those with vision, hearing, speech, intellectual or other developmental disabilities, or any other communication -related disabilities. Families may request an extension, either orally or in writing, at any time prior to the expiration of the family's voucher. All requests for extensions will automatically be granted without the requirement for the family to provide documentation. The initial extension period will be for 90 days. If the family requires additional extensions beyond 90 days, the family may request additional extensions, either orally or in writing, at any time prior to the expiration of the extended voucher term. All subsequent extensions will also be for a period of 90 days and will not require the family to meet certain circumstances or provide documentation. Each time the family requests an extension, SAHA will inquire if the family needs assistance with their housing search and will provide a current listing of available accessible units known to SAHA. - 025 City Council 5 — 893 5 2 25 EXHIBIT 1 18-III.G. PORTABILITY [Notice PIH 2O20-01 and Mainstream Voucher Basics Webinar, 10/15/201 Mainstream voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to Mainstream families. The following special considerations for Mainstream vouchers apply under portability: If the receiving PHA has a Mainstream voucher available, the participant may remain a Mainstream participant. If the receiving PHA chooses to bill the initial PHA, then the voucher will remain a Mainstream voucher. If the receiving PHA chooses to absorb the voucher, the voucher will be considered a regular voucher, or a Mainstream voucher if the receiving PHA has a Mainstream voucher available, and the Mainstream voucher at the initial PHA will be freed up to lease to another Mainstream -eligible family. • If the receiving PHA does not have a Mainstream voucher available, the participant may receive a regular voucher. 18-III.H. PROJECT -BASING MAINSTREAM VOUCHERS [FY19 Mainstream Voucher NOFA Q&A] The PHA may project -base Mainstream vouchers in accordance with all applicable PBV regulations and PHA policies in Chapter 17. PHAs are responsible for ensuring that, in addition to complying with project -based voucher program requirements, the project complies with all applicable federal nondiscrimination and civil rights statutes and requirements. This includes, but is not limited to, Section 504 of the Rehabilitation Act (Section 504), Titles II or III of the Americans with Disabilities (ADA), and the Fair Housing Act and their implementing regulations at 24 CFR Part 8; 28 CFR Parts 35 and 36; and 24 CFR Part 100. Mainstream vouchers are subject to the PBV program percentage limitation discussed in Section 17-I.A. - 025 City Council 5 — 894 5 2 25 EXHIBIT 1 PART IV: NON -ELDERLY DISABLED (NED) VOUCHERS 18-IV.A. PROGRAM OVERVIEW [Notice PIH 2O13-19] NED vouchers help non -elderly disabled families lease suitable, accessible, and affordable housing in the private market. Aside from separate funding appropriations and serving a specific population, NED vouchers follow the same program requirements as standard vouchers. The PHA does not have special authority to treat families that receive a NED voucher differently from other applicants and participants. Some NED vouchers are awarded to PHAs through competitive NOFAs. The NOFA for FY2009 Rental Assistance for NED made incremental funding available for two categories of NED families: • Category 1vouchers enable non -elderly persons or families with disabilities to access affordable housing on the private market. • Category 2 vouchers enable non -elderly persons with disabilities currently residing in nursing homes or other healthcare institutions to transition into the community. PHAs with NED Category 2 vouchers were required to partner with a state Medicaid or health agency or the state Money Follows the Person (MFP) Demonstration agency. Since 1997, HCVs for NED families have been also awarded under various special purpose HCV programs: Rental Assistance for Non -Elderly Persons with Disabilities in Support of Designated Housing Plans (Designated Housing), Rental Assistance for Non -Elderly Persons with Disabilities Related to Certain Types of Section 8 Project -Based Developments (Certain Developments), One -Year Mainstream Housing Opportunities for Persons with Disabilities, and the Project Access Pilot Program (formerly Access Housing 2000). Designated Housing vouchers enable non -elderly disabled families, who would have been eligible for a public housing unit if occupancy of the unit or entire project had not been restricted to elderly families only through an approved Designated Housing Plan, to receive rental assistance. These vouchers may also assist non -elderly disabled families living in a designated unit/project/building to move from that project if they so choose. The family does not have to be listed on the PHA's voucher waiting list. Instead, they may be admitted to the program as a special admission. Once the impacted families have been served, the PHA may begin issuing these vouchers to non -elderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non -elderly disabled families from the PHA's HCV waiting list. - 025 City Council 5 — 895 5 2 25 EXHIBIT 1 • Certain Developments vouchers enable non -elderly families having a person with disabilities, who do not currently receive housing assistance in certain developments where owners establish preferences for, or restrict occupancy to, elderly families, to obtain affordable housing. These non -elderly families with a disabled person do not need to be listed on the PHA's HCV waiting list in order to be offered and receive housing choice voucher rental assistance. It is sufficient that these families' names are on the waiting list for a covered development at the time their names are provided to the PHA by the owner. Once the impacted families have been served, the PHA may begin issuing these vouchers to non - elderly disabled families from their HCV waiting list. Upon turnover, these vouchers must be issued to non -elderly disabled families from the PHA's HCV waiting list. • One -Year Mainstream Housing Opportunities for Persons with Disabilities (One -Year Mainstream) vouchers enable non -elderly disabled families on the PHA's waiting list to receive a voucher. After initial leasing, turnover vouchers must be issued to non -elderly disabled families from the PHA's voucher waiting list. 18-IV.B. ELIGIBLE POPULATION General Requirements [Notice PIH 2O13-191 Only eligible families whose head of household, spouse, or cohead is non -elderly (under age 62) and disabled may receive a NED voucher. Families with only a minor child with a disability are not eligible. In cases where the qualifying household member now qualifies as elderly due to the passage of time since the family received the NED voucher, existing NED participant families do not "age out," as the family was eligible on the day it was first assisted under a housing assistance payments (HAP) contract. The definition of person with disabilities for purposes of NED vouchers is the statutory definition under Section 3(b)(3)(E) of the 1937 Act, which is the same as is used for allowances and deductions in the HCV program and is provided in Exhibit 3-1 of this policy. The PHA may not implement eligibility screening criteria for NED vouchers that is different from that of the regular HCV program. NED Category 2 [Notice PIH 2O13-19 and NED Category 2 FAQs] In addition to being eligible for the PHA's regular HCV program and a non -elderly person with a disability, in order to receive a Category 2 voucher, the family's head, spouse, cohead, or sole member must be transitioning from a nursing home or other healthcare institution and provided services needed to live independently in the community. Nursing homes or other healthcare institutions may include intermediate care facilities and specialized institutions that care for those with intellectual disabilities, developmentally disabled, or mentally ill, but do not include board and care facilities (e.g., adult homes, adult day care, adult congregate living). - 025 City Council 5 — 896 5 2 25 EXHIBIT 1 The PHA cannot limit who can apply to just those persons referred or approved by a Money Follows the Person (MFP) Demonstration agency or state health agency. Other individuals could be placed on the waiting list if they can show, with confirmation by an independent agency or organization that routinely provides such services (this can be the MFP or partnering agency, but need not be), that the transitioning individual will be provided with all necessary services, including care or case management. For each Category 2 family, there must be documentation (e.g., a copy of a referral letter from the partnering or referring agency) in the tenant file identifying the institution where the family lived at the time of voucher issuance. 18-IV.C. WAITING LIST General Requirements [Notice PIH 2O13-191 Families must be selected for NED vouchers from the PHA's waiting list in accordance with all applicable regulations and PHA policies in Chapter 4. Regardless of the number of NED families the PHA is required to serve, the next family on the waiting list must be served. Further, the PHA may not skip over NED-eligible families on the waiting list because the PHA is serving the required number of NED families. NED Category 2 Referrals [NED Category 2 FAQs] For NED Category 2 families, the partnering agency may make referrals of eligible families to the PHA for placement on the waiting list. The PHA will then select these families from the waiting list for voucher issuance. Because language in the NOFA established that vouchers awarded under the NOFA must only serve non -elderly disabled families transitioning from institutions, the PHA does not need to establish a preference in order to serve these families ahead of other families on the PHA's waiting list. PHAs must accept applications from people living outside their jurisdictions or from people being referred from other Medicaid or MFP service agencies in their state. If the PHA's waiting list is closed, the PHA must reopen its waiting list to accept referrals from its partnering agency. When opening the waiting list, PHAs must advertise in accordance with 24 CFR 982.206 and PHA policies in Section 4-II.C. In addition, the PHA must ensure that individuals living in eligible institutions are aware when the PHA opens its waiting list by reaching out to social service agencies, nursing homes, intermediate care facilities and specialized institutions in the local service area. - 025 City Council 5 — 897 7HV2b25 EXHIBIT 1 Reissuance of Turnover Vouchers [Notice PIH 2O13-191 All NED turnover vouchers must be reissued to the next NED family on the PHA's waiting list with the following exception: A Category 2 voucher must be issued to another Category 2 family upon turnover if a Category 2 family is on the PHA's waiting list. If there are no Category 2 families on the PHA's waiting list, the PHA must contact its partnering agency as well as conduct outreach through appropriate social service agencies and qualifying institutions to identify potentially eligible individuals. Only after all means of outreach have been taken to reach Category 2 families can the PHA reissue the voucher to another Category 2 NED family on the PHA's waiting list. Any subsequent turnover of that voucher must again be used for a Category 2 family on the PHA's waiting list, and the PHA is under the same obligation to conduct outreach to Category 2 families if no such families are on the PHA's waiting list. For PHAs that received both Category 1 and Category 2 vouchers, if at any time the PHA is serving fewer Category 2 families than the number of Category 2 HCVs awarded under the NOFA, when a Category 2 family applies to the waiting list and is found eligible, the PHA must issue the next NED voucher to that family. HUD monitors the initial leasing and reissuance of Category 2 HCVs. These vouchers may be recaptured and reassigned if not leased properly and in a timely manner. All NED vouchers should be affirmatively marketed to a diverse population of NED-eligible families to attract protected classes least likely to apply. If at any time following the turnover of a NED HCV a PHA believes it is not practicable to assist NED families, the PHA must contact HUD. - 025 City Council 5 — 898 5 2 25 EXHIBIT 1 18-IV.D. LEASE UP [Notice PIH 2O13-19] Briefings In addition to providing families with a disabled person a list of accessible units known to the PHA, HUD encourages, but does not require, PHAs to provide additional resources to NED families as part of the briefing. SAHA Policv In addition to providing families with a disabled person a list of accessible units known to SAHA, SAHA will provide a list of local supportive service and disability organizations that may provide such assistance as counseling services and funding for moving expenses or security deposits in the briefing packet. These organizations include state protection and advocacy agencies, Centers for Independent Living, state Medicaid agencies, and disability advocacy groups that represent individuals with a variety of disabilities. Further, if other governmental or non -governmental agencies provide available resources such as housing search counseling, moving expenses, security deposits, and utility deposits, SAHA will include this information in the briefing packet. SAHA will also offer specialized housing search assistance to families with a disabled person to locate accessible units if requested. Trained PHA staff or a local supportive service or disability organization may be able to provide this service. Voucher Term While the PHA is not required to establish different policies for the initial term of the voucher for NED vouchers, HUD has encouraged PHAs with NED vouchers to be generous in establishing reasonable initial search terms and subsequent extensions for families with a disabled person. SAHA Policv All NED vouchers will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless SAHA grants an extension. All other SAHA policies on extensions and suspension of vouchers in Section 5-II.E. will apply. - 025 City Council 5 — 899 5 2 25 EXHIBIT 1 Special Housing Types [Notice PIH 2O13-19 and NED Category 2 FAQs] In general, a PHA is not required to permit families to use any of the special housing types and may limit the number of families using such housing. However, the PHA must permit the use of a special housing type if doing so provides a reasonable accommodation so that the program is readily accessible to and usable by a person with disabilities. Such special housing types include single room occupancy housing, congregate housing, group homes, shared housing, cooperative housing, and manufactured homes when the family owns the home and leases the manufactured home space. Persons with disabilities transitioning out of institutional settings may choose housing in the community that is in a group or shared environment or where some additional assistance for daily living is provided for them on site. Under HUD regulations, group homes and shared housing are considered special housing types and are not excluded as an eligible housing type in the HCV program. Assisted living facilities are also considered eligible housing under the normal HCV program rules, as long as the costs for meals and other supportive services are not included in the housing assistance payments (HAP) made by the PHA to the owner, and as long as the person does not need continual medical or nursing care. 18-IV.E. PORTABILITY [NED Category 2 FAQs] NED voucher participants are eligible for portability under standard portability rules and all PHA policies regarding portability in Chapter 10, Part II apply to NED families. However, the PHA may, but is not required to, allow applicant NED families to move under portability, even if the family did not have legal residency in the initial PHA's jurisdiction when they applied. SAHA Policy If neither the head of household nor the spouse or cohead of a NED applicant family had a domicile (legal residence) in SAHA's jurisdiction at the time that the family's initial application for assistance was submitted, the family must lease a unit within the initial SAHA's jurisdiction for at least 12 months before requesting portability. SAHA will consider exceptions to this policy for purposes of reasonable accommodation (see Chapter 2) or reasons related to domestic violence, dating violence, sexual assault, stalking, or human trafficking. - 025 City Council 5 — 900 5 2 25 EXHIBIT 1 Temporary Policy Supplement EMERGENCY HOUSING VOUCHERS (EHVs) INTRODUCTION On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARP) (P.L. 117-2). Section 3202 of the ARP appropriated $5 billion for the creation, administration, and renewal of new incremental emergency housing vouchers (EHVs) and other eligible expenses related to COVID-19. On May 5, 2021, HUD issued Notice PIH 2O21-15, which described HUD's process for allocating