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HomeMy WebLinkAboutItem 09 - Request for Proposals for Affordable Housing Development Community Development Agency www.santa-ana.org/cd Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 21, 2026 TOPIC: Request for Proposals for Affordable Housing Development AGENDA TITLE Authorize Issuance of a Request for Proposals for Affordable Housing Development RECOMMENDED ACTION Authorize the City Manager to issue a Request for Proposals for Affordable Housing Development to seek proposals for the development of affordable housing in the City of Santa Ana. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION Consistent with Section III of the Affordable Housing Funds Policies and Procedures (Policies) amended by City Council on August 18, 2020, the Community Development Agency is seeking City Council approval to issue a Request for Proposals (RFP) for the use of available affordable housing funds in support of developing affordable housing within the City. This will be an open RFP process and will provide sufficient time for applicants to identify an eligible site and complete and submit a proposal in response to the RFP (Exhibit 1). Background In support of and advancing the City of Santa Ana’s (City) goals and responsibilities under the Housing Element, the City periodically issues an RFP for use of available affordable housing funds to promote development of affordable housing within the City by private entities. Specifically, the Regional Housing Needs Assessment (RHNA) is mandated by the State of California as part of the periodic process for updating the City’s Housing Element. The City is provided with a RHNA allocation to be met in eight (8) year cycles. The current RHNA cycle covers 2021 through 2029. The following table provides the City’s progress through 2025 in meeting the RHNA allocations for Very Low, Low, and Moderate Income households with respect to the 2021-2029 RHNA Goals: Progress Towards 2021-2029 RHNA Goal (New Housing Units by Category and Year) Income RHNA 2021 2022 2023 2024 2025 Total Units Total Units Remaining % of RHNA Completed Request for Proposals for Affordable Housing Development April 21, 2026 Page 2 5 7 0 9 Very Low 606 41 191 64 48 81 425 181 70% Low 362 43 102 113 81 101 440 (78)122% Mod.545 11 41 84 65 73 274 271 50% Above Mod.1,624 639 567 2,281 70 61 3,618 (1,994)223% Total:3,137 734 901 2542 264 316 4,757 (1,620)152% Based on building permits issued. Parentheses used to show number of units issued permits in excess of RHNA goal. Through the issuance of this RFP, the City is seeking to meet the City’s 2021-2029 RHNA Goals before December 31, 2029. Issuance of this RFP for Affordable Housing Development also implements the City’s 2021-2029 Housing Element Goals # 1, 2, 3, 4, and 5 and associated policies related to affordable housing production, rehabilitation, ownership, and fair housing (HE-1.1, 1.6, 2.4, 2.5, 2.7, 3.2, 3.3, 3.5, 3.7, 4.1, 4.2, 4.3, 4.4, 4.5, 5.1, 5.5, and 5.6). (Exhibit 2) This RFP would also facilitate the spending of available HOME Investment Partnerships (HOME) Program funds to meet expenditure deadlines in 2028 and beyond. Specifically, the City will need to expend a minimum of $1,363,623 by September 30, 2028, to avoid the recapture of the funds by the U.S. Department of Housing and Urban Development (HUD). The following future expenditure deadlines are applicable to the City’s HOME Program funds: Program Grant Year HOME Grant #Grant Balance Expenditure Deadline 2025 M-25-MC-06-0535 $1,159,062 9/30/2034 2024 M-24-MC-06-0535 $1,065,667 9/30/2032 2023 M-23-MC-06-0536 $1,445,100 9/30/2031 2022 M-22-MC-06-0537 $1,547,773 9/30/2030 2021 M-21-MC-06-0538 $1,312,064 9/30/2029 HOME 2020 M-20-MC-06-0539 $1,363,623 9/30/2028 Available Funds and Priorities Available program funds may be used for affordable housing development loans for both affordable ownership and/or rental housing units. The available funds for this RFP include funds from the Inclusionary Housing Fund, HOME Program, HOME-American Rescue Plan Program, Housing Successor Agency Fund, and/or any other funds received by the City for affordable housing purposes. The available funds for this RFP are as follows: Source Available Funds Inclusionary Housing Funds $2,628,194 HOME Investment Partnerships Program $11,533,196 HOME – American Rescue Plan $715,622 Housing Successor Agency Funds $2,630,914 TOTAL:$17,507,926 Request for Proposals for Affordable Housing Development April 21, 2026 Page 3 5 7 0 9 This RFP focuses on advancing the following priorities: (1) Acquisition and rehabilitation of projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. (2) Projects that will provide affordable homeownership opportunities. (3) By-right or shovel-ready projects. [A by-right project is one that can be approved administratively without discretionary approvals because it already complies with all applicable zoning and development standards. A shovel-ready project refers to a project that is fully prepared to begin construction immediately or within no more than three (3) months.] Projects that comply with any of these three (3) priorities and objectives will receive 10 bonus points in the RFP scoring criteria. Next Steps With approval by City Council, the RFP for Affordable Housing Development is scheduled to be released on May 1, 2026. Responses to the RFP will be accepted and evaluated on an on-going basis for at least one year with four (4) quarterly deadlines to submit a proposal scheduled throughout the year: Wednesday, July 1, 2026, 4:00 P.M. Thursday, October 1, 2026, 4:00 P.M. Monday, January 11, 2027, 4:00 P.M. Monday, May 3, 2027, 4:00 P.M. The RFP will be published on PlanetBids; both the City and Housing Authority’s websites; a public notice will be published in the OC Register; an e-mail will be sent out to Orange County’s largest affordable housing membership associations including the Kennedy Commission, 2-1-1 Orange County, and the Southern California Association of Nonprofit Housing; and a letter will be e-mailed to interested developers and nonprofit organizations who had previously requested to be informed of development opportunities on the Community Development Agency’s RFP Process Database. Developers and nonprofit organizations interested in being added to the RFP Process Database can do so by contacting the City’s Housing Division. In compliance with the City’s Policies, after each deadline, staff will conduct a minimum threshold review of each proposal to ensure the proposal complies with all of the minimum requirements in the RFP. Following the minimum threshold review, staff will form a Review Panel that consists of at least one (1) employee from the City’s Public Works Agency, Planning and Building Agency, and Community Development Agency, and one (1) outside agency or government entity. If an employee is not available in one (1) City agency, a second employee may be requested from one (1) of the other two (2) agencies so long as there are at least two (2) of the three (3) City agencies represented on the Review Panel. Request for Proposals for Affordable Housing Development April 21, 2026 Page 4 5 7 0 9 The process outlined in the Policies requires that the Review Panel use the proposal scoring and selection criteria from the RFP to conduct their review and analysis of each proposal. The Review Panel will also review the proposed project design for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long-term sustainability. If the Review Panel determines, in its discretion, that one or more proposals may be recommended for approval, the Housing Division will request an underwriting and subsidy layering review by a real estate advisor selected by the City. Following the RFP process, proposal review, and underwriting and subsidy layering review, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney’s Office, and the Executive Director of Community Development, before being recommended for approval by City Council. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBITS 1. Request for Proposals for Affordable Housing Development 2. City’s 2021-2029 Housing Element Goals # 1, 2, 3, 4, and 5 and Associated Policies Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager CITY OF SANTA ANA REQUEST FOR PROPOSALS NO. 26-004A FOR AFFORDABLE HOUSING DEVELOPMENT KEY RFP DATES: The schedule below is tentative and subject to change at the discretion of the City, with appropriate notice to prospective Proposers. Issue Date: Friday, May 1, 2026 Quarterly Deadline for Questions: Monday, June 1, 2026, 4:00 P.M. Monday, August 31, 2026, 4:00 P.M. Monday, November 30, 2026, 4:00 P.M. Monday, April 5, 2027, 4:00 P.M. Quarterly Proposal Due Dates: Wednesday, July 1, 2026, 4:00 P.M. Thursday, October 1, 2026, 4:00 P.M. Monday, January 11, 2027, 4:00 P.M. Monday, May 3, 2027, 4:00 P.M. BID CONTACT: Jacques Lam JLam@Santa-Ana.org EXHIBIT 1 CITY OF SANTA ANA TABLE OF CONTENTS I. BACKGROUND ........................................................................................................................... 3 II. OVERVIEW OF PROJECT .......................................................................................................... 3 III. SCOPE OF SERVICES ............................................................................................................... 5 IV. TERM OF AGREEMENT ............................................................................................................. 6 V. MINIMUM QUALIFICATIONS ...................................................................................................... 6 VI. GENERAL PROPOSAL INFORMATION ..................................................................................... 6 VII. PROPOSAL RESPONSE INSTRUCTIONS ................................................................................. 9 VIII. CERTIFICATIONS (ATTACHMENTS) ....................................................................................... 15 IX. SAMPLE PRE-LOAN COMMITMENT ....................................................................................... 15 X. INSURANCE REQUIREMENTS ................................................................................................ 15 XI. FEDERAL REGULATIONS ....................................................................................................... 15 XII. SELECTION PROCEDURES & CRITERIA ............................................................................... 15 XIII. ADDITIONAL TERMS AND CONDITIONS ................................................................................ 18 XIV. AWARD OF AGREEMENT ........................................................................................................ 21 XV. IMPLEMENTATION ................................................................................................................... 21 EXHIBITS Exhibits provided herein for Proposers’ reference only. EXHIBIT I – SCOPE OF SERVICES EXHIBIT II – SAMPLE PRE-LOAN COMMITMENT EXHIBIT III – INSURANCE REQUIREMENTS EXHIBIT IV – FEDERAL REGULATIONS EXHIBIT V – COMMUNITY WORKFORCE AGREEMENT (CWA) EXHIBIT VI – EARLY OUTREACH COMMUNITY MEETING EXHIBIT VII – CITY OF SANTA ANA REHABILITATION STANDARDS ATTACHMENTS ATTACHMENT A: PROPOSER’S CERTIFICATION ATTACHMENT B: REFERENCES ATTACHMENT C: CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY, AND VOLUNTARY EXCLUSION ATTACHMENT D: NON-COLLUSION AFFIDAVIT ATTACHMENT E: NON-LOBBYING CERTIFICATION ATTACHMENT F: NON-DISCRIMINATION CERTIFICATION ATTACHMNET G: SAM.GOV UEI VERIFICATION ATTACHMENT H: STATEMENT REGARDING CWA REQUIRMENTS EXHIBIT 1 CITY OF SANTA ANA I. BACKGROUND The City of Santa Ana, California, is rich in culture and pride, the county seat of Orange County, and encompasses an area of approximately 27 square miles. For more information, please visit https://www.santa-ana.org/ II. OVERVIEW OF PROJECT The City is seeking proposals from qualified firms and organizations (Proposers) to develop affordable housing in the City. Proposed developments may be for acquisition and rehabilitation of eligible properties for rental and/or ownership housing units; acquisition and conversion of non-residential property to rental and/or ownership housing units; and/or the new construction of housing units for rental and/or ownership housing. The term “Vendor”, “Proposer”, and “Contractor” shall refer to any legal entity or entities submitting a proposal in response to this Request for Proposals (RFP). A. Priorities and Objectives In particular, the City is interested in furthering the following priorities through this RFP: 1) Acquisition and rehabilitation projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. Acquisition and rehabilitation projects include adaptive reuse and/or motel/office conversion projects that will result in income-restricted housing units. 2) Projects that will provide homeownership opportunities. 