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HomeMy WebLinkAboutItem 36 - Fiscal Year 21-22 Request for Proposals for Affordable Housing Community Development Agency www.santa-ana.org/cd Item # 36 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 7, 2021 TOPIC: Fiscal Year 21-22 Request for Proposals for Affordable Housing Development AGENDA TITLE: Public Hearing – Authorize Issuance of the Fiscal Year 21-22 Request for Proposals for Affordable Housing Development and Approve a Substantial Amendment to the Fiscal Year 2021-2022 Annual Action Plan RECOMMENDED ACTION 1. Authorize the City Manager to issue a Fiscal Year 21-22 (FY 21-22) Request for Proposals for Affordable Housing Development to solicit proposals for affordable rental and ownership project(s) in the City of Santa Ana with funding from the Inclusionary Housing Fund, HOME Investment Partnerships (HOME) Program, HOME – American Rescue Plan (HOME-ARP), Project-Based Voucher Program and Neighborhood Stabilization Program. 2. Approve a Substantial Amendment to the Fiscal year 2021-2022 Annual Action Plan to adopt the HOME-ARP Allocation Plan for the allocation of $6,183,914 in HOME- ARP funds and authorize the submission of the Substantial Amendment to the U.S. Department of Housing and Urban Development. 3. Approve an appropriation adjustment recognizing an allocation of HOME-ARP funds in the amount of $ 6,183,914 in revenue account (18218002-52008) and appropriating the same in expenditure account (18218780-various). (Requires five affirmative votes) DISCUSSION Under Section III of the Affordable Housing Funds Policies and Procedures amended by City Council on August 18, 2020, the Community Development Agency, upon City Council approval, will issue a Request for Proposals (RFP), for available funds. The RFP will be open (an “Open RFP Process”) and provide sufficient time for applicants to identify an eligible site and complete and submit a proposal. As such, staff is requesting authorization to release the Fiscal Year 2021-2022 Request for Proposals for Affordable Housing Development (Exhibit 1). Fiscal Year 21-22 Request for Proposals for Affordable Housing Development December 7, 2021 Page 2 2 2 6 1 The available funds for this RFP includes funds available in the Inclusionary Housing Fund, HOME Investment Partnerships (HOME) Program, HOME-American Rescue Plan (HOME-ARP) Program, Project-Based Voucher Program, Neighborhood Stabilization Program and/or any other funds received by the City of Santa Ana for affordable housing purposes as published on a quarterly basis as an exhibit in the Housing Division Quarterly Report. The available funds for this RFP are as follows: Inclusionary Housing Fund $10,093,318 HOME Investment Partnerships Program (HOME)$3,161,226 HOME – American Rescue Plan (HOME–ARP)$5,256,327 Neighborhood Stabilization Program (NSP)$135,107 Project-Based Vouchers Twenty-Five (25) TOTAL $18,645,978 and 25 Project- Based Vouchers Staff is interested in furthering the following priorities through this RFP: 1) Acquisition and rehabilitation projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. 2) Projects that will provide affordable homeownership opportunities. Available program funds may be used for affordable housing development loans for the following eligible purposes: 1) The purchase of existing multi-family or other buildings for rent or sale to very low- and extremely low-income households and for the development of congregate housing for rent to very low- and extremely low-income persons with special needs (e.g. homeless individuals and families, elderly, persons with a disability). 2) The purchase or lease of land and buildings for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as Low-Income Housing Tax Credits, the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and/or other available State and Federal programs. 3) The development of limited-equity housing cooperatives through either conversion or new construction. 4) The provision of interim loan funds for any of the above purposes prior to the funding of a public or private loan. Eligible development costs for the above uses include, but are not necessarily limited to: a. site acquisition and preparation; b. rehabilitation of dwelling units, common areas and related structures; c. new construction; d. carrying charges and financing fees; Fiscal Year 21-22 Request for Proposals for Affordable Housing Development December 7, 2021 Page 3 2 2 6 1 e. architectural, legal, and organizational fees; f. temporary or permanent tenant relocation costs. Land Assets Owned by the Housing Authority Staff is also including a land asset currently held by the Housing Authority in this RFP. The proposed development of the property would be solely for the development of affordable housing. The land asset owned by the Housing Authority and available for development under this RFP is as follows: (1) 302 E. Twenty-Second Street a) APN: 003-122-25 b) Lot Size: 27,817sf c) Current Zoning: R1 Single-Family Residence, which allows one house per lot. d) Parcel was purchased using Low and Moderate Income Housing Asset Fund - 20% Set Aside e) Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway-widening project. The site was vacant and undeveloped at the time it was acquired. f) General Plan: Low Density Residential, which allows single-family residences and ancillary uses. g) Maximum du/ac: Seven units per acre. h) Site Condition / Environmental Conditions: Property is irregular in shape, is below the minimum lot size for a residential lot, and will most likely require the approval of several variances from the zoning code in order to facilitate a residential unit. The land asset will be awarded under a ground-lease option such that the land will remain with the Authority as a long-term public benefit. Specifically, the Housing Authority intends to retain ownership of the site and enter into a long-term ground lease for up to 99 years. The parcel will be conveyed through a ground lease, in an as-is condition. As it will be stipulated in the ground lease, the value of the land and the site preparation costs will be provided to the project as a land subsidy in the form of a promissory note. With approval by the City Council, the RFP for Affordable Housing Development is scheduled to be released on December 8, 2021. The deadline for the RFP will be February 28, 2022. The RFP will be published on both the City and Housing Authority’s websites; a public notice will be published in the OC Register; an e-mail will be sent out to Orange County’s largest affordable housing membership associations including the Kennedy Commission, 2-1-1 Orange County, and the Southern California Association of Nonprofit Housing; and a letter will be e-mailed to interested developers and nonprofit organizations who had previously requested to be informed of development opportunities on the Community Development Agency’s RFP Process Database. Developers and nonprofit organizations interested in being added to the RFP Process Database can do so by contacting the City’s Housing Division. Fiscal Year 21-22 Request for Proposals for Affordable Housing Development December 7, 2021 Page 4 2 2 6 1 After the deadline, staff will conduct a minimum threshold review of each proposal to ensure the proposal complies with all of the minimum requirements in the RFP. Following the minimum threshold review, staff will form a Review Panel that consists of the Executive Director of the City’s Public Works Agency or his designee, the Executive Director of the Planning and Building Agency or his designee, the Executive Director of the Community Development Agency, the Housing Division Manager, the Housing Programs Analyst and one outside agency or government entity. Staff will also have a real estate financial advisor for the Review Panel. If an employee is not available in one City Agency, a second employee may be requested from one of the other two City Agencies so long as there are at least two of the three City Agencies represented on the Review Panel. In compliance with the City’s Affordable Housing Funds Policies and Procedures, the Review Panel will use the proposal Scoring and Selection Criteria from the RFP to conduct their review and analysis of each proposal. Using the Scoring and Selection Criteria from the RFP, the Review Panel will also review the proposed project design for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term sustainability. The Review Panel will interview all of the developers who submitted a proposal. Substantial Amendment to the Fiscal year 2021-2022 Annual Action Plan On May 4, 2021, City Council approved the Fiscal Year 2021-2022 Annual Action Plan. The City of Santa Ana’s Annual Action Plan details the funding strategy for the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships programs each year. These Annual Action Plans implement our jurisdiction’s Five-Year Consolidated Plan and are developed through significant public input, analyses, and planning. The Annual Action Plan describes in detail how these federal grant funds will be allocated and used to serve the community. Title 24 Section 91.505 of the Code of Federal Regulations 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 City of Santa Ana has been awarded $6,183,914 in HOME-ARP funds that were not previously described in the Fiscal Year 2021-2022 Annual Action Plan. Per the regulations for these federal funds, a Substantial Amendment to the FY 2021-2022 Annual Action Plan is required (Exhibit 3). The Substantial Amendment includes the HOME-ARP Allocation Plan with two of the four eligible activities allowed by HUD. In Fiscal Year 21-22 Request for Proposals for Affordable Housing Development December 7, 2021 Page 5 2 2 6 1 general, the Allocation Plan states that the City will issue an RFP for Affordable Housing Development to commit the funds for the following two eligible activities: 1. To acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families who are experiencing homelessness; and 2. To acquire and develop HOME-ARP non-congregate shelter for individuals and families experiencing homelessness. A non-congregate shelter is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement (e.g. motels). As required by HUD, the Substantial Amendment to the Fiscal Year 2021-2022 Annual Action Plan was made available for a 15-day public comment review period from November 22, 2021 to December 6, 2021. A public notice was published on November 22, 2021 in the Orange County Register in English, La Opinion in Spanish, and the Ngoi Viet in Vietnamese to inform the public of the commencement of the 15-day public comment period and public hearing. Comments received will be included in the final submission of the Substantial Amendment to HUD. Following approval by City Council, staff will submit the Substantial Amendment to the FY 2021-2022 Annual Action Plan to HUD to begin drawing down the $6,183,914 in HOME- ARP funds. FISCAL IMPACT Approval of the appropriation adjustment will recognize $6,183,914 in the HOME-ARP Program Federal Grant revenue account (no. 18218002-52008) for expenditure as follows: Fiscal Year Accounting Unit-Account Fund Description Accounting Unit, Account Description Amount FY 21-22 (Jan–June) 18218780- Various HOME-ARP Program Federal Grant HOME-ARP Program Grant, Various $83,760 FY 22-23 (July –June) 18218780- Various HOME-ARP Program Federal Grant HOME-ARP Program Grant, Various $6,100,154 Total $6,183,914 The above spending plan is only an estimate and is subject to change. EXHIBIT(S) 1. FY 2021-22 RFP for Affordable Housing Development 2. Substantial Amendment to the Fiscal year 2021-2022 Annual Action Plan Fiscal Year 21-22 Request for Proposals for Affordable Housing Development December 7, 2021 Page 6 2 2 6 1 Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 1 REQUEST FOR PROPOSALS RFP # 21-136 AFFORDABLE HOUSING DEVELOPMENT CITY OF SANTA ANA Community Development Agency 20 Civic Center Plaza Santa Ana, CA 92701 Claudia Fernandez-Shaw Housing Programs Analyst Tel: (714) 667-2265 cshaw@santa-ana.org KEY RFP DATES: Issue Date: Wednesday, December 8, 2021 Proposal Due Date: Monday, February 28, 2022, at 5:00PM EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 2 NOTICE INVITING PROPOSALS NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms (Developers/Proposers) for the development of affordable housing projects in the City of Santa Ana. The RFP Process will be open (“Open RFP Process”) and provide sufficient time for applicants to identify an eligible site and comple te and submit a proposal in response to the RFP announcement. The RFP Process will be open until February 28, 2022. After the deadline, staff shall review the Proposals to determine that the minimum Program and RFP Process requirements are met (minimum threshold review). Proposals that do not meet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, staff will form a Review Panel. The Review Panel for the RFP Process will consist of at least one employee from the City of Santa Ana Public Works Agency, Planning and Building Agency, and Community Development Agency, and one outside agency or government entity. If an employee is not available in one department, a second employee may be requested from one of the other two departments so long as there are at least two of the three City Agencies represented on the Review Panel. Using the scoring and selection criteria provided in the RFP, the Review Panel shall determine whether the proposal is recommended for a pre-loan commitment. Using the scoring and selection criteria, the Review Panel shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City of Santa Ana and paid for by the proposer. The real estate advisor shall confirm the underwriting for the project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the proposal will not be recommended for approval or an award of funds, the proposer will be notified in writing of the decision. It is the responsibility of the proposer to ensure that any proposals submitted shall have sufficient time to be received by the City of Santa Ana prior to the proposal due date and time. Any questions regarding this Request for Proposals shall be made in writing via e-mail to Claudia Fernandez-Shaw, Housing Programs Analyst, at cshaw@santa-ana.org. MAILED, DELIVERED BY HAND, OR COURIERED PROPOSALS WILL BE ACCEPTED AS FOLLOWS: City of Santa Ana Claudia Fernandez-Shaw, Housing Programs Analyst Community Development Agency 20 Civic Center Plaza, Sixth Floor Santa Ana, CA 92701 PLEASE DO NOT E-MAIL RFP RESPONSES. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 3 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT PAGE I. INTRODUCTION 4 II. SCOPE OF WORK 6 III. GENERAL INFORMATION 6 IV. COORDINATION 7 V. DEVELOPER RESPONSIBILITIES 7 VI. CITY BUSINESS LICENSE 7 VII. RULES FOR PROPOSALS 7 VIII. PRE-PROPOSAL MEETING 7 IX. E-MAIL COMMUNICATIONS AND INTERPRETATIONS/CLARIFICATIONS 8 X. ADDENDA 8 XI. SUBMITTAL REQUIREMENTS INFORMATION AND DEADLINE 8 XII. MINIMUM QUALIFICATIONS 8 XIII. SUBMITTAL REQUIREMENTS 8 XIV. DEVELOPER SELECTION – PROPOSAL AND EVALUATION 13 XV. PUBLIC RECORDS 15 XVI. FILING A PROTEST 15 EXHIBIT A SCOPE OF WORK 16 Attachment 1 Early Outreach Community Meeting 33 Attachment 2 City of Santa Ana Rehabilitation Standards 34 EXHIBIT B ALIGNMENT WITH THE CITY’S HOUSING ELEMENT AND STRATEGIC PLAN 42 EXHIBIT C ADDITIONAL INSURED ENDORSEMENT FOR GENERAL LIABILITY POLICY 44 EXHIBIT D PROPOSAL CONTRACT AND AGREEMENT: PROPOSER’S STATEMENT 45 EXHIBIT E PROPOSAL CONTRACT AND AGREEMENT: CERTIFICATION OF NONDISCRIMINATION 46 EXHIBIT F PROPOSAL CONTRACT AND AGREEMENT: NON-COLLUSION AFFIDAVIT 48 EXHIBIT G PROPOSAL CONTRACT AND AGREEMENT: COMMITMENT TO ENTER INTO MOU 49 EXHIBIT H CITY OF SANTA ANA MAP OF OPPORTUNITY ZONES 50 EXHIBIT I HOUSING AND COMMUNITY DEVELOPMENT NOFA CALENDAR 53 EXHIBIT J COMMUNITY OUTREACH GUIDELINES 54 EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 4 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT I. INTRODUCTION The City of Santa Ana (City) and the Housing Authority of the City of Santa Ana (Authority) are issuing this Request for Proposals (RFP) for the development of affordable housing in the City. Proposed developments may be for acquisition and rehabilitation of eligible properties for rental and/or ownership housing; acquisition and conversion of non-residential property to multifamily housing units; and/or new construction of housing units for rental and/or ownership housing. Priorities and Objectives: In particular, the City is interested in furthering the following priorities through this RFP: (1) Acquisition and rehabilitation projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. (2) Projects that will provide affordable homeownership opportunities. Available Funds for this RFP: The available funds for this RFP includes the total amount of Inclusionary Housing Funds, HOME Investment Partnerships Program, HOME- American Rescue Plan Program (HOME- ARP), Project- Based Voucher Program, Neighborhood Stabilization Program Funds (NSP), and/or any other funds received by the City of Santa Ana for housing purposes as published on a quarterly basis in the Housing Division Quarterly Report. Inclusionary Housing Fund in-lieu fee pending payments and any other funds that have not yet been received by the City shall not be considered as available funds. Available program funds may be used for development loans for the following eligible purposes: (1) The purchase or lease of land and buildings for new construction or rehabilitation of housing that may utilize available State and Federal housing assistance programs such as Low-Income Housing Tax Credits, the Section 202 Supportive Housing for the Elderly Program, tax-exempt bond financing, Section 811 Supportive Housing Program, and/or other available State and Federal programs. (2) The purchase of existing multi-family or other buildings for rent or sale to very low- and extremely low-income households and for the development of non-congregate housing for rent to very low- and extremely low-income persons with special needs (e.g. homeless individuals and families, elderly, persons with a disability). (3) The development of limited-equity housing cooperatives through either conversion or new construction. (4) The provision of interim loan funds for any of the above purposes prior to the funding of a public or private loan. Eligible development costs for the above uses include, but are not necessarily limited to: a. Site acquisition and preparation; b. Rehabilitation of dwelling units, common areas and related structures; EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 5 c. New construction; d. Carrying charges and financing fees; e. Architectural, legal, and organizational fees; f. Temporary or permanent tenant relocation costs. Please refer to the Affordable Housing Funds Policies and Procedures amended by City Council on August 18, 2020 for more information. As of the date of issuance, the Available Funds for this RFP will be as follows, subject to change: Inclusionary Housing Fund $10,093,318 HOME Investment Partnerships Program (HOME) $3,161,226 HOME – American Rescue Plan (HOME –ARP) $5,256,327 Neighborhood Stabilization Program (NSP) $135,107 Project-Based Vouchers Twenty-Five (25) TOTAL $18,645,978 and 25 Project-Based Vouchers Land Assets Owned by the Housing Authority: The Housing Authority of the City of Santa Ana acting as the Housing Successor Agency (Authority) is also issuing this RFP for the development of land currently held by the Authority within the City of Santa Ana. The proposed development of the property would be solely for the development of affordable housing. The land asset will be awarded under a ground-lease option. The Land Asset owned by the Housing Authority that is available for development under this RFP is as follows: (1) 302 E. Twenty-Second Street a. APN: 003-122-25 b. Lot Size: 27,817sf c. Current Zoning: R1 Single-Family Residence, which allows one house per lot. d. Parcel was purchased using Low and Moderate Income Housing Asset Fund - 20% Set Aside e. Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway- widening project. The site was vacant and undeveloped at the time it was acquired. f. General Plan: Low Density Residential, which allows single-family residences and ancillary uses. g. Maximum du/ac: Seven units per acre. h. Site Condition / Environmental Conditions: Property is irregular in shape, is below the minimum lot size for a residential lot, and will most likely require the approval of several variances from the zoning code in order to facilitate a residential unit. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 6 The Housing Authority currently owns the land asset, and intends to retain ownership of the site and enter into a long-term ground lease for up to 99 years, as legally applicable, with the selected developer. Respondents should assume that the Housing Authority owned parcel will be conveyed through a ground lease, in an as-is condition. As it will be stipulated in the ground lease, the value of the land and the site preparation costs will be provided to the project as a land subsidy in the form of a promissory note. II. SCOPE OF WORK The Scope of Work will include any and all work efforts related to the development of affordable housing per EXHIBIT A - SCOPE OF WORK. Available funds can be used for a variety of housing types and preferences. Please see the table below for the general allowable uses of funds for each source. Please see Exhibit A for a more detailed description of the eligible uses for each source. Source of Funds Income at or below 80% Mixed Income Non U.S. Citizens Mixed Use Projects Adaptive Reuse New Construction of Rental Housing Acquisition / Rehabilitation of Rental Units Homeownership Permanent Supportive Housing Inclusionary Housing Funds X X X X X X X X HOME Program Funds X X X X X X NSP Program X X X X X X X HOME-ARP Program Funds X X X X X X Project-Based Vouchers X X X X X X The Developer shall be an independent developer capable of providing experienced, knowledgeable and professional staff. The Developer shall be responsive and maintain excellent working relationships with city residents, businesses, government officials and City staff. The Developer shall provide adequate staffing levels at all times and adhere to established schedules. The Developer shall be knowledgeable of and comply with federal, state and local laws, including the Santa Ana Municipal Code, as it applies to their proposal. III. GENERAL INFORMATION A. Following the RFP Process and conditional on meeting other requirements and conditions, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney’s Office, and the Executive Director of Community Development, before being recommended for approval by the City Council. The letter shall state the maximum amount of program funds and/or land asset reserved for the project and list all of the additional conditions, documents and steps that must be taken by the Developer prior to loan closing. B. When determined appropriate, the City will provide information in its possession relevant to preparation of required information in the RFP. The City will provide only the staff assistance and documentation specifically referred to herein. C. The Developer shall be responsible for retaining data, records and documentation for the preparation of the required information. These materials shall be made available to the City as requested by the City. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 7 D. This RFP does not commit the City to pay costs incurred in preparation of a response to this RFP. All costs incurred in the preparation of the proposal, the submission of additional information and/or any aspect of a proposal prior to award of a written contract will be borne by the respondent. The City reserves the right to accept or reject the combined or separate components of any proposal in part or in its entirety or to waive any informality or technical defect in the proposal. E. All data, documents and other products used, developed or produced during response preparation to the RFP will become property of the City. All responses to the RFP shall become property of the City. The City will make best efforts to maintain Proposer information identified as proprietary information confidential, to the extent allowed under the California Public Records Act. F. The City reserves the right to reject, replace or approve any and all subcontractors. All subcontractor(s) shall be identified in the response to the RFP and the City reserves the right to reject any subcontractor(s). Subcontractors shall be the responsibility of the Developer and the City shall assume no liability for such subcontractors. IV. COORDINATION Coordination by the awarded Developer with the City, other contractors and agencies will be required to achieve satisfactory and timely delivery of the required work. Coordination may include, but not be limited to, coordination with impacted businesses, neighborhood and civic groups, local and/or state agency boards and staff, or attendance at Community Development Commission meetings or City Council meetings. The City will decide the manner in which the coordination efforts will be conducted. At the City’s option, coordination efforts may be performed by the Developer’s direct contact, by the Developer acting through the City or by the City only. When coordination efforts require agreements, such agreements shall be coordinated with the City. V. DEVELOPER RESPONSIBILITIES The selected Developer will assume responsibility for all aspects of the development, and for insuring that the project is developed and operated in accordance with applicable state and federal laws. The selected Developer will ensure that the project is developed and operated in accordance with the City laws, regulations, and planning and development process. VI. CITY BUSINESS LICENSE The selected proposer shall be required to obtain a City of Santa Ana business license within 30 days of selection and must provide a copy to the City project manager or designee prior to commencing any work in Santa Ana. VII. RULES FOR PROPOSALS The signer of the proposal must declare in writing that the only person, persons, company or parties interested in the proposal as principals are named therein; that the proposal is made without collusion with any other person, persons, company or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud; and, that the signer of the proposal has full authority to bind the proposer (Exhibit F). VIII. PRE-PROPOSAL MEETING The City will not have a pre-proposal meeting for this RFP. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 8 IX. E-MAIL COMMUNICATIONS AND INTERPRETATIONS/CLARIFICATIONS To facilitate the RFP process, proposers are required to monitor and respond to e-mail requests within 48 hours. No oral interpretations will be made by the City to any proposer as to the meaning of requirements identified herein including the Scope of Work. Every request for such an interpretation must be made in writing via e-mail to Claudia Fernandez-Shaw, Housing Programs Analyst, at cshaw@santa-ana.org. Significant interpretations or clarification will be provided in the form of a Questions and Answers Addendum and sent directly to the Developer who requested the interpretation or clarification. X. ADDENDA If clarification or interpretation of this RFP is considered necessary by the City, a written Questions and Answers Addendum shall be updated and provided directly to the Developer(s) who asked the question(s). XI. SUBMITTAL REQUIREMENTS INFORMATION AND DEADLINE Proposals are due to the City of Santa Ana, at the date, time and location set forth on the Notice Inviting Proposals. Faxed and e-mailed proposals will not be accepted. XII. MINIMUM QUALIFICATIONS Proposers shall have a minimum of five (5) years recent experience in the development and operation of affordable housing projects similar to their proposed project. XIII. SUBMITTAL REQUIREMENTS Proposers shall submit seven complete hard copies of their proposal, and one additional electronic copy on a USB flash drive. All seven copies of the proposal must include a signed cover letter. This cover letter must include a declaration that the only person, persons, company, or parties interested in the proposal as principals are named herein; that the proposal is made without collusion with any other person, persons, company, or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud, and that the signer has full authority to bind the proposer. It must also include an email address and contact information for the signer. All proposal submissions shall be on 8-1/2” x 11” white paper. All project proposals must contain the following minimum submission requirements: 1) Statement of Qualifications (SOQ). The SOQ must include the following components:  Developer Team. An organizational chart showing lines of responsibility, as well as a list of team members and their duties as part of the team. If the developer is a nonprofit corporation, or if a nonprofit is one of the team members, the SOQ must include documentation that the corporation is certified by the U.S. Internal Revenue Service as a 501(c)3 tax exempt non-profit corporation, and is in good standing with both state and federal compliance. If the developer is a Community Housing Development Organization (CHDO), the SOQ must include documentation that the developer can be certified as a CHDO for the City of Santa Ana. Developer needs to identify if any contractor(s) and/or subcontractor(s) are a subsidiary to any member of the development team. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 9  Developer Experience. A narrative describing recent affordable residential development and management experience, with an emphasis on experience gained in the last five years on projects similar to the one being proposed. i) Include project name and type (special needs, senior, large family, etc.), project address, developer team members, unit count and bedroom type, affordability requirements, and funding sources in your description. ii) Include a description of your experience doing community outreach and capacity including resources, staffing, and available funding.  Financial Capacity. Description of the developer’s financial strength and ability to obtain project financing, and to provide sufficient equity for the successful completion of the proposed project. i) Include a description of current relationships with major lending institutions. ii) Any developer that is selected for recommendation to City Council, or if a partnership, the team members who will retain an ownership interest in the project, will be required to submit complete financial statements for the last three years. Because of the possibility of public records requests, the City cannot guarantee that these statements will remain confidential.  References. Include a list of at least three references from public agency partners and professional lenders/investors with full names, contact information, and identification of the project(s) worked on. SOQs must be limited to a maximum of 25 pages, excluding front and back covers, section dividers, and exhibits. 2) Project Description. Detailed and concise narrative describing the proposed project, including at a minimum and as appropriate the development concept for the site or a description (with photographs) of the building to be acquired or developed, proposed building square footage, number of units and bedrooms per unit, total parking spaces, proposed ingress and egress, proposed affordability levels, any special needs groups or target population to be served, amenities to be provided to the tenants, and resident manager’s unit. If there will not be a resident manager for a rental project, describe in detail how the project will be managed. Please make sure to include the following:  Narrative description of the project and conceptual site plans if available. o Site size and location. o Total gross building area (GBA), as well as a breakdown of:  Residential GBA;  Circulation/Common Area GBA; and  Retail GBA.  Residential unit mix: o Number of units of each bedroom type by affordability level; o Unit square footage by bedroom type; and  Common area amenities to serve the residential development.  List of anticipated retail tenants (if applicable).  Parking: o Total number of spaces proposed: o Number of spaces dedicated to the residential uses; and o Number of spaces dedicated to other uses. o Number and square footage of parking spaces provided by type:  Above-ground;  Surface; and  Subterranean. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 10 For all projects, the narrative must also address site control, current zoning and any required zoning changes, anticipated development costs, City and Authority funds required, requested City and Authority loan terms, developer access to additional funds required for the project, and proof that the property is under contract. A site map showing the project’s location should accompany this narrative. The narrative must include a description of the various sources of financing that will be needed to complete the project as either a 4% Low-Income Housing Tax Credit deal and as a 9% Low-Income Housing Tax Credit deal. The narrative should provide a projected tie breaker score for 9% Low-Income Housing Tax Credits with a best case and worst case scenario based on the capital stack being pursued, with a relative comparison to the most recent tie breaker scores for the type of project being proposed in the last three 9% tax credit rounds. Clearly state if the project will be ready to apply for 9% Low-Income Housing Tax Credits during FY 2022 – 2023. This should include evidence of progression towards planning entitlements and other requirements necessary for the tax credit application. Clearly state if the project will be competing with another project owned by the developer in Orange County for an upcoming 9% Low-Income Housing Tax Credit round, including a comparison of the projected tie breaker scores for both projects. 3) Development Pro Forma. Identify the sources and uses of all funds necessary to complete the project, including the project’s anticipated cash flows over a period of years equal to 15 years and 30 years. The pro forma should identify important underlying assumptions that govern the cash flows, including but not necessarily limited to, the amounts and frequency of loan repayments (all sources), annual rent increases, occupancy levels, operating costs as a percent of revenue, timing and amounts of replacement costs. The cost estimates in the Sources and Uses budget should assume the payment of Davis-Bacon prevailing wages and relocation benefits, if applicable. The pro forma must include a calculation of the return on investment to the developer. Please make sure to include the following:  Land Costs o The property assemblage costs should include the following if applicable: acquisition costs, relocation costs, demolition costs, and closing costs. The developer should include an appraisal and the proposed purchase and sale agreement (if available).  Construction Costs o Identify whether the direct cost estimate reflects a premium for prevailing wages  Provide a direct construction cost breakdown (include a contractor’s detailed estimate, if available) that disaggregates the following information: o Off-site improvements; o On-site improvements; o Parking costs; o Residential shell costs; o Community room/office space costs; o Commercial space shell costs; o Commercial space tenant improvement costs; o General conditions; o Contractor fees; and o Direct cost contingency allowance.  Provide a breakdown of the project’s indirect costs such as: o Architecture, engineering and consulting fees; o Public permits and fees costs including all city fees, school district fees, impact fees and any other fees that would be assessed on the projects; o Taxes, legal and accounting costs; EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 11 o Insurance costs; o Marketing costs; o Development management fee; and o Indirect cost contingency allowance.  