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Community Development Agency <br />santa-ana.org/community-development <br />Item # 21 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />February 7, 2023 <br />TOPIC: Amendment to FY 21-22 Agreement with Habitat for Humanity for Residential <br />Rehabilitation Grant Program <br />AGENDA TITLE: <br />Approve a First Amendment to the FY 21-22 Agreement with Habitat for Humanity to <br />Administer the Residential Rehabilitation Grant Program (Non-General Fund) <br />RECOMMENDED ACTION <br />Approve a First Amendment to the FY 21-22 Agreement with Habitat for Humanity of <br />Orange County for the administration of the Residential Rehabilitation Grant Program to <br />increase it by $11,000 for a new total agreement amount of $556,532, subject to non- <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On July 6, 2021, the City Council approved an agreement with Habitat for Humanity of <br />Orange County (Habitat) to administer the City’s Residential Rehabilitation Grant <br />Program from July 6, 2021 through June 30, 2022, in an amount not to exceed <br />$545,532 in Community Development Block Grant (CDBG) funds (Exhibit 1). The <br />Residential Rehabilitation Grant Program improves and preserves the City’s housing <br />stock by providing grants of up to $25,000 to eligible homeowners who are low-income <br />and earn less than 80% of the Area Median Income as defined by the U.S. Department <br />of Housing and Urban Development (HUD). <br />The program utilizes CDBG funds to provide eligible households with grants to address <br />municipal code violations, undertake vital repairs, and replace and/or install major <br />systems of the home. After approving a homeowner’s application, the City will provide a <br />grant of up to $25,000 to pay for the required rehabilitation work on their home. <br />Properties eligible for the program must be owner-occupied and all rehabilitation work is <br />performed by Habitat and/or their sub-contractors. After an initial inspection by a City <br />Code Enforcement Officer, Habitat will be provided the final Scope of Work (including <br />City inspector’s notes and specifications), for which a final work write-up will be created <br />in coordination with the homeowner. Program participants are selected on a first-come, <br />first-served basis. <br />The City follows the requirements under 24 CFR Part 35.930(b), of the “HUD Lead Safe <br />Housing Rule,” for rehabilitation work not exceeding $15,000 for eligible home repair