approximately 70,000 EHVs to eligible PHAs and set forth the operating requirements for PHAs who administer them. Based on criteria outlined in the notice, HUD notified eligible PHAs of the number of EHVs allocated to their agency, and PHAs were able to accept or decline the invitation to participate in the program. PHAs may not project -base EHVs; EHVs are exclusively tenant -based assistance. All applicable nondiscrimination and equal opportunity requirements apply to the EHV program, including requirements that the PHA grant reasonable accommodations to persons with disabilities, effectively communicate with persons with disabilities, and ensure meaningful access for persons with limited English proficiency (LEP). This chapter describes HUD regulations and PHA policies for administering EHVs. The policies outlined in this chapter are organized into seven sections, as follows: Part I: Funding Part II: Partnering Agencies Part III: Waiting List Management Part IV: Family Eli ibg ility Part V: Housing Search and Leasing Part VI: Use of Funds, Reporting, and Financial Records Except as addressed by this chapter and as required under federal statute and HUD requirements, the general requirements of the HCV program apply to EHVs. Page TPS-1 Administrative Plan 7/l/2025 City Council 5 — 901 7/15/2025 EXHIBIT 1 PART I: FUNDING TPS-I.A. FUNDING OVERVIEW The American Rescue Plan Act of 2021 (ARP) provides administrative fees and funding for the costs of administering emergency housing vouchers (EHVs) and other eligible expenses defined in Notice PIH 2O21-15. These fees may only be used for EHV administration and other eligible expenses and must not be used for or applied to other PHA programs or vouchers. The PHA must maintain separate financial records from its regular HCV funding for all EHV funding. Housing Assistance Payments (HAP) Funding ARP funding obligated to the PHA as housing assistance payments (HAP) funding may only be used for eligible EHV HAP expenses (i.e., rental assistance payments). EHV HAP funding may not be used for EHV administrative expenses or for the eligible uses under the EHV services fee. The initial funding term will expire December 31, 2022. HUD will provide renewal funding to the PHA for the EHVs on a calendar year (CY) basis commencing with CY 2023. The renewal funding allocation will be based on the PHA's actual EHV HAP costs in leasing, similar to the renewal process for the regular HCV program. EHV renewal funding is not part of the annual HCV renewal funding formula; EHVs are renewed separately from the regular HCV program. All renewal funding for the duration of the EHV program has been appropriated as part of the ARP funding. Administrative Fee and Funding The EHV program provides administrative fee funding to PHAs for expenses that are not normally eligible under the HCV program, as well as fees designated for the cost of administering the EHV program generally. The following types of fees and funding are allocated as part of the EHV program: Preliminary fees support immediate start-up costs that the PHA will incur in implementing alternative requirements under EHV, such as outreach and coordination with partnering agencies: - $400 per EHV allocated to the PHA, once the consolidated annual contributions contract (CACC) is amended. - This fee may be used for any eligible administrative expenses related to EHVs. The fee may also be used to pay for any eligible activities under EHV service fees (TPS- I.B). • Issuing action fees are one-time fees once the voucher is initially leased: - $100 for each EHV initially leased, if the PHA reports the voucher issuance date in Public Housing Information Center —Next Generation (PIC—NG) system within 14 days of voucher issuance or the date the system becomes available for reporting. - Issuing action fees only apply to the initial leasing of the voucher; they are not paid for family moves or to turnover vouchers. - This fee may be used for any eligible administrative expenses related to EHVs. Page TPS-2 Administrative Plan 7/l/2025 City Council 5 — 902 7/15/2025 EXHIBIT 1 • Placement fees support initial lease -up costs and the added cost and effort required to expedite leasing of EHVs: - $500 for each EHV family placed under a HAP contract effective within four months of the effective date of the ACC funding increment; or - $250 for each EHV family placed under a HAP contract effective after four months but less than six months after the effective date of the ACC funding increment. - HUD will determine placement fees in the event of multiple EHV allocations and funding increment effective dates. - Placement fees only apply to the initial leasing of the voucher; they are not paid for family moves or to turnover vouchers. - This fee may be used for any eligible administrative expenses related to EHVs. • Ongoing administrative fees, which are calculated in the same way as the standard HCV program: - PHAs are allocated administrative fees using the full column A administrative fee amount for each EHV under contract as of the first day of each month. Ongoing EHV administrative fees may be subject to proration in future years, based on available EHV funding. - This fee may be used for any eligible administrative expenses related to EHVs. Services fees, which are a one-time fee to support PHAs' efforts to implement and operate an effective EHV services program in its jurisdiction (TPS-I.B): - The fee is allocated once the PHA's CACC is amended to reflect EHV funding. The amount allocated is $3,500 for each EHV allocated. - This fee may be used for any of the eligible activities under the EHV service fee Page TPS-3 Administrative Plan 7/1/2025 City Council 5 — 903 7/15/2025 EXHIBIT 1 TPS-I.B. SERVICE FEES Services fee funding must be initially used for defined eligible uses and not for other administrative expenses of operating the EHV program. Service fees fall into four categories: • Housing search assistance • Security deposit/utility deposit/rental application/holding fee uses • Owner -related uses • Other eligible uses such as moving expenses or tenant -readiness services The PHA must establish the eligible uses and the parameters and requirements for service fees in the PHA's administrative plan. SAHA Policy The eligible uses for service fees include: Housing search assistance, which may include activities such as, but not limited to, helping a family identify and visit potentially available units during their housing search, helping to find a unit that meets the household's disability -related needs, providing transportation and directions, assisting with the completion of rental applications and SAHA forms, and helping to expedite the EHV leasing process for the family. Application fees/non-refundable administrative or processing fees/refundable application deposit assistance. SAHA may choose to assist the family with some or all these expenses. Holding fees are fees an owner requests that are rolled into the security deposit after an application is accepted but before a lease is signed. SAHA may cover part or all of the holding fee for units where the fee is required by the owner after a tenant's application has been accepted but before the lease signing. SAHA and owner must agree how the holding fee gets rolled into the deposit, and under what conditions the fee will be returned. In general, owners need to accept responsibility for making needed repairs to a unit required by the initial housing quality standards (HQS) inspections and can only keep the holding fee if the client is at fault for not entering into a lease. Security deposit assistance. The amount of the security deposit assistance may not exceed the lesser of two months' rent to owner, the maximum security deposit allowed under applicable state and/or local law, or the actual security deposit required by the owner. SAHA may pay the security deposit assistance directly to the owner or may pay the assistance to the family. If paid to the family, SARA will require documentation that the family paid the security deposit. Page TPS-4 Administrative Plan 7/l/2025 City Council 5 — 904 7/15/2025 EXHIBIT 1 Utility deposit assistance/utility arrears. SAHA may provide utility deposit assistance for some or all of the family's utility deposit expenses. Assistance can be provided for deposits (including connection fees) required for the utilities to be supplied by the tenant under the lease. SAHA may pay the utility deposit assistance directly to the utility company or may pay the assistance to the family. If paid to the family, SAHA will require documentation the family paid the utility deposit. SAHA will require the utility supplier or family to return the utility deposit assistance to SAHA at such time the deposit is returned by the utility supplier (less any amounts retained by the utility supplier). In addition, some families may have large balances with gas, electric, water, sewer, or trash companies that will make it difficult if not impossible to establish services for tenant -supplied utilities. SAHA may also provide the family with assistance to help address these utility arrears to facilitate leasing. Utility deposit assistance returned to SAHA will be used for either services fee eligible uses or other EHV administrative costs, as required by HUD. Owner recruitment and outreach for EHVs. SAHA may use the service fee funding to conduct owner recruitment and outreach specifically for EHVs. In addition to traditional owner recruitment and outreach, activities may include conducting pre -inspections or otherwise expediting the inspection process, providing enhanced customer service, and offering owner incentive and/or retention payments. Owner incentive and/or retention payments. SAHA may make incentive or retention payments to owners that agree to initially lease their unit to an EHV family and/or renew the lease of an EHV family. Payments will be made as a single payment at the beginning of the assisted lease term (or lease renewal if a retention payment). Owner incentive and retentions payments are not housing assistance payments, are not part of the rent to owner, and are not taken into consideration when determining whether the rent for the unit is reasonable. Moving expenses (including move -in fees and deposits). SAHA may provide assistance for some or all of the family's reasonable moving expenses when they initially lease a unit with the EHV. SAHA will not provide moving expenses assistance for subsequent moves unless the family is required to move for reasons other than something the family did or failed to do (e.g., SAHA is terminating the HAP contract because the owner did not fulfill the owner responsibilities under the HAP contract or the owner is refusing to offer the family the opportunity to enter a new lease after the initial lease term, as opposed to the family choosing to terminate the tenancy in order to move to another unit), or a family has to move due to domestic violence, dating violence, sexual assault, or stalking. Tenant -readiness services. SAHA may use fees to help create a customized plan to address or mitigate barriers that individual families may face in renting a unit with an EHV, such as negative credit, lack of credit, negative rental or utility history, or to connect the family to other community resources (including COVID-related resources) that can assist with rental arrears. Page TPS-5 Administrative Plan 7/l/2025 City Council 5 — 905 7/15/2025 EXHIBIT 1 Essential household items. SAHA may use services fee funding to assist the family with some or all of the costs of acquiring essential household items such as tableware, cooking equipment, beds or bedding, and essential sanitary products such as soap and toiletries. Renter's insurance if required by the lease. SAHA may choose to assist the family with some or all this cost. Any services fee assistance that is returned to the PHA after its initial or subsequent use may only be applied to the eligible services fee uses defined in Notice PIH 2O21-15 (or subsequent notice) or other EHV administrative costs. Any amounts not expended for these eligible uses when the PHA's EHV program ends must be remitted to HUD. Page TPS-6 Administrative Plan 7/l/2025 City Council 5 — 906 7/15/2025 EXHIBIT 1 PART II: PARTNERING AGENCIES TPS-II.A. CONTINUUM OF CARE (CoC) PHAs that accept an allocation of EHVs must work with community partners to determine the best use and targeting for EHVs along with other resources available in the community. PHAs are required to enter into a Memorandum of Understanding (MOU) with the Continuum of Care (CoC) to establish a partnership for the administration of EHVs. SAHA Policv SAHA has entered into an MOU with Orange County Continuum of Care. TPS-II.B. OTHER PARTNERING ORGANIZATIONS The PHA may, but is not required to, partner with other organizations trusted by persons experiencing homelessness, such as victim services providers (VSPs) and other community partners. If the PHA chooses to partner with such agencies, the PHA must either enter into an MOU with the partnering agency or the partnering agency may be added to the MOU between the PHA and CoC. SAHA Policv SAHA has entered into MOU with Mercy House Living Centers for Use of Emergency Housing voucher (EHV) Services Fees, to provide services to EHV clients included but not limited to housing search, owner incentives. TPS-II.C. REFERRALS CoC and Partnering Agency Referrals The primary responsibility of the CoC under the MOU with the PHA is to make direct referrals of qualifying individuals and families to the PHA. The PHA must generally refer a family that is seeking EHV assistance directly from the PHA to the CoC or other referring agency for initial intake, assessment, and possible referral for EHV assistance. Partner CoCs are responsible for determining whether the family qualifies under one of the four eligibility categories for EHVs. The CoC or other direct referral partner must provide supporting documentation to the PHA of the referring agency's verification that the family meets one of the four eligible categories for EHV assistance. Page TPS-7 Administrative Plan 7/l/2025 City Council 5 — 907 7/15/2025 EXHIBIT 1 SAHA Policy The CoC or must establish and implement a system to identify EHV-eligible individuals and families and make referrals to SAHA. The CoC must certify that the EHV applicants they refer to SAHA meet at least one of the four EHV eligibility criteria. SAHA will maintain a copy of the referral or certification from the CoC in the participant's file along with other eligibility paperwork. Homeless service providers may, but are not required to, use the certification form found in Exhibit TPS-2 of this chapter. Victim services providers may, but are not required to, use the certification form found in Exhibit TPS-3 of this chapter when identifying eligible families who qualify as victims of human trafficking. As part of the MOU, SAHA and CoC will identify staff positions to serve as lead EHV liaisons. These positions will be responsible for transmission and acceptance of referrals. The CoC must commit sufficient staff and resources to ensure eligible individuals and families are identified and determined eligible in a timely manner. SAHA liaison responsible for acceptance of referrals will contact the CoC liaison via email indicating the number of vouchers available and requesting an appropriate number of referrals. No more than five business days from the date the CoC receives this notification, the CoC liaison will provide SAHA with a list of eligible referrals including the name, address, and contact phone number for each adult individual who is being referred; a completed release form for each adult family member; and a written certification for each referral indicating they are EHV-eligible. Page TPS-8 Administrative Plan 7/1/2025 City Council 5 — 908 7/15/2025 EXHIBIT 1 Offers of Assistance with CoC Referral Referrals for EHVs must come through the CoC's Coordinated Entry (CE) system. However, the PHA may make an EHV available without a referral from the CoC or other partnering organization in order to facilitate an emergency transfer under VAWA in accordance with the PHA's Emergency Transfer Plan (ETP) in Chapter 16. The PHA must also take direct referrals from outside the CoC if: • The CoC does not have a sufficient number of eligible families to refer to the PHA; or The CoC does not identify families that may be eligible for EHV assistance because they are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking. In the latter two exceptions, the PHA must enter into a partnership to receive direct referrals from another entity (e.g., a homeless service provider, VSP, or anti -trafficking service provider if the CE system is not referring victims fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking). PHAs should work with the CoC to come up with an alternative referral system that allows for prioritization according to the standards set out in the MOU and the referring organization and that will transition easily to the CoC's CE system when it comes