Provide the following financing cost information: o Predevelopment/bridge loans (loan amounts, interest rates, length of term and projected average outstanding balance of loan funds during predevelopment/construction); o Construction loans (loan amounts, interest rates, length of term and projected average outstanding balance of loan funds during predevelopment/construction); o Loan fees; o Amount of cash equity contribution and the return requirement on these funds during the construction period; o Capitalized reserves; and o Tax Credit Allocation Committee (TCAC) costs (if applicable).  Net Operating Income. Provide the following net operating income information: o Residential Rents. o Estimated market rents by unit type (provide a market study if available). o Affordable rents by unit type, affordability restriction and net of applicable utility allowances. o Number of managers’ units – are these rent-paying units? o Projected retail rents. o Parking:  Will parking charges be applied to the parking required for the rental units?  Will parking charges be applied to the parking required to serve the retail uses? o Operating Expenses:  Residential:  General operating expenses;  Property taxes; and  Annual capital and operating reserve contributions. o Unreimbursed retail expenses. o Parking expenses.  Financial Parameters o Low income housing tax credits (if applicable):  Provide eligible basis, gross and net tax credit proceeds calculations.  Provide the self-scoring sheet for the 9% TCAC or CDLAC applications. Explain why the project does not receive the maximum points.  Provide the tiebreaker calculation for 9% TCAC projects. o Equity contribution: o Quantify the equity contribution to be provided with cash during construction, and the amount of cash equity that will be left in the project on a permanent basis. o Identify the funding source that will be used to refund any construction period equity that is to be returned to the developer upon the completion of construction. o Define the preferred return requirements applied to the cash equity funds that will remain in the project over time. o Describe the other proposed governmental subsidies (AHP, MHP, City of Santa Ana, etc.). Provide an estimate of how the project scores in the identified funding competitions. Also, explain why the project will not receive the maximum points. o Describe the terms under which any deferred developer fee will be repaid. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 12  Project Cash Flow o Provide a cash flow analysis that shows the order of repayment priorities. Be explicit about the cash flow assumptions.  Public Assistance Terms o Identify any responsibilities that will be requested of the City of Santa Ana. 4) Projected Rental Income / Sales Prices. Include evidence that the rental income / sales prices shown in the pro forma are reasonable and achievable. Please include a preliminary market study analysis that supports that this is achievable. 5) Community Inclusion.  Describe how neighborhood input was solicited and utilized in the development of your proposal. Specifically, provide a description of any community outreach efforts that you undertook to inform the development of your proposal, including early outreach meetings with local stakeholders, outreach to the Santa Ana Unified School District, engagement with local neighborhood associations, letters of support requested or received from local community groups, and any commitment to donate a portion of your developer fee to a project or initiative in the surrounding neighborhood.  Provide details on the development team's community outreach strategy for the project. Describe the steps you will take after approval to ensure maximum feasible participation of local low-income residents and businesses in the development of the project. Describe how the project will be developed and operated so as to insure compliance with all relevant components of the Americans with Disabilities Act. Please refer to the Community Outreach Guidelines in Exhibit J for additional guidance. 6) Proposed Development Schedule. Taking as a starting point City Council approval of the pre-loan commitment letter, provide a proposed development schedule that includes the following milestones at a minimum: site acquisition, additional required loan commitments and funding from all other funding sources, zoning change approvals (if necessary), preparation and approval of construction plans, start of construction, completion of construction, and lease-up. 7) Current Tenants. Provide a listing of all tenants currently residing in the units, if applicable. 8) Proposer shall complete and return the follow ing Exhibits attached herewith:  Exhibit B – Alignment with the City’s Housing Element and Strategic Plan  Exhibit C – Additional Insured Endorsement for Commercial General Liability Policy (Not required until after Developer selection)  Exhibit D – Proposer’s Statement  Exhibit E – Certification of Nondiscrimination  Exhibit F – Non-Collusion Affidavit  Exhibit G – Commitment to Enter into Memorandum of Understanding with the Santa Ana Work Center EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 13 The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed as nonresponsive and will be rejected. The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any commitment will be awarded pursuant to this RFP or otherwise. XIV. DEVELOPER SELECTION – PROPOSAL AND EVALUATION After each deadline for the Open RFP Process, staff shall review any proposal(s) to determine if the minimum program and RFP Process requirements are met (minimum threshold review). Proposals that do not m eet the minimum threshold review will be considered non-responsive. If the Proposal meets the minimum threshold review, staff will form a Review Panel. The Review Panel for the RFP Process will consist of at least one (1) employee from the City’s Public W orks Agency, Planning and Building Agency, and Community Development Agency, and one (1) outside agency or government-entity. If an employee is not available in one City Agency, a second employee may be requested from one of the other two City Agencies so long as there are at least two of the three City Agencies represented on the Review Panel. Using the scoring and selection criteria provided below, the Review Panel shall determine whether the proposal is recommended for a pre-loan commitment. Using the scoring and selection criteria, the Review Panel shall also review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward in the proposal review process. If the Review Panel determines, in its discretion, that the Proposal may be recommended for approval, the Housing Division shall request an underwriting and subsidy layering review by a real estate advisor selected by the City and paid for by proposer. The real estate advisor shall confirm the underwriting for the Project, the financial gap, and other programmatic requirements related to the funding sources. If the Review Panel determines that the Proposal will not be recommended for approval, (i.e. the Proposal does not meet the minimum threshold score of 75 points), the Developer will be notified in writing of the decision and the result will be published in the Housing Division Quarterly Report. Each member of the Review Panel will evaluate and rank each proposal using the evaluation criteria listed below: COMPETITIVE SELECTION CRITERIA 1. LEVEL OF AFFORDABILITY AND TARGET POPULATION (Max. 25 Points) ELIGIBLE POINTS Project significantly increases affordable housing opportunities for large families (three- and four-bedroom units) 10 Project provides at least 50% or more of the units for extremely low-income families at 30% Area Median Income (possible points based on a tiered scoring – 10 pts. for 50%, 8 pts. For 40%, 6 pts. for 30%, 4 pts. for 20%, etc.) 10 Project increases affordable housing opportunities for special needs populations including, but not limited to, homeless individuals and families, and persons with a disability 5 Sub-total 25 2. TIMELINESS TO BUILD NEW HOUSING (Max. 20 Points) Project has demonstrated site control 7 Project is zoned appropriately 5 Project does not have any other site-related issues 5 Project aligns with the City’s Housing Element, Strategic Plan, and/or 5-Year Consolidated Plan 3 Sub-total 20 EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 14 3. PROPERTY MANAGEMENT/SALES EXPERIENCE AND SKILLS (Max. 15 Points) Project is energy efficient and incorporates green-building techniques 6 Applicant's ability to manage affordable rental units to ensure ongoing compliance with affordability requirements and long term financial solvency 3 Applicant's past experience in property management or sale of affordable units 3 Applicant's capacity and ability to quickly lease/sell completed units 3 Sub-total 15 4. DEVELOPER EXPERIENCE AND SKILLS (Max. 15 Points) Applicant's experience in obtaining additional financing 4 Applicant's capacity and ability to obtain entitlements 4 Applicant's overall past and projected effectiveness to provide affordable housing 4 Applicant's past and projected effectiveness to manage the construction process and stay on schedule 3 Sub-total 15 5. LEVERAGING OF CITY FUNDS (Max. 5 Points) Applicant's potential or capacity to obtain additional financing for this project 5 Sub-total 5 6. ANTICIPATED FINANCIAL PARAMETERS (Max. 15 Points) Project's proposed development costs are reasonable and comparable 3 Project's proposed rents/sales prices are realistic 3 Project's operating costs are realistic and reasonable (rental only) 3 Project has sufficient operating and replacement reserves (rental only) 3 Project is projecting a positive cash flow through affordability period (rental only) 3 Sub-total 15 7. RFP PRIORITIES (Max. 10 Points) Project is an acquisition/rehabilitation project with substantial rehabilitation 5 Project provides affordable homeownership opportunities 5 Sub-total 10 8. COMMUNITY INCLUSION (Max. 5 Points) Project demonstrates how neighborhood input was solicited and utilized in the development of the proposal including any community outreach efforts; or project provides details on the development team's community outreach strategy for the project. 5 Sub-total 5 BONUS POINTS: Project provides at least 75% or more of the units for extremely low-income families at 30% Area Median Income 5 BONUS POINTS: Developer commits to donate a portion of their developer fee to a project or initiative in the surrounding neighborhood 5 TOTAL ELIGIBLE POINTS 120 The minimum score to be considered for a pre-loan commitment is 75 points out of 120 points total. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 15 XV. PUBLIC RECORDS Proposals will become public record after submission of the proposal. Interested offerors may submit a written request to receive the results of the evaluation. City will make best efforts to maintain Proposer information identified as proprietary information confidential, to the extent allowed under the California Public Records Act. Submit your request to, City of Santa Ana Community Development Agency, Attn: Claudia Fernandez-Shaw, Housing Programs Analyst, 20 Civic Center Plaza M-26, Santa Ana, CA 92701. XVI. FILING A PROTEST In the event of a dispute of the decision of the Review Panel, proposers may file a “protest” with the City’s Community Development Agency. In order for a proposer’s protest to be considered valid, the protest must: 1. Be filed in writing within five (5) business days of notification of rejection; 2. Clearly identify the specific irregularity or allegation; 3. Clearly identify the specific City staff determination or recommendation being protested; 4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City Manager, or his/her designee, shall review the basis of the protest and all relevant information. The City Manager will provide a written decision to the protestor within fourteen (14) calendar days from receipt of protest. The decision from the City Manager, or his/her designee, is final and no further appeals will be considered. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 16 EXHIBIT A – SCOPE OF WORK CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT I. INTRODUCTION In order to meet the City’s goals, the City is soliciting proposals for the development of affordable housing projects from developers who are experienced, very knowledgeable of affordable housing programs and its requirements, financially creative and capable of developing, managing and maintaining high quality housing. The selected developer must have a demonstrated history of working cooperatively with surrounding neighborhoods in all phases of project development. Both nonprofit and for profit developers are eligible to apply, either individually or in partnership with other entities. Developers who can demonstrate the capability to make other funds a significant part of the financing mix for their proposed project will score higher in the selection process than those who cannot. The funding and property data provided in this RFP is not guaranteed, and the availability of such funding or properties is subject to change at any time. The City of Santa Ana makes no guarantee of the availability of the proposed funding and properties for any particular applicant or project. The submission of a proposal in response to this RFP does not commit the City to providing any funding or land asset to a proposed project. The City reserves the right to determine at its sole discretion how to lease available properties, if at all. II. DEVELOPMENT PRIORITIES Both the Strategic Plan and the City’s Housing Element identify affordable rental housing suitable for larger households as a high priority for the City. In addition, the City of Santa Ana will be targeting extremely low- income households within the city, including homeless individuals, veterans and/or large families. One of the primary rating criteria is the depth of affordability. The City desires proposed projects to have dedicated units for extremely low-income families earning no more than 30% Area Median income (AMI). Project design and construction will be subject to and carried out in accordance with established City standards and procedures. In accordance with the City’s Early Outreach policy (Attachment 1), the selected developer may be required to solicit significant neighborhood input during the design process. Priorities and Objectives: In particular, the City is interested in furthering the following priorities through this RFP: 1) Acquisition and rehabilitation projects that consist of substantial rehabilitation and will impose long-term affordability covenants on the units. 2) Projects that will provide affordable homeownership opportunities. In addition, the City recommends: 1) Review Exhibit H – City of Santa Ana Map of Opportunity Zones to determine if your proposed project can leverage this potential source of private investment in your project. 2) Review Exhibit I – HCD NOFA Calendar to determine a path forward where you can most effectively leverage funds from HCD for your project. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 17 III. INCLUSIONARY HOUSING FUNDS Source of Funds Funding for this program is provided using revenues generated through in-lieu fees collected under the City of Santa Ana Housing Opportunity Ordinance. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not for profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Funds can be used to increase and improve the supply of housing affordable to moderate, low, very low and extremely low-income households in the City. Eligible rehabilitation projects will: 1) be in need of rehabilitation as defined herein; 2) be located in the City of Santa Ana; 3) be free from significant adverse environmental impacts, except those that can be mitigated through rehabilitation; and 4) avoid permanent involuntary tenant displacement to the greatest degree feasible in order to carry out the project. Eligible projects which involve new construction or conversion of an existing non-residential use will conform to items (2), (3), and (4) above. Eligible Uses and Activities Funds can be used to make loans to eligible borrowers to provide affordable housing, for low- and very low- income households, including, but not limited to, the following:  acquisition and rehabilitation of eligible rental properties;  acquisition and conversion of non-residential property to multifamily rental housing units;  new construction of rental housing units; and,  predevelopment loans up to a period of 24 months for site acquisition, predevelopment activities, including professional services, which cannot be obtained on a contingency basis, and construction. Such loans may be extended for up to 18 months with an additional 12-month extension option at the discretion of the Housing Division Manager. For more information, please see Santa Ana Municipal Code Section 41-1900. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 18 IV. HOME INVESTMENT PARTNERSHIPS PROGRAM Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME Program (including program income and residual receipts), and therefore is subject to the federal rules and regulations found in 24 CFR Part 92, as amended from time to time. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are other wise eligible under the above are also eligible to borrow Program funds. Eligible Projects Projects eligible for HOME funding shall: 1) be rental projects located in the City of Santa Ana; 2) contribute to the achievement of the City's Strategic Plan and fair housing goals; 3) involve 4 or more apartments which will be rented to eligible lower income households at rents that do not exceed rents as defined by 24 CFR 92.252, as amended from time to time. Projects serving persons with special needs, or where the City Manager finds that the project will provide a substantial public benefit, may have fewer than four units. Transitional or permanent supportive housing may be provided (but not temporary shelters). 