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SUBSTANTIAL AMENDMENT TO THE FISCAL <br />YEAR 2011-2012 ACTION PLAN: HOME AND <br />CDBG REPROGRAMMING <br />INTRODUCTION <br />The City of Santa Ana's Fiscal Year 2011-12 Annual Action Plan was submitted to the U.S. <br />Department of Housing and Urban Development (HUD) on May 15, 2011. Among other items, <br />the Plan allocated the city's anticipated HOME Program and Community Development Block <br />Grant (CDBG) funds in a manner consistent with HOME and CDBG regulations and the city's <br />past practice. As a consequence of unforeseen circumstances.?,ffecting both programs, the city <br />has been unable to commit and spend these HOME and:CDBG funds as quickly as it has in the <br />past. In order to make fuller use of these funds and meef;the need of low income residents for <br />affordable, for sale housing opportunities,'the,city is creating,, new program to be funded with <br />unused HOME and CDBG program funds..Additionally, this new program will be run in <br />accordance with federal guidelines established for the,NSP2 program, and will assist the city to <br />meet its goals for that program. Funding of this new program will require a reallocation of <br />uncommitted 2011-2012 HOME grant funds and unused CDBG grant funds generated by loan <br />repayments. <br />Additionally, the 2011-2012 Annual Action Plan committed $890,000 in CDBG grant funds for <br />purchase of new fire equipment to be used in a.fire`station serving a predominately low/mod <br />area. Due to the rei ent outsourcing of the city Fire Department to the Orange County Fire <br />Authority, the funds no longer need to be used for that purpose. Instead, they will be used for <br />necessary repairs to fire stations serving low/mod areas of Santa Ana. <br />Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating <br />jurisdictions shall amend their approved plans whenever they make one of the following <br />decisions: <br />1. To make a change in its allocation priorities or a change in the method of distribution of <br />funds; <br />2. To carry out an activity, using funds from any program covered by the Consolidated Plan <br />(including program income) not previously described in the action plan; or <br />3. To change the purpose, scope, location, or beneficiaries of an activity. <br />1 <br />Exhibit 3 <br />29C-15