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Copy of City of Santa Ana Community <br />Development Block Grant FY 2022- 2024 (Nonprofit Application) 4 <br />calendar months. Services that were originally funded as a new or increased level of service are <br />eligible for continued funding. <br />Eligible costs include labor, materials, supplies, some operating and maintenance costs for the <br />portion of the facility in which the public service is located, and equipment neces sary for the <br />provision of the public service. <br />Ineligible costs include income payments, assistance for buildings used for the general conduct <br />of government, general local government expenses, political and religious activities, and the <br />purchase of equipment except equipment that constitutes all or part of a public service. Income <br />payments are payments made to an individual or family to provide basic levels of food, shelter, <br />or clothing but do not include emergency grant payments referenced above under elig ible <br />activities. <br />National Objective Requirement <br />The proposed program must meet the National Objective of activities that provide a benefit to <br />low- and moderate-income persons. At a minimum, the program must serve 51% low- and <br />moderate- income persons. Low- and moderate-income is defined as having an income equal <br />to or less than 80 percent of the area median income, adjusted for household size. The specific <br />household income limits are based on U.S. Census Bureau estimates, updated and issued by <br />HUD annually http://www.huduser.org/portal/datasets/il.html. In general, to document <br />compliance with the national objective requirement, funded programs will require the <br />collection, calculation, and documentation of the participants’ family size and income. <br />Limited Clientele activity: This is the category most often used for public service activities. <br />Limited clientele activities are activities limited to a specific group of persons. At least 51 <br />percent of those served must be low- and moderate-income persons. Services qualifying under <br />this category serve a specific clientele, rather than providing service to all persons in a <br />geographic area. Limited clientele activities may qualify as either a presumed benefit activity or <br />a direct benefit activity. A presumed benefit activity is one that exclusively serves a specific <br />group of people that HUD categorically considers low and moderate-income persons. These <br />categories include: abused children, battered spouses, elderly persons, homeless persons, <br />illiterate adults, persons living with AIDS, migrant farm workers, and severely disabled adults <br />as defined by the Bureau of Census. The project sponsor must document that the activity is <br />designed to be used exclusively by a category of persons presumed by HUD to be low- and <br />moderate-income. <br />If the clientele served does not fall under one of the presumed benefit category of persons, it <br />may qualify as a direct benefit activity which serves low- and moderate-income persons. The <br />project sponsor must verify and maintain documentation regarding the family size and income <br />of each person served. At least 51 percent of the clientele served must be low - and moderate- <br />income persons or the activity funded must be limited exclusively to low- and moderate-income <br />persons. The nature and location of the activity may also support a conclusion that primarily <br />low- and moderate-income persons are served. To qualify under this definition, the service <br />provided must be both of such nature and in such location that it may reasonably be concluded <br />EXHIBIT 1