4) have at least 20% of the HOME-assisted units rented to very low-income families (50% of median income) under the terms and conditions set forth in 24 CFR 92.252 (2)(b); 5) demonstrate financial feasibility -- including the ability to maintain rents for the subsidized units at affordable levels for the periods specified in 24 CFR 92.252; 6) be free of significant adverse environmental impacts, except those that can be mitigated through the project itself; 7) minimize tenant displacement; 8) comply with all local building and zoning codes and standards, including energy efficiency and water conservation standards, and meet housing quality standards in Section 882.109 of Title 24. Newly constructed housing must meet the current edition Model Energy Code of the Council of American Building Officials; 9) make efficient use of public funds and avoid "layering" of subsidies beyond those necessary to achieve a financially feasible project; and, 10) have at least 51% of the project space be residential, if in a mixed-use project. Eligible Uses and Activities HOME funds may only be used to finance new construction or acquisition and/or rehabilitation of rental housing which is affordable to very low and low-income households as defined by 24 CFR 92.2. Fifteen percent (15%) of the annual HOME fund allocation shall be set aside for certified Community Housing Development Organizations (CHDO’s). New construction costs eligible for HOME funding shall be as specified in 24 CFR Part 92, including: 1) site acquisition; 2) site preparation costs (grading, filling, etc.); 3) financing costs as described in 24 CFR 92.206; 4) architectural, engineering, and other related soft costs; 5) the cost of extending or upgrading utilities to the site to support the proposed project; 6) construction costs; 7) relocation costs; and, 8) affirmative marketing and audit costs related to HOME program requirements. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 19 Rehabilitation costs eligible for HOME funding include: 1) project acquisition with or without rehabilitation; 2) financing costs, as described in 24 CFR 92.206; 3) architectural, engineering, or other design costs; 4) utility upgrade or extension costs; 5) costs associated with demolition (where necessary) only if rehabilitation is commenced within 12 months of demolition; 6) construction costs; 7) project audit costs; and, 8) affirmative marketing costs. Ineligible Uses and Activities The following costs are not eligible for HOME funding: 1) project reserve accounts for replacement or operating reserves, and operating subsidies; 2) payment of impact fees; 3) land banking; 4) emergency repair or weatherization programs; 5) commercial properties; 6) temporary shelters; or 7) project-based rental assistance. Affordability Requirements HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD; or 2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low-income families and meet one of following rent requirements: 1) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits, which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). 2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program. To ensure that HOME investments yield affordable housing over the long term, HOME imposes rent and occupancy requirements over the length of an affordability period. For homebuyer and rental projects, the length of the affordability period depends on the amount of HOME assistance to the project or buyer, and the nature of the activity funded. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 20 Table 1-1: Determining the HOME Period of Affordability: HOME Assistance per Unit or Buyer Length of the Affordability Period Less than $15,000 5 years $15,000 - $40,000 10 years More than $40,000 15 years New construction of rental housing 20 years Refinancing of rental housing 15 years Throughout the affordability period, income-eligible households must occupy the HOME-assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME rent. Other Requirements Minimum Loan: All HOME investments must total not less than $1,000 multiplied by the number of HOME- assisted units in the project. Maximum Loan: The maximum amount of subsidy per unit shall not exceed the maximum allowed by HUD under the HOME program (24 CFR 92.250). The City will avoid unnecessary layering of subsidies from different federal, state and local programs and seek to maximize t he benefit to target households from the investment of HOME funds in a project. The Housing Division will use HUD’s Cost Allocation Tool to identify the maximum subsidy per unit for each project. Property Standards: Housing that is assisted with HOME funds must meet, at a minimum, the City’s Property Standards, including all applicable local, State and Federal codes and regulations. Newly constructed housing must also meet the current edition of the Model Energy Code published by the Council of American Building Officials. Substantially rehabilitated housing must meet the cost-effective energy conservation and effectiveness standards in 24 CFR 39. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor standards and HUD Handbook 1344.1. These provisions apply whether HOME funds are used for construction or non-construction costs. Lead-based Paint: Housing assisted with HOME funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. For more information, please see 24 CFR Part 92. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 21 V. HOME-AMERICAN RESCUE PLAN PROGRAM ( HOME-ARP) Source of Funds Funding for this Program is provided through the U.S. Department of Housing and Urban Development (HUD) HOME-American Rescue Plan Program (HOME_ARP), and therefore is subject to the federal rules and regulations found in CPD Notice 21-10 and 24 CFR Part 92, as amended from time to time. Please review CPD Notice 21-10 if you are applying for this source of funds. Eligible Borrowers/Grantees Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, and which have a valid 501(c)(3) or (4) designation from the IRS, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Activities 1) HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families who are experiencing homelessness (“qualifying households”). Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing. The City of Santa Ana will give a preference to chronically homeless individuals. Units restricted for occupancy by qualifying households must be occupied by households that meet the definition of a qualifying population at the time of admission to the HOME-ARP unit. HOME-ARP funds may be used for acquisition, construction, and rehabilitation, including reconstruction as defined in 24 CFR 92.2, of affordable rental housing for qualifying and low-income households. Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide HOME-ARP rental housing within the timeframes provided in CPD Notice 21- 10. A HOME-ARP rental project must meet the definition of project in 24 CFR 92.2. HOME-ARP funds may be used to assist one or more units in a project. Only the eligible development costs of the HOME-ARP units may be charged to the HOME-ARP program. The City may pay ongoing operating cost assistance or capitalize an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the City determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long- term operational feasibility. However, HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the City to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period. Please see CPD Notice 21-10 for more information on this assistance. 2) A non-congregate shelter (NCS) is one or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement. HOME-ARP funds may be used to acquire and develop HOME-ARP NCS for individuals and families in qualifying populations. This activity may include but is not limited to the acquisition of land and construction of HOME-ARP NCS or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for HOME-ARP NCS. HOME-ARP funds may not be used to pay the operating costs of HOME-ARP NCS. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 22 HOME-ARP NCS units may only be occupied by individuals or families who are experiencing homelessness. The City of Santa Ana will give a preference to chronically homeless individuals (“qualifying households”). HOME-ARP funds may be used to acquire and/or rehabilitate or construct HOME-ARP NCS units to serve qualifying households. Acquisition of vacant land or demolition of existing structures may be undertaken only as part of a HOME-ARP NCS project. HOME-ARP NCS units acquired and/or developed with HOME-ARP funds must meet the requirements of CPD Notice 21-10, i.e., be used as HOME-ARP NCS or used as emergency shelter under ESG for the restricted use period established in Section VI.E.9 of the Notice. Eligible Uses HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of the following qualifying population: 1) Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) (“McKinney-Vento”). Unlike the regular HOME Program, which targets HOME-assisted rental units based on tenant income, seventy (70) percent of all HOME-ARP units must admit households based only upon their status as qualifying households. Referral Methods for Projects The City will use the Orange County Coordinated System (CE) for referrals for eligible projects described above. Under 24 CFR 578.3, a CE is a centralized or coordinated process designed to coordinate program participant intake assessment and provision of referrals within a defined area. HUD requires each Continuum of Care (CoC) to establish and operate a CE with the goal of increasing the efficiency of local crisis response systems and improving fairness and ease of access to resources, including mainstream resources. The City will permit the Orange County CoC CE to collect information and documentation required to determine whether an individual or family meets the criteria of a HOME-ARP qualifying population at any point in the coordinated entry process, (i.e., after or concurrently with the assessment and intake processes) as long as that information is not used to rank a person for HOME-ARP assistance other than as specified by the preferences or method of prioritization established by the City, in accordance with HOME-ARP requirements. Preference The City of Santa Ana will give a preference to chronically homeless individuals. Chronically homeless means: (1) A ‘‘homeless individual with a disability,’’ as defined in section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), who: (i) Lives in a place not meant for human habitation, a safe haven, or in an emergency shelter; and (ii) Has been homeless and living as described in paragraph (1)(i) of this definition continuously for at least 12 months or on at least 4 separate occasions in the last 3 years, as long as the combined occasions equal at least 12 months and each break in homelessness separating the occasions included at least 7 consecutive nights of not living as described in paragraph (1)(i). Stays in institutional care facilities for fewer than 90 days will not constitute as a break in homelessness, but rather such stays are included in the 12-month total, as long as the individual was living or residing in a place not meant for human habitation, a safe haven, or an emergency shelter immediately before entering the institutional care facility; (2) An individual who has been residing in an institutional care facility, including a jail, substance abuse or mental health treatment facility, hospital, or other similar facility, for fewer than 90 days and met all of the criteria in paragraph (1) of this definition, before entering that facility; or (3) A family with an adult head of household (or if there is no adult in the family, a minor head of household) who meets all of the criteria in paragraph (1) or (2) of this definition, including a family whose composition has fluctuated while the head of household has been homeless. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 23 The City will also have a local residency preference for chronically homeless individuals with strong ties to the City of Santa Ana. Eligible Costs: HOME-ARP funds may pay for up to one-hundred (100) percent of the following eligible costs associated with HOME-ARP rental units: 1) Development hard costs include the actual cost of constructing and rehabilitating housing to meet applicable property standards. Eligible development costs also include site improvements, utility connections and costs to construct or rehabilitate laundry and community facilities located within the same building as the HOME-ARP housing; 2) Refinancing of existing debt secured by a HOME-ARP rental project rehabilitated with HOME-ARP funds; 3) Acquisition costs of improved or unimproved real property 4) Related soft costs including reasonable and necessary costs incurred by the PJ or project owner associated with the financing, development, acquisition, or rehabilitation of HOME-APR rental housing; 5) Relocation costs as defined in 24 CFR 92.206(f), 24 CFR 92.353, and the Notice; 6) Certain costs related to the payment of construction, bridge, or guaranteed loans, if HOME-ARP is part of original financing; and 7) Operating cost assistance, through a capitalized operating reserve or ongoing operating cost payments, for HOME-ARP units restricted for occupancy by qualifying households Ineligible Uses and Activities HOME-ARP may not be used for any of the prohibited activities, costs or fees in 24 CFR 92.214, as revised by the Appendix to CPD Notice 21-10. For HOME-ARP NCS for individuals and families experiencing homelessness, HOME-ARP funds may not be used to: 1) Pay any operating costs of a HOME-ARP NCS project. 2) Provide additional HOME-ARP investment in a HOME-ARP NCS project during the restricted use period, except that additional HOME-ARP funds can be invested in the project up to one year after project completion in IDIS for eligible costs. 3) Pay costs of a conversion of HOME-ARP NCS as described in Section VI.E.11 of this Notice. 4) Provide non-Federal matching contributions required under any other Federal program. 5) Provide assistance for uses authorized under section 9 of the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (Public Housing Capital and Operating Funds). 6) Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low-Income Housing Mortgages). 7) Pay for the acquisition of property owned by the PJ, except for property acquired by the PJ with HOME- ARP NCS funds, or property acquired in anticipation of carrying out a HOME-ARP NCS project. 8) Pay delinquent taxes, fees, or charges on properties to be assisted with HOME-ARP NCS funds. 9) Pay for any cost that is not eligible under CPD Notice 21-10. Affordability Requirements HUD provides the following maximum HOME-ARP rent limits. The maximum HOME-ARP rents are the lesser of: 1) The fair market rent for existing housing for comparable units in the area as established by HUD; or 2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals sixty-five (65) percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME-ARP rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 24 In rental projects with five or more HOME-ARP assisted rental units, not less than seventy (70) percent total HOME-ARP rental units must be restricted for occupancy by qualifying households at time of household’s initial occupancy. Not more than thirty (30) percent of total HOME-ARP assisted rental units may be restricted for occupancy by low-income households and meet one of following rent requirements: 1) The rent does not exceed thirty (30) percent of the annual income of a family whose income equals fifty (50) percent of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits, which include average occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under 24 CFR 92.252(a), then the maximum rent for units under this paragraph is that calculated under 24 CFR 92.252(a). 2) The rent does not exceed thirty (30) percent of the family's adjusted income. If the unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than thirty (30) percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project- based rental subsidy program. 3) To ensure that HOME-ARP investments yield affordable housing over the long term, HOME-ARP imposes rent and occupancy requirements over the length of an affordability period. HOME-ARP Period of Affordability A minimum compliance period of fifteen (15) years for all HOME-ARP rental units irrespective of the amount of subsidy per unit or whether the units are acquired, rehabilitated, and/or newly constructed. Throughout the affordability period, income-eligible households must occupy the HOME-ARP assisted housing. When units become vacant during the affordability period, subsequent tenants must be income eligible and must be charged the applicable HOME-ARP rent. Other Requirements Minimum Loan: All HOME-ARP investments must total not less than $1,000 multiplied by the number of HOME- ARP assisted units in the project. Maximum Loan: The maximum per-unit subsidy established in NAHA does not apply to HOME-ARP units. One-hundred (100) percent of the eligible and reasonable HOME-ARP costs allocated to a HOME-ARP unit, including operating costs assistance associated with the units restricted for occupancy by qualifying households. All costs paid by HOME-ARP funds must comply with the requirements of the Cost Principles at 2 CFR part 200, subpart E of the Uniform Administrative Requirements, as amended. Property Standards: HOME-ARP rental units must comply with all property standards applicable to rental projects required in 24 CFR 92.251 paragraphs (a) new construction, (b) rehabilitation projects, (c) (1) and (2) acquisition of standard housing, (e) manufactured housing, and (f) on-going property condition standards. Labor Standards/Construction Contracts: Any contract for construction (whether it is for rehabilitation or for new construction) of affordable housing with 12 or more units assisted with HOME-ARP funds must contain a provision requiring that not less than the prevailing wages paid in the locality, as determined by the Secretary of Labor pursuant to the Davis-Bacon Act, will be paid to all laborers and mechanics employed in the development of the project. