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N co o INSURANCE NOT ON FILE A-2021-021-05 C, WORK MAY NOT PROCEED a CLERK OF COUl1 L _.DATE: AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE SALVATION ARMY FOR USE OF EMERGENCY RENTAL ASSISTANCE PROGRAM (ERAP) FUNDS This Agreement is hereby made and entered into this la day of April, 2021, by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("CITY"), and The Salvation Army, a California nonprofit corporation ("SUBRECIPIENT" or "CONTRACTOR"). RECITALS: A. On December 27, 2020, the federal Consolidated Appropriations Act of 2021, Pub. L. No. 116-260, a $900 billion COVID-19 relief bill, was signed into law and, pursuant to Section 501 of Division N, included $25 billion allocated to the United States Treasury for the Emergency Rental Assistance Program ("ERAP") to assist households that are unable to pay rent or utilities due to the COVID-19 pandemic. The funds were provided directly to States, U.S. Territories, local governments, and Indian tribes ("Grantees"). Grantees must use the ERAP funds to provide assistance to eligible households through existing or newly created rental assistance programs. Grantees may use the ERAP funds to make subawards to other entities, including non-profit organizations and local governments, to administer an ERAP on behalf of the Grantees. Grantees may also enter into contracts using ERAP payments for goods or services to implement an ERAP. Not less than 90 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Remaining funds are available for administrative costs. B. As an eligible grantee with a population greater than 200,000 and an existing rental assistance program, the CITY applied for a direct allocation of ERAP fiords from the Department of Treasury on January 12, 2021. On January 21, 2021, the CITY's application was approved and the CITY received a direct allocation of $9,880,391.30 ("CITY Allocation"). As part of the CITY Allocation, the CITY executed a U.S. Department of the Treasury Emergency Rental Assistance Agreement attached hereto as Exhibit H and incorporated herein by reference. C. On January 28, 2021, the California Legislature passed the COVID-19 Tenant Relief Act ("SB 91 "), creating a mechanism to deploy $2.6 billion in ERAP resources to assist struggling tenants and landlords impacted by the economic damage of COVID-19. The State received a direct allocation of ERAP funds from the Department of Treasury that must be designated for the CITY in the amount of $10,633,695.01 ("State Allocation"). The total amount of ERAP funds designated for the CITY is a total of $20,514,096.31. D. On February 16, 2021, the Santa Ana City Council allocated $8,892,352.27 of the CITY Allocation to the CITY's CARES for Tenants Program, an existing rental assistance program that the CITY has been administering since May 1, 2020. The remaining $988,039.03 (10% of the total grant) of the CITY Allocation will be used for administration of the Program by the CITY and shared proportionally with the SUBRECIPIENT.