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Home My WebLink About20A - PERMANENT HOUSING REPAIRS AND REHABREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 7, 2019 TITLE: APPROVE APPROPRIATION ADJUSTMENT OF $12,928 AND AMENDMENT TO AGREEMENT WITH STRAIGHT TALK CLINIC, INC. FOR REHABILITATION AND REPAIR OF PERMANENT HOUSING FOR PERSONS WITH HIV/AIDS NOT TO EXCEED $20,728 {STRATEGIC PLAN NOS. 5,3; 5,4; 5,6} RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: r1*J7 Z7wk ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute an amendment with Straight Talk Clinic, Inc. to add funds and a new scope of work to the original agreement, for the rehabilitation and repair of a single-family permanent housing property utilizing Housing Opportunities for Persons with AIDS funding in the amount not to exceed $20,728, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Approve an appropriation adjustment recognizing Housing Opportunities for Persons with AIDS Program prior year funds in the amount of $12,928 in revenue account (no. 40518002- 52000) and appropriate the same amount to the Payment to Subagent expenditure account (no. 40518761-69135). From 1993 to 2014, the City received funds through the U.S. Department of Housing and Urban Development (HUD) for the Housing Opportunities for Persons with AIDS (HOPWA) Program. Although the City received the funds, they were to be utilized throughout the County of Orange. The HOPWA Program is designed to provide resources and incentives for long-term comprehensive strategies to meet the housing needs of persons with HIV/AIDS. A major goal of the comprehensive strategy is to promote housing stability, prevent homelessness, and increase access to care and support for persons living with HIV/AIDS. Along with short term assistance, HOPWA funds have been used over the years to fund permanent housing developments in different cities throughout the County. In April of 2014, 20A-1 Appropriation Adjustment and Amendment with Straight Talk Clinic, Inc. May 7, 2019 Page 2 HUD transferred the administration of the HOPWA program to the City of Anaheim when their city population surpassed Santa Ana's population. Remaining development funds were not transferred to the City of Anaheim. In April, 2015, City Council approved one final single-family acquisition and rehabilitation project with Straight Talk, Inc, which was anticipated to close the city's HOPWA program. The term of the contract was extended once to provide six additional months to complete the work, however, $20,728 in funds were unspent and remain in the HOPWA account. The City has been notified that the HUD Treasury will recapture all unspent funds in August of this year. City staff are interested in adding all remaining funds and a new scope of services to the Straight Talk project agreement for eligible rehabilitation and repair activities at this same property and close the City's HOPWA program. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #5 (Community Health, Livability, Engagement and Sustainability), Objective #3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods.), Objective #4 (Support neighborhood vitality and livability), Objective # 6 (Focus projects and programs on improving the health and wellness of all residents). FISCAL IMPACT Approval of the appropriation adjustment will recognize grant revenue from prior year award not yet received in the amount of $12,928 in HOPWA Program Grant Fund, Federal Grant -Direct revenue account (no. 40518002-52000) and appropriate the same to the Payment to Subagent expenditure account (no. 40518761-69135). After the appropriation adjustment, sufficient funds will be available for expenditure in the following fiscal year and account listed below: Fiscal Accounting Unit - Fund Description Accounting Unit, Account Amount Year Account # Description FY 18-19 40518761-69135 Federal HOPWA HOPWA-Housing Opportunities, $20,728 Program Grant Fund Payment to Subagent Total $20,728 APPROVED AS TO FUNDS AND ACCOUNTS: Steven A. Mendoza Kathryn Do s, CPA Executive Director Executive Director al - Community Development Agency Finance and Management Services Agency Exhibit: 1. Amendment to Agreement with Straight Talk Clinic, Inc. 20A-2 EXHIBIT 1 FIRST AMENDMENT TO GRANT AGREEMENT FOR ACQUISITION AND (24 CFR Part 574) THIS FIRST AMENDMENT TO AGREEMENT is made and entered into this day of May, 2019, by and between Straight Talk Clinic, Inc., a 501(c)(3) corporation, DUNS #096097514 ("Project Sponsor), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. The City and Project Sponsor entered into a Grant Agreement (Housing Opportunities for Persons with AIDS), No. A-2015-051, dated April 7, 2015, for the acquisition and rehabilitation of real property located at 1677 West Ord Way, Anaheim, California, which is operated as "Kairo's House" ("Agreement"). B. Thereafter, the City, pursuant to Project Sponsor's request, executed a letter agreement dated October 29, 2015, extending the schedule to allow additional time for Project Sponsor to complete the rehabilitation under said Agreement. C. In acd`ordance with the terms and conditions of said Agreement, the Parties wish to amend said Agreement to expand the Use of Grant section to include additional rehabilitation at Kairo's House, and increase the total grant amount under said Agreement. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Section 1, USE OF GRANT [24 CFR 574.300(b)(3)], shall be amended to add additional rehabilitation work for Kairo's House. The specific list of rehabilitation projects for ICairo's House is attached herewith as Exhibit A and incorporated herein by reference. Additionally, the Schedule for the new rehabilitation work shall be extended to August 31, 2019. The extension of the rehabilitation work Schedule does not affect the overall 10 -year Tenn provided for in sections 3 and 14 of said Agreement. 2. Said Agreement shall be amended to increase the total amount of the Grant by an additional $20,727.99, such that the total amount of the Grant under said Agreement shall not exceed $740,727.99 during the term of said Agreement. Project Sponsor shall cover any costs related to the rehabilitation work that exceed the amount of new Grant funding. 3. Except as hereinabove modified, all terms and conditions of said Agreement shall remain in full force and effect. Page 1 of 3 20A-3 EXHIBIT 1 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Grant Agreement the date and year first above written. CITY OF SANTA ANA ATTEST: NORMA MITRE Acting Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City 0 RECOMMENDED FOR APPROVAL: STEVEN A. MENDOZA Executive.Director Community Development Agency 19 KRISTINE RIDGE City Manager STRAIGHT TALK CLINIC, INC. Page 2 of 3 20A-4 -SCHROTH ve Director