Item 21 - Amendment to FY 21-22 Agreement with Habitat for Humanity for Residential Rehabilitation Grant Program

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Amendment to FY 21-22 Agreement with Habitat for Humanity for Residential Rehabilitation Grant Program February 7, 2023 Page 2 3 2 2 6 and $25,000 for eligible roof repair. If the home was built before 1978, the City will conduct lead-based paint (LBP) testing, and if LBP is found, Habitat will implement safe work practices during rehabilitation with a clearance examination of the worksite by the City prior to project closing. During FY 2021-22, Habitat successfully completed the rehabilitation of twenty-five (25) homes for low-income families under their agreement. The rehabilitation work varied from replacement of roofs and termite damaged wood, to pest fumigation, rehabilitation of plumbing in bathrooms and kitchens, exterior/interior paint, and installation of accessibility ramps to conform to the Americans with Disabilities Act. The City’s partnership with Habitat is effectively improving the health and safety of housing for low- income families, preserving the City’s housing stock, preventing families from displacement, and addressing lead and mold contamination. However, during their administration of the program in FY 21-22, Habitat identified several homes that had health and safety issues such as lead and mold contamination that required remediation efforts before issuing a notice of completion and closing the projects. Unfortunately, these remediation efforts exceeded the allowable cost of the agreement and resulted in an unanticipated expense of $11,000. In order to pay for these additional expenses, staff are seeking approval by the City Council to amend the FY 21-22 agreement with Habitat to add $11,000. The new total agreement amount will be $556,532 for FY 21-22. Most recently, for FY 22-23 the City entered into a new agreement with Habitat for $480,000 following approval by the City Council. However, the funds in the new FY 22- 23 Agreement cannot be used to pay for this $11,000 in unanticipated expenses incurred under the FY 21-22 agreement. FISCAL IMPACT Funding for this First Amendment to the agreement for $11,000 is available from unspent prior year CDBG funds. Funds are budgeted and available for expenditure as follows: Fiscal Year Accounting Unit - Account No.Fund Description Accounting Unit - Account No. Description Amount 2022-23 13518782-69135 Community Development Block Grant Community Development – Housing Payment to Subagent $11,000