Item 10 - Approve Release of Nonprofit CDBG Application for Fiscal Years 2024–26

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City of Santa Ana Community Development Block Grant FY 2024- 2026 (Nonprofit Application) 3 programs or services funded with CDBG funds. If the organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services funded with CDBG funds, and participation must be voluntary for the beneficiaries of the CDBG-funded programs or services. Faith-based organizations may use space in their facilities to provide CDBG-funded services without removing religious art, icons, scriptures or other religious symbols. An organization that participates in the CDBG program shall not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. A religious organization ’s exemption from the federal prohibition on employment discrimination based on religion, set forth in section 702(a) of the Civil Rights Act of 1964 is not forfeited when the organization participates in the CDBG program. Notwithstanding the foregoing, nondiscrimination requirements imposed by statute on all CDBG grantees shall apply to religious and faith-based organizations Cost Reimbursement Agreement Grants are provided through a Cost Reimbursement Subrecipient Agreement. Reimbursement requests are allowed on a quarterly basis. Therefore, organizations must have enough working capital to continue services until a reimbursement request can be processed by the City. Only allowable and allocable CDBG expenses will be reimbursed. The term of the agreement will be July 1, 2024 through June 30, 2026. Insurance Requirement Organizations approved for CDBG funding will be required to obtain a minimum of $1,000,000 general liability insurance, automobile Insurance not less than $1,000,000 per occurrence, and workers’ compensation insurance not less than $1,000,000 per occurrence, for the term of the agreement. In addition, the City must be listed as additionally insured via an endorsement with the endorsement stating that the insurance is primary and noncontributory. Eligible Activities Requirement Public service activities which are directed toward the improvement of the quantity and quality of community services principally benefiting persons of low- and moderate-income are eligible for funding. These activities include, but are not limited to, services concerned with employment, crime prevention, childcare, health, substance abuse counseling and treatment, education, fair housing counseling, energy conservation, welfare (excluding income payments) and recreational needs. Emergency grant payments for food, clothing, and shelter (rent, mortgage, utilities) needs are eligible activities as long as the payments do not exceed three months and the payments are made directly to the provider of such services on behalf of an individual or family. The services funded must be either a new service or a quantifiable increase in the level of service above that which has been provided by or on behalf of the City in the previous 12 calendar months. Services that were originally funded as a new or increased level of service are eligible for continued funding. Eligible costs include labor, materials, supplies, some operating and maintenance costs for the