25A - AMEND FEZ GRANT AGREEMENT - Laserfiche WebLink

Home Browse Search

· REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: J~ARY 5, 2004~ TITLE: AMENDMENT TO EMPOWERMENT ZONE GRANT AGREEMENT WITH HUD AND THE STATE OF CALIFORNIA CLERK OF COUNCIL USE ONLY: APPROVED CITY MANAGER [] As Recommended [] As Amended Ordinance on 1st Reading B Ordinance on 2nd Reading [] Implementing Resolution [] Set Public Hearing For RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an amendment to the Memorandum of Agreement with the United States Department of Housing and Urban ~evelopment, the State of California and the City of Santa Aha regarding the designation of the City of Santa Aha as a Round II Federal Empowerment Zone. DISCUSSION In January of 1999, the City of Santa Ana was awarded a Round II Urban Empowerment Zone designation by the United States Department of Housing · and Urban Development (HUD). The current Grant Agreement between the City of Santa Aha and HUD obligates the City to conform to the requirements of 24 CFR 85.25 (g) regarding program income as set forth in our Memorandum of Agreement (MOA). Specifically, under provision 24 CFR 85.25 (g) (1) program income is required to be used for program costs ~unless the Federal agency authorizes otherwise." Currently the City has an agreement with the Santa Aha Empowerment Corporation (SAEC) that transfers these obligations to the SAEC. The SAEC is currently generating program income from the repayment of loans. Further, the SAEC will continue to generate program income through investments as part of the "Investment Component" of the SAEC Business Plan. Without amending the existing Grant Agreement and the MOA, the SAEC is limited in its use of these funds (Exhibit A). ~__n November 19, 2003, the SAEC Board of Directors recommendation that the Santa Ana City Council approve . amendment as presented in this report. Page 37 approved a the subject 25.A.