online or is able to begin making referrals. If at any time the PHA is not receiving enough referrals or is not receiving referrals in a timely manner from the CoC or other partner referral agencies (or the PHA and CoC cannot identify any such alternative referral partner agencies), HUD may permit the PHA on a temporary or permanent basis to take EHV applications directly from applicants and admit eligible families to the EHV program in lieu of or in addition to direct referrals in those circumstances. Page TPS-9 Administrative Plan 7/l/2025 City Council 5 — 909 7/15/2025 EXHIBIT 1 PART III: WAITING LIST MANAGEMENT TPS-III. A. HCV WAITING LIST The regulation that requires the PHA to admit applicants as waiting list admissions or special admissions in accordance with admission policies in Chapter 4 does not apply to PHAs operating the EHV program. Direct referrals are not added to the PHA's HCV waiting list. The PHA must inform families on the HCV waiting list of the availability of EHVs by, at a minimum, either by posting the information to their website or providing public notice in their respective communities in accordance with the requirements listed in Notice PIH 2O21-15. SAHA Policy SAHA will post information about the EHV program for families on SAHA's HCV waiting list on their website. The notice will: Describe the eligible populations to which EHVs are limited Clearly state that the availability of these EHVs is managed through a direct referral process Advise the family to contact the CoC if the family believes they may be eligible for EHV assistance SAHA will ensure effective communication with persons with disabilities, including those with vision, hearing, and other communication -related disabilities in accordance with Chapter 2. SAHA will also take reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP) in accordance with Chapter 2. TPS-III.B. EHV WAITING LIST The HCV regulations requiring the PHA to operate a single waiting list for admission to the HCV program do not apply to PHAs operating the EHV program. Instead, when the number of applicants referred by the CoC or partnering agency exceeds the EHVs available, the PHA must maintain a separate waiting list for EHV referrals, both at initial leasing and for any turnover vouchers that may be issued prior to September 30, 2023. Further, the EHV waiting list is not subject to PHA policies in Chapter 4 regarding opening and closing the HCV waiting list. The PHA will work directly with its CoC and other referral agency partners to manage the number of referrals and the size of the EHV waiting list. Page TPS-10 Administrative Plan 7/1/2025 City Council 5 — 910 7/15/2025 EXHIBIT 1 TPS-III.C. PREFERENCES HCV Waiting List Preferences If local preferences are established by the PHA for HCV, they do not apply to EHVs. However, if the PHA has a homeless preference or a VAWA preference for the HCV waiting list, the PHA must adopt additional policies related to EHVs in accordance with Notice PIH 2O21-15. SAHA Policv SAHA does not offer a homeless or a VAWA preference on the HCV waiting list. EHV Waiting List Preferences With the exception of a residency preference, the PHA may choose, in coordination with the CoC and other referral partners, to establish separate local preferences for EHVs. The PHA may, however, choose to not establish any local preferences for the EHV waiting list. SAHA Policv No local preferences have been established for the EHV waiting list. Page TPS-11 Administrative Plan 7/l/2025 City Council 5 — 911 7/15/2025 EXHIBIT 1 PART IV: FAMILY ELIGIBLITY TPS-IV.A. OVERVIEW The CoC or referring agency determines whether the individual or family meets any one of the four eligibility criteria described in Notice PIH 2O21-15 and then refers the family to the PHA. The PHA determines that the family meets other eligibility criteria for the HCV program, as modified for the EHV program and outlined below. TPS-IV.B. REFERRING AGENCY DETERMINATION OF ELIGIBLITY In order to be eligible for an EHV, an individual or family must meet one of four eligibility criteria: • Homeless as defined in 24 CFR 578.3; • At risk of homelessness as defined in 24 CFR 578.3; • Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking (as defined in Notice PIH 2O21-15), or human trafficking (as defined in the 22 U.S.C. Section 7102); or • Recently homeless and for whom providing rental assistance will prevent the family's homelessness or having high risk of housing instability as determined by the CoC or its designee in accordance with the definition in Notice PIH 2O21-15. As applicable, the CoC or referring agency must provide documentation to the PHA of the referring agency's verification that the family meets one of the four eligible categories for EHV assistance. The PHA must retain this documentation as part of the family's file. Page TPS-12 Administrative Plan 7/1/2025 City Council 5 — 912 7/15/2025 EXHIBIT 1 TPS-IV.C. PHA SCREENING Overview HUD waived 24 CFR 982.552 and 982.553 in part for the EHV applicants and established alternative requirement for mandatory and permissive prohibitions of admissions. Except where applicable, PHA policies regarding denials in Chapter 3 of this policy do not apply to screening individuals and families for eligibility for an EHV. Instead, the EHV alternative requirement listed in this section will apply to all EHV applicants. The mandatory and permissive prohibitions listed in Notice PIH 2O21-15 and in this chapter, however, apply only when screening the individual or family for eligibility for an EHV. When adding a family member after the family has been placed under a HAP contract with EHV assistance, the regulations at 24 CFR 982.551(h)(2) apply. Other than the birth, adoption, or court -awarded custody of a child, the PHA must approve additional family members and may apply its regular HCV screening criteria in Chapter 3 in doing so. Mandatory Denials Under alternative requirements for the EHV program, mandatory denials for EHV applicants include: 24 CFR 982.553(a)(1)(ii)(C), which prohibits admission if any household member has ever been convicted of drug -related criminal activity for manufacture or production of methamphetamine on the premises of federally assisted housing. 24 CFR 982.553(a)(2)(i), which prohibits admission to the program if any member of the household is subject to a lifetime registration requirement under a state sex offender registration program. The PHA must deny admission to the program if any member of the family fails to sign and submit consent forms for obtaining information as required by 24 CFR 982.552(b)(3) but should notify the family of the limited EHV grounds for denial of admission first. SAHA Policy While SAHA will deny admission to the program if any adult member (or head of household or spouse, regardless of age) fails to sign and submit consent forms, SAHA will first notify the family of the limited EHV grounds for denial of admission as part of the notice of denial that will be mailed to the family. Page TPS-13 Administrative Plan 7/l/2025 City Council 5 — 913 7/15/2025 EXHIBIT 1 Permissive Denial Notice PIH 2O21-15 lists permissive prohibitions for which the PHA may, but is not required to, deny admission to EHV families. The notice also lists prohibitions that, while allowable under the HCV program, may not be used to deny assistance for EHV families. If the PHA intends to establish permissive prohibition policies for EHV applicants, the PHA must first consult with its CoC partner to understand the impact that the proposed prohibitions may have on referrals and must take the CoUs recommendations into consideration. SAHA Policy In consultation with the CoC, SAHA will apply permissive prohibition to the screening of EHV applicants. Determinations using permissive prohibitions will be made based on an individualized assessment of relevant mitigating information in accordance with policies in Section 3-III.E. SAHA will establish the following permissive prohibitions: If SAHA determines that any household member is currently engaged in, or has engaged in within the previous 3 months: Violent criminal activity Other criminal activity that may threaten the health, safety, or right to peaceful enjoyment of the premises by other residents or persons residing in the immediate vicinity If any member of the family has committed fraud, bribery, or any other corrupt or criminal act in connection with any federal housing program within the previous 3 months. If the family engaged in or threatened abusive or violent behavior toward SAHA personnel within the previous 3 months. SAHA will also deny assistance to household members already receiving assistance from another program in accordance with Section 9.h. of Notice PIH 2O21-15. Prohibitions based on criminal activity for the eligible EHV populations regarding drug possession will be considered apart from criminal activity against persons (i.e., violent criminal activity). Page TPS-14 Administrative Plan 7/l/2025 City Council 5 — 914 7/15/2025 EXHIBIT 1 In compliance with PIH 2O21-15, SAHA will not deny an EHV applicant admission regardless of whether: Any member of the family has been evicted from federally assisted housing in the last five years; A SAHA has ever terminated assistance under the program for any member of the family; The family currently owes rent or other amounts to SAHA or to another SAHA in connection with Section 8 or public housing assistance under the 1937 Act; The family has not reimbursed any SAHA for amounts paid to an owner under a HAP contract for rent, damages to the unit, or other amounts owed by the family under the lease; The family breached an agreement with SAHA to pay amounts owed to a SAHA, or amounts paid to an owner by a SAHA; The family would otherwise be prohibited admission under alcohol abuse standards established by SAHA in accordance with 24 CFR 982.553(a)(3); SAHA determines that any household member is currently engaged in or has engaged in during a reasonable time before the admission, drug -related criminal activity. Page TPS-15 Administrative Plan 7/l/2025 City Council 5 — 915 7/15/2025 EXHIBIT 1 TPS-IV.D. INCOME VERIFICATION AT ADMISSION Self -Certification at Admission The requirement to obtain third -party verification of income in accordance with Notice PIH 2018-18 does not apply to the EHV program applicants at admission, and alternatively, PHAs may consider self -certification the highest form of income verification at admission. As such, PHA policies related to the verification of income in Section 7-I.B. do not apply to EHV families at admission. Instead, applicants must submit an affidavit attesting to their reported income, assets, expenses, and other factors that would affect an income eligibility determination. Additionally, applicants may provide third -party documentation that represents the applicant's income within the 60-day period prior to admission or voucher issuance but is not dated within 60 days of the PHA's request. SAHA Policy Any documents used for verification must be the original (not photocopies) and dated within the 60-day period prior to admission. The documents must not be damaged, altered, or in any way illegible. Printouts from webpages are considered original documents. Any family self -certifications must be made in a format acceptable to SAHA and must be signed by the family member whose information or status is being verified. SAHA will incorporate additional procedures to remind families of the obligation to provide true and complete information in accordance with Chapter 14. SAHA will address any material discrepancies (i.e., unreported income or a substantial difference in reported income) that may arise later. SAHA may, but is not required to, offer the family a repayment agreement in accordance with Chapter 16. If the family fails to repay the excess subsidy, SAHA will terminate the family's assistance in accordance with the policies in Chapter 12. Page TPS-16 Administrative Plan 7/l/2025 City Council 5 — 916 7/15/2025 EXHIBIT 1 Recently Conducted Income Determinations PHAs may accept income calculations and verifications from third -party providers or from an examination that the PHA conducted on behalf of the family for another subsidized housing program in lieu of conducting an initial examination of income as long as: • The income was calculated in accordance with rules outlined at 24 CFR Part 5 and within the last six months; and • The family certifies there has been no change in income or family composition in the interim. SAHA Policy SAHA will not accept income calculations and verifications from third -party providers provided they meet the criteria outlined above. At the time of the family's annual reexamination the PHA must conduct the annual reexamination of income as outlined at 24 CFR 982.516 and PHA policies in Chapter 11. EIV Income Validation Once HUD makes the EIV data available to PHAs under this waiver and alternative requirement, the PHA must: • Review the EIV Income and Income Validation Tool (IVT) reports to confirm and validate family -reported income within 90 days of the PIC submission date; • Print and maintain copies of the EIV Income and IVT Reports in the tenant file; and Resolve any income discrepancy with the family within 60 days of the EIV Income or IVT Report dates. Prior to admission, PHAs must continue to use HUD's EIV system to search for all household members using the Existing Tenant Search in accordance with PHA policies in Chapter 3. If a PHA later determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program in accordance with Chapter 12. Page TPS-17 Administrative Plan 7/l/2025 City Council 5 — 917 7/15/2025 EXHIBIT 1 TPS-IV.E. SOCIAL SECURITY NUMBER AND CITIZENSHIP STATUS VERIFICATION For the EHV program, the PHA is not required to obtain and verify SSN documentation and documentation evidencing eligible noncitizen status before admitting the family to the EHV program. Instead, PHAs may adopt policies to admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the CoC or other partnering agency that the family has made a good -faith effort to obtain the documentation. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. SAHA Policy SAHA will admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. These individuals must provide the required documentation in accordance with policies in Chapter 7 within 180 days of admission. SAHA may provide an additional 60-day extension based on evidence from the family or confirmation from the CoC that the family has made a good - faith effort to obtain the documentation. If SAHA determines that an ineligible family received assistance, SAHA will take steps to terminate that family from the program in accordance with policies in Chapterl2. TPS-IV.F. AGE AND DISABILITY VERIFICATION PHAs may accept self -certification of date of birth and disability status if a higher level of verification is not immediately available. If self -certification is used, the PHA must obtain a higher level of verification within 90 days of admission or verify the information in EIV. If a PHA determines that an ineligible family received assistance, the PHA must take steps to terminate that family from the program. SAHA Policy SAHA will accept self -certification of date of birth if a higher form of verification is not immediately available. The certification must be made in a format acceptable to SAHA and must be signed by the family member whose information is being verified. If self - certification is accepted, within 90 days of admission, SAHA will verify the information in EIV or through other third -party verification if the information is not available in EIV. SAHA will note the family's file that self -certification was used as initial verification and include an EIV printout or other third -party verification confirming the applicant's date of birth. If SAHA determines that an ineligible family received assistance, SAHA will take steps to terminate that family from the program in accordance with policies in Chapterl2. Page TPS-18 Administrative Plan 7/l/2025 City Council 5 — 918 7/15/2025 EXHIBIT 1 TPS-IV.G. INCOME TARGETING The PHA must determine income eligibility for EHV families in accordance with 24 CFR 982.201 and PHA policy in Chapter 3; however, income targeting requirements do not apply for EHV families. The PHA may still choose to include the admission of extremely low-income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. SAHA Policy SAHA may include the admission of extremely low-income EHV families in its income targeting numbers for the fiscal year in which these families are admitted. Page TPS-19 Administrative Plan 7/1/2025 City Council 5 — 919 7/15/2025 EXHIBIT 1 PART V: HOUSING SEARCH AND LEASING TPS-V.A. INITIAL VOUCHER TERM Unlike the standard HCV program, which requires an initial voucher term of at least 60 days, EHV vouchers must have an initial search term of at least 120 days. PHA policies on extensions as outlined in Section 5-II.E. will apply. SAHA Policy All EHVs will have an initial term of 120 calendar days. The family must submit a Request for Tenancy Approval and proposed lease within the 120-day period unless SAHA grants an extension. TPS-V.B. HOUSING SEARCH ASSISTANCE The PHA must ensure housing search assistance is made available to EHV families during their initial housing search. The housing search assistance may be provided directly by the PHA or through the CoC or another partnering agency or entity. At a minimum, housing search assistance must: • Help individual families identify potentially available units during their housing search, including physically accessible units with features for family members with disabilities, as well as units in low -poverty neighborhoods; • Provide transportation assistance and directions to potential units; • Conduct owner outreach; • Assist with the completion of rental applications and PHA forms; and • Help expedite the EHV leasing process for the family Page TPS-20 Administrative Plan 7/1/2025 City Council 5 — 920 7/15/2025 EXHIBIT 1 SAHA Policy As identified in the MOU between SAHA and Mercy House Living Centers for Use of Emergency Housing Voucher (EHV) Services Fees, the following housing search assistance will be provided to each EHV family: .: ■ : . 