3) By-right or shovel-ready projects. [A by-right project is one that can be approved administratively without discretionary approvals because it already complies with all applicable zoning and development standards. A shovel-ready project refers to a project that is fully prepared to begin construction immediately or within no more than three (3) months.] Projects that comply with any of these three (3) priorities and objectives will receive 10 bonus points in the RFP scoring criteria as further outlined below. Leveraging of Additional Funding Sources: In an effort to develop as many units as possible, the City desires to limit the amount of City financial assistance provided to each project. As such, the City strongly encourages Proposers to seek additional outside funding sources to reduce the financial assistance request of the City. Examples of these outside funding sources include (but are not limited to): Low Income Housing Tax Credits, Affordable Housing and Sustainable Communities (AHSC) funding, State of California funds, County of Orange funds and/or any other funding sources deemed appropriate by the Proposer. B. Regional Housing Needs Assessment (RHNA) Goals The Regional Housing Needs Assessment (RHNA) is mandated by the State of California as part of the periodic process for updating the City’s Housing Element. The City is provided with a RHNA allocation to be met in eight (8) year cycles. The current RHNA cycle covers 2021 through 2029. The following table provides the City’s progress through 2024 in meeting the RHNA allocations for Very Low, Low and Moderate Income with respect to the 2021-2029 RHNA Goals: EXHIBIT 1 CITY OF SANTA ANA Progress Towards 2021-2029 RHNA Goal (New Housing Units by Category and Year) Income RHNA 2021 2022 2023 2024 2025 Total Units Total Units Remaining % of RHNA Completed Very Low 606 41 191 64 48 81 425 181 70% Low 362 43 102 113 81 101 440 (78) 122% Mod. 545 11 41 84 65 73 274 271 50% Above Mod. 1,624 639 567 2,281 70 61 3,618 (1,994) 223% Total: 3,137 734 901 2542 264 316 4,757 (1,620) 152% Based on building permits issued. Parentheses used to show number of units issued permits in excess of RHNA goal. With the issuance of this RFP, the City desires to complete additional units to achieve the City’s RHNA goals before December 31, 2029. C. Available Funds for this RFP This RFP includes funds available from the following sources: the City’s Inclusionary Housing Fund, the HOME Investment Partnerships (HOME) Program, the HOME-American Rescue Plan Program (HOME-ARP), the Housing Successor Agency Fund, and/or any other funds received by the City for housing purposes as published on a quarterly basis in the Housing Division Quarterly Report. Inclusionary Housing Fund in-lieu fee pending payments and any other funds that have not yet been received by the City shall not be considered as available funds. Available program funds may be used for development loans for the following eligible purposes: (1) The purchase of existing multi-family or other buildings for rent or sale to low- and very low- income households and for the development of congregate housing for rent to low- and very low-income persons with special needs (e.g. homeless individuals and families, elderly, persons with a disability). Except for congregate housing, existing buildings shall consist of four (4) or more units, unless the Housing Division Manager finds that a substantial benefit will be provided by a project consisting of less than 4 units. (2) The purchase or lease of land and buildings for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as Low- Income Housing Tax Credits, the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and/or other available State and Federal programs. (3) The development of limited-equity housing cooperatives through either conversion or new construction. (4) The provision of interim loan funds for any of the above purposes pr ior to the funding of a public or private loan. Eligible development costs for the above uses include, but are not necessarily limited to: a. Site acquisition and preparation; b. Rehabilitation of dwelling units, common areas and related structures; c. New construction; EXHIBIT 1 CITY OF SANTA ANA d. Carrying charges and financing fees; e. Architectural, legal, and organizational fees; f. Temporary or permanent tenant relocation costs. g. Developer fees consistent with the policies described in Section IV of the City’s Affordable Housing Funds Policies and Procedures. Please refer to the Affordable Housing Funds Policies and Procedures amended by City Council on August 18, 2020 for more information. The Available Funds for this RFP will be as follows, subject to change: Source Available Funds Inclusionary Housing Funds $2,628,194 HOME Investment Partnerships Program (HOME) $11,533,196 HOME – American Rescue Plan (HOME –ARP) $715,622 Housing Successor Agency Funds $2,630,914 TOTAL: $17,507,926 Available affordable housing funds being made available in this RFP are subject to change. Proposals shall not exceed the total available funds as published on a quarterly basis in the Housing Division Quarterly Report. The Housing Division Quaterly Reports will be added to the RFP on PlanetBids via addenda. D. Proposal Deadlines Responses to this RFP will be accepted and evaluated on an on-going basis for at least one (1) year with four (4) quarterly deadlines to submit a proposal scheduled throughout the year . After each quarterly deadline, the City will evaluate the proposals as further described in Section XI. Selection Procedures and Criteria. Quarterly Proposal Submittal Deadlines The quarterly proposal submittal deadlines are as follows: Quarter 1 Submittal Deadline Wednesday, July 1, 2026, 4:00 P.M. Quarter 2 Submittal Deadline Thursday, October 1, 2026, 4:00 P.M. Quarter 3 Submittal Deadline Monday, January 11, 2027, 4:00 P.M. Quarter 4 Submittal Deadline Monday, May 3, 2027, 4:00 P.M. Quarterly Question Submittal Deadlines The quarterly deadlines to submit questions for each proposal submittal deadline are as follows: Quarter 1 Question Deadline Monday, June 1, 2026, 4:00 P.M. Quarter 2 Question Deadline Monday, August 31, 2026, 4:00 P.M. Quarter 3 Question Deadline Monday, November 30, 2026, 4:00 P.M. Quarter 4 Question Deadline Monday, April 5, 2027, 4:00 P.M. III. SCOPE OF SERVICES SEE EXHIBIT I – SCOPE OF SERVICES EXHIBIT 1 CITY OF SANTA ANA Usage is not guaranteed. Execution of an agreement between the City 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 the City in its delivery of project and assignments, including technical expertise required. IV. TERM OF AGREEMENT The anticipated term of a pre-loan commitment (Agreement, Contract, or Contract Documents) is for an initial period of two (2) years. The City may, at its sole discretion, extend the pre-loan commitment with the same or more limited scope of required services for two (2) additional one (1) year periods, upon City Manager or City Attorney authorization, as appropriate. The total term of the awarded pre- loan commitment shall not exceed four (4) years. V. MINIMUM QUALIFICATIONS In order to meet the City’s goals, the City is soliciting proposals for the development of affordable housing projects from developers who are experienced, very knowledgeable of affordable housing programs and their requirements, financially creative, and capable of developing, managing and maintaining high quality housing. Proposers shall have a minimum of five (5) years recent experience in the development of affordable housing projects similar to their proposed project. The selected developer(s) must have a demonstrated history of working cooperatively with surrounding neighborhoods in all phases of project development. Both nonprofit and for-profit developers are eligible to apply, either individually or in partnership with other entities. Developers who can demonstrate the capability to make other funds a significant part of the financing mix for their proposed project will score higher in the selection process than those who cannot. VI. GENERAL PROPOSAL INFORMATION A. Submittal Instructions As discussed further, the City requires that each Proposer submit the following: An electronic submittal via PlanetBids, the City’s Bid Management System; AND Seven (7) hard copies plus one (1) USB Flash Drive containing a copy of the full proposal delivered directly to the City by the due date and time. Electronic Submission 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. 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 City will only receive and consider those proposals that were transmitted successfully. Submit proposal online at: EXHIBIT 1 CITY OF SANTA ANA http://www.planetbids.com/portal/portal.cfm?CompanyID=20137 Proposers shall be solely responsible for informing themselves 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. Hard Copy Submission In addition to the online submittal of proposals by the deadline specified on the cover page of this RFP, one (1) USB flash drive containing a copy of the complete proposal packet and seven (7) hard copies of proposal shall be signed by a company official with the authority to bind the company. Sealed envelope or box with proposal documents shall be mailed or delivered to the address below and clearly labeled as follows: RFP 26-004A FOR AFFORDABLE HOUSING DEVELOPMENT City of Santa Ana – Finance & Management Services (M16) Attn: Jacques Lam 20 Civic Center Plaza Santa Ana, CA 92701 NOTE: Electronic, paper/hard copies, and USB flash drive must all be submitted to the City as specified above by the deadline to submit proposals. No exceptions shall be made. Proposals shall NOT be sent via telegraphic, electronic, or facsimile means. All notifications, updates and addenda will be posted online on PlanetBids at https://www.planetbids.com/portal/portal.cfm?CompanyID=20137. 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 fr om the date this RFP is issued until a contract 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 no later than the date and time shown at the schedule of key RFP dates on the cover page of this RFP. Responses to all questions will be posted on PlanetBids at least three (3) business days prior to close of the RFP. No verb al requests or responses will be accepted. EXHIBIT 1 CITY OF SANTA ANA Significant interpretations or clarifications will be addressed via addenda to this RFP, which will be released and posted on PlanetBids under the “Addenda/Emails” tab. D. Exceptions Requests submitted for City’s consideration of proposed terms and conditions, including modifications to the City’s RFP and/or Contract 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 the City’s PlanetBids system, https://www.planetbids.com/portal/portal.cfm?CompanyID=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 Contract and any other Contract 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 Contract 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 Contract Document shall be submitted to the City by the deadline to submit requests for information or clarification/questions set forth herein. G. 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 Buyer(s). Verbal or telephonic withdrawals are not permissible. H. Protest Procedures Only respondents who have actually submitted a proposal may file a “protest” to an RFP with the City’s Purchasing Department. In order for a Proposer’s protest to be considered valid, the protest must: 1. Be filed in writing before 5:00 p.m. of the 5th business day following the posting of RFP Results/Notice of Intent to Award on the City’s online bidding system; 2. Clearly identify the specific irregularity or accusation; 3. Clearly identify the specific City staff determination or recommendation being protested; EXHIBIT 1 CITY OF SANTA ANA 4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City’s Purchasing Manager, or other designated City staff member, shall review the basis of the protest and all relevant information. The decision from the Purchasing Manager, or her/her designee, is final and no further appeals will be considered. I. Business License The City requires any person, including but not limited to, an individual, corporation, Contractor, Subcontractor, and Sole Proprietor who wishes to conduct any business within the City of Santa Ana must secure a City of Santa Ana business license prior to the execution of a contract. The awarded party shall maintain a current business license throughout the term of the resulting contract. Procedure to obtain a City of Santa Ana business license is available by contacting the Finance and Management Services Agency at (714) 647-5447 or on the City’s website www.santa- ana.org. VII. PROPOSAL RESPONSE INSTRUCTIONS 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. 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 proposal submissions shall be on 8-1/2” x 11” white paper. (1) Technical Proposal The Technical Proposal must include a Table of Contents and be limited to a maximum of 35 pages (excluding City’s required Certifications listed in Section VIII 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 Technical Proposal must include the following: 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 (1) page. Cover letter must be addressed to the following City Project Manager: Judson Brown, Housing Manager City of Santa Ana – Community Development Agency 20 Civic Center Plaza (M-26) Santa Ana, CA 92702 b. Services Provided A description of proposed services to be provided and how they meet the needs of the EXHIBIT 1 CITY OF SANTA ANA City as described in Exhibit I - Scope of Services. c. Firm and Team Experience Proposal shall include a profile of the firm’s experience including the following: i. Developer Team. An organizational chart showing lines of responsibility, as well as a list of team members and their duties as part of the team. If the developer is a nonprofit corporation, or if a nonprofit is one (1) of the team members, the Technical Proposal must include documentation that the corporation is certified by the U.S. Internal Revenue Service as a 501(c)3 tax exempt non-profit corporation, and is in good standing with both state and federal compliance. If the developer is a Community Housing Development Organization (CHDO), the Technical Proposal must include documentation that the developer can be certified as a CHDO for the City of Santa Ana. The Developer needs to identify if any contractor(s) and/or subcontractor(s) are a subsidiary to any member of the development team. ii. Developer Experience. A narrative describing recent affordable housing development experience, with an emphasis on experience gained in the last five (5) years on projects similar to the one (1) being proposed.  Include project name and type (special needs, senior, large family, etc.), project address, developer team members, unit count and bedroom type, affordability requirements, and funding sources in your description.  Include a description of your experience doing community outreach and capacity including resources, staffing, and available funding.  Include a description of your experience complying with labor requirements similar to those imposed by the City’s Community Workforce Agreement (CWA). iii. Financial Capacity. Description of the developer’s financial strength and ability to obtain project financing, and to provide sufficient equity for the successful completion of the proposed project.  Include a description of current relationships with major lending institutions. Any developer that is selected for recommendation to City Council, or if a partnership, the team members who will retain an ownership interest in the project, will be required to submit complete financial statements for the last three (3) years. Because of the possibility of public records requests, the City cannot guarantee that these statements will remain confidential. iv. Resumes. Resumes for all key staff proposed describing relevant experience. d. Proposed Work Plan Proposal shall include a statement demonstrating the firm’s understanding of the Scope of Services. Additionally, proposed work plan shall include Proposers’: i. Project Description. Detailed and concise narrative describing the proposed project, including at a minimum and as appropriate the development concept for the site or a description (with photographs) of the building to be acquired or EXHIBIT 1 CITY OF SANTA ANA developed, proposed building square footage, number of units and bedrooms per unit, total parking spaces, proposed ingress and egress, proposed affordability levels, any special needs groups or target population to be served, and amenities to be provided onsite. If there will be a Homeowner’s Association (HOA), describe in detail how the HOA will be managed and provide the name of the proposed management company. Please make sure to include the following:  Narrative description of the project and conceptual site plans, if available: o Site size and location. o Total gross building area (GBA), as well as a breakdown of:  Residential GBA;  Circulation/Common Area GBA, and  Retail GBA (if applicable).  Residential unit mix: o Number of units of each bedroom type by affordability level; and o Unit square footage by bedroom type.  