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Contractors and subcontractors must comply with regulations issued under this Act and pertaining to labor EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 25 standards and HUD Handbook 1344.1. These provisions apply whether HOME-ARP funds are used for construction or non-construction costs. Lead-based Paint: Housing assisted with HOME-ARP funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. For more information, please see CPD Notice 21-10. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 26 VI. PROJECT-BASED VOUCHERS Source of Funds The project-based voucher (PBV) program allows Public Housing Authorities (PHAs) that already administer a tenant-based voucher program under an annual contributions contract (ACC) with HUD to take up to 20 percent of its voucher program budget authority and attach the funding to specific units rather than using it for tenant- based assistance [24 CFR 983.6]. Eligible Borrowers Eligible borrowers are nonprofit Housing Development Corporations (HDC’s) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects The City and Authority is soliciting proposals for permanent supportive housing from owners and/or affordable housing developers together with at least one service provider who are experienced, very knowledgeable of HUD programs and its requirements, and financially capable of managing and maintaining high-quality permanent supportive housing people experiencing homelessness. Proposals may also be for projects that do not include permanent supportive housing. The City will entertain proposals for New Construction of Multifamily Rental Units, Acquisition and Rehabilitation of Multifamily Rental Units, and Existing Multifamily Rental Units only. Permanent Supportive Housing is defined in this RFP as permanent housing with comprehensive, wrap-around supportive services for people who are experiencing homelessness. Eligible projects include acquisition, rehabilitation, or new construction of rental housing projects which: 1) The Public Housing Authority (PHA) may attach project-based voucher (PBV) assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an Agreement. a. Existing housing—A housing unit is considered an existing unit for purposes of the PBV program, if at the time of notice of PHA selection the units substantially comply with HQS. i. Units for which rehabilitation or new construction began after owner's proposal submission but prior to execution of the Agreement to Enter into a Housing Assistance Payments Contract do not subsequently qualify as existing housing. ii. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. Applications for the project-based vouchers must: (1) be for units located in the City of Santa Ana; (2) request a minimum of eight (8) PBVs; and (3) propose to only serve households with individuals or families who are homeless as certified through referrals from the Orange County Continuum of Care Coordinated Entry System. Proposals may also be for projects that do not serve people experiencing homelessness. Proposers must be owners of existing multifamily rental units or developers of affordable housing who will enter into an agreement for supportive services with a qualified service provider (unless the service provider is also the owner). In addition, the proposed project must have an on-site property manager and provide case management/resident services on-site. SAHA will evaluate the quality and location of the prospective housing as well as the experience of the service provider and proposed services. Proposals from owners/developers who cannot demonstrate such an agreement for supportive services will not be reviewed. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 27 Wrap-Around Supportive Services One of the most important elements of permanent supportive housing is ongoing supportive services that are wrapped around homeless individuals and families placed in housing. Under this RFP, the scope of services required for service providers in the course of operating the Project-Based Voucher Program (“Program”) will include, but not be limited to: 1) Performing outreach and intake of targeted individuals (i.e. homeless and chronically homeless individuals) for participation in the Program; 2) Making and accepting referrals of people experiencing homelessness from the Orange County Continuum of Care Coordinated Entry System with a preference for chronically homeless individuals with strong ties to the City of Santa Ana; 3) Assessing homeless individuals and families to prescribe treatment/services; 4) Placing homeless individuals and families into project-based housing units; 5) Performing case management services for homeless individuals and families that will remove barriers to successful achievement of independent living skills, attainment of employment skills, and greater self-determination; 6) Tracking and reporting program activities and outcomes using the Homeless Management Information System (HMIS) operated by the Orange County Continuum of Care. Data entry into HMIS is required in order to perform tracking and reporting program activities and outcomes. Supportive Services means services provided to tenants for the purpose of addressing the tenants’ condition of homelessness and enhancing the tenants' ability to maintain independent living. Supportive services must address the special needs of the tenants to be served. These services may include: (a) medical or mental healthcare; (b) medical and psychological case management; (c) benefits advocacy and income support assistance such as Temporary Assistance to Needy Families (TANF), General Assistance, CalFresh, Social Security Disability Income, tenant assistance or representation to address landlord/tenant issues; (d) money management/payee services; (e) nutritional counseling; and (f) assistance in obtaining other resources and support for tenants such as clothing, furniture and household items, transportation, job training and job placement. These services may be provided directly or by arrangement with other service providers. Housing First Housing First is an approach where homeless persons, usually chronically homeless or especially vulnerable homeless individuals and families, are provided immediate access to housing and then offered the supportive services that may be needed to foster long -term stability and prevent a return to homelessness. This approach removes unnecessary barriers and assumes that supportive services are more effective in addressing needs when the individual or family is housed and the daily stress of being homeless is addressed. Key components of this model include a simple application process, a harm reduction approach, and no conditions of tenancy beyond those included in the lease. Housing First specifically does not require sobriety or testing for substance abuse to obtain or sustain tenancy and thus must not be required in the lease. In serving these populations, projects cannot discriminate against families with children. Housing First programs share critical elements: 1) There is a focus on helping individuals and families access and sustain rental housing as quickly as possible and the housing is not time-limited; 2) A variety of services are delivered primarily following a housing placement to promote housing stability and individual well-being; 3) Such supportive services are time-limited or long-term depending upon individual need; and 4) Housing is not contingent on compliance with services. Instead, participants must comply with a standard lease agreement and are provided with the services and supports that are necessary to help them do so successfully. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 28 A Housing First approach rests on the belief that helping people access and sustain permanent, affordable housing should be the central goal of our work with people experiencing homelessness. By providing housing assistance, case management and wrap-around supportive services responsive to individual or family needs (time-limited or long-term) after an individual or family is housed, communities can significantly reduce the time people experience homelessness and prevent further episodes of homelessness. A central tenet of the Housing First approach is that social services to enhance individual and family well-being can be more effective when people are in their own home. More information on Housing First is available at: https://www.hudexchange.info/resources/documents/Housing-First-Permanent-Supportive-Housing- Brief.pdf Eligible Uses and Activities Program funds can be used to enter into an Agreement with eligible borrowers who will provide affordable housing. Eligible uses of Project-Based Voucher funds include, but are not limited to, the following: 1) acquisition and/or rehabilitation of eligible rental properties; 2) acquisition and conversion of nonresidential property to multifamily rental housing units; and 3) new construction of rental housing units. Affordability Requirements All units assisted under this program shall be affordable to households with incomes that do not exceed 30% of median income. Compliance with Federal and Local Regulations All projects must comply with all applicable federal requirements contained in 24 CFR 982, including, but not limited to, environmental review, labor and wage requirements, debarred contractors, lead-based paint and equal opportunity. Borrowers should note: Contract Requirements: All work shall be completed by licensed contractors. All contracts must comply with competitive bidding requirements. Labor Standards: A project with nine or more residential units must comply with the Federal Labor Standards, including the Davis-Bacon Act requirements, as promulgated by HUD, and set forth in 24 CFR Part 570, Subpart K in the performance of the rehabilitation or construction work financed by the loan. Contracts over $10,000 must comply with Equal Opportunity Affirmative Action requirements of Section 3 of the Housing and Urban Development Act of 1968. All efforts shall be made to provide equal opportunity for employment without discrimination as to race, marital status, sex, color, age, religion, national origin or ancestry, and to seek out qualified local tradespeople for contracting and subcontracting bids. Lead-based Paint: Housing assisted with PBV funds constitutes HUD-associated housing for the purpose of the Lead-Based Paint Poisoning Prevention Act and the Lead Safe Housing Rule, and is therefore subject to 24 CFR Part 35. Unless otherwise provided, borrowers are responsible for testing and abatement. Accessibility: All projects must comply with the federal Section 504 Disabled Accessibility regulations contained in Sections 8.22 and 8.23 of Subpart C, 24 CFR Part 8. For more information, please see PIH Notice 2017 – 17 and 24 CFR Part 983. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 29 VII. DEVELOPER REQUIREMENTS AND RESPONSIBILITIES i. INSURANCE Prior to undertaking performance of work under this Agreement, Developer shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: 1) Commercial General Liability Insurance. Developer shall maintain commercial general liability insurance, which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting there from and damage to property, resulting from any act or occurrence arising out of Developer’s operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting there from, and property damage, in the total amount of $2,000,000 per occurrence, $2,000,000 in the aggregate. 2) Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $2,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non- owned automobiles. 3) Worker’s Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor Code, Developer is required to be insured against liability for worker’s compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Developer agrees to obtain and maintain any employer’s liability insurance with limits not less than $1,000,000 per accident. The following requirements apply to the insurance to be provided by Developer pursuant to this section: a. Commercial general liability and business automobile insurance policies shall (a) name the City, Authority, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City and Authority; and (c) contain standard separation of insureds provisions. A sample additional insured endorsement is attached hereto as Exhibit C. Developer shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. b. Certificates of insurance shall be furnished to the City and Authority upon execution of this Contract and shall be approved in form by the City Attorney. c. Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City and Authority. If Developer fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City and the Authority with required proof that insurance has been procured and is in force and paid for, the City and Authority shall have the right, at the City’s/Authority’s election, to forthwith terminate the Contract. Such termination shall not affect Developer’s right to be paid for its time and materials expended prior to notification of termination. Developer waives the right to receive compensation and agrees to indemnify the City and the Authority for any work performed prior to approval of insurance by the City and Authority. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 30 ii. HOLD HARMLESS/ INDEMNIFICATION To the fullest extent permitted by law, Developer shall indemnify, defend and hold harmless City, Authority, its officers, agents and employees (collectively, the “Indemnified Parties”) from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, “Claims”), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Contract (including, without limitation, defects in workmanship and/or materials) or Developer’s presence or activities conducted performing the work (including the negligent and/or willful acts, errors and/or omissions of Developer, its principals, officers, agents, employees, vendors, suppliers, contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable for any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Developer to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney’s fees in any action on or to enforce the terms of the Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Developer. iii. NOTICE Any notice, tender, demand, delivery or other communication pursuant to this contract shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication to the following persons: To City: Clerk of the Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 Fax 714-647-6956 With courtesy copy to: Housing Division Manager City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) Santa Ana, CA 92701 Fax 714-667-2225 iv. TERMINATION The City and the Authority reserves the right to terminate the contract, without penalty, for cause immediately or without cause. 1) In the event Developer fails or refuses to timely perform any of the provisions of the Agreement in the manner required, or if Developer violates any provision of the Agreement, Developer shall be deemed in default. City shall provide written notice of such default to Developer’s Project Manager. Developer shall cure said default within a period of two (2) working days. If such cure is not completed in a timely manner, City may assess liquidated damages or terminate the Agreement forthwith by giving written notice to Developer’s Project Manager. City may, in addition to the other remedies provided EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 31 in the Agreement or authorized by law, terminate this Agreement by giving written notice of termination. Developer shall be responsible for all costs incurred by City, including replacement costs of equipment and labor required to provide service during Developer’s default. 2) This agreement may be terminated without cause by City and/or Authority upon thirty (30) days written notice delivered to the Developer either personally or by mail. Upon termination, City and/or Authority shall pay to Developer that portion of compensation specified in the Agreement that is earned and unpaid prior to the effective date of termination. V. DEVELOPER OPTION FOR TERMINATION The Developer may request termination of the contract when conditions during the contract make it impossible to perform or when prevented from proceeding with the contract by act of God, by law or official action of a public authority or in the event on nonpayment by the City or Authority. Such request will require one-hundred and eighty (180) days written notice prior to contract termination date requested. In the event of nonpayment of undisputed sums by the City and/or Authority, Developer shall give the City and/or Authority thirty (30) working days to cure the alleged breach. VI. EMPLOYMENT OPPORTUNITIES FOR SANTA ANA RESIDENTS Developer shall solicit and advertise employment opportunities to Santa Ana residents. The City shall inform the Developer of areas to publicize recruitment opportunities, such as the Santa Ana WORK Center and community centers. Such effort and procedure will be provided to the City for review. vii. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 1) Developer shall perform all requirements under the contract in strict observance of and in compliance with all applicable environmental, traffic, safety and any other laws, regulations, ordinances, codes and any other legislative or statutory requirements. 2) Developer warrants that the performance of services under the contract shall be compliant with the current requirements of the Occupational Safety and Health Act (OSHA) and as it may be amended or updated throughout the term of the contract. viii. ASSIGNMENT Inasmuch as the Agreement is intended to secure the specialized services of Developer, Developer may not assign, transfer, delegate or subcontract any interest herein without the prior written consent of City and/or Authority, and any such assignment, transfer; delegation or subcontract without the City’s and/or the Authority’s prior written consent shall be considered null and void. ix. JURISDICTION – VENUE The Contract will be executed and delivered in the State of California and the validity, interpretation, performance and enforcement of any of the clauses of the Contract shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of the Contract. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 32 x. FINES The Developer shall be liable for all violation fines levied against the City and the Authority by State or Federal Agencies and the Courts such as, but not limited to, oil or fluid leaks. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 33 ATTACHMENT 1: EARLY OUTREACH COMMUNITY MEETING Information regarding the City’s Early Outreach Community Meeting requirement can be accessed here: https://www.santa-ana.org/sites/default/files/sunshine_ordinance.pdf Please note that the City’s Sunshine Ordinance is currently under review by the City of Santa Ana. The first reading of the amended Ordinance was held on November 16, 2021. Please check the City’s webpage for more information on the amended Ordinance. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 34 ATTACHMENT 2: CITY OF SANTA ANA REHABILITATION STANDARDS PREFACE The primary purpose of these standards is to address the quality of workmanship and materials expected, and to achieve consistency throughout the program activities administered by the City of Santa Ana. These standards are not intended to reduce or exclude the requirements of any federal, state or local codes, standards, ordinances and regulations that apply to residential rehabilitation. WORKMANSHIP  All work shall be performed in a professional and workmanlike manner.  The quality and durability of the work shall meet or exceed the standards established by the construction industry and various trades. MATERIALS & EQUIPMENT  All materials and equipment shall comply with and be installed in accordance with the manufacturer’s requirements and all applicable codes, standards, ordinances and regulations. If a discrepancy occurs between the requirements, the more stringent shall prevail.  Unless otherwise specified, all materials and equipment shall be medium grade.  Economy grade materials and equipment are unacceptable.  All materials and equipment shall be new, in excellent condition, and delivered to the job in the manufacturer’s original packaging.  The description of materials and equipment found in this document establish a minimum standard. ENERGY EFFICIENCY, WATER CONSERVATION & RECYCLED MATERIALS To the extent possible and practical, standard measures related to energy conservation, energy efficiency, water conservation and the use of recycled materials have been incorporated herein. Gut rehabilitation or new construction of residential buildings up to three stories will be designed to meet the standard for Energy Star Qualified New Homes. Gut rehabilitation or new construction of mid or high-rise multi-family housing must be designed to meet the American Society of heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2004, Appendix G plus 20 percent. LEAD-BASED PAINT All housing built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards. HUD’s guidelines are available at https://www.hud.gov/program_offices/healthy_homes/enforcement/lshr BUILDING STANDARDS SITE Minimum Standard  The site shall be hazard-free and sanitary.  The site and all paving shall drain away from the dwelling and accessory buildings, but not onto adjacent properties.  Paving and walkways shall be hazard-free and intact.  Landscaping and irrigation systems shall be hazard-free and in relatively good condition. All dead vegetation shall be removed.  Fencing, walls and gates hazard-free and intact. All gates shall be in good working order.  The site shall be free from trash, debris and hazardous materials.  Accessory buildings shall be safe and sound. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 35 Paving  All new paving and walkways shall be constructed with concrete (2,000 PSI @ 28 days).  Driveways shall be reinforced with wire mesh. Sawn expansion- contraction joints shall be placed every 8 feet in both directions.  All paving and walkways shall be finished with a light broom texture.  All walkways shall be at least 3 feet wide. Sawn expansion-contraction joints shall be placed every 4 feet. Landscaping & Irrigation  To the extent possible and practical all new landscaping shall be drought resistant.  When a lawn is being replaced, the new lawn area shall be reduced to aid in the reduction of water consumption.  New irrigation controllers shall be weather or sensor based and EPA Water-Sense qualified.  All new irrigation systems shall be designed to conserve water. Fences, Walls & Gates  All new wood fences shall be made from good quality materials. They shall be properly supported with 4X4 pressure treated posts (8 feet O.C.) and 2X4 rails (top and bottom). The posts shall be embedded in a concrete footing at least 18” deep.  All new block walls shall be constructed with 6X8X16 concrete block. They shall be properly supported by a continuous footing and reinforced with steel bar. ROOFS / ROOF COVERINGS / GUTTERS AND DOWNSPOUTS Minimum Standard  Roofs shall be safe and structurally sound.  Roof coverings shall be intact and watertight.  Roofing metal and flashing shall be intact and rust free.  Gutters and downspouts shall be intact and rust free.  Roof coverings with five or less years of useful life shall be replaced. Rehabilitation  Roofs that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  The replacement of roofing includes the replacement of all metal (roof jacks and flashing).  Gutters and downspouts shall be installed to properly discharge rain water run-off. Roof Coverings  25-year, 3-tab, self-sealing composition shingle. Built-up membrane (hot mop) system on all flat roofs.  Lighter colored coverings are preferred for energy efficiency. DECKS / BALCONIES / RAILING Minimum Standard  Safe, structurally sound and watertight. Rehabilitation  Decks, balconies and railing that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Finishes  Zero or low VOC primers, paint and coatings. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 36 EXT. STEPS / STAIRWAYS / RAILING Minimum Standard  Safe and structurally sound. Rehabilitation  Ext. steps, stairways and railing that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Finishes  Zero or low VOC primers, paint and coatings. FOUNDATIONS Minimum Standard  Safe and structurally sound. Rehabilitation  Foundations that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  If the project involves a gut rehab, raised foundations shall be completely insulated. Concrete  2,000 PSI (minimum). EXTERIOR WALLS / WALL COVERINGS Minimum Standard  Safe, structurally sound and watertight. Rehabilitation  Exterior walls that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  If the project involves a gut rehab, all exterior walls shall be insulated. EXTERIOR DOORS Minimum Standard  Safe, sound, weather-tight and in good working order. Rehabilitation  Exterior doors that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. New Doors  EPA Energy Star qualified, zero or low VOC finish. New Hardware  Reputable manufacturer, lifetime finish. GARAGE DOORS / GARAGE DOOR OPENERS Minimum Standard  Safe, sound and in good working order. Doors shall be impermeable (primed and painted).  Five or more years of practical utility. Rehabilitation  Garage doors and openers that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. WINDOWS / WINDOW SCREENS Minimum Standard  Windows shall be safe, sound, weather-tight and in good working order.  Windows that can be opened shall have a tight-fitting insect screen.  Five or more years of practical utility. Rehabilitation  Windows that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 37 New Windows  Reputable manufacturer.  EPA Energy Star qualified. EXTERIOR PAINT Minimum Standard  Homes built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards.  All exterior paint shall be intact and free of corrosion.  Five or more years of practical utility. Rehabilitation  All surfaces to be painted shall be prepared properly. All loose material and peeling paint shall be removed.  All holes and cracks shall be filled and finished so that they blend into the surrounding area.  All stucco surfaces to be painted shall receive a complete and even coverage of stucco paint.  All wood surfaces to be painted shall receive a complete and even coverage of flat exterior paint.  Poor workmanship will not be tolerated. New Paint  Reputable manufacturer.  Highest quality available.  Zero or low VOC paint, caulking and fillers. WALLS / WALL COVERINGS Minimum Standard  Safe and structurally sound.  All plaster, drywall and paneling shall be safe and intact. Rehabilitation  Walls and wall coverings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  If the project involves a gut rehab, the attic, walls and floor on raised foundations shall be insulated. FLOORS / FLOOR COVERINGS Minimum Standard  Safe, sound and sanitary.  Five or more years of practical utility. Rehabilitation  Floor coverings that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Floor Coverings  Carpet & Pad (Reputable manufacturer, recycled materials).  Resilient Flooring (Reputable manufacturer, 10 year wear warranty).  Ceramic Tile (Reputable manufacturer) INTERIOR DOORS Minimum Standard  Safe, sound and in good working order.  Five or more years of practical utility. Rehabilitation  Interior doors that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Doors & Hardware  Doors (Reputable manufacturer, masonite, raised panel).  Hardware (Reputable manufacturer, lifetime finish). EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 38 INTERIOR PAINT Minimum Standard  Homes built before 1978 must comply with 24 CFR Part 35 Subpart J and HUD’s Lead Safe Housing Rule regarding the evaluation and control of lead-based paint hazards.  All interior paint shall be intact and corrosion-free.  Five or more years of practical utility. Rehabilitation  All surfaces to be painted shall be prepared properly. All loose material and peeling paint shall be removed.  All holes and cracks shall be filled and finished so that they blend into the surrounding area.  All surfaces to be painted shall receive a complete and even coverage of flat paint (semi-gloss in kitchens, bathrooms and laundry rooms).  Poor workmanship will not be tolerated. New Paint  Reputable manufacturer.  Highest quality available.  Zero or low VOC paint, caulking and fillers. KITCHEN CABINETS / COUNTERTOPS Minimum Standard  Cabinets shall be safe, sound, sanitary and in good working order.  Countertops shall be safe, sound, sanitary and watertight.  Five or more years of practical utility. Rehabilitation  Cabinets and countertops that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Cabinets  Reputable manufacturer.  Solid hardwood face-frames, doorframes and drawer fronts.  Metal and nylon drawer guides.  Low or zero VOC adhesives and finishes. Replacement Countertops  Reputable manufacturer.  4” ceramic tile, 6” backsplash, bull-nose edge. KITCHEN EQUIPMENT AND APPLIANCES Minimum Standard  Safe, sound, sanitary and in good working order.  Faucets shall (at a minimum) be equipped with a low-flow aerator.  Five or more years of practical utility. Rehabilitation  Kitchen fixtures, equipment and appliances that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Sinks  Reputable manufacturer.  18-guage (minimum) stainless steel. Replacement Faucets  EPA Water-Sense qualified.  Reputable manufacturer.  Brass construction, metal housing. Replacement Disposals  Reputable manufacturer.  ½ HP motor (minimum).  Stainless steel swivel lugs. Replacement Dishwashers  EPA Energy Star qualified.  Reputable manufacturer. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 39 Replacement Range Hoods  EPA Energy Star qualified.  Reputable manufacturer. Replacement Ranges  Reputable manufacturer.  Pilot-free ignition.  Four sealed burners.  Self-cleaning oven with timer. Replacement Cook Tops  Reputable manufacturer.  Pilot-free ignition.  Four sealed burners. Wall Ovens  Reputable manufacturer.  Pilot-free ignition.  Self-cleaning oven with timer. BATHROOM FIXTURES AND EQUIPMENT Minimum Standard  Safe, sound, sanitary and in good working order.  Faucets shall (at a minimum) be equipped with a low-flow aerator.  Showerheads shall (at a minimum) be equipped with low-flow aerator.  Porcelain sinks shall be free from any cracks or chips.  Steel sinks shall be free from any rust or corrosion.  Five or more years of practical utility. Rehabilitation  Bathroom fixtures and equipment that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Toilets that require more than 1.6 GPF shall be replaced regardless of their condition. Replacement Sinks  Reputable manufacturer.  Cast iron, white enamel finish. Replacement Faucets  EPA Water-Sense qualified.  Reputable manufacturer.  Brass construction, metal housing. Replacement Toilets  Reputable manufacturer.  EPA Water-Sense qualified (1.28 GPF) Replacement Tubs  Reputable manufacturer.  Cast iron body, white enamel finish, slip resistant bottom.  EPA Water-Sense qualified plumbing fixtures. Replacement Combination Tub-Showers  Reputable manufacturer.  Cast iron body, white enamel finish, slip resistant bottom.  4” ceramic tile surround.  Anodized aluminum doors with tempered glass.  EPA Water-Sense qualified plumbing fixtures. Replacement Showers  Reputable manufacturer.  4” ceramic tile.  Anodized aluminum door with tempered glass.  EPA Water-Sense qualified plumbing fixtures. Replacement Medicine Cabinets  Reputable manufacturer.  Steel body, beveled mirror door. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 40 Towel Bars & Toilet Paper Holders  Reputable manufacturer.  Metal construction, polished chrome finish. WATER SUPPLY / WASTE AND VENT PIPING Minimum Standard  Safe, sound and leak-free. Rehabilitation  Piping (supply, waste and vent) that does not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Water Supply Piping  Copper, type “L”. Replacement Waste & Vent Piping  Schedule 40 ABS. WATER HEATERS Minimum Standard  Safe, sound and in good working order.  Five or more years of practical utility. Rehabilitation  Water heaters that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved. Replacement Water Heaters (Tank)  Reputable manufacturer.  EPA Energy Star qualified.  40-gallon insulated tank. Replacement Water Heater (Tank-Less)  Reputable manufacturer.  EPA Energy Star qualified. ELECTRICAL SERVICE / WIRING Minimum Standard  Safe, sound and in good working order.  100-ampere minimum service. Rehabilitation  Electrical service panels, breakers and wiring that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Knob and tube wiring shall be replaced regardless of its condition.  Overhead wiring from a dwelling to a detached garage or accessory building shall be installed underground regardless of its condition. Replacement Service  Reputable manufacturer.  100-ampere (minimum). Replacement Wiring  Romex (NM cable). ELECTRICAL SWITCHES / OUTLETS / LIGHTING FIXTURES Minimum Standard  Safe, sound and in good working order.  Light fixtures shall (at a minimum) be equipped with CFL bulbs.  Exterior lighting fixtures used for security shall be equipped with a motion sensor. Rehabilitation  Electrical switches, outlets and lighting fixtures that do not meet the minimum standard shall be replaced. Practical, cost effective repairs are EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 41 acceptable as long as compliance with the minimum standard will be achieved.  All new light fixtures shall be U.L. approved and Energy Star qualified.  Outlets located within 6 feet of a source of water shall be ground fault protected.  Exterior switches and outlets shall be weatherproof. Replacement Switches & Outlets  U.L. approved. Replacement Lighting Fixtures  Reputable manufacturer.  U.L. approved and EPA Energy Star qualified. HVAC Minimum Standard  Safe, sound and in good working order.  Five or more years of practical utility. Rehabilitation  HVAC that does not meet the minimum standard shall be replaced. Practical, cost effective repairs are acceptable as long as compliance with the minimum standard will be achieved.  Tune-up all HVAC equipment (as a minimum).  Seal all ducts (as a minimum).  All new HVAC equipment shall be sized properly. Furnaces  Reputable manufacturer.  EPA Energy Star qualified. Central Air Conditioners  Reputable manufacturer.  EPA Energy Star qualified. Thermostats  Reputable manufacturer.  EPA Energy Star qualified.  Programmable. NON-PERMITTED ADDITIONS AND CONVERSIONS Minimum Standard  Additions and alterations that were constructed without a building permit and are clearly substandard shall be removed.  Garages converted to living quarters shall be returned to their original use.  