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First Amendment to Emergency Rental Assistance Program Spending Plan and <br />Appropriation Adjustment of $14,026,593.90 <br />July 6, 2021 <br />Page 4 <br />1 <br />8 <br />6 <br />1 <br />This first amendment to the ERAP spending plan will successfully assist as many families <br />as possible if there are no major changes to the application requirements that would <br />require staff to redesign and relaunch a new application for our residents. This first <br />amendment will allow staff to assist all of the families who have already applied for <br />emergency rental relief and process those applications currently under review. <br />State Allocation for the City of Santa Ana <br />On January 28, 2021, the California Legislature passed the COVID-19 Tenant Relief Act <br />(SB 91), extending eviction protections through June 30, 2021 and creating a mechanism <br />to deploy $2.6 billion in Federal Emergency Rental Assistance Program (ERAP) <br />resources to assist struggling tenants and landlords impacted by the economic damage <br />of COVID-19. On February 16, 2021, staff recommended entering into an Option C <br />Memorandum of Understanding with the State to self-administer our funds and the State <br />would administer their funds designated for the City of Santa Ana. This is where, if a City <br />chooses to self-administer its federal allocation but chooses to not conform their local <br />program to the state requirements, it would not be eligible for a State block grant. <br />Landlords and tenants located in our jurisdiction could still apply to the State Program for <br />a proportionate share of the state funds, but the responsibility to manage duplication of <br />benefits will rest with the City. On May 10, 2021, Governor Newsom announced that the <br />State would begin paying rental housing providers 100% of the rent owed (instead of 80% <br />and requiring landlords to forgive the remaining 20%). This change requires legislative <br />approval and an amended form of SB 91. <br />Following this announcement, staff revised our CARES for Tenants Program to begin <br />paying 100% of the rent owed to match the State and relaunched the program on June <br />1, 2021. In addition, staff are in the process of negotiating with the State to enter into an <br />Option B Memorandum of Understanding in order to receive a State block grant of <br />$10,633,695 in State ERA1 funds and a to-be-determined amount in State ERA2 funds <br />allocated to the State of California by the Department of Treasury and designated for the <br />City of Santa Ana. Staff will be returning to City Council after the Option B MOU is ready <br />for City Council approval with a Second Amendment to the ERAP Spending Plan and a <br />request to appropriate over $10.6 million in additional ERAP funds allocated to the City <br />by the State of California. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Approval of the appropriation adjustment will recognize $14,026,593.90 in the Emergency <br />Rental Assistance Program grant revenue account (no. 17718002-52008) for expenditure <br />as follows: