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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 2, 2016 <br />TITLE: <br />REQUEST FOR PROPOSALS FOR <br />AFFORDABLE RENTAL HOUSING <br />ACQUISITION AND REHABILITATION <br />(STRATEGIC PLAN NO 5, 3) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Receive and file. <br />DISCUSSION <br />CLERK OF COUNCIL USE ONLY: <br />F•9;r rr <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 °" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />The City of Santa Ana ( "City ") annually receives federal grant funds through the HOME <br />Investment Partnership Program (HOME) for the development of affordable housing. The U.S. <br />Department of Housing and Urban Development (HUD) has commitment deadlines for the HOME <br />funds that requires grant fund to be committed within two years of allocation by July 31 of each <br />year. The City is currently required to commit $1,442,869 by July 31, 2016. This RFP will cover a <br />portion of this 2016 commitment requirement. The remainder of the HUD requirement has been <br />met by existing funding commitments. In order for the City to fully utilize these HOME funds and <br />meet HUD's commitment deadline, staff will be releasing a Request for Proposals (RFP) on <br />February 3, 2016 for affordable rental housing in Santa Ana (Exhibit 1). Due to HUD's <br />commitment deadline, proposals may only be accepted for the acquisition and rehabilitation of <br />existing residential rental projects. <br />In November 2015, the City pre- awarded HOME funds through a competitive selection process to <br />the Santa Ana Arts Collective project that anticipated an award of Affordable Housing and <br />Sustainable Communities (AHSC) funding (otherwise known as Cap and Trade), with an <br />anticipated award date in June 2016 based on the previous year's funding award timeline. <br />However, in December 2015 the Strategic Growth Council adopted the 2015 — 2016 AHSC <br />Program Guidelines and extended the timeline for funding awards to August 2016, one month <br />after the City's HOME commitment deadline from HUD. Under the new HOME final rule, HOME <br />funds cannot be committed until all other financing is fully secured. Therefore, the City must <br />issue an RFP to commit and utilize these funds by July 31, 2016. <br />The maximum funding available will be as follows: <br />- $1,199,869 in HOME Program funds that must be committed by July 31, 2016 <br />19E -1 <br />