1A Conduct owner outreach in accordance with policies in Chapter 13 Provide potential units as part of the EHV briefing packet Expedite the EHV leasing process for the family to the extent practicable and in accordance with policies in this chapter At least every 30 days, conduct proactive check -ins via email and telephone with families who are searching with an EHV and remind them of their voucher expiration date In partnership with Mercy House assign a dedicated landlord liaison for EHV voucher families Mercy House will: Help families identify potentially available units during their housing search, including physically accessible units with features for family members with disabilities, as well as units in low -poverty neighborhoods Provide transportation assistance to potential units Assist the family with the completion of rental applications and SAHA forms TPS-V.C. HQS PRE -INSPECTIONS To expedite the leasing process, PHAs may pre -inspect available units that EHV families may be interested in leasing in order to maintain a pool of eligible units. SAHA Policy To expedite the leasing process, SAHA may pre -inspect available units that EHV families may be interested in leasing to maintain a pool of eligible units. If an EHV family selects a unit that passed a HQS pre -inspection (without intervening occupancy) within 45 days of the date of the Request for Tenancy Approval, the unit may be approved provided that it meets all other conditions under 24 CFR 982.305. The family will be free to select his or her unit. When a pre -inspected unit is not selected, SAHA will make every effort to fast -track the inspection process, including adjusting the normal inspection schedule for any required reinspections. Page TPS-21 Administrative Plan 7/l/2025 City Council 5 — 921 7/15/2025 EXHIBIT 1 TPS-V.D. INITIAL LEASE TERM Unlike in the standard the HCV program, EHV voucher holders may enter into an initial lease that is for less than 12 months, regardless of the PHA policy in Section 9-I.E., Term of Assisted Tenancy. TPS-V.E. PORTABILITY The normal HCV portability procedures and requirements outlined in Chapter 10 generally apply to EHVs. Exceptions are addressed below. Nonresident Applicants Under EHV, applicant families may move under portability even if the family did not have legal residency in the jurisdiction of the initial PHA when they applied, regardless of PHA policy in Section 10-II.13. Billing and Absorption A receiving PHA cannot refuse to assist an incoming EHV family, regardless of whether the PHA administers EHVs under its own ACC. If the EHV family moves under portability to another PHA that administers EHVs under its own ACC: - The receiving PHA may only absorb the incoming EHV family with an EHV (assuming it has an EHV voucher available to do so). If the PHA does not have an EHV available to absorb the family, it must bill the initial PHA. The receiving PHA must allow the family to lease the unit with EHV assistance and may not absorb the family with a regular HCV when the family leases the unit. - Regardless of whether the receiving PHA absorbs or bills the initial PHA for the family's EHV assistance, the EHV administration of the voucher is in accordance with the receiving PHA's EHV policies. • If the EHV family moves under portability to another PHA that does not administer EHV under its own ACC, the receiving PHA may absorb the family into its regular HCV program or may bill the initial PHA. Page TPS-22 Administrative Plan 7/l/2025 City Council 5 — 922 7/15/2025 EXHIBIT 1 Family Briefing In addition to the applicable family briefing requirements at 24 CFR 982.301(a)(2) as to how portability works and how portability may affect the family's assistance, the initial PHA must inform the family how portability may impact the special EHV services and assistance that may be available to the family. The initial PHA is required to help facilitate the family's portability move to the receiving PHA and inform the family of this requirement in writing, taking reasonable steps to ensure meaningful access for persons with limited English proficiency (LEP). SAHA Policv In addition to following SAHA policy on briefings in Chapter 5, as part of the briefing packet for EHV families, SAHA will include a written notice that SAHA will assist the family with moves under portability. For limited English proficient (LEP) applicants, SAHA will provide interpretation services in accordance with SAHA's LEP plan (See Chapter 2). Coordination of Services If the portability move is in connection with the EHV family's initial lease -up, the receiving PHA and the initial PHA must consult and coordinate on the EHV services and assistance that will be made available to the family. SAHA Policv For EHV families who are exercising portability, when SAHA contacts the receiving PHA in accordance with Section 10-II.13. Preapproval Contact with Receiving PHA, SAHA will consult and coordinate with the receiving PHA to ensure there is no duplication of EHV services and assistance, and ensure the receiving PHA is aware of the maximum amount of services fee funding that the SAHA may provide to the receiving PHA on behalf of the family. Page TPS-23 Administrative Plan 7/l/2025 City Council 5 — 923 7/15/2025 EXHIBIT 1 Services Fee Standard portability billing arrangements apply for HAP and ongoing administrative fees for EHV families. For service fees funding, the amount of the service fee provided by the initial PHA may not exceed the lesser of the actual cost of the services and assistance provided to the family by the receiving PHA or $1,750, unless the initial PHA and receiving PHA mutually agree to change the $1,750 cap. Service fees are paid as follows: If the receiving PHA, in consultation and coordination with the initial PHA, will provide eligible services or assistance to the incoming EHV family, the receiving PHA may be compensated for those costs by the initial PHA, regardless of whether the receiving PHA bills or absorbs. • If the receiving PHA administers EHVs, the receiving PHA may use its own services fee and may be reimbursed by the initial PHA, or the initial PHA may provide the services funding upfront to the receiving PHA for those fees and assistance. If the receiving PHA does not administer EHVs, the initial PHA must provide the services funding upfront to the receiving PHA. Any amounts provided to the receiving PHA that are not used for services or assistance on behalf of the EHV family must promptly be returned by the receiving PHA to the initial PHA. Placement Fee/Issuance Reporting Fee If the portability lease -up qualifies for the placement fee/issuance reporting fee, the receiving PHA receives the full amount of the placement component of the placement fee/issuing reporting fee. The receiving PHA is eligible for the placement fee regardless of whether the receiving PHA bills the initial PHA or absorbs the family into its own program at initial lease -up. The initial PHA qualifies for the issuance reporting component of the placement fee/issuance reporting fee, as applicable. Page TPS-24 Administrative Plan 7/1/2025 City Council 5 — 924 7/15/2025 EXHIBIT 1 TPS-V.F. PAYMENT STANDARDS Payment Standard Schedule For the EHV program, HUD has waived the regulation requiring a single payment standard for each unit size. Instead, the PHA may, but is not required to, establish separate higher payment standards for EHVs. Lower EHV payment standards are not permitted. If the PHA is increasing the regular HCV payment standard, the PHA must also increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment standard. The separate EHV payment standard must comply with all other HCV requirements with the exception of the alternative requirements discussed below. Further, if the PHA chooses to establish higher payments standards for EHVs, HUD has provided other regulatory waivers: • Defining the "basic range" for payment standards as between 90 and 120 percent of the published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code area above the basic range for the metropolitan FMR based on the HUD published SAFMRs. The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 percent) of the HUD published Small Area FMR for that ZIP code area. The exception payment standard must apply to the entire ZIP code area. The PHA must notify HUD if it establishes an EHV exception payment standard based on the SAFMR. SAHA Policv SAHA will establish a higher payment standard amount for EHVs. Rent Reasonableness All rent reasonableness requirements apply to EHV units, regardless of whether the PHA has established an alternative or exception EHV payment standard. Increases in Payment Standards The requirement that the PHA apply increased payment standards at the family's first regular recertification on or after the effective date of the increase does not apply to EHV. The PHA may, but is not required to, establish an alternative policy on when to apply the increased payment standard, provided the increased payment standard is used to calculate the HAP no later than the effective date of the family's first regular reexamination following the change. SAHA Policv SAHA will not establish an alternative policy for increases in the payment standard. SAHA policy in Section 11-III.B. governing increases in payment standards will apply to EHV. Page TPS-25 Administrative Plan 7/l/2025 City Council 5 — 925 7/15/2025 EXHIBIT 1 TPS-V.G. TERMINATION OF VOUCHERS After September 30, 2023, a PHA may not reissue EHVs when assistance for an EHV-assisted family ends. This means that when an EHV participant (a family that is receiving rental assistance under a HAP contract) leaves the program for any reason, the PHA may not reissue that EHV to another family unless it does so no later than September 30, 2023. If an applicant family that was issued the EHV is unsuccessful in finding a unit and the EHV expires after September 30, 2023, the EHV may not be reissued to another family. All EHVs under lease on or after October 1, 2023, may not under any circumstances be reissued to another family when the participant leaves the program for any reason. An EHV that has never been issued to a family may be initially issued and leased after September 30, 2023, since this prohibition only applies to EHVs that are being reissued upon turnover after assistance to a family has ended. However, HUD may direct PHAs administering EHVs to cease leasing any unleased EHVs if such action is determined necessary by HUD to ensure there will be sufficient funding available to continue to cover the HAP needs of currently assisted EHV families. As explained in Notice 2023-14, issued on June 29, 2023, HUD is identifying whether a voucher issuance is a turnover voucher or a voucher that has never been leased by counting the number of cumulative EHV lease -ups. (Note that cumulative leased vouchers is equal to all households leased since the start of the EHV program —this includes households that have left the program.) Once a PHA's total cumulative leased EHV count reaches their total EHV allocation of the consolidated annual contributions contract (EHV-CACC), any EHV issuance is considered a reissuance. PHAs that have reached their cumulative EHV lease -up count may not reissue any EHV voucher after September 30, 2023. If a PHA has not reached its EHV-CACC in cumulative leased vouchers, the PHA may continue to issue vouchers to eligible households after September 30, 2023, until the cumulative leased vouchers equal the number of EHVs currently under the PHA's EHV- CACC, or until directed by HUD to stop issuing EHVs. If a PHA is reallocated additional EHVs, these EHVs are considered never leased and may be issued. PHAs must adjust their EHV voucher issuances according to their most recent EHV success rate, i.e., the likelihood that the voucher -holder will successfully secure an EHV lease. PHAs can consider evaluating their success rate similar to the EHV dashboard that provides a 180-day lease rate. For example, the PHA calculates that 50 percent of recent EHV voucher holders successfully establish an EHV lease in 180 days; therefore, their EHV 180-day success rate is 50 percent. Page TPS-26 Administrative Plan 7/1/2025 City Council 5 — 926 7/15/2025 EXHIBIT 1 EXAMPLES 1. As of October 1, 2023, a PHA has cumulatively leased 60 of its 100 EHV allocation under their EHV-CACC. The PHA may continue to issue and lease the remaining 40 EHVs that have never been leased. 2. As of October 1, 2023, a PHA has cumulatively leased 80 of its 100 EHV allocation and has a success rate of 50 percent. Therefore, the PHA may have no more than 40 families with a voucher searching for a unit, which — considering a 180-day success rate — would equate to 20 new leases, and thus a fully leased program. If these voucher holders do not equate to 20 new leases, the PHA may continue to issue vouchers, (considering a 180-day success rate) until the EHV-CACC limit is reached. EHV participants may still move (including under portability) after September 30, 2023. The termination of vouchers upon turnover provision does not impact an individual or family's ability to move within the PHA's jurisdiction or their ability to move under the portability procedures to another PHA's jurisdiction. Page TPS-27 Administrative Plan 7/1/2025 City Council 5 — 927 7/15/2025 EXHIBIT 1 PART VI: USE OF FUNDS, REPORTING, AND FINANCIAL RECORDS EHV funds allocated to the PHA for HAP (both funding for the initial allocation and HAP renewal funding) may only be used for eligible EHV HAP purposes. EHV HAP funding obligated to the PHA may not be used for EHV administrative expenses or the other EHV eligible expenses under this notice. Likewise, EHV administrative fees and funding obligated to the PHA are to be used for those purposes and must not be used for HAP. The appropriated funds for EHVs are separate from the regular HCV program and may not be used for the regular HCV program but may only be expended for EHV eligible purposes. EHV HAP funds may not roll into the regular HCV restricted net position (RNP) and must be tracked and accounted for separately as EHV RNP. EHV administrative fees and funding for other eligible expenses permitted by Notice PIH 2O21-15 may only be used in support of the EHVs and cannot be used for regular HCVs. EHV funding may not be used for the repayment of debts or any amounts owed to HUD by HUD program participants including, but not limited to, those resulting from Office of Inspector General (OIG), Quality Assurance Division (QAD), or other monitoring review findings. The PHA must comply with EHV reporting requirements in the Voucher Management System (VMS) and Financial Data Schedule (FDS) as outlined in Notice PIH 2O21-15. The PHA must maintain complete and accurate accounts and other records for the program and provide HUD and the Comptroller General of the United States full and free access to all accounts and records that are pertinent the administration of the EHVs in accordance with the HCV program requirements at 24 CFR 982.158. Page TPS-28 Administrative Plan 7/1/2025 City Council 5 — 928 7/15/2025 EXHIBIT 1 Page TPS-29 Administrative Plan 7/l/2025 City Council 5 — 929 7/15/2025 EXHIBIT 1 Exhibit TPS-1: MEMORANDUM OF UNDERSTANDING (MOU) Attachment 2 of Notice PIH 2O21-15 - Sample MOU Template Memorandum of Understanding [** This sample document demonstrates the Memorandum of Understanding requirements for the administration Emergency Housing Voucher. Unless otherwise noted, all elements are required. **] This Memorandum of Understanding (MOU) has been created and entered into on [** Insert execution date. **]. [PHA Name and Address] [CoC Name and Address] I. Introduction and Goals (the following elements, listed in a. — c., are required elements of the MOU): a. PHA and CoC's commitment to administering the EHVs in accordance with all program requirements. b. PHA goals and standards of success in administering the program. c. Identification of staff position at the PHA and CoC who will serve as the lead EHV liaisons. Lead HCV Liaison: [Name and title of PHA staff position] Responsibilities of the PHA EHV liaison [**Optional**]. [Name and title of CoC staff position] Responsibilities of the CoC EHV liaison [**Optional**] II. Define the populations eligible for EHV assistance to be referred by CoC. Page TPS-30 Administrative Plan 7/l/2025 City Council 5 — 930 7/15/2025 EXHIBIT 1 III. Services to be provided to eligible EHV families 1. List the services to be provided to assist individuals and families have success in the program and who will provide them. [**The following services are listed for example purposes. **] 1. Partnering service providers will support individuals and families in completing applications and obtaining necessary supporting documentation to support referrals and applications for assistance; while aiding households in addressing barriers. 