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 24 In rental projects with five or more HOME-ARP assisted rental units, not less than seventy (70) percent total HOME-ARP rental units must be restricted for occupancy by qualifying households at time of household’s initial occupancy. Not more than thirty (30) percent of total HOME-ARP assisted rental units may be restricted for occupancy by low-income households and meet one of following rent requirements: 1) The rent does not exceed thirty (30) percent of the annual income of a family whose income equals fifty (50) percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits, which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). 2) The rent does not exceed thirty (30) percent of the family's adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than thirty (30) percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project- based rental subsidy program. 3) To ensure that HOME-ARP investments yield affordable housing over the long term, HOME-ARP imposes rent and occupancy requirements over the length of an affordability period. HOME-ARP Period of Affordability A minimum compliance period of fifteen (15) years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed. Throughout the affordability period, income-eligible households must occupy the HOME-ARP assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME-ARP rent. Other Requirements Minimum Loan: All HOME-ARP investments must total not less than $1,000 multiplied by the number of HOME- ARP assisted units in the project. Maximum Loan: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. One-hundred (100) percent of the eligible and reasonable HOME-ARP costs allocated to a HOME-ARP unit, including operating costs assistance associated with the units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c) (1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME-ARP funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor EXHIBIT 1