Common area amenities to serve the residential development.  List of anticipated retail tenants (if applicable).  Parking: o Total number of spaces proposed; o Number of spaces dedicated to the residential uses; o Number of spaces dedicated to other uses; and o Number and square footage of parking spaces provided by type:  Above-ground;  Surface; and  Subterranean. For all projects, the narrative must also address site control, current zoning and any required zoning changes, anticipated development costs, City funds required, requested City loan terms, developer access to additional funds required for the project, and proof that the property is under contract. A site map showing the project’s location should accompany this narrative. ii. Development Pro Forma. Identify the sources and uses of all funds necessary to complete the project (Sources and Uses). The pro forma should identify important underlying assumptions applicable to the proposed project. As applicable, the cost estimates in the Sources and Uses budget should assume the payment of State of California and/or Federal Davis-Bacon prevailing wages, compliance with the City’s CWA, and relocation benefits. Please make sure to include the following, if applicable:  Land Costs: EXHIBIT 1 CITY OF SANTA ANA o The property assemblage costs should include the following, if applicable: acquisition costs, relocation costs, demolition costs, and closing costs. The developer should include an appraisal and the proposed purchase and sale agreement (if available).  Construction Costs: o Identify whether the direct cost estimate reflects a premium for labor requirements, including State of California prevailing wages, Davis- Bacon wages, and compliance with the City’s CWA.  Provide a direct construction cost breakdown (include a contractor’s detailed estimate, if available) that disaggregates the following information: o Off-site improvements; o On-site improvements; o Parking costs; o Residential shell costs; o Community room/office space costs; o Commercial space shell costs; o Commercial space tenant improvement costs; o General conditions; o Contractor fees; and o Direct cost contingency allowance.  Provide a breakdown of the project’s indirect costs such as: o Architecture, engineering and consulting fees; o Public permits and fees costs including all city fees, school district fees, impact fees and any other fees that would be assessed on the project; o Taxes, legal and accounting costs; o Insurance costs; o Marketing costs; o Development management fee; and o Indirect cost contingency allowance.  Provide the following financing cost information: o Predevelopment/bridge loans (loan amounts, interest rates, length of term and projected average outstanding balance of loan funds during predevelopment/construction); o Construction loans (loan amounts, interest rates, length of term and projected average outstanding balance of loan funds during predevelopment/construction); EXHIBIT 1 CITY OF SANTA ANA o Loan fees; o Amount of cash equity contribution and the return requirement on these funds during the construction period; o Capitalized reserves.  Provide the proposed rents or sales prices for the units. iii. Market Rate Rents / Sales Prices  Provide the proposed market rate rents/sales prices for each unit type;  Include evidence that the market rate rents/sales prices shown in the pro forma are reasonable and achievable. Please include a preliminary market study analysis that demonstrates that the rents/sales prices are achievable. iv. Affordable Rents. Include evidence that the rental income shown in the pro forma is reasonable and achievable. If proposing all rents to be at low income, include a market study that supports that this is achievable. v. Affordable Sales Prices:  Provide the proposed affordable sales prices for each proposed income level by unit bedroom type.  Provide the assumptions utilized for the affordable sales price calculations including: o Proposed income limits; o Utility allowances; o HOA, insurance and maintenance allowances; and o The Interest rate assumed for the homebuyer first trust deed mortgages. vi. Financial Parameters:  Equity contribution: o Quantify the equity contribution to be provided with cash during construction, and the amount of cash equity that will be left in the project on a permanent basis. o Identify the funding source that will be used to refund any construction period equity that is to be returned to the developer upon the completion of construction. o Define the preferred return requirements applied to the cash equity funds provided to the proposed project.  Describe the terms under which any deferred developer fee will be repaid.  If the proposal includes market rate units, the pro forma must include a calculation of the return on investment to the developer. EXHIBIT 1 CITY OF SANTA ANA  Describe the other proposed governmental subsidies (City of Santa Ana, etc.). If assuming a competitive funding source, provide an estimate of how the project scores in the identified funding competitions. vii. City Assistance Terms. Identify any responsibilities that will be requested of the City of Santa Ana. viii. Community Inclusion:  Describe how neighborhood input was solicited and utilized in the development of your proposal. Specifically, provide a description of any community outreach efforts that you undertook to inform the development of your proposal, including early outreach meetings with local stakeholders, outreach to the Santa Ana Unified School District, engagement with local neighborhood associations, letters of support requested or received from local community groups, and any commitment to donate a portion of your developer fee to a project or initiative in the surrounding neighborhood.  Provide details on the development team's community outreach strategy for the project. Describe the steps you will take after approval of your pre-loan commitment letter to ensure maximum feasible participation of local low- income residents and businesses in the development of the project. Describe how the project will be developed and operated so as to ensure compliance with all relevant components of the Americans with Disabilities Act. Please refer to the Community Outreach Guidelines in Exhibit I for additional guidance. ix. Proposed Development Schedule. Taking as a starting point City Council approval of the pre-loan commitment letter, provide a proposed development schedule that includes the following milestones at a minimum: site acquisition, additional required loan commitments and funding from all other funding sources, zoning change approvals (if necessary), preparation and approval of construction plans, start of construction, completion of construction, and sale of the units. x. Current Tenants. Provide a listing of all tenants currently residing in the units, if applicable. xi. By-Right or Shovel-Ready Projects. If applying for Bonus Points as a By- Right or Shovel-Ready project, please provide relevant documentation demonstrating that the project is by-right and/or shovel-ready. (2) Rules for Proposals The signer of the proposal must declare in writing that the only person, persons, company or parties interested in the proposal as principals are named therein; that the proposal is made without collusion with any other person, persons, company or parties submitting a proposal; that it is in all respects fair and in g ood faith without collusion or fraud; and, that the signer of the proposal has full authority to bind the Proposer. 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. EXHIBIT 1 CITY OF SANTA ANA VIII. CERTIFICATIONS (ATTACHMENTS) In addition to the 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  Attachment B: References  Attachment C: Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion  Attachment D: Non-Collusion Affidavit  Attachment E: Non-Lobbying Certification  Attachment F: Non-Discrimination Certification  Attachment G: SAM.gov UEI Verification  Attachment H: Statement Regarding CWA Requirements The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed as nonresponsive and will be rejected. The City 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: City will not waive notarization requirement when applicable on any of the required attachments. IX. SAMPLE PRE-LOAN COMMITMENT See Exhibit II – Sample Pre-Loan Commitment X. INSURANCE REQUIREMENTS See Exhibit III – Insurance Requirements XI. FEDERAL REGULATIONS See Exhibit IV – Federal Regulations XII. SELECTION PROCEDURES & CRITERIA (1) The RFP Process will be open and provide sufficient time for applicants to identify an eligible site and complete and submit a proposal in response to the RFP announcement. The RFP Process will be open for at least one (1) calendar year with four (4) quarterly deadlines to submit a proposal scheduled throughout the year. After each deadline, staff shall review any Proposals to determine if the minimum Program and RFP Process requirements are met (minimum threshold review). Proposals that do not meet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, staff will form a Review Panel. The Review Panel for the RFP Process will consist of at least one (1) employee from the City of Santa Ana Public Works Agency, Planning and Building Agency, and Community Development Agency, and one (1) outside agency or government entity. If an employee is not available in one (1) City Agency, a second employee may be requested from EXHIBIT 1 CITY OF SANTA ANA one (1) of the other two (2) departments so long as there are at least two (2) of the three (3) City Agencies represented on the Review Panel. (2) Using the scoring and selection criteria provided in the RFP, the Review Panel shall determine whether the proposal is recommended for an award in the form of a pre-loan commitment, with or without conditions. Using the scoring and selection criteria, the Review Panel shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City of Santa Ana and paid for by the Proposer. The real estate advisor shall confirm the underwriting for the project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the proposal will not be recommended for approval or an award of funds, the Proposer will be notified in writing of the decision and the result will be published in the Housing Division Quarterly Report. (3) The Review Panel 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. (4) Proposers will be ranked by the Review Panel based on the following criteria: CATEGORY POINTS 1. LEVEL OF AFFORDABILITY AND TARGET POPULATION (MAX. 25 POINTS) Project significantly increases affordable housing opportunities for large families (three- and four- bedroom units) 10 Project provides a higher percentage of units for extremely low-income households with deeper affordability 10 Project increases affordable housing opportunities for special needs populations including, but not limited to, homeless individuals and families, and persons with a disability 5 2. TIMELINESS TO BUILD NEW HOUSING (MAX. 20 POINTS) Project has demonstrated site control 7 Project is zoned appropriately 5 Project does not have any other site-related issues 5 Project aligns with the City’s Housing element, Strategic Plan, and/or 5-Year Consolidated Plan 3 3. PROPERTY MANAGEMENT EXPERIENCE AND SKILLS (MAX. 15 POINTS) Project is energy efficient and incorporates green-building techniques 6 Rental Projects: Applicant’s ability to manage affordable rental units to ensure ongoing compliance with affordability requirements and long-term financial solvency. For Sale Projects: Applicant’s ability to income qualify prospective homebuyers in compliance with all applicable affordability requirements. 3 Rental Projects: Applicant’s past experience with property management For Sale Projects: Applicant’s past experience with the sale of affordable units 3 Applicant's capacity and ability to quickly lease/sell completed units 3 EXHIBIT 1 CITY OF SANTA ANA (5) 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 75 will be considered for award. The City reserves the right to award the contract to any proposer(s) with a score above 75. The review committee will evaluate proposers based on their response to the RFP and the City evaluation criteria set forth above. (6) 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 a 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 will recommend the qualified Proposers to the City Council or City Manager for award of contract, as appropriate. (7) The review committee may invite the proposers to interview. 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 4. DEVELOPER EXPERIENCE AND SKILLS (MAX. 15 POINTS) Applicant's capacity and ability to obtain additional financing 4 Applicant's capacity and ability to obtain entitlements 4 Applicant's overall past and projected effectiveness to provide affordable housing 4 Applicant's past and projected effectiveness to manage the construction process and stay on schedule 3 5. LEVERAGING OF CITY FUNDS (MAX. 5 POINTS) Applicant's potential or capacity to obtain additional financing for this project 5 6. ANTICIPATED CASH FLOWS FINANCIAL PARAMETERS (MAX. 15 POINTS) Project's proposed development costs are reasonable and comparable 3 Project's proposed rents/sales prices are realistic 3 Project’s operating costs are realistic and reasonable 3 Project has sufficient operating and replacement reserves 3 Project is projecting a positive cash flow through affordability period 3 7. PROJECT LOCATION (MAX. 5 POINTS) Project is located in an area currently underserved by affordable housing 5 BONUS POINTS: (1) Acquisition and rehabilitation projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. Acquisition and rehabilitation projects include adaptive reuse and/or motel conversion projects that will result in income-restricted housing units. (2) Projects that will provide homeownership opportunities. (3) By-right or shovel-ready projects 10 TOTAL POSSIBLE SCORE 110 EXHIBIT 1 CITY OF SANTA ANA the right to begin negotiations and enter into a contract without holding interviews, or further discussions. (8) Following the RFP Process, Proposal Review, Determination of Reasonable Costs and Financial Feasibility, and conditional on meeting the other requirements and conditions outlined above, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney’s Office, and the Executive Director of Community Development, before being recommended for approval. The letter shall state the maximum amount of program funds reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Borrower prior to loan closing. After the pre-loan commitment letter has been drafted, staff will prepare a written staff report recommending a commitment of funds for a proposal and explaining the reasons for the commitment. The recommendation will be made first by the Housing Division to the Community Redevelopment and Housing Commission (CRHC) to issue the commitment of program funds to the project in the form of an award of program funds. If recommended by the CRHC to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the