2. Partnering service providers will support PHAs in ensuring appointment notifications to eligible individuals and families and will assist eligible households in getting to meetings with the PHA. 3. PHAs will establish windows of time for EHV applicants to complete intake interviews for EHV. 4. Partnering service providers will provide housing search assistance for eligible individuals and families. 5. Partnering service providers will provide counseling on compliance with rental lease requirements. 6. Partnering service providers will assess individuals and families who may require referrals for assistance on security deposits, utility hook-up fees, and utility deposits. 7. Partnering service providers will assess and refer individuals and families to benefits and supportive services, where applicable. IV. PHA Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] Coordinate and consult with the CoC in developing the services and assistance to be offered under the EHV services fee. 2. Accept direct referrals for eligible individuals and families through the CoC Coordinated Entry System. 3. Commit a sufficient number of staff and necessary resources to ensure that the application, certification, and voucher issuance processes are completed in a timely manner. 4. Commit a sufficient number of staff and resources to ensure that inspections of units are completed in a timely manner. 5. Designate a staff to serve as the lead EHV liaison. 6. Comply with the provisions of this MOU. Page TPS-31 Administrative Plan 7/1/2025 City Council 5 — 931 7/15/2025 EXHIBIT 1 V. CoC Roles and Responsibilities [**The following responsibilities are listed for example purposes. **] 1. Designate and maintain a lead EHV liaison to communicate with the PHA. 2. Refer eligible individuals and families to PHA using the community's coordinated entry system. 3. Support eligible individuals and households in completing and applying for supportive documentation to accompany admissions application to the PHA (i.e. self -certifications, birth certificate, social security card, etc.). 4. Attend EHV participant briefings when needed. 5. Assess all households referred for EHV for mainstream benefits and supportive services available to support eligible individuals and families through their transition. 6. Identify and provide supportive services to EHV families. (While EHV participants are not required to participate in services, the CoC should assure that services are available and accessible.) 7. Comply with the provisions of this MOU. VI. Third Party Roles Responsibilities [**The following responsibilities are listed for example purposes. **] Describe how the State, local, philanthropic, faith -based organizations, Victim Service Providers or CoC recipients it designates will fulfill each of the following responsibilities: a. Outline resource and/or service being provided in support of the community's EHV Program. Commit a sufficient number of staff and necessary resources to ensure that the application, certification and voucher issuance processes are completed in a timely manner. b. Comply with the provisions of this MOU. VII. Program Evaluation The PHA, and CoC or designated CoC recipient agree to cooperate with HUD, provide requested data to HUD or HUD -approved contractor delegated the responsibility of program evaluation protocols established by HUD or HUD -approved contractor, including possible random assignment procedures. Page TPS-32 Administrative Plan 7/1/2025 City Council 5 — 932 7/15/2025 EXHIBIT 1 [Signed and dated by the official representatives of the PHA, CoC, CoC Contractor organization (if applicable), and third -party entities (if applicable.] Signed by Executive Director, PHA Date CoC Executive Director Date Page TPS-33 Administrative Plan 7/1/2025 City Council 5 — 933 7/15/2025 EXHIBIT 1 Exhibit TPS-2: HOMELESS PROVIDER'S CERTIFICATION Attachment 3 of Notice PIH 2O21-15 Example of a Homeless Provider's Certification Emergency Housing Voucher (EHV) HOMELESS CERTIFICATION EHV Applicant Name: ❑ Household without dependent children (complete one form for each adult in the household) ❑ Household with dependent children (complete one form for household) Number of persons in the household: This is to certify that the above named individual or household meets the following criteria based on the check mark, other indicated information, and signature indicating their current living situation - Check only one box and complete only that section Living Situation: place not meant for human habitation (e.g., cars, parks, abandoned buildings, streets/sidewalks) ❑ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus station, airport, or camp ground. Description of current living situation: Homeless Street Outreach Program Name: This certifying agency must be recognized by the local Continuum of Care (CoC) as an agency that has a program designed to serve persons living on the street or other places not meant for human habitation. Examples may be street outreach workers, day shelters, soup kitchens, Health Care for the Homeless sites, etc. Authorized Agency Representative Signature: Date: Page TPS-34 Administrative Plan 7/l/2025 City Council 5 - 934 7/15/2025 EXHIBIT 1 Living Situation: Emergency Shelter ❑ The person(s) named above is/are currently living in (or, if currently in hospital or other institution, was living in immediately prior to hospital/institution admission) a supervised publicly or privately operated shelter as follows: Emergency Shelter Program Name: This emergency shelter must appear on the CoC's Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory (e.g., newly established Emergency Shelter). Authorized Agency Representative Signature: Living Situation: Recently Homeless Date ❑ The person(s) named above is/are currently receiving financial and supportive services for persons who are homeless. Loss of such assistance would result in a return to homelessness (ex. Households in Rapid Rehousing Programs, residents of Permanent Supportive Housing Programs participating in Moving On, etc.) Authorized Agency Representative Signature: This referring agency must appear on the CoC's Housing Inventory Chart submitted as part of the most recent CoC Homeless Assistance application to HUD or otherwise be recognized by the CoC as part of the CoC inventory. Immediately prior to entering the household's current living situation, the person(s) named above was/were residing in: ❑ emergency shelter OR ❑ a place unfit for human habitation Authorized Agency Representative Signature: Date: Page TPS-35 Administrative Plan 7/l/2025 City Council 5 — 935 7/15/2025 EXHIBIT 1 Exhibit TPS-3: EXAMPLE OF A VICTIM SERVICES PROVIDER'S CERTIFICATION Attachment 4 of Notice PIH 2O21-15: Example of a Victim Services Provider's Certification Emergency Housing Voucher (EHV) SAMPLE HUMAN TRAFFICKING CERTIFICATION Purpose of Form: The Victims of Trafficking and Violence Protection Act of 2000 provides assistance to victims of trafficking making housing, educational health care, job training and other Federally -funded social service programs available to assist victims in rebuilding their lives. Use of This Optional Form: In response to this request, the service provider may complete this form and submit it to the Public Housing Agency (PHA) to certify eligibility for EHV assistance. Confidentiality: All information provided to the service provider concerning the incident(s) of human trafficking shall be kept confidential and such details shall not be entered into any shared database. Employees of the PHA will not have access to these details, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time -limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law. TO BE COMPLETED ON BEHALF OF HUMAN TRAFFICKING SURVIVOR EHV Applicant Name: This is to certify that the above named individual or household meets the definition for persons who are fleeing or attempting to flee human trafficking under section 107(b) of the Trafficking Victims Protection Act of 2000. Immediately prior to entering the household's current living situation, the person(s) named above was/were residing in: This is to certify that the information provided on this form is true and correct to the best of my knowledge and recollection, and that the individual(s) named above is/has been a victim of human trafficking. I acknowledge that submission of false information could jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or eviction. Authorized Agency Representative Signature: Date: Page TPS-36 Administrative Plan 7/l/2025 City Council 5 - 936 7/15/2025 EXHIBIT 1 GLOSSARY A. ACRONYMS USED IN THE HOUSING CHOICE VOUCHER (HCV) PROGRAM ACC Annual contributions contract ADA Americans with Disabilities Act of 1990 AIDS Acquired immune deficiency syndrome BR Bedroom CDBG Community Development Block Grant (Program) CFR Code of Federal Regulations (published federal rules that define and implement laws; commonly referred to as "the regulations") CPI Consumer price index (published monthly by the Department of Labor as an inflation indicator) EIV Enterprise Income Verification FDIC Federal Deposit Insurance Corporation FHA Federal Housing Administration (HUD Office of Housing) FHEO Fair Housing and Equal Opportunity (HUD Office of) FICA Federal Insurance Contributions Act (established Social Security taxes) FMR Fair market rent FR Federal Register FSS Family Self -Sufficiency (Program) FY Fiscal year FYE Fiscal year end GAO Government Accountability Office GR Gross rent HA Housing authority or housing agency HAP Housing assistance payment HCV Housing choice voucher HIP Housing Information Portal HOTMA Housing Opportunity through Modernization Act of 2016 HQS Housing quality standards HUD Department of Housing and Urban Development HUDCLIPS HUD Client Information and Policy System GL-1 Administrative Plan 7/l/2025 City Council 5 — 937 7/15/2025 EXHIBIT 1 IPA Independent public accountant IRA Individual retirement account IRS Internal Revenue Service IVT Income Validation Tool JTPA Job Training Partnership Act LBP Lead -based paint LEP Limited English proficiency MSA Metropolitan statistical area (established by the U.S. Census Bureau) MTW Moving to Work NOFA Notice of funding availability NSPIRE National Standards for the Physical Inspection of Real Estate OGC HUD's Office of General Counsel OIG HUD's Office of Inspector General OMB Office of Management and Budget PASS Plan to Achieve Self -Support PBV Project -based voucher PHA Public housing agency PIH (HUD Office of) Public and Indian Housing PS Payment standard QC Quality control RAD Rental Assistance Demonstration Program REAC (HUD) Real Estate Assessment Center RFP Request for proposals RTA Request for tenancy approval RIGI Regional inspector general for investigation (handles fraud and program abuse matters for HUD at the regional office level) RVI Remote Video Inspection SEMAP Section 8 Management Assessment Program SRO Single room occupancy SSA Social Security Administration SSI Supplemental security income SWICA State wage information collection agency GL-2 Administrative Plan 7/l/2025 City Council 5 — 938 7/15/2025 EXHIBIT 1 TANF Temporary assistance for needy families TPV Tenant protection vouchers TR Tenant rent TTP Total tenant payment UA Utility allowance UFAS Uniform Federal Accessibility Standards UIV Upfront income verification URP Utility reimbursement payment VAWA Violence Against Women Act VCA Voluntary Compliance Agreement VMS Voucher Management System GL-3 Administrative Plan 7/1/2025 City Council 5 — 939 7/15/2025 EXHIBIT 1 B. GLOSSARY OF SUBSIDIZED HOUSING TERMS Abatement. Stopping HAP payments to an owner with no potential for retroactive payment. Absorption. In portability (under subpart H of this part 982): the point at which a receiving PHA stops billing the initial PHA for assistance on behalf of a portability family. The receiving PHA uses funds available under the receiving PHA consolidated ACC. Accessible. The facility or portion of the facility can be approached, entered, and used by persons with disabilities. Adjusted income. Annual income, less allowable HUD deductions and allowances. Administrative fee. Fee paid by HUD to the PHA for administration of the program. See §982.152. Administrative plan. The plan that describes PHA policies for administration of the tenant -based programs. The Administrative Plan and any revisions must be approved by the PHA's board and included as a supporting document to the PHA Plan. See §982.54. Admission. The point when the family becomes a participant in the program. The date used for this purpose is the effective date of the first HAP contract for a family (first day of initial lease term) in a tenant -based program. Affiliated individual. With respect to an individual, a spouse, parent, brother, sister, or child of that individual, or an individual to whom that individual stands in loco parentis (in the place of a parent), or any individual, tenant, or lawful occupant living in the household of that individual Amortization payment. In a manufactured home space rental: The monthly debt service payment by the family to amortize the purchase price of the manufactured home. Annual. Happening once a year. Annual contributions contract (ACC). The written contract between HUD and a PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the PHA agrees to comply with HUD requirements for the program. Prior to PHA implementation of HOTMA 1021104: Annual income. The anticipated total income of an eligible family from all sources for the 12-month period following the date of determination of income, computed in accordance with the regulations. Upon PHA implementation of HOTMA 1021104: Annual income. All amounts not specifically excluded in 24 CFR 5.609(b), received from all sources by each member of the family who is 18 years of age or older or is the head of household, spouse or cohead, plus unearned income by or on behalf of each dependent who is under 18 years of age. Applicant (applicant family). A family that has applied for admission to a program but is not yet a participant in the program. Area exception rent. An amount that exceeds the published FMR. See 24 CFR 982.504(b). As paid states. States where the welfare agency adjusts the shelter and utility component of the welfare grant in accordance with actual housing costs. GL-4 Administrative Plan 7/l/2025 City Council 5 — 940 7/15/2025 EXHIBIT 1 Assets. (See netfamily assets.) Authorized voucher units. The number of units for which a PHA is authorized to make assistance payments to owners under its annual contributions contract. Auxiliary aids. Services or devices that enable persons with impaired sensory, manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits of, programs or activities receiving federal financial assistance. Biennial. Happening every two years. Bifurcate. With respect to a public housing or Section 8 lease, to divide a lease as a matter of law such that certain tenants can be evicted or removed while the remaining family members' lease and occupancy rights are allowed to remain intact. Budget authority. An amount authorized and appropriated by the Congress for payment to PHAs under the program. For each funding increment in a PHA program, budget authority is the maximum amount that may be paid by HUD to the PHA over the ACC term of the funding increment. Building. A structure with a roof and walls that contains one or more dwelling units. Child. A member of the family other than the family head or spouse who is under 18 years of age. Childcare expenses. Amounts anticipated to be paid by the family for the care of children under 13 years of age during the period for which annual income is computed, but only where such care is necessary to enable a family member to actively seek employment, be gainfully employed, or to further their education and only to the extent such amounts are not reimbursed. The amount deducted shall reflect reasonable charges for childcare. In the case of childcare necessary to permit employment, the amount deducted shall not exceed the amount of employment income