29C - AMENDMENTS ADD FORECLOSED HOMES

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SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2010- 2011 ACTION PLAN: FORECLOSED HOMES PROGRAM INTRODUCTION The City of Santa Ana's Fiscal Year 2010-11 Annual Action Plan 'was submitted to the U.S. Department of Housing and Urban Development (HUD),o "May 15, 2010. Among other items, the Plan allocated the city's anticipated $2,613;050 HOME Program grant funds in a manner consistent with HOME Program regulations and the city's past practice. As a consequence of a $1.2 million repaymeni'4o the HOME Program rude necessary by the failure of a new construction, HOME funded project to move forward, and the recent elimination of redevelopment agencies in California, the city finds itself unable to commit existing HOME Program funds as quickly as it has in the past. In order to make fuller use of these funds and -meet the need of low income residents for affordable, for sale housing opportunities, the `city is creating a new program to be funded with unused HOME and CDBG program funds Additionally, this new program will be run in accordance with federal, guidelines established for the NSP2 program, and will assist the city to meet its goals for.that program. Funding of this new program will require a reallocation of uncommitted 2010-2011 HOME-grant funds. Title 24 Section 91.505 of the Code of Fe deral.Reguiations stipulates that participating jurisdictions shall amend their approved plans whenever they make one of the following decisions: - 1. To make a change in its allocation priorities or a change in the method of distribution of funds; 2. To carry out an activity, using funds from any program covered by the -Consolidated Plan (including program income) not previously described in the action plan; or 3. To change the purpose, scope, location, or beneficiaries of an activity. The Regulation further requires that jurisdictions identify in their citizen participation plans the criteria they will, use for determining what constitutes a substantial amendment. Consistent with these` requirements, the Citizen Participation Plan adopted by the City of Santa Ana as a component of its 2010/11 - 2014/15 Consolidated Five Year Plan identifies three criteria that will require a substantial amendment: 1. Changes in the use of CDBG funds from one eligible activity to another; 2. An activity is undertaken that was not previously included in the Consolidated Plan or subsequent action plans. I Exhibit 2 29C-9