Additions and alterations that were constructed without a building permit, but appear to be compliant, shall be inspected by the City’s Building Official to determine if a building permit can be issued and they can be saved. EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 42 EXHIBIT B TO BE INCLUDED IN PROPOSAL CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT ALIGNMENT WITH THE CITY’S HOUSING ELEMENT AND STRATEGIC PLAN Please check those goals in the 2014-2021 Housing Element and Strategic Plan that align with the project: HE-1.1 Housing Conditions. Promote the rehabilitation, repair, and improvement of single-family, multiple-family, and mobile homes and, if needed, the demolition of substandard housing that presents a health and safety hazard. HE-1.7 Historic Preservation. Support preservation and enhancement of residential structures, properties, street designs, lot patterns, and other visible reminders of neighborhoods that are considered local historic or cultural resources. HE-2.1 Downtown. Strengthen Santa Ana’s core as a vibrant mixed-use and mixed-income environment by capitalizing on the government center, arts district, historic downtown, transit-oriented housing, and diverse neighborhoods. HE 2-3 Rental Housing. Encourage the construction of rental housing for Santa Ana’s residents and workforce, including a commitment to very low, low, and moderate-income residents and moderate income Santa Ana workers. HE-2.4 Diverse Housing Type. Facilitate diverse types, prices, and sizes of housing, including single-family homes, apartments, townhomes, mixed/multiuse housing, transit-oriented housing, multigenerational housing, and live-work opportunities. HE-2.5 Housing Design. Require excellence in architectural design through the use of materials and colors, building treatments, landscaping, open space, parking, and environmental sensitive (“green”) building and design practices. HE -3.2 Homeownership. Increase and expand homeownership opportunities for low and moderate-income residents and employees working in Santa Ana through the provision of financial assistance, education, and collaborative partnerships. HE-4.1 Senior Housing. Support development of affordable senior rental and ownership housing, readily accessible to support services; provide assistance for seniors to maintain and repair their homes to facilitate the maximum independent living. HE-4.2 Family Housing. Facilitate and encourage the development of larger rental and ownership units for families, including lower and moderate-income families, and the provision of childcare, after-school care, and other services when feasible. HE-4.3 Housing for Disabled People. Support the development of permanent, affordable, and accessible housing that allows people with disabilities to live independent lives, and assist them in maintaining and repairing their homes. HE-4.4 Service-Enriched Housing. Support the provision of supportive services and service-enriched housing for persons with special needs, such as senior, disabled people, homeless people, families, veterans, and people with medical conditions. HE-4.5 Healthy Homes. Support efforts to make homes more healthful by addressing health hazards associated with lead-based paint, asbestos, vermin, mold, VOC-laden materials, and prohibiting smoking in multi-family project, among others. HE-4.8 Housing Priority. Provide that Santa Ana residents, employees, and designated need groups receive priority for affordable housing created under the EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 43 Housing Opportunity Ordinance or with City funding to the extent allowed under state law. Strategic Plan Goals and Objectives Re-use of Commercial or Industrial Buildings that are currently underutilized or vacant for mixed-use residential projects Provide that Santa Ana residents, employees, artists and veterans receive priority for affordable housing Does this project give priority to the following populations: Residents, if so how many units? ________ Employees, if so how many units? ________ Artists, if so how many units? ________ Veterans, if so how many units? _______ FIRM SIGNED AND PRINTED NAME TITLE DATE EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 44 EXHIBIT C NOT REQUIRED UNTIL AFTER DEVELOPER SELECTION CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY AND BUSINESS AUTOMOBILE POLICIES Insurance Company _____________________________________ This endorsement modifies such insurance as is afforded by the provisions of Policy # ___________________ relating to the following: 1. The City of Santa Ana and the Housing Authority of the City of Santa Ana, 20 Civic Center Plaza M-25, Santa Ana, California 92701; its officers, employees, agents, volunteers and representatives are named as additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be cancelled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the City of Santa Ana, 20 Civic Center Plaza M-25, Santa Ana, California 92701. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective , this endorsement form as part of Policy # Issued to Name Insured Countersigned by: Authorized Representative EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 45 EXHIBIT D TO BE INCLUDED IN PROPOSAL CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT PROPOSAL & CONTRACT AGREEMENT PROPOSER’S STATEMENT Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the City of Santa Ana and the Housing Authority of the City of Santa Ana, hereinafter collectively referred to as the City) shall constitute the entire agreement between proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting here on the action of approval of the Council, signed by the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting her approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service properly addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish City all required bonds and certificates of liability insurance within ten (10) days (excluding Saturdays, Sundays and City’s legal holidays), or the funds, check, draft, or proposer’s bond substituted in lieu thereof accompanying this proposal shall become the property of the City and shall be considered as payment of damages due to the delay and other causes suffered by City because of the failure to enter into an Agreement and/or furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City is difficult to ascertain; otherwise said funds, check drafts, or proposer’s bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the Specifications, the Certification of Non-Discrimination by Developers, and the Workers’ Compensation Insurance Certificate are to be incorporated by reference into this Agreement and are made specifically as part of this RFP. FIRM SIGNED AND PRINTED NAME TITLE DATE EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 46 EXHIBIT E TO BE INCLUDED IN PROPOSAL CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT PROPOSAL AND CONTRACT AGREEMENT CERTIFICATION OF NONDISCRIMINATION BY DEVELOPER The undersigned Developer or corporate officer, during the performance of this contract, certifies as follows: 1. The Developer shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Developer shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Developer shall, in all solicitations or advertisements for employees placed by or on behalf of the Developer, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Developer shall send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Developer’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Developer shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Developer shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Developer’s non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Developer may be declared ineligible for further Government contracts or federally assisted construction/services contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965,and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. 7. The Developer shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 47 noncompliance; provided, however, that in the event the Developer becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the 8. Developer may request that the United States enter into such litigation to protect the interests of the United States. 9. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1039, and as amended, No discrimination shall be made in the employment of persons because of race, religious creed, color national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any Developer violating this Section is subject to all the penalties imposed for a violation of the Chapter. FIRM SIGNED AND PRINTED NAME TITLE DATE EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 48 EXHIBIT F TO BE INCLUDED IN PROPOSAL CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT PROPOSAL AND CONTRACT AGREEMENT NON-COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) To the CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the PROPOSER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the PROPOSER has not directly or indirectly induced or solicited any other PROPOSER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any PROPOSER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the PROPOSER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the PROPOSER or any PROPOSER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other PROPOSER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the PROPOSER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note: The above Non-collusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Non-collusion Affidavit. PROPOSERS are cautioned that making a false certification may subject the certifier to criminal prosecution. State of California County of Subscribed and sworn to (or affirmed) before me on this day of , 20 _____, by , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Public Signature Notary Public Seal EXHIBIT 1 City of Santa Ana Community Development Agency Request for Proposals for Affordable Housing Development Page 49 EXHIBIT G TO BE INCLUDED IN PROPOSAL CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING DEVELOPMENT PROPOSAL AND CONTRACT AGREEMENT COMMITMENT TO ENTER INTO MEMORANDUM OF UNDERSTANDING WITH THE SANTA ANA WORK CENTER Proposer understands and agrees that s/he will be required to enter into a Memorandum of Understanding (MOU) with the Santa Ana Work Center to coordinate services. The purpose of the MOU is to establish a cooperative working relationship between the parties in order to provide program beneficiaries with information about Work Center opportunities to find better jobs and careers. The MOU serves to establish the framework for providing services to employers, job seekers and others needing workforce services. The goal is to ensure that all program beneficiaries have been provided an opportunity to connect with the Work Center and be assisted with the tools and knowledge necessary to enter the workforce or obtain a higher-paying job. The Santa Ana WORK Center is available to connect program beneficiaries to a full range of no-cost services, resources and opportunities to help:  Build the skills employers want most  Access training and/or education programs that lead to employment  Find the jobs and employers who are hiring  Screen for additional employment or social services  Receive support to succeed in job search Proposers are encouraged to contact the Santa Ana Work Center at (714) 565-2629 to learn more about their programs and services and the terms and conditions of the MOU. A template for the MOU will be provided promptly to the proposer after the announcement of an award. All terms contained in the Memorandum of Understanding are to be incorporated by reference into this Agreement and are made specifically as part of this RFP. FIRM SIGNED AND PRINTED NAME TITLE DATE EXHIBIT 1 Santa Ana Opportunity Zone Source: ©2017 Esri. ©2018 Esri 891.05 748.02 891.04 752.01 750.03 750.02 751.00 744.05 744.06 744.03 746.02 EXHIBIT 1 CITY OF SANTA ANA’S OPPORTUNITY ZONES Santa Ana’s Opportunity Zones are generally centered along major commercial/industrial corridors and downtown areas in the City,including along proposed stops for the future Santa Ana OC Streetcar route . •11 Qualified Opportunity Zones (OZs)in City of Santa Ana comprised of ~3,800 Acres; •Santa Ana OZs represent ~22%of the City area and ~41%of OZs in Orange County; •~76,500 residents reside within OZs (22.7%of City population);and •~47,000 jobs within OZs (35.5%of total City jobs). 4 OZ Census Tract Legend Future Santa Ana Streetcar Route Future Santa Ana Streetcar Stop Source: ESRI Business Analyst Online, Accessed September 2020 Santa Ana OZ Areas Santa Ana City Orange County Population (2020)76,451 336,744 3,230,429 Jobs (2020)47,015 132,519 1,581,134 Median Age 27.8 30.8 37.5 Average Household Income (2020)$62,382 $80,706 $126,141 EXHIBIT 1 5CITY OF SANTA ANA’S KEY OZ DEVELOPMENT OPPORTUNITIES 5 One Broadway 37-story office / residentialtower developmentopportunity Civic Center Downtown public-private revitalization opportunity Fruit St. Complex ~10 AC public-private transit-oriented development opportunity Grand Complex ~30 AC public-private development opportunity along commercial corridor Willowick Area ~100 AC public-private development opportunity and nearby revitalization opportunities OZ Target Areas Future Santa Ana Streetcar Route Future Santa Ana Streetcar Stop OZ Opportunities See pages 12 –16 for additional information about development opportunities. Legend 3rd & Broadway 16-story residential / retailand 10-story hoteldevelopment opportunity EXHIBIT 1 California Department of Housing and Community Development Notice of Funding Availability Calendar Calendar Year 2021 Released June 2021 Acronym Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 AHSC _NOFA $405 ___Apps Due ___Awards _- VHHP ____NOFA $75 __Apps Due __Awards _ Entitlement ___ Non-Entitlement -__ __Awards _NOFA $12 __Apps Due __Awards _ Non-Competitive Competitive Apps Due ___Awards ____NOFA $194 __ MHP ______NOFA $175 _Apps Due __Awards CalHOME __Awards ___-NOFA $57 __Apps Due _ CalHOME-D ___NOFA $TBD __ FWHG _NOFA $86 ____ LHTF ___NOFA $57 __Apps Due __Awards __ IIG ___NOFA $160 __Apps Due ____Awards TOD HHC ____NOFA $170 _Apps Due _Awards MPRROP ______ HK IIG-BR Competitive NOFA $30 ------- Non-Competitive HOME ------NOFA $72 -Apps Due --Awards ESG -----NOFA $12 -Apps Due ---Awards ESG-CV1 CDBG-CV1 ESG-CV2 CDBG-CV2/3 ----Apps Due --Awards ---- Awards Coronavirus Aid, Relief and Economic Security (CARES) Act NOFA Amounts in Millions **SB2 Farmworker funding will be released in conjuction with Serna Program NOFA under SB3 - see below - CalHOME - Disaster Assistance Applications Accepted Over-the-Counter Awards Pending 2021/2022 Budget Approval Pending 2021/2022 Budget Approval Applications Accepted Over-the-Counter Applications Accepted Over-the-Counter N/A Apps Due Home Investment Partnership Program 1 Emergency Solutions Grant Program 1 Applications Accepted Over-the-Counter Veterans and Affordable Housing Bond Act (Prop 1) NOFA Amounts in Millions Other NOFA Amounts in Millions ** All available funds awarded ** Applications Accepted Over-the-Counter through 12/31/2021 *** Awards will be made on a rolling basis ** NOFA $135 $474 Million Awards NOFA Amounts are approximate and subject to change $521 Million Veterans Housing and Homeless Prevention Program Program Veteran Housing and Homeless Prevention Act of 2014 (Prop 41) NOFA Amounts in Millions $194 Million$451 Million Ongoing Programs NOFA Amounts in Millions Affordable Housing and Sustainable Communities Program SB2 - Building Jobs and Homes Act (Dedicated Source) NOFA Amounts in Millions No Place Like Home (Prop 2) NOFA Amounts in Millions CDBG Community Development Block Grant 1 Farmworker Allocation Housing for Healthy California - Article I (funded through National Housing Trust Fund) Infill Infrastructure Grant Program Transit Oriented Development Program Infill Infrastructure Grant Program Brownfield Remediation Multifamily Housing Program CalHOME Local Housing Trust Fund Program Joe Serna Jr., Farmworker Housing Grant Program Federal Non-Entitlement Programs NOFA Amounts in Millions Community Development Block Grant CARES Act Tranche 2 Community Development Block Grant CARES Act Tranche 1 Emergency Solutions Grant Program CARES Act Tranche 2 PLHA NPLH Permanent Local Housing Allocation Formula Program Permanent Local Housing Allocation Competitive Program No Place Like Home Program Mobilehome Park Rehabilitation and Resident Ownership Program Homekey Emergency Solutions Grant Program CARES Act Tranche 1 ** Applications are no longer being accepted at this time ** ** Awards announced on a rolling-basis as applications are received ** ** Applications are no longer being accepted at this time ** EXHIBIT 1 EXHIBIT J COMMUNITY OUTREACH GUIDELINES The Community Development Agency makes available the following guidelines to assist developers of affordable and special needs housing in obtaining community input and support for affordable housing projects. These guidelines are not meant to be a rigid checklist, but rather a flexible approach that can assist developers in building and maintaining a constructive relationship with community and political stakeholders. Four Steps to Building Community Support The approach consists of four steps: 1. The development team meets early to research, assess and plan in five key areas. 2. Prepare a strategy to build active community support for your proposal. 3. Prepare a strategy to address community concerns and deal with active opposition. 4. Prepare a public relations/media strategy to inform decision-makers and the public. These steps are described in detail below: 1. Plan meetings to research, assess and plan strategies in five key areas. Schedule two or more meetings of the entire development team together with local advocates and assign responsibility for organizing the meetings (e.g. inviting key people) to a staff member. At the first meeting, assess the following: a. The organization’s reputation, capacity to attract broad community support, and its previous experience in dealing with local government, opponents, and the media. b. What local government approvals are required, who will decide, what are the processes and criteria for decisions, and an expected timeline. c. The government and community’s current knowledge of and support for affordable and supportive housing, the organization’s work, and the current proposal. d. Full analysis of the neighborhood surrounding the proposed site (history, problems, assets, etc.) e. Likely concerns neighbors might have, the neighborhood’s experience with similar programs, and the potential for support or organized opposition. f. Potential legal issues associated with the development proposal, including the legal rights of all parties. g. The media approach to the proposal Based on these assessments, at later meetings determine: 1. Strategies toward the community, potential supporters, potential opponents, and legal issues (steps 2-5); 2. Staffing required to implement these strategies; and, 3. Any consequences for the proposal’s time line, funding needs, or site selection. EXHIBIT 1 Each strategy should have a clear plan of action: who will do what, when, how. Efforts to implement these four strategies will be going on simultaneously and timing issues are critical and must be decided after consultation with persons most familiar with the relevant neighborhood. Expect to change and improvise your plans as you go along. You won’t regret your planning because it will help you manage the process and avoid surprises. Most importantly, draw on the collective experience of others to gain further insight into the strategies for community acceptance. 