that is included in annual income. Citizen. A citizen or national of the United States. Cohead. An individual in the household who is equally responsible for the lease with the head of household. A family may have a cohead or spouse but not both. A cohead never qualifies as a dependent. The cohead must have legal capacity to enter into a lease. Common space. In shared housing, the space available for use by the assisted family and other occupants of the unit. Computer match. The automated comparison of databases containing records about individuals. Confirmatory review. An on -site review performed by HUD to verify the management performance of a PHA. Consent form. Any consent form approved by HUD to be signed by assistance applicants and participants to obtain income information from employers and SWICAs; return information from the Social Security Administration (including wages, net earnings from self- employment, and retirement income); and return information for unearned income from the IRS. Consent forms expire after a certain time and may authorize the collection of other information to determine eligibility or level of benefits. GL-5 Administrative Plan 7/l/2025 City Council 5 — 941 7/15/2025 EXHIBIT 1 Congregate housing. Housing for elderly persons or persons with disabilities that meets the HQS for congregate housing. A special housing type: see 24 CFR 982.606-609. Contiguous MSA. In portability (under subpart H of part 982): An MSA that shares a common boundary with the MSA in which the jurisdiction of the initial PHA is located. Continuously assisted. An applicant is continuously assisted under the 1937 Act if the family is already receiving assistance under any 1937 Housing Act program when the family is admitted to the voucher program. Contract authority. The maximum annual payment by HUD to a PHA for a funding increment. Cooperative (term includes mutual housing). Housing owned by a nonprofit corporation or association, and where a member of the corporation or association has the right to reside in a particular apartment, and to participate in management of the housing. A special housing type (see 24 CFR 982.619). Covered families. Statutory term for families who are required to participate in a welfare agency economic self-sufficiency program and who may be subject to a welfare benefit sanction for noncompliance with this obligation. Includes families who receive welfare assistance or other public assistance under a program for which federal, state or local law requires that a member of the family must participate in an economic self-sufficiency program as a condition for the assistance. Dating violence. Violence committed by a person who is or has been in a social relationship of a romantic or intimate nature with the victim; and where the existence of such a relationship shall be determined based on a consideration of the following factors: - The length of the relationship - The type of relationship - The frequency of interaction between the persons involved in the relationship Day laborer. An individual hired and paid one day at a time without an agreement that the individual will be hired or work again in the future. De minimis error. An error that results in a difference in the determination of a family's adjusted income of $30 or less per month. Dependent. A member of the family (except foster children and foster adults) other than the family head or spouse, who is under 18 years of age, or is a person with a disability, or is a full-time student. Dependent child. In the context of the student eligibility restrictions, a dependent child of a student enrolled in an institution of higher education. The dependent child must also meet the definition of dependent as specified above. GL-6 Administrative Plan 7/l/2025 City Council 5 — 942 7/15/2025 EXHIBIT 1 Disability assistance expenses. Reasonable expenses that, when combined with health and medical care expenses, exceed 10 percent of annual income and are anticipated, during the period for which annual income is computed, for attendant care and auxiliary apparatus for a disabled family member, and that are necessary to enable a family member (including the disabled member) to be employed, provided that the expenses are neither paid to a member of the family nor reimbursed by an outside source. Disabled family. A family whose head, cohead, spouse, or sole member is a person with disabilities; two or more persons with disabilities living together; or one or more persons with disabilities living with one or more live-in aides. Disabled person. See person with disabilities. Disallowance. Exclusion from annual income. Displaced family. A family in which each member, or whose sole member, is a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to federal disaster relief laws. Domestic violence. Felony or misdemeanor crimes committed by a current or former spouse or intimate partner of the victim under the family or domestic violence laws of the jurisdiction receiving grant funding, and in the case of victim services, includes the user or attempted use of physical abuse or sexual abuse, or a pattern of any other coercive behavior committed, enabled, or solicited to gain or maintain power and control over a victim, including verbal, psychological, economic, or technological abuse that may or may not constitute criminal behavior, by a person who is: - The current or former spouse or intimate partner of the victim, or person similarly situated to a spouse or intimate partner of the victim - A person who is cohabitating or has cohabitated with the victim as a spouse or intimate partner - A person with whom the victim shares a child in common - A person who commits acts against a youth or adult victim who is protected from those acts under the domestic or family violence laws of the jurisdiction Domicile. The legal residence of the household head or spouse as determined in accordance with state and local law. Drug -related criminal activity. The illegal manufacture, sale, distribution, or use of a drug, or the possession of a drug with intent to manufacture, sell, distribute, or use the drug. Earned income. Income or earnings from wages, tips, salaries, other employee compensation, and net income from self-employment. Earned income does not include any pension or annuity, transfer payments (meaning payments made or income received in which no goods or services are being paid for, such as welfare, social security, and governmental subsidies for certain benefits), or any cash or in -kind benefits. GL-7 Administrative Plan 7/l/2025 City Council 5 — 943 7/15/2025 EXHIBIT 1 Economic abuse. Behavior that is coercive, deceptive, or unreasonably controls or restrains a person's ability to acquire, use, or maintain economic resources to which they are entitle, including using coercion, fraud, and manipulation to: - Restrict a person's access to money, assets, credit, or financial information - Unfairly use a person's personal economic resources, including money, assets, and credit, for one's own advantage - Exert undue influence over a person's financial and economic behavior or decisions, including forcing default on joint or other financial obligations, exploiting powers of attorney, guardianship, or conservatorship, or to whom one has a fiduciary duty Economic self-sufficiency program. Any program designed to encourage, assist, train or facilitate the economic independence of assisted families, or to provide work for such families. Can include job training, employment counseling, work placement, basic skills training, education, English proficiency, Workfare, financial or household management, apprenticeship, or any other program necessary to ready a participant to work (such as treatment for drug abuse or mental health treatment). Includes any work activities as defined in the Social Security Act (42 U.S.C. 607(d)). Also see 24 CFR 5.603(c). Elderly family. A family whose head, cohead, spouse, or sole member is a person who is at least 62 years of age; two or more persons who are at least 62 years of age living together; or one or more persons who are at least 62 years of age living with one or more live-in aides. Elderly person. An individual who is at least 62 years of age. Eligible family A family that is income eligible and meets the other requirements of the 1937 Act and Part 5 of 24 CFR. See also family. Employer identification number (EIN). The nine -digit taxpayer identifying number that is assigned to an individual, trust, estate, partnership, association, company, or corporation. Evidence of citizenship or eligible status. The documents which must be submitted as evidence of citizenship or eligible immigration status. See 24 CFR 5.508(b). Extremely low-income family. A family whose annual income does not exceed the federal poverty level or 30 percent of the median income for the area, whichever number is higher. Area median income is determined by HUD, with adjustments for smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent of median income if HUD finds such variations are necessary due to unusually high or low family incomes. See 24 CFR 5.603. Fair Housing Act. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988. Fair market rent (FMR). The rent, including the cost of utilities (except telephone), as established by HUD for units of varying sizes (by number of bedrooms), that must be paid in the housing market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non -luxury) nature with suitable amenities. In the HCV program, the FMR may be established at the ZIP code level (see definition of Small Area Fair Market Rents), metropolitan area level, or nonmetropolitan county level. GL-8 Administrative Plan 7/l/2025 City Council 5 — 944 7/15/2025 EXHIBIT 1 Family. Includes but is not limited to the following, regardless of actual or perceived sexual orientation, gender identity, or marital status, and can be further defined in PHA policy. Family includes a single person, who may be: - An elderly person, displaced person, disabled person, near -elderly person, or any other single person; An otherwise eligible youth who has attained at least 18 years of age and not more than 24 years of age and who has 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 (42 U.S.C. 675(5)(H)), and is homeless or is at risk of becoming homeless at age 16 or older; or Family also includes a group of persons residing together, and such group includes, but is not limited to: - A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family); - An elderly family; - A near -elderly family; - A disabled family; - A displaced family; and - The remaining member of a tenant family. Family rent to owner. In the voucher program, the portion of rent to owner paid by the family. Family self-sufficiency program (FSS program). The program established by a PHA within its jurisdiction to promote self-sufficiency among participating families, including the coordination of supportive services to these families (24 CFR 984.103). Family share. The portion of rent and utilities paid by the family. For calculation of family share, see 24 CFR 982.515(a). Family unit size. The appropriate number of bedrooms for a family, as determined by the PHA under the PHA subsidy standards. Federal agency. A department of the executive branch of the federal government. Foster adult. A member of the household who is 18 years of age or older and meets the definition of a foster adult under state law. In general, a foster adult is a person who is 18 years of age or older, is unable to live independently due to a debilitating physical or mental condition, and is placed with the family by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Foster child. A member of the household who meets the definition of a foster child under state law. In general, a foster child is placed with the family by an authorized placement agency (e.g., public child welfare agency) or by judgment, decree, or other order of any court of competent jurisdiction. GL-9 Administrative Plan 7/l/2025 City Council 5 — 945 7/15/2025 EXHIBIT 1 Foster childcare payment. A payment to eligible households by state, local, or private agencies appointed by the state to administer payments for the care of foster children. Full-time student. A person who is attending school or vocational training on a full-time basis (carrying a subject load that is considered full-time for day students under the standards and practices of the educational institution attended). See 24 CFR 5.603. Funding increment. Each commitment of budget authority by HUD to a PHA under the consolidated annual contributions contract for the PHA program. Gender identity. Actual or perceived gender -related characteristics. Gross rent. The sum of the rent to owner plus any utility allowance. Group home. A dwelling unit that is licensed by a state as a group home for the exclusive residential use of two to twelve persons who are elderly or persons with disabilities (including any live-in aide). (A special housing type: see 24 CFR 982.610-614.) Handicap. Any condition or characteristic that renders a person an individual with handicaps. (See person with disabilities.) HAP contract. The housing assistance payments contract. A written contract between the PHA and an owner for the purpose of providing housing assistance payments to the owner on behalf of an eligible family. Head of household. The adult member of the family who is the head of the household for purposes of determining income eligibility and rent. Health and medical care expenses. Any costs incurred in the diagnosis, cure, mitigation, treatment, or prevention of disease or payments for treatments affecting any structure or function of the body. Health and medical care expenses include medical insurance premiums and long-term care premiums that are paid or anticipated during the period for which annual income is computed. Household. A household includes additional people other than the family who, with the PHA's permission, live in an assisted unit, such as live-in aides, foster children, and foster adults. Housing assistance payment. The monthly assistance payment by a PHA, which includes: (1) A payment to the owner for rent to the owner under the family's lease; and (2) An additional payment to the family if the total assistance payment exceeds the rent to owner. Housing agency (HA). See public housing agency. Housing quality standards (HQS). The minimum quality standards developed by HUD in accordance with 24 CFR 5.703 for the HCV program, including any variations approved by HUD for the PHA under 24 CFR 5.705(a)(3). HUD. The U.S. Department of Housing and Urban Development. GL-10 Administrative Plan 7/l/2025 City Council 5 — 946 7/15/2025 EXHIBIT 1 Human trafficking. A crime involving the exploitation of a person for labor, services, or commercial sex. The Trafficking Victims Protection Act of 2000 and its subsequent reauthorizations recognize and define two primary forms of human trafficking: - Sex trafficking is the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age. See 22 U.S.C. § 7102(11)(A). - Forced labor is the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. See 22 U.S.C. § 7102(11)(B). Imputed welfare income. An amount of annual income that is not actually received by a family as a result of a specified welfare benefit reduction, but is included in the family's annual income and therefore reflected in the family's rental contribution. Income for eligibility. Annual income. Independent contractor. An individual who qualifies as an independent contractor instead of an employee in accordance with the Internal Revenue Code Federal income tax requirements and whose earnings are consequently subject to the Self -Employment Tax. In general, an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. Independent entity. The unit of general local government; however, if the PHA itself is the unit of general local government or an agency of such government, then only the next level of general local government (or an agency of such government) or higher may serve as the independent entity; or a HUD -approved entity that is autonomous and recognized under state law as a separate legal entity from the PHA. The entity must not be connected financially (except regarding compensation for services performed for PHA -owned units) or in any other manner that could result in the PHA improperly influencing the entity. Individual with handicaps. See person with disabilities. Upon PHA implementation of HOTMA 1021104: Inflationary index. An index based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) used to make annual adjustments to the deduction for elderly disabled families, the cap for imputing returns on assets, the restriction on net family assets, the amount of net assets the PHA may determine based on self -certification by the family, and the dependent deduction. Initial PHA. In portability, the term refers to both: (1) A PHA that originally selected a family that later decides to move out of the jurisdiction of the selecting PHA; and (2) A PHA that absorbed a family