commitment of program funds by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. XIII. ADDITIONAL TERMS AND CONDITIONS (1) 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 Contract may be awarded a Contract for the provision of services, the delivery of supplies, or the provision of any other related action which is required, suggested, or otherwise deemed appropriate as an end product of this Contract. Therefore, Contractor is precluded from contracting for any work recommended as a result of this Contract. In the event a conflict of interest is identified, disciplinary action shall be determined and imposed based on the severity of the violation and may include, but is not limited to, written warnings, suspension, mandatory ethics training, reassignment of duties, or termination of employment. All disciplinary action taken/imposed, will be documented and handled in accordance with applicable federal, state and local employment laws. EXHIBIT 1 CITY OF SANTA ANA (2) Community Workforce Agreement The City of Santa Ana has established a CWA with the goal of ensuring that the community is a part of the workforce on public works construction projects. The CWA applies to City- funded affordable housing projects, and imposes requirements on the project that will be enforced in any final agreement with the City. The Developer will be solely responsible for compliance with the CWA and ensuring any contractors comply with the CWA. Among other things, the CWA requires that all contractors working on CWA covered projects participate in a process for using local and skilled workers from the union hiring halls of the various construction trades. It is the Contractor’s responsibility to ensure that the project’s craft hours are performed at least 30% by workers from Tier 1 and 2 ZIP codes and/or veterans and Building Trades Multi-Trade Craft Core Curriculum Pre-Apprenticeship Program graduates, regardless of where they live. Tier 1 ZIP codes are those comprising the City of Santa Ana and Tier 2 ZIP codes are those comprising Orange County. The local hire attainment will be calculated by dividing the hours reported as performed by local workers on Certified Payroll Reports by the total number of hours reported on Certified Payroll Reports. It is the prime Contractor’s responsibility to determine how to attain that goal. Although each subcontractor is not required to meet the goals, the project overall must meet it. (3) 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. (4) 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 pre-loan commitment on the last day of the current fiscal period without penalty or expense to the City. (5) Joint Offers/Subconsultants Where two (2) 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 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 pre-loan commitment shall apply to all sub-consultants in the same manner as the Proposer. The Proposer is responsible for all the actions taken by their subcontractor. 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. (6) 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. EXHIBIT 1 CITY OF SANTA ANA Neither Contractor, its employees, nor anyone working under Contractor, will qualify for workers’ compensation or other fringe benefits of any kind through City. (7) Negotiations The City reserves the right to negotiate final pre-loan commitment terms with any Proposer selected. The pre-loan commitment between the parties will reference 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 pre-loan commitment, 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 contract. 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. (8) Ownership of Documents The City has permanent ownership of all directly connected and derivative materials produced under this contract 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. (9) 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. (10) 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. (11) 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. (12) Public Agencies Other public agencies, as defined by California Government Code Section 6500, may choose to use the terms of this Contract, subject to Contractor’s acceptance. The City is not liable or responsible for any obligations related to a subsequent contract between Contractor and another public agency. EXHIBIT 1 CITY OF SANTA ANA (13) Public Records Proposals will become public record after the award of a contract 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. (14) Employment Opportunities for Santa Ana Residents Developer shall solicit and advertise employment opportunities to Santa Ana residents. The City shall inform the Developer of areas to publicize recruitment opportunities, such as the Santa Ana WORK Center and community centers. Such effort and procedure will be provided to the City for review. XIV. AWARD OF AGREEMENT Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful negotiation of final contract terms. (1) Execution of Agreement A standard agreement is included as EXHIBIT 2 Sample Pre-Loan Commitment 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. XV. IMPLEMENTATION (1) 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. EXHIBIT 1 CITY OF SANTA ANA The Developer shall: (1) Be an independent developer capable of providing experienced, knowledgeable and professional staff. (2) Be responsive and maintain excellent working relationships with City residents, businesses, government officials and City staff. (3) Provide adequate staffing levels at all times and adhere to established schedules. (4) Be knowledgeable of and comply with federal, state and local laws, including the Santa Ana Municipal Code, as it applies to their proposal. (5) Assume responsibility for all aspects of the development, and for ensuring that the project is developed and operated in accordance with applicable state and federal laws. (6) Shall ensure that the project is developed and operated in accordance with the City laws, regulations, and planning and development process. I. General Information (1) Following the RFP Process and conditional on meeting other requirements and conditions, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney’s Office, and the Executive Director of Community Development, before being recommended for approval by the City Council. The letter shall state the maximum amount of program funds reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Developer prior to loan closing. (2) When determined appropriate, the City will provide information in its possession relevant to preparation of required information in the RFP. The City will provide only the staff assistance and documentation specifically referred to herein. (3) The Developer shall be responsible for retaining data, records and documentation for the preparation of the required information. These materials shall be made available to t he City as requested by the City. (4) This RFP does not commit the City to pay costs incurred in preparation of a response to this RFP. All costs incurred in the preparation of the proposal, the submission of additional information and/or any aspect of a proposal prior to award of a written contract will be borne by the respondent. The City reserves the right to accept or reject the combined or separate components of any proposal in part or in its entirety or to waive any informality or technical defect in the proposal. (5) All data, documents and other products used, developed or produced during response preparation to the RFP will become property of the City. All responses to the RFP shall become property of the City. The City will make best efforts to maintain Proposer information EXHIBIT I SCOPE OF SERVICES EXHIBIT 1 CITY OF SANTA ANA identified as proprietary information confidential, to the extent allowed under the California Public Records Act. (6) The City reserves the right to reject, replace or 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 subcontractor(s). Subcontractors shall be the responsibility of the Developer and the City shall assume no liability for such subcontractors. II. COORDINATION Coordination by the awarded Developer with the City, other contractors and agencies will be required to achieve satisfactory and timely delivery of the required work. Coordination may include, but not be limited to, coordination with impacted businesses, neighborhood and civic groups, local and/or state agency boards and staff, or attendance at Community Development Commission meetings or City Council meetings. The City will decide the manner in which the coordination efforts will be conducted. At the City’s option, coordination efforts may be performed by the Developer’s direct contact, by the Developer acting through the City or by the City only. When coordination efforts require agreements, such agreements shall be coordinated with the City. III. DEVELOPMENT PRIORITIES The City has established three (3) development priorities for this RFP: A. Acquisition / Rehabilitation Projects As referenced in the City’s 6th Cycle (2021-2029) Housing Element, the City has established a Multiple-Family Acquisition and Rehabilitation Program. The objective of this program is to provide financial assistance to support the acquisition, rehabilitation and construction of new multiple-family properties to preserve and increase affordable housing opportunities for lower income households through the following programs: (1) Low and Moderate Income Housing Asset Fund (LMIHAF) including land assets owned by the Housing Successor Agency; (2) Inclusionary Housing Fund (Inclusionary); (3) HOME Investment Partnerships Program (HOME); (4) Community Development Block Grant Program (CDBG); (5) Project-Based Voucher Program (PBV); and (6) HOME- American Rescue Plan (HOME-ARP). Proposed developments may be for the acquisition and rehabilitation of eligible properties for rental and/or ownership housing; acquisition and conversion of nonresidential property to multifamily housing units; and/or new construction of housing units for rental and/or ownership housing. Once per year, the City’s objective is to issue a Request for Proposals (RFP) for the development of affordable housing in the city. The objective is to finance the development of at least one multifamily affordable housing project per year. B. Homeownership Opportunities Both the Strategic Plan and the City’s Housing Element identify affordable ownership housing suitable for larger households as a high priority for the City. In addition, the City of Santa Ana will be targeting low-income and moderate-income households within the City, including veterans, teachers, fire fighters and/or large families. One (1) of the primary rating criteria is the depth of homeownership. The City desires proposed projects to have dedicated units for low-income families earning no more than 80% Area Median income (AMI). Project design and construction will be subject to and carried out in accordance with established City standards and procedures. In accordance with the City’s Early EXHIBIT 1 CITY OF SANTA ANA Outreach policy (Attachment 1), the selected developer may be required to solicit significant neighborhood input during the design process. C. By-Right or Shovel-Ready Projects A by-right project is one that can be approved administratively without discretionary approvals because it already complies with all applicable zoning and development standards. A shovel-ready project refers to a project that is fully prepared to begin construction immediately or within no more than three (3) months. Many of the City’s available funding sources have expenditure deadlines associated with them. As such, the City desires to prioritize projects that can begin construction quickly. Thefore, the City has established a priority for by-right or shovel-ready projects. If applying under this priority, please make sure to provide sufficient documentation demonstrating that the proposed project is by-right or shovel- ready. IV. CITY OF SANTA ANA COMMUNITY WORKFORCE AGREEMENT (CWA) The City of Santa Ana has established a CWA with the goal of ensuring that the community is a part of the workforce on public works construction projects. The CWA applies to City-funded affordable housing projects, and imposes requirements on the project that will be enforced in any final agreement with the City. The Developer will be solely responsible for compliance with the CWA and ensuring any contractors comply with the CWA. Among other things, the CWA requires that all contractors working on CWA covered projects participate in a process for us ing local and skilled workers from the union hiring halls of the various construction trades. It is the Contractor’s responsibility to ensure that the project’s craft hours are performed at least 30% by workers from Tier 1 and 2 ZIP codes and/or veterans and Building Trades Multi-Trade Craft Core Curriculum Pre- Apprenticeship Program graduates, regardless of where they live. Tier 1 ZIP codes are those comprising the City of Santa Ana and Tier 2 ZIP codes are those comprising Orange County. The local hire attainment will be calculated by dividing the hours reported as performed by local workers on Certified Payroll Reports by the total number of hours reported on Certified Payroll Reports. It is the prime Contractor’s responsibility to determine how to attain that goal. Although each subcontractor is not required to meet the goals, the project overall must meet it. V. AVAILABLE FUNDS FOR THIS RFP The available funds for this RFP can be used for a variety of housing types and preferences. Please see the table below for a general summary of the allowable uses of each source of funds: Source of Funds Income at or below 80% Mixed Income Non U.S. Citizens Mixed Use Projects Adaptive Reuse New Construction of Rental Housing Acquisition / Rehabilitation of Rental Units Homeownership Inclusionary Housing Funds X X X X X X X X EXHIBIT 1 CITY OF SANTA ANA HOME Program Funds X X X X X X X HOME-ARP Program Funds* X X X X X Housing Successor Agency Funds X X X X X X *Per the City’s HOME-ARP Allocation Plan, HOME-ARP funds may only be used to fund permanent supportive housing units. Please refer to the Affordable Housing Funds Policies and Procedures amended by City Council on August 18, 2020 for more information. The funding data provided in this RFP is not guaranteed, and the availability of such is subject to change at any time. The City makes no guarantee of the availability of the proposed funding for any particular applicant or project. The submission of a proposal in response to this RFP does not commit the City to providing any funding to a proposed project. The following sections provide a detailed summary of each funding source. EXHIBIT 1 CITY OF SANTA ANA A. INCLUSIONARY HOUSING FUNDS Source of Funds Funding for this program is provided using revenues generated through in-lieu fees collected under the City of Santa Ana Housing Opportunity Ordinance. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not for profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Funds can be used to increase and improve the supply of housing affordable to moderate, low, very- low and extremely-low income households in the City. Eligible rehabilitation projects will: (1) Be in need of rehabilitation as defined herein; (2) Be located in the City of Santa Ana; (3) Be free from significant adverse environmental impacts, except those that can be mitigated through rehabilitation; and (4) Avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the project. Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, for moderate, low, very low, and extremely-low income households, including, but not limited to, the following: (1) Acquisition and rehabilitation of eligible rental properties. Existing rental units may be acquired, substantially rehabilitated and then income and affordability covenants can be recorded on the units for rental or ownership. (2) Purchase and rehabilitation of homes with code-related issues for sale to low and moderate income buyers. (3) Acquisition and conversion of non-residential property to multifamily rental and/or ownership housing units. (4) New construction of rental and/or ownership housing units. For more information, please see Santa Ana Municipal Code Section 41-1900. EXHIBIT 1 CITY OF SANTA ANA B. HOME INVESTMENT PARTNERSHIPS PROGRAM Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME Program (including program income), and therefore is subje ct to the federal rules and regulations found in 24 CFR Part 92, as amended from time to time. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Projects eligible for HOME funding shall: (1) Be an affordable rental and/or homeownership project located in the City of Santa Ana; (2) Contribute to the achievement of the City's Strategic Plan and fair housing goals; (3) Be free of significant adverse environmental impacts, except those that can be mitigated through the project itself; (4) Minimize tenant displacement; (5) Comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, and meet housing quality standards in Section 882.109 of Title 24. Newly constructed housing must meet the current edition Model Energy Code of the Council of American Building Officials; (6) Make efficient use of public funds and avoid "layering" of subsidies beyond those necessary to achieve a financially feasible project; and, (7) Have at least 51% of the project space be residential, if in a mixed-use project. Eligible Uses and Activities HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental and/or ownership housing which is affordable to low-income households as defined by 24 CFR 92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified Community Housing Development Organizations (CHDO’s). EXHIBIT 1 CITY OF SANTA ANA New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including: (1) Site acquisition; (2) Site preparation costs (grading, filling, etc.); (3) Financing costs as described in 24 CFR 92.206; (4) Architectural, engineering, and other related soft costs; (5) The cost of extending or upgrading utilities to the site to support the proposed project; (6) Construction costs; (7) Relocation costs; and, (8) Affirmative marketing and audit costs related to HOME program requirements. Rehabilitation costs eligible for HOME funding include: (1) Project acquisition with or without rehabilitation; (2) Financing costs, as described in 24 CFR 92.206; (3) Architectural, engineering, or other design costs; (4) Utility upgrade or extension costs; (5) Costs associated with demolition (where necessary) only if rehabilitation is commenced within 12 months of demolition; (6) Construction costs; (7) Project audit costs; and, (8) Affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding: (1) Project reserve accounts for replacement or operating reserves, and operating subsidies; (2) Payment of impact fees; (3) Land banking; (4) Emergency repair or weatherization programs; (5) Commercial properties; (6) Temporary shelters; or (7) Project-based rental assistance. EXHIBIT 1 CITY OF SANTA ANA Affordable Rental Housing Projects (§ 92.252) (1) HOME Rent Limits HUD provides the following maximum HOME rent limits. a. High HOME Rent Limits. If a low-income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family’s monthly adjusted income or 10 percent of the family’s monthly income, then the maximum rent due from the family is the family’s contribution. For other cases, the maximum HOME rents are the lesser of: i. The fair market rent for existing housing for comparable units in the area as established by HUD; or ii. A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. In rental projects with five (5) or more HOME-assisted rental units, twenty (20) percent of the HOME- assisted units must be occupied by very low-income families. If a very-low income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family’s monthly adjusted income or 10 percent of the family’s monthly income, then the maximum rent due from the family is the family’s contribution. All other Low HOME rents must meet one (1) of following rent requirements: (1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a)(1)(i), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a)(1)(i). (2) The rent does not exceed 30 percent of the family's adjusted income. (3) The unit is a Low Income Housing Tax Credit (LIHTC) unit and has rents not greater than the gross rent for the rent-restricted residential units as determined under 26 U.S.C 42(g)(2). Minimum Periods of Affordability for Rental Housing The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described more fully below: Rental Housing Activity Length of the Affordability Period Rehabilitation of Acquisition of Existing Housing: Less than $25,000 Per Unit 5 years $25,000 - $50,000 Per Unit 10 years More than $50,000 15 years New Construction or Acquisition of Newly Constructed Housing 20 years Throughout the affordability period, income-eligible households must occupy the HOME-assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME rent. EXHIBIT 1 CITY OF SANTA ANA Affordable Homeownership Housing Projects (§ 92.254) HUD considers Affordable Homeownership Housing as housing that is for acquisition by a family that meets the following affordability requirements:  The housing must be single-family housing. HUD defines “Single Family Housing” as a one- to-four family residence, condominium unit, cooperative unit, combination of manufactured housing and lot, or manufactured housing lot.  The housing must be considered modest housing with maximum purchase prices (inclusive of all subordinate loans) limited to the following: 2024 Maximum HOME Purchase Prices* 1-Unit 2-Unit 3-Unit 4-Unit New Construction** $789,000 $1,009,000 $1,222,000 $1,514,000 Existing Homes** $789,000 $1,009,000 $1,222,000 $1,514,000 *As of issuance of this RFP, HUD had not published updated maximum HOME purchase prices for Fiscal Year 2025-2026 **In 2024, the maximum HOME purchase prices for New Construction and Existing Homes are the same. Eligible Homebuyers and Affordable Sales Prices The housing must be acquired by a homebuyer whose family qualifies as a low-income family, and the housing must be the principal residence of the family throughout the period described below. In determining the income eligibility of the family, the City will include the income of all persons living in the housing. The homebuyer must receive housing counseling. Each home must be sold at an affordable sales price, which will be less than the maximum HOME purchase prices described above. The affordable sales price must be based on the income limits published by HUD, and incorporate applicable housing expenses such as utilities, HOA fees, insurance, and property taxes. If there is no ratified sales contract with an eligible homebuyer for the housing within 9 months of the date of completion of construction or rehabilitation, the housing must be rented to an eligible tenant in accordance with § 92.252. Periods of Affordability and Recapture Provisions The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described more fully below: HOME Assistance per Unit or Buyer Length of the Affordability Period Less than $25,000 5 years $25,000 - $50,000 10 years More than $50,000 15 years The City incorporates a recapture requirement into written agreements and long -term affordability covenants for homebuyer assistance activities administered by the City as required by 24 CFR 92.254. For any homebuyer assistance activity implemented by subrecipients or CHDOs, this recapture requirement shall also be used. EXHIBIT 1 CITY OF SANTA ANA The amount subject to recapture is the direct HOME subsidy received by the homebuyer. Direct HOME subsidy includes the HOME investment that enabled the homebuyer to purchase the property. This includes down payment assistance, closing costs, or other HOME assistance provided directly to the homebuyer and/or the difference between the fair market value of the property (as determined by appraisal) and a reduced sales price attributable to HOME development assistance. The recapture provision ensures that the entire amount of the City's direct HOME subsidy to homebuyers is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability (e.g., the home is sold, the home is foreclosed, the assisted owner is no longer residing in the assisted residence, or for any other breach of the agreement with the City). The HOME-assisted homebuyer may sell their unit at any time during the period of affordability, to any willing buyer, and at the price the market will bear. The recapture provision requires that the City’s direct HOME subsidy and any interest due under the HOME loan (that has not previously been repaid) is returned to the City from net proceeds first, subject to the limitation that if there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City may only recapture the net proceeds, if any. Net proceeds are defined as the sales price minus superior loan repayment (other than HOME funds), and any closing costs. In the event of a mortgage default, a provision in the written agreement and long-term affordability covenant stipulates that the City has the right of first refusal before foreclosure and may use additional HOME funds or other resources to acquire the housing in order to preserve the housing’s affordability. Other Requirements Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the number of HOME-assisted units in the project. Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum allowed by HUD under the HOME program (24 CFR 92.250). The City will avoid unnecessary layering of subsidies from different federal, state and local programs and seek to maximize the benefit to target households from the investment of HOME funds in a project. The Housing Division will use HUD’s Cost Allocation Tool to identify the maximum subsidy per unit for each project. The current Maximum Per-Unit HOME Program Subsidy Limits are: Unit Size Subsidy Limit 0 Bedroom Units $181,488 1 Bedroom Units $208,049 2 Bedroom Units $252,994 3 Bedroom Units $327,293 4 & 5 Bedroom Units $359,263 Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the City’s Property Standards, including all applicable local, State and Federal codes and regulations. Newly constructed housing must also meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost- effective energy conservation and effectiveness standards in 24 CFR 39. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all EXHIBIT 1 CITY OF SANTA ANA laborers and mechanics employed in the development of the project. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used for construction or non-construction costs. Lead-based Paint: Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Build America, Buy America (BABA): Projects that receive HOME funding must comply with the requirements of the Build America, Buy America Act, 41 USC 8301 et. seq., and all applicabl e rules and notices, as may be amended, if applicable. Pursuant to HUD’s Notice, “Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 FR 17001), any funds obligated by HUD on or after the applicable listed effective dates, which will likely include a portion of the HOME funding awarded under this NOFA, are subject to BABA requirements, unless excepted by a waiver. For more information, please see: https://www.hudexchange.info/programs/baba/ For more information related to HOME Funding requirements, please see 24 CFR Part 92. EXHIBIT 1 CITY OF SANTA ANA C. HOME-AMERICAN RESCUE PLAN PROGRAM (HOME-ARP) Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME-American Rescue Plan Program (HOME-ARP), and therefore is subject to the federal rules and regulations found in CPD Notice 21-10 and 24 CFR Part 92, as amended from time to time. Please review CPD Notice 21-10 if you are applying for this source of funds. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Uses HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of the following Qualifying Population: (1) Homeless, as defined in Section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)). Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, 70 percent of all HOME-ARP units must admit households based only upon their status as qualifying households. Eligible Activities (1) HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families who are experiencing homelessness (“qualifying households” or “qualifying population”). Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. The City of Santa Ana will give a preference to literally homeless individuals. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. HOME-ARP funds may be used for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in CPD Notice 21-10. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2. HOME-ARP funds may be used to assist one (1) or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program. EXHIBIT 1 CITY OF SANTA ANA The City may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the City determines in its underwriting that the reserve is necessary to maintain the HOME - ARP units’ long-term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the City to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period. Please see CPD Notice 21-10 for more information on this assistance. (1) A non-congregate shelter (NCS) is one (1) or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME-ARP NCS. HOME-ARP NCS units may only be occupied by individuals or families who are experiencing homelessness. The City of Santa Ana will give a preference to literally homeless individuals (“qualifying households”). HOME-ARP funds may be used to acquire and/or rehabilitate or construct HOME-ARP NCS units to serve qualifying households. Acquisition of vacant land or demolition of existing structures may be undertaken only as part of a HOME-ARP NCS project. HOME-ARP NCS units acquired and/or developed with HOME-ARP funds must meet the requirements of CPD Notice 21-10, i.e., be used as HOME-ARP NCS or used as emergency shelter under ESG for the restricted use period established in Section VI.E.9 of the Notice. Referral Methods for Projects The City will use the Orange County Coordinated System (CE) for referrals for eligible projects described above. Under 24 CFR 578.3, a CE is a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals within a defined area. HUD requires each Continuum of Care (CoC) to establish and operate a CE with the goal of increasing the efficiency of local crisis response systems and improving fairness and ease of access to resources, including mainstream resources. The City will permit the Orange County CoC CE to collect information and documentation required to determine whether an individual or family meets the criteria of a HOME-ARP qualifying population at any point in the coordinated entry process, (i.e., after or concurrently with the assessment and intake processes) as long as that information is not used to rank a person for HOME-ARP assistance other than as specified by the preferences or method of prioritization established by the City, in accordance with HOME-ARP requirements. Preference The City of Santa Ana will give a preference to literally homeless individuals. Literally homeless means an individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: 1. Has a primary nighttime residence that is a public or private place not meant for human habitation, including: o Cars o Parks o Abandoned buildings o Bus or train stations EXHIBIT 1 CITY OF SANTA ANA o Airports o Camping grounds OR 2. Is living in a publicly or privately operated shelter designed to provide temporary living arrangements, including: o Emergency shelters o Congregate shelters o Transitional housing for homeless persons o Hotels or motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals OR 3. Is exiting an institution where: o They resided for 90 days or less, and o Immediately before entering the institution, they met one of the criteria above (1 or 2). The City will also have a local residency preference for literally homeless individuals with strong ties to the City of Santa Ana. [If a project is selected for these funds, the City will need to request an amendment to their approved HOME-ARP Allocation Plan from HUD to serve literally homeless instead of chronically homeless individuals.] Eligible Costs HOME-ARP funds may pay for up to 100 percent of the following eligible costs associated with HOME-ARP rental units: (1) Development hard costs include the actual cost of constructing and rehabilitating housing to meet applicable property standards. Eligible development costs also include site improvements, utility connections and costs to construct or rehabilitate laundry and community facilities located within the same building as the HOME-ARP housing; (2) Refinancing of existing debt secured by a HOME-ARP rental project rehabilitated with HOME- ARP funds; (3) Acquisition costs of improved or unimproved real property (4) Related soft costs including reasonable and necessary costs incurred by the PJ or project owner associated with the financing, development, acquisition, or rehabilitation of HOME-APR rental housing; (5) Relocation costs as defined in 24 CFR 92.206(f), 24 CFR 92.353, and the Notice; (6) Certain costs related to the payment of construction, bridge, or guaranteed loans, if HOME- ARP is part of original financing; and (7) Operating cost assistance, through a capitalized operating reserve or ongoing operating cost payments, for HOME-ARP units restricted for occupancy by qualifying households Ineligible Uses and Activities HOME-ARP may not be used for any of the prohibited activities, costs or fees in 24 CFR 92.214, as revised by the Appendix to CPD Notice 21-10. For HOME-ARP NCS for individuals and families experiencing homelessness, HOME-ARP funds may not be used to: EXHIBIT 1 CITY OF SANTA ANA (1) Pay any operating costs of a HOME-ARP NCS project. (2) Provide additional HOME-ARP investment in a HOME-ARP NCS project during the restricted use period, except that additional HOME-ARP funds can be invested in the project up to one (1) year after project completion in IDIS for eligible costs. (3) Pay costs of a conversion of HOME-ARP NCS as described in Section VI.E.11 of this Notice. (4) Provide non-Federal matching contributions required under any other Federal program. (5) Provide assistance for uses authorized under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (Public Housing Capital and Operating Funds). (6) Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low-Income Housing Mortgages). (7) Pay for the acquisition of property owned by the PJ, except for property acquired by the PJ with HOME-ARP NCS funds, or property acquired in anticipation of carrying out a HOME-ARP NCS project. (8) Pay delinquent taxes, fees, or charges on properties to be assisted with HOME-ARP NCS funds. (9) Pay for any cost that is not eligible under CPD Notice 21-10. Affordability Requirements HUD provides the following maximum HOME-ARP rent limits. The maximum HOME-ARP rents are the lesser of: (1) The fair market rent for existing housing for comparable units in the area as established by HUD; or (2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME-ARP rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. In rental projects with five (5) or more HOME-ARP assisted rental units, not less than 70 percent total HOME-ARP rental units must be restricted for occupancy by qualifying households at time of household’s initial occupancy. Not more than 30 percent of total HOME-ARP assisted rental units may be restricted for occupancy by low-income households and meet one (1) of following rent requirements: (1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits, which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). (2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the EXHIBIT 1 CITY OF SANTA ANA maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program. (3) To ensure that HOME-ARP investments yield affordable housing over the long term, HOME- ARP imposes rent and occupancy requirements over the length of an affordability period. HOME-ARP Period of Affordability A minimum compliance period of fifteen (15) years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed. Throughout the affordability period, income-eligible households must occupy the HOME-ARP assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME-ARP rent. Other Requirements Minimum Loan: All HOME-ARP investments must total not less than $1,000 multiplied by the number of HOME-ARP assisted units in the project. Maximum Loan: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. One-hundred percent of the eligible and reasonable HOME-ARP costs allocated to a HOME- ARP unit, including operating costs assistance associated with the units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c) (1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME-ARP funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME-ARP funds are used for construction or non-construction costs. Lead-based Paint: Housing assisted with HOME-ARP funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. For more information, please see CPD Notice 21-10. EXHIBIT 1 CITY OF SANTA ANA D. LOW AND MODERATE INCOME HOUSING ASSET FUND (HOUSING SUCCESSOR AGENCY FUND) The Housing Authority of the City of Santa Ana acts as the Housing Successor Agency for the former Redevelopment Agency of the City of Santa Ana. The Housing Authority administers housing assets and associated responsibilities transferred by the former Redevelopment Agency of the City of Santa Ana. Source of Funds Funding sources for this program are generated from proceeds from the sale of former Redevelopment Agency housing assets, residual receipts from former Redevelopment Agency assets (i.e. loans), as well as a portion of the loan repayments from the former Redevelopment Agency to the City. Sources are set aside for the purpose of increasing, improving and preserving the community’s supply of low and moderate income housing as stipulated by California Health and Safety Code Section 34176. This fund includes land assets owned by the Housing Authority acting as the Housing Successor Agency that must be developed for affordable housing or sold at or above fair market value to increase the Low and Moderate Income Housing Asset Fund. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects All new construction projects shall be affordable to households whose income, as adjusted for household size, does not exceed 80% of area median income. Eligible acquisition and/or rehabilitation projects will: (1) Have four (4) or more apartments or be congregate housing or mobile home units, except where the Housing Division Manager finds that the project will provide a substantial public benefit; (2) Be in need of rehabilitation as defined herein; (3) Be located in the City of Santa Ana; (4) Be free from significant adverse environmental conditions, except those that can be mitigated at a reasonable cost through rehabilitation; and, (5) Minimize tenant displacement. Eligible Uses and Activities Program funds can be used to make loans or grants to eligible borrowers who will provide affordable housing, principally for low- and moderate-income households. Eligible uses of deferred payment loan funds or grants include, but are not limited to, the following: EXHIBIT 1 CITY OF SANTA ANA (1) Acquisition and/or rehabilitation of eligible properties for rental and/or homeownership housing; (2) Acquisition and conversion of non-residential property to multifamily rental and/or homeownership housing units; and (3) New construction of housing units for rental and/or homeownership housing. Affordability Requirements As required by State law, all projects shall be targeted to households earning 80% or less of the area median income, based on the State of California Housing and Community Development income and rent limits. State law also requires that at least thirty percent (30%) shall be expended for rental housing affordable to and occupied by “low-income” households does not exceed thirty percent (30%) of the area median income and no more than twenty percent (20%) affordable to and occupied by households between 60% of the area median income and 80% of the area median income. Units are considered affordable when the rent, less a deduction for a utility allowance, for a “very low- income” household does not exceed thirty percent (30%) of 50% of the area median income; for a “low-income” household does not exceed thirty percent (30%) of 60% of the area median income. Very low-income households are households whose incomes do not exceed 50% of the area median income. Low-income households are households whose incomes do not exceed 80% of the area median income. The area median income as referenced above is the Orange County area median income figure, adjusted for household size, as published by the California Department of Housing and Community Development (HCD) from time to time. Security The loan or grant shall be secured by a Deed of Trust and Promissory Note which may be subordinated to deeds of trust securing other Federal, State, or City loans, or loans from conventional financing institutions used in conjunction with the Low and Moderate Income Housing Asset Fund loan on the same property. The City must obtain written commitments to protect the City’s investment in the event of a default. The City must review all requests for subordination, and may approve or deny at the City’s sole discretion. The loan or grant shall be further secured by recorded Affordability Covenants and Restrictions, running with the land, to assure that Program funds are used to provide long-term affordable rental or ownership housing opportunities for low- and moderate-income households. The Borrower and the City shall execute and record Affordability Covenants and Restrictions regulating project rents/sales, tenant selection procedures, use of project income, management and maintenance, transfer of property, and permitted forms of ownership and use, including a prohibition on conversion of the project to condominium or stock cooperative ownership for the term of the recorded Affordability Covenants and Restrictions. The recorded Affordability Covenants and Restrictions shall provide for the longest feasible time. Notwithstanding the above, the Affordability Covenants and Restrictions would in no event, be shorter than any other term of a Regulatory Agreement or Covenant recorded concurrently with the City’s Covenants and Restrictions. The Affordability Covenants and Restrictions shall be recorded with the Deed of Trust. In some circumstances, these Affordability Covenants and Restrictions may be subordinated by the City, pursuant to Section 33334.14 of California Health and Safety Code, to liens, encumbrances, or EXHIBIT 1 CITY OF SANTA ANA regulatory agreements of other federal or state agencies or lenders providing financing for the project, subject to assurances by senior lenders that the City’s lien rights will be protected. For more information, please see California Health and Safety Code and applicable regulations set forth in Section 34176. EXHIBIT 1 CITY OF SANTA ANA [BUYER TO INSERT PDF COPY OF ATTACHMENT BEFORE RELEASING RFP] FOR PROPOSERS’ REFERENCE ONLY EXHIBIT II SAMPLE PRE-LOAN COMMITMENT EXHIBIT 1 CITY OF SANTA ANA The selected Proposer shall provide the required evidence of insurance coverage prior to undertaking performance of any work authorized under the pre-loan commitment. Contractor must maintain, for the duration of the pre-loan commitment, insurance coverages as required by the City. Certificate Holder must be addressed as follows: City of Santa Ana Risk Management Division 20 Civic Center Plaza Santa Ana, CA 92702 Additionally, Contractor shall provide insurance coverage that is at least as broad as:  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. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.  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 for bodily injury or disease. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions: (1) Additional Insured Status The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). (2) Primary Coverage For any claims related to this contract, the Contractor’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, EXHIBIT III INSURANCE REQUIREMENTS EXHIBIT 1 CITY OF SANTA ANA employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. (3) Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the Entity. (4) Waiver of Subrogation Contractor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Contractor may acquire against the Entity by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer. (5) Self-Insured Retentions Self-insured retentions must be declared to and approved by the Entity. The Entity may require the Contractor 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. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or Entity. (6) Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity. (7) Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage: a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. 