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INSURANCE ON FILE <br />`NORK MAY PROCEED <br />o UNIIL INSURANCE EXPIRES <br />n LUIV- - <br />'� CLERK OF COUNCIL <br />DATE: <br />A-2021-107-01 <br />rO <br />AGREEMENT BETWEEN THE CITY OF SANTA ANA AND <br />LUTHERAN SOCIAL SERVICES OF SOUTHERN CALIFORNIA FOR USE OF <br />THE SECOND ALLOCATION OF <br />EMERGENCY RENTAL ASSISTANCE PROGRAM (ERA2) FUNDS <br />o: COk()A; I(6. Iowl7�(5A) I <br />This Agreement is hereby made and entered into this I" day of August, 2021, by and between <br />the City of Santa Ana, a charter city and municipal corporation organized and existing under the <br />Constitution and laws of the State of California ("CITY"), and Lutheran Social Services of Southern <br />California, a California nonprofit corporation ("SUBRECIPIENT" or "CONTRACTOR"). <br />RECITALS: <br />A. On March 11, 2021, the federal American Rescue Plan Act of 2021, Pub. L. No. 117-2 was <br />signed into law and, pursuant to Title III, Subtitle B, Section 3201, included $21.55 billion <br />allocated to the United States Treasury for the Emergency Rental Assistance Program <br />("ERA2") to assist households that are unable to pay rent or utilities due to the COVID-19 <br />pandemic. The funds were provided directly to States, U.S. Territories, local governments, <br />and Indian tribes ("Grantees"). Grantees must use the ERA2 funds to provide assistance to <br />eligible households through existing or newly created rental assistance programs. Grantees <br />may use the ERA2 funds to make subawards to other entities, including non-profit <br />organizations, to administer an ERA2 on behalf of the Grantees. Grantees may also enter into <br />contracts using ERA2 payments for goods or services to implement an ERA2. Not less than <br />85 percent of awarded funds must be used for direct financial assistance, including rent, rental <br />arrears, utilities and home energy costs, utilities and home energy costs arrears, and other <br />expenses related to housing. Remaining funds are available for administrative costs. <br />B. As an eligible grantee with a population greater than 200,000 and an existing rental assistance <br />program, the CITY applied for a direct allocation of ERA2 funds from the Department of <br />Treasury and on May 10, 2021, the CITY's application was approved for a direct allocation <br />of $7,817,891.20 and a High -Need allocation of $6,208,702.70 for a total of $14,026,593.90 <br />("CITY Allocation"). As part of the CITY Allocation, the CITY executed a U.S. Department <br />of the Treasury Emergency Rental Assistance Agreement attached hereto as Exhibit H and <br />incorporated herein by reference. <br />C. On July 6, 2021, the second direct allocation of ERA2 funds ("ERA2 Funds") in the amount <br />of $14,026,593.90 was approved by the Santa Ana City Council. $11,922,604.82 of these <br />ERA2 Funds are to be allocated to the CITY's CARES for Tenants Program. The remaining <br />$2,103,989.09 (15% of the total grant) of the CITY Allocation of ERA2 Funds will be used <br />for administration of the Program by the CITY and shared proportionally with the <br />SUBRECIPIENT and other contractors. <br />D. SUBRECIPIENT has been selected by the CITY to receive ERA2 Funds in order to <br />administer the CITY's CARES for Tenants Program, in accordance with the Scope of Work <br />attached hereto as Exhibit A and incorporated herein by reference ("said program"). <br />SUBRECIPIENT represents that it is qualified and willing to operate said program and <br />certifies that the administration of said program carried out with funds provided under this <br />Agreement will meet the ERA2 objectives to respond to this historic COVID-19 public health <br />