Item 36 - Fiscal Year 21-22 Request for Proposals for Affordable Housing

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City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 21 V. HOME-AMERICAN RESCUE PLAN PROGRAM ( HOME-ARP) Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME-American Rescue Plan Program (HOME_ARP), and therefore is subject to the federal rules and regulations found in CPD Notice 21-10 and 24 CFR Part 92, as amended from time to time. Please review CPD Notice 21-10 if you are applying for this source of funds. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Activities 1) HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families who are experiencing homelessness (“qualifying households”). Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. The City of Santa Ana will give a preference to chronically homeless individuals. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. HOME-ARP funds may be used for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in CPD Notice 21- 10. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2. HOME-ARP funds may be used to assist one or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program. The City may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the City determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long- term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the City to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period. Please see CPD Notice 21-10 for more information on this assistance. 2) A non-congregate shelter (NCS) is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME-ARP NCS. EXHIBIT 1