that later decides to move out of the jurisdiction of the absorbing PHA. Initial payment standard. The payment standard at the beginning of the HAP contract term. Initial rent to owner. The rent to owner at the beginning of the HAP contract term. GL-1 1 Administrative Plan 7/l/2025 City Council 5 — 947 7/15/2025 EXHIBIT 1 Inside. Under NSPIRE, the inside of HUD housing (or "inside areas") refers to the common areas and building systems that can be generally found within the building interior and are not inside a unit. Examples of "inside" common areas may include, basements, interior or attached garages, enclosed carports, restrooms, closets, utility rooms, mechanical rooms, community rooms, day care rooms, halls, corridors, stairs, shared kitchens, laundry rooms, offices, enclosed porches, enclosed patios, enclosed balconies, and trash collection areas. Examples of building systems include those components that provide domestic water such as pipes, electricity, elevators, emergency power, fire protection, HVAC, and sanitary services. Institution of higher education. An institution of higher education as defined in 20 U.S.C. 1001 and 1002. See Exhibit 3-2 in this Administrative Plan. Jurisdiction. The area in which the PHA has authority under state and local law to administer the program. Landlord. Either the owner of the property or their representative, or the managing agent or their representative, as shall be designated by the owner. Lease. A written agreement between an owner and a tenant for the leasing of a dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling unit by a family with housing assistance payments under a HAP contract between the owner and the PHA. Life -Threatening deficiency. Under NSPIRE, the life -threatening category includes deficiencies that, if evident in the home or on the property, present a high risk of death or severe illness or injury to a resident. Live-in aide. A person who resides with one or more elderly persons, or near -elderly persons, or persons with disabilities, and who: - Is determined to be essential to the care and well-being of the persons; - Is not obligated for the support of the persons; and - Would not be living in the unit except to provide the necessary supportive services. Local preference. A preference used by the PHA to select among applicant families. Low deficiency. Under NSPIRE, deficiencies critical to habitability but not presenting a substantive health or safety risk to resident. Low-income family. A family whose income does not exceed 80 percent of the median income for the area as determined by HUD with adjustments for smaller or larger families, except that HUD may establish income limits higher or lower than 80 percent for areas with unusually high or low incomes. Manufactured home. A manufactured structure that is built on a permanent chassis, is designed for use as a principal place of residence, and meets the HQS. (A special housing type: see 24 CFR 982.620 and 982.621.) Manufactured home space. In manufactured home space rental: A space leased by an owner to a family. A manufactured home owned and occupied by the family is located on the space. See 24 CFR 982.622 to 982.624. GL-12 Administrative Plan 7/l/2025 City Council 5 — 948 7/15/2025 EXHIBIT 1 Minor. A member of the family household other than the family head or spouse, who is under 18 years of age. Mixed family. A family whose members include those with citizenship or eligible immigration status, and those without citizenship or eligible immigration status. Moderate deficiency. Under NSPIRE, this includes deficiencies that, if evident in the home or on the property, present a moderate risk of an adverse medical event requiring a healthcare visit; cause temporary harm; or if left untreated, cause or worsen a chronic condition that may have long-lasting adverse health effects; or that the physical security or safety of a resident or their property could be compromised. Monthly adjusted income. One twelfth of adjusted income. Monthly income. One twelfth of annual income. Mutual housing. Included in the definition of cooperative. National. A person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession. National Standards for the Physical Inspection of Real Estate. HUD's housing inspection approach. NSPIRE is a single inspection standard for all units under the Public Housing, HCV, Multifamily, and Community Planning and Development (CPD) programs. NSPIRE's focus is on the areas that impact residents the most, such as the dwelling unit. Near -elderly family. A family whose head, spouse, or sole member is a person who is at least 50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age but below the age of 62, living together; or one or more persons who are at least 50 years of age but below the age of 62 living with one or more live-in aides. Prior to PHA implementation of HOTMA 1021104: Net family assets. (1) Net cash value after deducting reasonable costs that would be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital investment, excluding interests in Indian trust land and excluding equity accounts in HUD homeownership programs. The value of necessary items of personal property such as furniture and automobiles shall be excluded. In cases where a trust fund has been established and the trust is not revocable by, or under the control of, any member of the family or household, the value of the trust fund will not be considered an asset so long as the fund continues to be held in trust. Any income distributed from the trust fund shall be counted when determining annual income under §5.609. In determining net family assets, PHAs or owners, as applicable, shall include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefore. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives important consideration not measurable in dollar terms. G L-13 Administrative Plan 7/ 1 /2025 City Council 5 — 949 7/15/2025 EXHIBIT 1 Upon PHA implementation of HOTMA 1021104: Net family assets. The net cash value of all assets owned by the family, after deducting reasonable costs that would be incurred in disposing real property, savings, stocks, bonds, and other forms of capital investment. In determining net family assets, PHAs or owners, as applicable, must include the value of any business or family assets disposed of by an applicant or tenant for less than fair market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale) during the two years preceding the date of application for the program or reexamination, as applicable, in excess of the consideration received therefor. In the case of a disposition as part of a separation or divorce settlement, the disposition will not be considered to be for less than fair market value if the applicant or tenant receives consideration not measurable in dollar terms. Negative equity in real property or other investments does not prohibit the owner from selling the property or other investments, so negative equity alone would not justify excluding the property or other investments from family assets. Noncitizen. A person who is neither a citizen nor national of the United States. Notice of funding availability (NOFA). For budget authority that HUD distributes by competitive process, the Federal Register document that invites applications for funding. This document explains how to apply for assistance and the criteria for awarding the funding. Office of General Counsel (OGC). The General Counsel of HUD. Outside. Under NSPIRE, outside of HUD housing (or "outside areas") refers to the building site, building exterior components, and any building systems located outside of the building or unit. Examples of "outside" components may include fencing, retaining walls, grounds, lighting, mailboxes, project signs, parking lots, detached garage or carport, driveways, play areas and equipment, refuse disposal, roads, storm drainage, non -dwelling buildings, and walkways. Components found on the exterior of the building are also considered outside areas, and examples may include doors, attached porches, attached patios, balconies, car ports, fire escapes, foundations, lighting, roofs, walls, and windows. Overcrowded. A unit that does not have at least one bedroom or living/sleeping room for each two persons. Owner. Any person or entity with the legal right to lease or sublease a unit to a participant. PHA -owned unit. A dwelling unit in a project that is: (A) Owned by the PHA (including having a controlling interest in the entity that owns the project); (B) Owned by an entity wholly controlled by the PHA; or (C) Owned by a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by the PHA) holds a controlling interest in the managing member or general partner. A controlling interest is: (A) Holding more than 50 percent of the stock of any corporation; (B) Having the power to appoint more than 50 percent of the members of the board of directors of a non -stock corporation (such as a nonprofit corporation); (C) Where more than 50 percent of the members of the board of directors of any corporation also serve as directors, officers, or employees of the PHA; (D) Holding more than 50 percent of all managing member interests in an LLC; (E) Holding more than 50 percent of all general partner interests in a partnership; or (F) Equivalent levels of control in other ownership structures. PHA Plan. The annual plan and the 5-year plan as adopted by the PHA and approved by HUD. GL-14 Administrative Plan 7/l/2025 City Council 5 — 950 7/15/2025 EXHIBIT 1 PHA's quality control sample. An annual sample of files or records drawn in an unbiased manner and reviewed by a PHA supervisor (or by another qualified person other than the person who performed the original work) to determine if the work documented in the files or records conforms to program requirements. For minimum sample size see CFR 985.3. Participant (participant family). A family that has been admitted to the PHA program and is currently assisted in the program. The family becomes a participant on the effective date of the first HAP contract executed by the PHA for the family (first day of initial lease term). Payment standard. The maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family). Person with disabilities. For the purposes of program eligibility. A person who has a disability as defined under the Social Security Act or Developmental Disabilities Care Act, or a person who has a physical or mental impairment expected to be of long and indefinite duration and whose ability to live independently is substantially impeded by that impairment but could be improved by more suitable housing conditions. This includes persons with AIDS or conditions arising from AIDS but excludes persons whose disability is based solely on drug or alcohol dependence. For the purposes of reasonable accommodation. A person with a physical or mental impairment that substantially limits one or more major life activities, a person regarded as having such an impairment, or a person with a record of such an impairment. Portability. Renting a dwelling unit with a Section 8 housing choice voucher outside the jurisdiction of the initial PHA. Premises. The building or complex in which the dwelling unit is located, including common areas and grounds. Private space. In shared housing, the portion of a contract unit that is for the exclusive use of an assisted family. Project owner. The person or entity that owns the housing project containing the assisted dwelling unit. Public assistance. Welfare or other payments to families or individuals, based on need, which are made under programs funded, separately or jointly, by federal, state, or local governments. Public housing agency (PHA). Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities, that is authorized to engage or assist in the development or operation of low-income housing under the 1937 Act. Qualified census tract. With regard to certain tax credit units, any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent, and where the census tract is designated as a qualified census tract by HUD. Upon PHA implementation of HOTMA 1021104: Real property. Real property has the same meaning as that provided under the law of the state in which the property is located. G L-15 Administrative Plan 7/ 1 /2025 City Council 5 — 951 7/15/2025 EXHIBIT 1 Reasonable rent. A rent to owner that is not more than rent charged: (1) For comparable units in the private unassisted market; and (2) For comparable unassisted units in the premises. Reasonable accommodation. A change, exception, or adjustment to a rule, policy, practice, or service to allow a person with disabilities to fully access the PHA's programs or services. Receiving PHA. In portability: A PHA that receives a family selected for participation in the tenant -based program of another PHA. The receiving PHA issues a voucher and provides program assistance to the family. Recertification. Sometimes called reexamination. The process of securing documentation of total family income used to determine the rent the tenant will pay for the next 12 months if there are no additional changes to be reported. Remaining member of the tenant family. The person left in assisted housing who may or may not normally qualify for assistance on their own circumstances (i.e., an elderly spouse dies, leaving widow age 47 who is not disabled). Rent to owner. The total monthly rent payable to the owner under the lease for the unit (also known as contract rent). Rent to owner covers payment for any housing services, maintenance, and utilities that the owner is required to provide and pay for. Request for Tenancy Approval (RTA). A form (Form HUD-52517) submitted by or on behalf of a family to a PHA once the family has identified a unit that it wishes to rent using tenant - based voucher assistance. Residency preference. A PHA preference for admission of families that reside anywhere in a specified area, including families with a member who works or has been hired to work in the area (See residency preference area). Residency preference area. The specified area where families must reside to qualify for a residency preference. Responsible entity. For the public housing and the Section 8 tenant -based assistance, project - based voucher assistance, and moderate rehabilitation programs, the responsible entity means the PHA administering the program under an ACC with HUD. For all other Section 8 programs, the responsible entity means the Section 8 owner. Secretary. The Secretary of Housing and Urban Development. Section 8. Section 8 of the United States Housing Act of 1937. Section 8 covered programs. All HUD programs which assist housing under Section 8 of the 1937 Act, including Section 8 assisted housing for which loans are made under Section 202 of the Housing Act of 1959. Section 8 Management Assessment Program (SEMAP). A system used by HUD to measure PHA performance in key Section 8 program areas. See 24 CFR Part 985. Section 214. Section 214 of the Housing and Community Development Act of 1980, as amended. Section 214 covered programs. The collective term for the HUD programs to which the restrictions imposed by Section 214 apply. These programs are set forth in 24 CFR 5.500. GL-16 Administrative Plan 7/l/2025 City Council 5 — 952 7/15/2025 EXHIBIT 1 Security deposit. A dollar amount (maximum set according to the regulations) which can be used for unpaid rent or damages to the owner upon termination of the lease. Seasonal worker. An individual who is hired into a short-term position and the employment begins about the same time each year (such as summer or winter). Typically, the individual is hired to address seasonal demands that arise for the particular employer or industry. Set-up charges. In a manufactured home space rental, charges payable by the family for assembling, skirting, and anchoring the manufactured home. Severe deficiency. Under NSPIRE, the severe category includes deficiencies that, if evident in the home or on the property, present a high risk of permanent disability, or serious injury or illness, to a resident; or the physical security or safety of a resident or their property would be seriously compromised. Sexual assault. Any nonconsensual sexual act proscribed by federal, tribal, or state law, including when the victim lacks capacity to consent (42 U.S.C. 13925(a)). Sexual orientation. Homosexuality, heterosexuality or bisexuality. Shared housing. A unit occupied by two or more families. The unit consists of both common space for shared use by the occupants of the unit and separate private space for each assisted family. (A special housing type: see 24 CFR 982.615-982.618.) Single person. A person living alone or intending to live alone. Single room occupancy housing (SRO). A unit that contains no sanitary facilities or food preparation facilities, or contains either, but not both, types of facilities. (A special housing type: see 24 CFR 982.602-982.605.) Small Area Fair Market Rents (SAFMRs). FMRs established for ZIP code areas. Small rural public housing agency (PHA). Section 38 defines the term "small public