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, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. (8) Verification of Coverage Contractor shall furnish the Entity 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 to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all EXHIBIT 1 CITY OF SANTA ANA required insurance policies, including endorsements required by these specifications, at any time. (9) Subcontractors Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors. (10) Special Risks or Circumstances Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. FOR PROPOSERS’ REFERENCE ONLY EXHIBIT 1 CITY OF SANTA ANA a. 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 (3) 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. EXHIBIT IV FEDERAL REGULATIONS EXHIBIT 1 CITY OF SANTA ANA 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. l. 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. EXHIBIT 1 CITY OF SANTA ANA 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). EXHIBIT 1 CITY OF SANTA ANA (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. EXHIBIT 1 CITY OF SANTA ANA (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 EXHIBIT 1 CITY OF SANTA ANA [BUYER TO INSERT PDF COPY OF ATTACHMENT BEFORE RELEASING RFP] EXHIBIT V COMMUNITY WORKFORCE AGREEMENT (CWA) EXHIBIT 1 CITY OF SANTA ANA Information regarding the City’s Early Outreach Community Meeting requirement can be accessed here: https://www.santa-ana.org/sunshine-ordinance-guide-to-community-meetings/ FOR PROPOSERS’ REFERENCE ONLY EXHIBIT VI EARLY COMMUNITY OUTREACH MEETING EXHIBIT 1 CITY OF SANTA ANA PREFACE The primary purpose of these standards is to address the quality of workmanship and materials expected, and to achieve consistency throughout the program activities administered by the City of Santa Ana. These standards are not intended to reduce or exclude the requirements of any federal, state or local codes, standards, ordinances and regulations that apply to residential rehabilitation. WORKMANSHIP  All work shall be performed in a professional and workmanlike manner.  The quality and durability of the work shall meet or exceed the standards established by the construction industry and various trades. MATERIALS & EQUIPMENT  All materials and equipment shall comply with and be installed in accordance with the manufacturer’s requirements and all applicable codes, standards, ordinances and regulations. If a discrepancy occurs between the requirements, the more stringent shall prevail.  Unless otherwise specified, all materials and equipment shall be medium grade.  Economy grade materials and equipment are unacceptable.  All materials and equipment shall be new, in excellent condition, and delivered to the job in the manufacturer’s original packaging.  The description of materials and equipment found in this document establish a minimum standard. ENERGY EFFICIENCY, WATER CONSERVATION & RECYCLED MATERIALS To the extent possible and practical, standard measures related to energy conservation, energy efficiency, water conservation and the use of recycled materials have been incorporated herein. Gut rehabilitation or new construction of residential buildings up to three (3) stories will be designed to meet the standard for Energy Star Qualified New Homes. Gut rehabilitation or new construction of mid or high-rise multi-family housing must be designed to meet the American Society of heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2004, Appendix G plus 20 percent. LEAD-BASED PAINT All housing built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards. HUD’s guidelines are available through HUD Exchange and HUD’s Office of Lead Hazard Control and Healthy Homes: https://www.hud.gov/contactus/lead-based-paint-guidelines BUILDING STANDARDS SITE Minimum Standard  The site shall be hazard-free and sanitary.  The site and all paving shall drain away from the dwelling and accessory buildings, but not onto adjacent properties.  Paving and walkways shall be hazard-free and intact.  Landscaping and irrigation systems shall be hazard-free and in relatively good condition. All dead vegetation shall be removed. EXHIBIT VII CITY OF SANTA ANA REHABILITATION STANDARDS EXHIBIT 1 CITY OF SANTA ANA  Fencing, walls and gates hazard-free and intact. All gates shall be in good working order.  The site shall be free from trash, debris and hazardous materials.  Accessory buildings shall be safe and sound. Paving  All new paving and walkways shall be constructed with concrete (2,000 PSI @ 28 days).  Driveways shall be reinforced with wire mesh. Sawn expansion- contraction joints shall be placed every 8 feet in both directions.  All paving and walkways shall be finished with a light broom texture.  All walkways shall be at least 3 feet wide. Sawn expansion-contraction joints shall be placed every 4 feet. Landscaping & Irrigation  To the extent possible and practical all new landscaping shall be drought resistant.  When a lawn is being replaced, the new lawn area shall be reduced to aid in the reduction of water consumption.  New irrigation controllers shall be weather or sensor based and EPA Water-Sense qualified.  All new irrigation systems shall be designed to conserve water. Fences, Walls & Gates  All new wood fences shall be made from good quality materials. They shall be properly supported with 4X4 pressure treated posts (8 feet O.C.) and 2X4 rails (top and bottom). The posts shall be embedded in a concrete footing at least 18” deep.  All new block walls shall be constructed with 6X8X16 concrete block. They shall be properly supported by a continuous footing and reinforced with steel bar. ROOFS / ROOF COVERINGS / GUTTERS AND DOWNSPOUTS Minimum Standard  Roofs shall be safe and structurally sound.  Roof coverings shall be intact and watertight.  Roofing metal and flashing shall be intact and rust free.  Gutters and downspouts shall be intact and rust free.  Roof coverings with five (5) or less years of useful life shall be replaced. Rehabilitation  Roofs that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  The replacement of roofing includes the replacement of all metal (roof jacks and flashing).  Gutters and downspouts shall be installed to properly discharge rain water run-off. Roof Coverings  25-year, 3-tab, self-sealing composition shingle. Built-up membrane (hot mop) system on all flat roofs.  Lighter colored coverings are preferred for energy efficiency. DECKS / BALCONIES / RAILING Minimum Standard  Safe, structurally sound and watertight. Rehabilitation  Decks, balconies and railings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are EXHIBIT 1 CITY OF SANTA ANA acceptable as long as compliance with the minimum standard will be achieved. Finishes  Zero or low VOC primers, paint and coatings. EXT. STEPS / STAIRWAYS / RAILING Minimum Standard  Safe and structurally sound. Rehabilitation  Ext. steps, stairways and railings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Finishes  Zero or low VOC primers, paint and coatings. FOUNDATIONS Minimum Standard  Safe and structurally sound. Rehabilitation  Foundations that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  If the project involves a gut rehab, raised foundations shall be completely insulated. Concrete  2,000 PSI (minimum). EXTERIOR WALLS / WALL COVERINGS Minimum Standard  Safe, structurally sound and watertight. Rehabilitation  Exterior walls that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  If the project involves a gut rehab, all exterior walls shall be insulated. EXTERIOR DOORS Minimum Standard  Safe, sound, weather-tight and in good working order. Rehabilitation  Exterior doors that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. New Doors  EPA Energy Star qualified, zero or low VOC finish. New Hardware  Reputable manufacturer, lifetime finish. GARAGE DOORS / GARAGE DOOR OPENERS Minimum Standard  Safe, sound and in good working order. Doors shall be impermeable (primed and painted).  Five (5) or more years of practical utility. Rehabilitation  Garage doors and openers that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. WINDOWS / WINDOW SCREENS Minimum Standard  Windows shall be safe, sound, weather-tight and in good working order.  Windows that can be opened shall have a tight-fitting insect screen. EXHIBIT 1 CITY OF SANTA ANA  Five (5) or more years of practical utility. Rehabilitation  Windows that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. New Windows  Reputable manufacturer.  EPA Energy Star qualified. EXTERIOR PAINT Minimum Standard  Homes built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards.  All exterior paint shall be intact and free of corrosion.  Five (5) or more years of practical utility. Rehabilitation  All surfaces to be painted shall be prepared properly. All loose material and peeling paint shall be removed.  All holes and cracks shall be filled and finished so that they blend into the surrounding area.  All stucco surfaces to be painted shall receive a complete and even coverage of stucco paint.  All wood surfaces to be painted shall receive a complete and even coverage of flat exterior paint.  Poor workmanship will not be tolerated. New Paint  Reputable manufacturer.  Highest quality available.  Zero or low VOC paint, caulking and fillers. WALLS / WALL COVERINGS Minimum Standard  Safe and structurally sound.  All plaster, drywall and paneling shall be safe and intact. Rehabilitation  Walls and wall coverings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as in compliance with the minimum standard will be achieved.  If the project involves a gut rehab, the attic, walls and floor on raised foundations shall be insulated. FLOORS / FLOOR COVERINGS Minimum Standard  Safe, sound and sanitary.  Five (5) or more years of practical utility. Rehabilitation  Floor coverings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Floor Coverings  Carpet & Pad (Reputable manufacturer, recycled materials).  Resilient Flooring (Reputable manufacturer, 10 year wear warranty).  Ceramic Tile (Reputable manufacturer) INTERIOR DOORS Minimum Standard  Safe, sound and in good working order.  Five (5) or more years of practical utility. EXHIBIT 1 CITY OF SANTA ANA Rehabilitation  Interior doors that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Doors & Hardware  Doors (Reputable manufacturer, masonite, raised panel).  Hardware (Reputable manufacturer, lifetime finish). INTERIOR PAINT Minimum Standard  Homes built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards.  All interior paint shall be intact and corrosion-free.  Five (5) or more years of practical utility. Rehabilitation  All surfaces to be painted shall be prepared properly. All loose material and peeling paint shall be removed.  All holes and cracks shall be filled and finished so that they blend into the surrounding area.  All surfaces to be painted shall receive a complete and even coverage of flat paint (semi-gloss in kitchens, bathrooms and laundry rooms).  Poor workmanship will not be tolerated. New Paint  Reputable manufacturer.  Highest quality available.  Zero or low VOC paint, caulking and fillers. KITCHEN CABINETS / COUNTERTOPS Minimum Standard  Cabinets shall be safe, sound, sanitary and in good working order.  Countertops shall be safe, sound, sanitary and watertight.  Five (5) or more years of practical utility. Rehabilitation  Cabinets and countertops that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Cabinets  Reputable manufacturer.  Solid hardwood face-frames, doorframes and drawer fronts.  Metal and nylon drawer guides.  Low or zero VOC adhesives and finishes. Replacement Countertops  Reputable manufacturer.  4” ceramic tile, 6” backsplash, bull-nose edge. KITCHEN EQUIPMENT AND APPLIANCES Minimum Standard  Safe, sound, sanitary and in good working order.  Faucets shall (at a minimum) be equipped with a low-flow aerator.  Five (5) or more years of practical utility. Rehabilitation  Kitchen fixtures, equipment and appliances that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Sinks  Reputable manufacturer.  18-guage (minimum) stainless steel. Replacement Faucets  EPA Water-Sense qualified.  Reputable manufacturer. EXHIBIT 1 CITY OF SANTA ANA  Brass construction, metal housing. Replacement Disposals  Reputable manufacturer.  ½ HP motor (minimum).  Stainless steel swivel lugs. Replacement Dishwashers  EPA Energy Star qualified.  Reputable manufacturer. Replacement Range Hoods  EPA Energy Star qualified.  Reputable manufacturer. Replacement Ranges  Reputable manufacturer.  Pilot-free ignition.  Four (4) sealed burners.  Self-cleaning oven with timer. Replacement Cook Tops  Reputable manufacturer.  Pilot-free ignition.  Four (4) sealed burners. Wall Ovens  Reputable manufacturer.  Pilot-free ignition.  Self-cleaning oven with timer. BATHROOM FIXTURES AND EQUIPMENT Minimum Standard  Safe, sound, sanitary and in good working order.  Faucets shall (at a minimum) be equipped with a low-flow aerator.  Showerheads shall (at a minimum) be equipped with low-flow aerator.  Porcelain sinks shall be free from any cracks or chips.  Steel sinks shall be free from any rust or corrosion.  Five (5) or more years of practical utility. Rehabilitation  Bathroom fixtures and equipment that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Toilets that require more than 1.6 GPF shall be replaced regardless of their condition. Replacement Sinks  Reputable manufacturer.  Cast iron, white enamel finish. Replacement Faucets  EPA Water-Sense qualified.  Reputable manufacturer.  Brass construction, metal housing. Replacement Toilets  Reputable manufacturer.  EPA Water-Sense qualified (1.28 GPF) Replacement Tubs  Reputable manufacturer.  Cast iron body, white enamel finish, slip resistant bottom.  EPA Water-Sense qualified plumbing fixtures. Replacement Combination Tub-Showers  Reputable manufacturer.  Cast iron body, white enamel finish, slip resistant bottom.  4” ceramic tile surround.  Anodized aluminum doors with tempered glass. EXHIBIT 1 CITY OF SANTA ANA  EPA Water-Sense qualified plumbing fixtures. Replacement Showers  Reputable manufacturer.  4” ceramic tile.  Anodized aluminum door with tempered glass.  EPA Water-Sense qualified plumbing fixtures. Replacement Medicine Cabinets  Reputable manufacturer.  Steel body, beveled mirror door. Towel Bars & Toilet Paper Holders  Reputable manufacturer.  Metal construction, polished chrome finish. WATER SUPPLY / WASTE AND VENT PIPING Minimum Standard  Safe, sound and leak-free. Rehabilitation  Piping (supply, waste and vent) that does not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Water Supply Piping  Copper, type “L”. Replacement Waste & Vent Piping  Schedule 40 ABS. WATER HEATERS Minimum Standard  Safe, sound and in good working order.  Five (5) or more years of practical utility. Rehabilitation  Water heaters that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Water Heaters (Tank)  Reputable manufacturer.  EPA Energy Star qualified.  40-gallon insulated tank. Replacement Water Heater (Tank-Less)  Reputable manufacturer.  EPA Energy Star qualified. ELECTRICAL SERVICE / WIRING Minimum Standard  Safe, sound and in good working order.  100-ampere minimum service. Rehabilitation  Electrical service panels, breakers and wiring that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Knob and tube wiring shall be replaced regardless of its condition.  Overhead wiring from a dwelling to a detached garage or accessory building shall be installed underground regardless of its condition. Replacement Service  Reputable manufacturer.  100-ampere (minimum). Replacement Wiring  Romex (NM cable). EXHIBIT 1 CITY OF SANTA ANA ELECTRICAL SWITCHES / OUTLETS / LIGHTING FIXTURES Minimum Standard  Safe, sound and in good working order.  Light fixtures shall (at a minimum) be equipped with CFL bulbs.  Exterior lighting fixtures used for security shall be equipped with a motion sensor. Rehabilitation  Electrical switches, outlets and lighting fixtures that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  All new light fixtures shall be U.L. approved and Energy Star qualified.  Outlets located within 6 feet of a source of water shall be ground fault protected.  Exterior switches and outlets shall be weatherproof. Replacement Switches & Outlets  U.L. approved. Replacement Lighting Fixtures  Reputable manufacturer.  U.L. approved and EPA Energy Star qualified. HVAC Minimum Standard  Safe, sound and in good working order.  Five (5) or more years of practical utility. Rehabilitation  HVAC that does not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Tune-up all HVAC equipment (as a minimum).  Seal all ducts (as a minimum).  All new HVAC equipment shall be sized properly. Furnaces  Reputable manufacturer.  EPA Energy Star qualified. Central Air Conditioners  Reputable manufacturer.  EPA Energy Star qualified. Thermostats  Reputable manufacturer.  EPA Energy Star qualified.  Programmable. NON-PERMITTED ADDITIONS AND CONVERSIONS Minimum Standard  Additions and alterations that were constructed without a building permit and are clearly substandard shall be removed.  Garages converted to living quarters shall be returned to their original use.  Additions and alterations that were constructed without a building permit, but appear to be compliant, shall be inspected by the City’s Building Official to determine if a building permit can be issued and they can be saved. FOR PROPOSERS’ REFERENCE ONLY EXHIBIT 1 CITY OF SANTA ANA __________________________________________________________________________________ LEGAL NAME OF COMPANY PHONE NUMBER __________________________________________________________________________________ BUSINESS ADDRESS __________________________________________________________________________________PRINTED NAME OF AUTHORIZED AGENT TITLE __________________________________________________________________________________ SIGNATURE OF AUTHORIZED AGENT DATE E-MAIL ADDRESS __________________________________________________________________________________ CITY OF SANTA ANA BUSINESS LICENSE NUMBER (PLEASE PROVIDE IF AVAILABLE, BUT NOT REQUIRED UNTIL AND IF AN AWARD IS MADE TO PROPOSER.) SMALL, LOCAL BUSINESS PREFERENCE Is your firm claiming small, local business preference for this soliciation?  Yes, my firm is a small Santa Ana business*  Yes, my firm is a small Orange County business**  No, my firm is not claiming local business preference *Small Santa Ana business shall mean a business certified by the state department of general services as a small business, which has a substantial presence through either a headquarters or branch office within the geographical boundaries of the city, and which headquarters or branch office was established prior to the city inviting bids for the respective procurement. **Small Orange County business shall mean a business certified by the state department of general services as a small business, which has a substantial presence through either a headquarters or branch office within the geographical boundaries of Orange County, and which headquarters or branch office was established prior to the city inviting bids for the respective procurement. IF YOU ANSWERED YES, THEN YOU MUST SUBMIT YOUR BUSINESS LICENSE AND CA DEPARTMENT OF GENERAL SERVICES SMALL BUSINESS CERTIFICATION WITH YOUR PROPOSAL. A post office box address within the city shall not qualify as a valid business location. THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. ATTACHMENT A PROPOSER’S CERTIFICATION EXHIBIT 1 CITY OF SANTA ANA 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 her 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. 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 STATEMENTS: I have read, understood and agree to the terms and conditions on all pages of the Request for Proposals, including all Exhibits. I am able to provide the required insurance coverage and endorsements. Upon request, I will transfer and deliver goods or services to the City in accordance with said terms and conditions. CHECK ONE (1) BOX BELOW  I have read, understood and agree to any and all provisions, including but not limited to insurance requirements and terms and conditions, contained in Exhitbit 2 – Sample Agreement and Exhibit  I have concerns to the provisions contained in Exhibit 2 – Sample Agreement and have included them in my proposal submission for consideration. Signed: ___________________________ Date: ____________________________ Firm: ___________________________ Title: ____________________________ THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. EXHIBIT 1 CITY OF SANTA ANA Consultant 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. The respondent grants permission for the City to contact any individuals listed as references for additional information regarding your firm's qualifications. 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. 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. REFERENCE Customer Name:_________________________Contact Individual: ____________________________ Address: ________________________________Phone Number: _______________________________ Email: ____________________________________ Contract Amount: ________________________Year: ______________________________________ Description of supplies, equipment, or services provided: __________________________________________________________________________________ REFERENCE Customer Name:_________________________Contact Individual: ____________________________ Address: ________________________________Phone Number: _______________________________ Email: ____________________________________ Contract Amount: ________________________Year: ______________________________________ Description of supplies, equipment, or services provided: __________________________________________________________________________________ ATTACHMENT B REFERENCES EXHIBIT 1 CITY OF SANTA ANA REFERENCE Customer Name:_________________________Contact Individual: ____________________________ Address: ________________________________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. EXHIBIT 1 CITY OF SANTA ANA 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 2CFR 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. _____________________________________________________________ Signature _____________________________________________________________ Name and Title of Official Authorized to Certify On Behalf of Vendor _____________________________________________________________ Date THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. ATTACHMENT C CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY, AND VOLUNTARY EXCLUSION EXHIBIT 1 CITY OF SANTA ANA (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. ATTACHMENT D NON-COLLUSION AFFIDAVIT EXHIBIT 1 CITY OF SANTA ANA 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 propos al 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. ATTACHMENT E NON-LOBBYING CERTIFICATION EXHIBIT 1 CITY OF SANTA ANA The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows: 1. 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. 6. 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. 7. 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 ATTACHMENT F NON-DISCRIMINATION CERTIFICATION EXHIBIT 1 CITY OF SANTA ANA 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. EXHIBIT 1 CITY OF SANTA ANA 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. ATTACHMENT G SAM.GOV UEI VERIFICATION EXHIBIT 1 CITY OF SANTA ANA This is to certify that the undersigned Proposer and subconsultants have read and undertand the CWA entered into by and between the City of Santa Ana, Los Angeles/Orange Counties Building and Construction Trades Council, and the signatory Craft Councils and Local Unions, effective as of June 6, 2023. The Undersigned Proposer hereby agrees to comply with all terms and conditions of the CWA, and are capable of completing construction of the project continuously, without interruptions or delays. If awarded any work covered by the CWA, Proposer will also be required to sign a Letter of Assent that appears as Attachment A to the CWA documents. 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. ATTACHMENT H STATEMENT REGARDING COMMUNITY WORKFORCE AGREEMENT REQUIREMENTS EXHIBIT 1 CITY OF SANTA ANA HOUSING ELEMENT GOALS AND POLICIES 2021–2029 HOUSING ELEMENT I. GOAL 1 – HOUSING AND NEIGHBORHOODS Goal 1 Livable and affordable neighborhoods with healthy and safe housing conditions, community services, well-maintained infrastructure, and public facilities that inspire neighborhood pride and ownership. Policies HE-1.1 – Housing Conditions Support the rehabilitation, repair, and improvement of single-family, multiple-family, and mobile homes. HE-1.6 – Proactive Code Enforcement Enforce building and property maintenance standards b y proactively conducting property inspections, educating landlords and tenants, and removing blighted, unhealthy, or dangerous housing conditions while ensuring low-income residents are not criminalized. II. GOAL 2 – HOUSING SUPPLY AND DIVERSITY Goal 2 Foster an inclusive community with a diversity of quality housing, affordability levels, and living experiences that accommodate Santa Ana’s residents and workforce of all household types, income levels, and age groups. Policies HE-2.4 – Rental Housing Facilitate the construction of rental housing for Santa Ana’s residents and workforce, with a commitment to provide rental housing for extremely low-, very low-, and low- income residents as well as moderate-income Santa Ana workers. HE-2.5 – Diverse Housing Types Facilitate diverse types, prices, and sizes of housing, including single -family homes, apartments, townhomes, duplexes, mixed/multiuse housing, transit -oriented housing, multigenerational housing, accessory dwelling units, and live-work opportunities. HE-2.7 – Affordable Component Pursuant to the Affordable Housing Opportunity and Creation Ordinance (AHOCO), require eligible rental and ownership housing projects to include at least 15 percent of EXHIBIT 2 the rental housing units as affordable for low-income households; or 10 percent of the rental units affordable to very low-income households; or 5 percent of rental units affordable to lower income households (5 percent to low-income, 3 percent to very low- income, and 2 percent to extremely low-income households); or at least 5 percent of the units in eligible ownership projects affordable to moderate-income households. Implement various strategies using the in-lieu fees generated by AHOCO to provide a wide array of affordable housing options. III. GOAL 3 – HOUSING ASSISTANCE Goal 3 Increase opportunities for extremely low-, very low-, low-, and moderate-income individuals and families to find affordable housing, and afford a greater choice of re ntal and homeownership opportunities. Policies HE-3.2 – Homeownership Expand homeownership opportunities for low- and moderate-income residents and workers in Santa Ana through the provision of financial assistance, education, and collaborative partnerships. HE-3.3 – Housing Preservation Initiate and support collaborative partnerships with nonprofit organizations with a mission to provide affordable housing, identify state and federal funding, subordinate existing loans, and offer technical assistance to preserve the low and moderate affordability of publicly subsidized affordable housing at risk of conversion. HE-3.5 – Collaborative Partnerships Collaborate with nonprofit organizations, community land trusts, developers, and other government agencies to develop and provide affordable housing for residents. HE-3.7 – Workforce Housing Explore opportunities for creating workforce housing, including for teachers, artists, and other residents working in Santa Ana. IV. GOAL 4 – SPECIAL NEEDS HOUSING Goal 4 Provide sufficient rental and ownership housing opportunities and supportive services for seniors, people with disabilities, families with children, and people experiencing homelessness. Policies HE-4.1 – Senior Housing Support development of affordable senior rental and ownership housing, readily EXHIBIT 2 accessible to support services; provide assistance for seniors to maintain and repair their homes to facilitate the maximum independent living. HE-4.2 – Family Housing Facilitate and encourage the development of larger rental and ownership units for large families, including extremely low-, very low-, and low-income families as well as the provision of childcare, after-school care, and other services on-site when feasible. HE-4.3 – Housing for Disabled People Support the development of permanent, affordable, and accessible housing that allows people with disabilities to live independent lives, and assist them in maintaining and repairing their homes. HE-4.4 – Service-Enriched Housing Support the provision of supportive services and service-enriched housing for persons with special needs, such as seniors, disabled people, homeless people, families, veterans, and people with medical conditions. HE-4.5 – Healthy Homes Support efforts to make homes healthier by addressing health hazards associated with lead-based paint and soil, asbestos, vermin, mold, and VOC-laden materials, and prohibiting smoking in multifamily projects, among others. V. GOAL 5 – AFFIRMATIVELY FURTHERING FAIR HOUSING Goal 5 Affirm, promote, and implement social justice and equity in the provision, type, and affordability of housing and the availability of services for all residents. Policies HE-5.1 – Housing Opportunities Ensure housing opportunities are available to all without regard to race, color, ancestry, national origin, religion, marital status, familial status, age, gender, gender identity, disability, source of income, sexual orientation, military status, immigration status, or other arbitrary factors. HE-5.5 – Community Development Continue to administer municipal programs and activities relating to housing and community development in a manner that is consistent with the obligation to affirmatively further fair housing. HE-5.6 – Preserve Housing Seek to preserve housing opportunities for all residents through actions aimed at limiting displacement, preserving affordable housing, and expanding housing opportunities. EXHIBIT 2