housing agency" as a public housing agency "for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 8(o) administered by the agency is 550 or fewer" and "that predominantly operates in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations." After consideration of the public comments discussed above, HUD is interpreting "predominantly operates in a rural area" to mean a small PHA that: (1) Has a primary administrative building with a physical address in a rural area as described in 12 CFR 1026.35(b)(2)(iv)(A); or (2) more than 50 percent of its combined public housing units and voucher units under section 8(o) are in rural areas as described in 12 CFR 1026.35(b)(2)(iv)(A). HUD also clarifies that voucher units under section 8(o) include those in the tenant -based Housing Choice Voucher (HCV) program and the Project -Based Voucher (PBV) program. Social security number (SSN). The nine -digit number that is assigned to a person by the Social Security Administration and that identifies the record of the person's earnings reported to the Social Security Administration. The term does not include a number with a letter as a suffix that is used to identify an auxiliary beneficiary. G L-17 Administrative Plan 7/ 1 /2025 City Council 5 — 953 7/15/2025 EXHIBIT 1 Special admission. Admission of an applicant that is not on the PHA waiting list or without considering the applicant's waiting list position. Special housing types. See subpart M of part 982. Subpart M states the special regulatory requirements for: SRO housing, congregate housing, group homes, shared housing, cooperatives (including mutual housing), and manufactured homes (including manufactured home space rental). Specified welfare benefit reduction. Those reductions of welfare benefits (for a covered family) that may not result in a reduction of the family rental contribution. A reduction of welfare benefits because of fraud in connection with the welfare program, or because of welfare sanction due to noncompliance with a welfare agency requirement to participate in an economic self-sufficiency program. Spouse. The marriage partner of the head of household. Stalking. To follow, pursue, or repeatedly commit acts with the intent to kill, injure, harass, or intimidate; or to place under surveillance with the intent to kill, injure, harass, or intimidate another person; and in the course of, or as a result of, such following, pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of the death of, or serious bodily injury to, or to cause substantial emotional harm to (1) that person, (2) a member of the immediate family of that person, or (3) the spouse or intimate partner of that person. State wage information collection agency (SWICA). The state agency, including any Indian tribal agency, receiving quarterly wage reports from employers in the state, or an alternative system that has been determined by the Secretary of Labor to be as effective and timely in providing employment -related income and eligibility information. Subsidy standards. Standards established by a PHA to determine the appropriate number of bedrooms and amount of subsidy for families of different sizes and compositions. Suspension. The term on the family's voucher stops from the date the family submits a request for PHA approval of the tenancy, until the date the PHA notifies the family in writing whether the request has been approved or denied. This practice is also called tolling. Tax credit rent. With regard to certain tax credit units, the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., tenant -based voucher assistance). GL-18 Administrative Plan 7/l/2025 City Council 5 — 954 7/15/2025 EXHIBIT 1 Technological abuse. An act or pattern of behavior that occurs within domestic violence, dating violence, sexual assault, or stalking and is intended to harm, threaten, intimidate, control, stalk, harass, impersonate, exploit, extort, or monitor another person, except as otherwise permitted by law, that occurs using any form of technology, including but not limited to: - Internet enabled devices - Online spaces and platforms - Computers - Mobile devices - Cameras and imaging programs - Apps - Location tracking devices - Communication technologies - Any other emergency technologies Tenancy addendum. For the housing choice voucher program, the lease language required by HUD in the lease between the tenant and the owner. Tenant. The person or persons (other than a live-in aide) who executes the lease as lessee of the dwelling unit. Tenant paid utilities. Utilities and services that are not included in the rent to owner and are the responsibility of the assisted family, regardless of whether the payment goes to the utility company or the owner. The utilities and services are those necessary in the locality to provide housing that complies with HQS. The utilities and services may also include those required by HUD through a Federal Register notice after providing opportunity for public comment. Tenant rent to owner. See family rent to owner. Term of lease. The amount of time a tenant agrees in writing to live in a dwelling unit. Total tenant payment (TTP). The total amount the HUD rent formula requires the tenant to pay toward rent and utilities. Unearned income. Any annual income, as calculated under 24 CFR 5.609, that is not earned income. Unit. Under NSPIRE, a unit (or "dwelling unit") of HUD housing refers to the interior components of an individual unit. Examples of components included in the interior of a unit may include the balcony, bathroom, call -for -aid (if applicable), carbon monoxide devices, ceiling, doors, electrical systems, enclosed patio, floors, HVAC (where individual units are provided), kitchen, lighting, outlets, smoke detectors, stairs, switches, walls, water heater, and windows. Utilities. Water, electricity, gas, other heating, refrigeration, cooking fuels, trash collection, and sewage services. Telephone service is not included. G L-19 Administrative Plan 7/ 1 /2025 City Council 5 — 955 7/15/2025 EXHIBIT 1 Utility allowance. If the cost of utilities (except telephone) and other housing services for an assisted unit is not included in the tenant rent but is the responsibility of the family occupying the unit, an amount equal to the estimate made or approved by a PHA or HUD of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy -conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment. Utility reimbursement. In the voucher program, the portion of the housing assistance payment which exceeds the amount of rent to owner. Utility hook-up charge. In a manufactured home space rental: Costs payable by a family for connecting the manufactured home to utilities such as water, gas, electrical and sewer lines. Very low-income family. A low-income family whose annual income does not exceed 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD may establish income limits higher or lower than 50 percent of the median income for the area on the basis of its finding that such variations are necessary because of unusually high or low family incomes. This is the income limit for the housing choice voucher program. Veteran. A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released therefrom under conditions other than dishonorable. Violence Against Women Act (VA WA). Prohibits denying admission to the program to an otherwise qualified applicant or terminating assistance on the basis that the applicant or program participant is or has been a victim of domestic violence, dating violence, sexual assault, stalking, or human trafficking. Violent criminal activity. Any illegal criminal activity that has as one of its elements the use, attempted use, or threatened use of physical force against the person or property of another. Voucher (housing choice voucher). A document issued by a PHA to a family selected for admission to the housing choice voucher program. This document describes the program and the procedures for PHA approval of a unit selected by the family. The voucher also states obligations of the family under the program. Voucher holder. A family holding a voucher with an unexpired term (search time). Voucher program. The housing choice voucher program. Waiting list. A list of families organized according to HUD regulations and PHA policy who are waiting for a unit to become available. Waiting list admission. An admission from the PHA waiting list. GL-20 Administrative Plan 7/l/2025 City Council 5 — 956 7/15/2025 EXHIBIT 1 Welfare assistance. Income assistance from federal or state welfare programs, including assistance provided under TANF and general assistance. Does not include assistance directed solely to meeting housing expenses, nor programs that provide health care, childcare or other services for working families. For the FSS program (24 CFR 984.103), welfare assistance includes only cash maintenance payments designed to meet a family's ongoing basic needs. Does not include nonrecurring short term benefits designed to address individual crisis situations, work subsidies, supportive services such as childcare and transportation provided to families who are employed, refundable earned income tax credits, contributions to and distributions from Individual Development Accounts under TANF, services such as counseling, case management, peer support, childcare information and referral, financial empowerment, transitional services, job retention, job advancement, and other employment - related services that to not provide basic income support, amounts solely directed to meeting housing expenses, amounts for health care, Supplemental Nutrition Assistance Program (SNAP) and emergency rental and utilities assistance, SSI, SSDI, or social security, and child -only or non -needy TANF grants made to or on behalf of a dependent child solely on the basis of the child's need and not the need of the child's current non -parental caretaker. Withholding. Stopping HAP payments to an owner while holding them for potential retroactive disbursement. GL-21 Administrative Plan 7/l/2025 City Council 5 — 957 7/15/2025 EXHIBIT 1 HOTMA 102/104 Appendix to the Administrative Plan Purpose of the Appendix HUD published a final rule on February 14, 2023, revising regulations related to income, assets, adjusted income, verification, and reexams (among others) to implement Sections 102 and 104 of HOTMA. While the new regulations were effective January 1, 2024, HUD has delayed the full compliance date for HOTMA 102/104. Initially, Compliance with Sections 102 and 104 of HOTMA means not only applying HOTMA 102/104 regulations to affected programs but also reporting in HUD's new Housing Information Portal (HIP) system. Currently, PHAs remain unable to fully comply with HOTMA 102/104 because compliance depends on transitioning from HUD's IMS/PIC system (which is unable to accept HOTMA-compliant Form HUD-50058) to HUD's new HIP system (which will be the only system that accepts HOTMA-compliant Form HUD-50058). PHAs cannot transition to HOTMA until HIP is in place, HOTMA-compliant, and accessible. On December 18, 2024, HUD published Notice PIH 2O24-38, which identifies provisions in HOTMA 102/104 that PHAs must comply with no later than July 1, 2025. The notice states that all transactions with an effective date on or after July 1, 2025, must be processed using requirements in the notice. The July 1, 2025, compliance deadline does not apply to other HOTMA 102/104 provisions not listed in the notice. Other provisions are still dependent on HIP implementation and may not be implemented yet. The PHA must: • Have stopped enrolling families into the EID as of 12/31/23; • Transition to the new Form HUD-9886-A no later than 2/l/25; • Apply HOTMA 102/104 income exclusions listed in 24 CFR 5.609(b) (including new requirements for student financial assistance) for all income examinations effective on or after 7/l/25; • Apply provisions related to de minimis errors; and • Use these new HOTMA 102/104 definitions listed in the regulations for all transactions effective on or after 7/l/25. © Copyright 2025 Nan McKay & Associates Unlinwea dies M77.157 macte Tor interrial u u 0 . - i Adminplan 2/1/25 7/15/2025 EXHIBIT 1 These definitions include: • Earned income • Unearned income • Family • Day laborer • Independent contractor • Dependent • Foster child and foster adults • Health and medical care expenses • Minor Further, PHAs may, but are not required to: • Stop using the EIV Income Report during interim reexams. • Use Safe Harbor income determinations from means -tested federal assistance programs to verify a family's income and assets. Finally, in FAQs dated 2/22/24, HUD also stated PHAs may, but are not required to: • Accept third -party verification dated within 120 days of the date received by the PHA (rather than 60 days of the reexam/PHA request date); • Accept a statement dated within the appropriate benefit year for fixed income sources like Social Security; and • Accept a self -certification of SSNs along with a third -party document as a last resort if an individual is not able to provide documentation of SSN. More details about each of the above provisions can be found in Notice PIH 2O23-27. Other than what's listed above, all other provisions of HOTMA 102/104 are on hold still. This means PHAs may not implement certain provisions of HOTMA yet. These include: • All asset provisions, including the asset limitation; • All adjusted income provisions, with the exception of the definition of health and medical care expenses; • Inflationary adjustments (although PHA may use the HUD -determined passbook rate); • The new verification hierarchy, which allows for EIV + self -certification; • Annuals using the previous 12-month period income; • Interim reexam requirements; and • Non -interim reexam transactions. PHAs may not implement the above provisions because HUD has determined they depend on HIP implementation. PHAs should await further guidance from HUD on when these will be applicable. © Copyright 2025 Nan McKay & Associates Unlinwea dies M77.157 macte Tor interrial u u 0 5 — 959 Adminplan 2/1/25 7/15/2025 EXHIBIT 1 HOTMA 102/104 Policies Not Yet Implemented Chapter 00 No HOTMA 102/104 policies apply. Chapter 1 No HOTMA 102/104 policies apply. Chapter 2 No HOTMA 102/104 policies apply. Chapter 3 Model policy section 3-II.D. FAMILY CONSENT TO RELEASE OF INFORMATION is amended to comply with section J.2 of Notice PIH 2O23-27, Revocation of Consent Model Policy section III.C. RESTRICTION ON ASSISTANCE BASED ON ASSETS is added to comply with section A.1 of Notice PIH 2023-27, Asset Limitation HOTMA 102/104 policies related to the definition of family, foster children, and foster adults are applicable no later than July 1, 2025. Chapter 4 No HOTMA 102/104 policies apply. Chapter 5 No HOTMA 102/104 policies apply. Chapter 6 Prior to the PHNs HOTMA compliance date, the PHA will follow policies in Chapter 6.A (as updated for Notice PIH 2O24-38). Upon the PHNs HOTMA compliance date, the PHA will follow policies in Chapter 6.13. Chapter 7 Prior to the PHNs HOTMA compliance date, the PHA will follow policies in Chapter 7.A (as updated for Notice PIH 2O24-38). Upon the PHNs HOTMA compliance date, the PHA will follow policies in Chapter 7.13. © Copyright 2025 Nan McKay & Associates Unlinwea dies M77.157 macte Tor interrial u u 0 •Me Adminplan 2/1/25 7/15/2025 EXHIBIT 1 Chapter 8 No HOTMA 102/104 policies apply. However, prior to the NSPIRE compliance date, the PHA will follow policies in Chapter 8.A. Upon the NSPIRE compliance date, the PHA will follow policies in Chapter 8.B. Chapter 9 No HOTMA 102/104 policies apply. Chapter 10 No HOTMA 102/104 policies apply. Chapter 11 Prior to the PHNs HOTMA compliance date, the PHA will follow policies in Chapter I I .A. Upon the PHNs HOTMA compliance date, the PHA will follow policies in Chapter I I .B. Chapter 12 Model policy section 12-I.D. MANDATORY TERMINATION OF ASSISTANCE is amended to comply with section J.2 of Notice PIH 2O23-27, Revocation of Consent Model Policy section 12-I.E. MANDATORY POLICIES AND OTHER AUTHORIZED TERMINATIONS is added to comply with section A.1 of Notice PIH 2023-27, Asset Limitation Chapter 13 No HOTMA 102/104 policies apply. Chapter 14 HOTMA 102/104 policies related to de minimis errors are applicable no later than July 1, 2025. Chapter 15 No HOTMA 102/104 policies apply. Chapter 16 No HOTMA 102/104 policies apply. Chapter 17 No HOTMA 102/104 policies apply. © Copyright 2025 Nan McKay & Associates A Unlinde I V I.OUllayi e ma e or m erna use 5-961 Adminplan 2/1/25 7/15/2025 EXHIBIT 1 Chapter 18 No HOTMA 102/104 policies apply. Chapter 19 No HOTMA 102/104 policies apply. Glossary The following definitions are applicable no later than July 1, 2025: • Annual income (revised) • Day laborer • De minimis error • Earned income • Family (revised) • Foster child • Foster adult • Independent contractor • Inflationary index • Net family assets (revised) • Real property • Seasonal worker • Unearned income © Copyright 2025 Nan McKay & Associates A Unlinde I V I.OUllayi e ma e or m erna use 5 — 962 Adminnlan 2/1/25 7/15/2025