2. Prepare a strategy to build public support a. Active, vocal community support for the proposal will help get support, counter opponents, tell the accurate story to the media (if needed) and, when appropriate, say the hard things that must be said. b. Identify and prioritize actual and potential supporters, including tactical allies. Think widely about potential allies before contacting potential opponents. c. Plan recruitment of supporters and what you want them to do. d. Support allies with background information, housing tours and up-to-date information. e. Mobilize supporters at critical points (e.g. using a database and fact sheets.) 3. Prepare a strategy to address community issues a. Notification and community out-reach decisions should be designed to surface and deal effectively with legitimate concerns and for positive presentation of the proposal. b. Consider alternative methods for community outreach (e.g. door-to-door canvassing, open-house forums or small house meetings) instead of the large open community meetings. c. Use an issue-based strategy for working through local community concerns. d. Find out the probable basis of the concerns before fashioning a response (e.g. misinformation, fears about impacts, expectation to participate, prejudice, or issues unrelated to your proposal.) e. Prepare appropriate responses to each kind of concern (e.g. education, reassurance by trusted authority, appropriate forum for participation, negotiation, clarifying legitimate/illegitimate issues.) 4. Prepare a public relations/media strategy a. Plan ahead in order to be able to respond effectively to any negative media or other type of coverage you receive, or believe you will receive. b. Designate and prepare a spokesperson(s), including former tenants and supporters. c. Develop messages for target audiences. d. Prepare brief fact sheets about the organization, the proposal, the supporters, efforts to resolve legitimate community concerns, and other information to support the proposal. e. Invite opponents for a tour of existing facilities and to meet staff and clients. f. Follow up on any coverage received with thank you notes and corrections. EXHIBIT 1 Additional Outreach Principles Low key contact with neighbors, with the support of local allies, is the most effective form of outreach. The most effective forms of low-key contacts are either person to person or small group “house’ meetings. In small meetings, the goal is to "humanize" the issue, give it a face that the audience can understand and empathize with, depolarize the potential residents/clients and the program to help remove them as the issue. If possible, have potential residents/clients attend and tell their story. Trying to convince people about the merits of an issue they oppose on an intellectual basis with facts, laws, and details does not affect their "feelings" about the issue. The team should reflect the cultural diversity of the City of Santa Ana and our residents and needs. If the project is intended for a target population, the provider and neighborhood should discuss the following non-exclusive list of issues: 1. Organization/Agency history of housing/services offered. 2. Residents/Clients to be served by this housing/service; numbers, general daily activity and schedule. 3. Special characteristics of the resident/client population (e.g., large families, extremely low-income families, mental illness or recovering substance abusers), likely length of stay in the project, and types of staff or support services, available and mandatory, whether on or off site. 4. The provider’s history and reputation - Characteristics of success and failure within the program, in general terms, e.g., possible outcomes for clients and how the program responds to each possibility. 5. The neighborhood and characteristics of the area that might be of concern to neighbors and provider alike. 6. Mechanisms for communication between the provider and its neighbors. The provider should offer a 24-hour contact number if one exists, or best after hours contact available. The neighborhood should identify persons who can act as a contact. The security of knowing where to call to get a response is important. Discuss how to maintain ongoing communications, e.g., repeat visits to community meetings or written updates for newsletters. 7. Names of interested neighborhood organizations and how to contact them. 8. The development of a community advisory committee, if needed. An advisory board is an excellent vehicle for mutual education and effective communication. EXHIBIT 1 CITY OF SANTA ANA JULY 1, 2021 – JUNE 30, 2022 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT Allocation of HOME ARP Funds EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 1 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 TABLE OF CONTENTS PAGE Introduction ............................................................................................................................... 2 Amendments .............................................................................................................................. 5 Citizen Participation ................................................................................................................... 6 Exhibits Exhibit 1-Public Hearing Notice/Summary of Comments and Responses ................................. 7 Exhibit 2-HOME American Rescue Plan – Allocation Plan……………………………………………………..10 EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2019-2020 ANNUAL ACTION PLAN INTRODUCTION On March 11, 2021, President Biden signed the American Rescue Plan (ARP), into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in ARP funds to be administered through HOME to perform four activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. The program described in this notice for the use of the $5 billion in ARP funds is the HOME-American Rescue Plan or “HOME-ARP.” ARP defines qualifying individuals or families as those that are (1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) (“McKinney-Vento”); (2) at risk of homelessness, as defined in section 401 of McKinney-Vento; (3) fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking; (4) part of other populations where providing supportive services or assistance would prevent a family’s homelessness or would serve those with the greatest risk of housing instability; or (5) veterans and families that include a veteran family member that meet the criteria in one of (1)-(4) above. The City of Santa Ana’s federal Annual Action Plan details the funding strategy for the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships programs each year. These Annual Action Plans implement our jurisdiction’s Five-Year Consolidated Plan and are developed through significant public input, analyses, and planning. This document is a Substantial Amendment to the City of Santa Ana’s Fiscal Year 2021-2022 Annual Action Plan, which was submitted to the U.S. Department of Housing and Urban Development (HUD) in May 2021. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 3 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 Title 24 Section 91.505 of the Code of Federal Regulations 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. In addition, U.S. Department of Housing and Urban Development, Community Planning and Development Notice CPD-21-10, instructs Participating Jurisdictions (PJ), that in order to receive its HOME-ARP funds, a PJ must engage in consultation, facilitate the public participation processes, develop a HOME-ARP allocation plan, Exhibit 2, that meets the requirements established in section V. of the Notice, and to submit it to HUD as a substantial amendment to its Fiscal Year 2021 annual action plan. CPD-21-10 stipulates that HUD will be using the waiver and alternative requirement authority provided by ARP to establish requirements for the HOME-ARP allocation plan. The HOME-ARP allocation plan must describe how the PJ intends to distribute HOME-ARP funds, including how it will use these funds to address the needs of HOME-ARP qualifying populations. A PJ’s HOME- ARP allocation plan must include:  A summary of the consultation process and results of upfront consultation;  A summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reasons why;  A description of HOME-ARP qualifying populations within the jurisdiction;  An assessment of unmet needs of each qualifying population;  An assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system;  A summary of the planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations;  An estimate of the number of housing units for qualifying populations the PJ will produce or preserve with its HOME-ARP allocation; and  A description of any preferences for individuals and families in a particular qualifying population or a segment of a qualifying population. All the above required elements of the HOME-ARP allocation plan shall be part of the FY 2021 annual action plan for purposes of the HOME-ARP program. Consequently, PJs are not required to amend their consolidated plans. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 4 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 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 2020-2021 through 2024- 2025, adopted by the City of Santa Ana on April 21, 2020 as a component of its 2020/21 – 2024/25 Consolidated Five Year Plan, identifies criteria that will require a substantial amendment:  Addition of a new activity not previously identified in the Action Plan, without regard to funding source;  Cancellation of an existing activity identified in the Action Plan, without regard to funding source;  A change in the purpose, scope, location or beneficiaries of an activity; or  Changes in the use of CDBG funds from one eligible activity to another eligible activity meeting the following thresholds: Net Increase or Decrease Trigger for Substantial Amendment* Minor Amendment* Net Increase > 30% of the most recent grant allocation <30% of the most recent grant allocation Net Decrease > 30% of the most recent grant allocation <30% of the most recent grant allocation * (Amended amounts will not be cumulative, that is, each amendment will stand on its own for purposes of determining the 30 percent threshold.) The proposed HOME –ARP substantial amendment identified in the next section plans to undertake new activities not previously included in the Consolidated Plan or Annual Action Plan. Therefore, this qualifies as a substantial amendment. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 5 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 SUBSTANTIAL AMENDMENT The City of Santa Ana conducted significant consultation with citizens, elected officials, non- profit agencies, public housing authorities, private developers, governmental agencies, and the Orange County Continuum of Care in preparing the Program Year 2021 Annual Action Plan Substantial Amendment for the HOME-ARP Allocation Plan. This Substantial Amendment is being completed in accordance with CPD Notice 21-10 and in order to receive and allocate HOME-ARP funds in the amount of $6,183,914. The City of Santa Ana and the Housing Authority of the City of Santa Ana will be soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors by issuing a Request for Proposals (RFP) for the development of permanent supportive housing in the City using HOME-ARP Program funds. Proposed developments may be for the development and support of affordable housing, and the acquisition and development of non-congregate shelter units as the only two eligible activities. The RFP will include $5,256,326 in HOME-ARP program funds. The RFP will also include over $10 million in Inclusionary Housing Funds, $3 million in HOME Program funds, and twenty-five project-based vouchers to be used as additional local resources for the proposed project(s).  AP-15 Expected Resources Updated 2021-2022 Action Plan, Priority Table under CDBG Prior Year Resources: increase of $6,183,914 and updated the Narrative Description.  AP-20 Annual Goals and Objectives  AP-35 Projects Updated 2021-2022 Action Plan, add the following projects: Project Name Permanent Supportive Housing  AP-38 Projects Summary Updated 2021-2022 Action Plan, Project Summary: include project summaries for projects listed above. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 6 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 CITIZEN PARTICIPATION In accordance with 24 CFR 91.105(c)(3) for local governments, the substantial amendment Public Notice for the use of HOME-ARP funds was released for citizen review and comments on November 22, 2021. During the 15-day public comment period from November 22, 2021 through December 6, 2021 the draft substantial amendment was made available during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through Friday in the offices of the Community Development Agency, 20 Civic Center Plaza, 6th Floor; Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809; the Santa Ana Public Library, 26 Civic Center Plaza, Santa Ana, California; and on the city’s website. The City Council of the City of Santa Ana will hold a public hearing on December 7 2021, at 4:30 p.m. at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Following the 15-day public comment period and public hearing, the City Council of Santa Ana will hear and vote on the Substantial Amendment to the 2021-2022 Action Plan. A copy of the public hearing notice and a summary of citizen comments received at the public hearing with responses to the citizen comments are presented in Exhibit 1. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 7 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 EXHIBIT 1 SUMMARY OF PUBLIC COMMENTS & PROOF OF PUBLICATION 15-DAY COMMENT PERIOD AND PUBLIC HEARING SUMMARY OF PUBLIC COMMENTS SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 15-DAY COMMENT PERIOD AND STAFF RESPONSE: The draft amendment was available from November 22, 2021 to December 6, 2021 for HUD’s required 15-day public comment period. A public notice was published on November 22, 2021 in the Orange County Register in English, La Opinion in Spanish and the Ngoi Viet in Vietnamese to inform the public of the commencement of the 15-day public comment period and public hearing. XX comments were submitted for the Substantial Amendment. DECEMBER 7, 2021 CITY COUNCIL PUBLIC HEARING: At its Regular Meeting on December 7, 2021, the City Council recommended approval of the Substantial Amendment to the 2021-2022 Annual Action Plan by a vote of (0:0) PROOF OF PUBLICATION 15-DAY COMMENT PERIOD AND PUBLIC HEARING NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE OF SANTA ANA, CA ON THE PROPOSED SUBSTANTIAL AMENDMENT TO THE 2021-2022 ANNUAL ACTION PLAN AND COMMENCEMENT OF THE 15-DAY PUBLIC COMMENT PERIOD The City of Santa Ana encourages the public to participate in the decision-making process. The following notice is being provided so that you can ask questions, make comments and stay informed about projects that might be important to you. We encourage you to contact us if you have any questions. NOTICE IS HEREBY GIVEN that the Council of the City of Santa Ana will conduct a public hearing on December 7, 2021 at 5:45 p.m. at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701 to receive comments on the Substantial Amendment to the City’s 2021-2022 Annual Action Plan. On December 7, 2021, the City Council will take action to authorize submittal of the Substantial Amendment to the U.S. Department of Housing and Urban Development (HUD). The proposed amendment will allocate HOME-American Rescue Plan EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 8 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 funds in the amount of $6,183,914 with a Request for Proposals (RFP) for the development of affordable housing in the City. The draft Substantial Amendment will be available for public review during normal business hours from November 22, 2021 to December 6, 2021 in the following locations: Community Development Agency, 20 Civic Center Plaza, 6th Floor; Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809; and the Main Public Library, 26 Civic Center Plaza, Santa Ana, California. The draft will also be available on the City’s website at: http://www.santa- ana.org/cda. Written comments to the draft Substantial Amendment may be filed with the Community Development Agency any time before 5:30 p.m. on December 6, 2021 at the locations mentioned above or by email at dflores@santa-ana.org. Persons interested in providing verbal comments to the draft Substantial Amendment are notified to appear at the public hearing on December 7, 2021 at 5:45 p.m. in the City Council Chambers located at 22 Civic Center Plaza, Santa Ana, California 92701. Background on the Annual Action Plan: The Annual Action Plan establishes the activities to address the priority needs and Strategic Plan goals established in the City’s 5-year Consolidated Plan. The priority needs established in the current Consolidated Plan are: 1) Expand the supply of affordable housing, 2) Preserve the supply of affordable housing, 3) Access to and supply of public services, 4) Increase access to and supply of homeless services and facilities, 5) Promote economic opportunity, and 6) Improve City public facilities and infrastructure. More information on the Consolidated Plan and the Annual Action Plan is available on the City’s website at www.santa-ana.org/cd Meeting Time and Date – This matter will be heard on Tuesday, December 7, 2021 at 5:45 p.m. or thereafter in the City Council Chamber, 22 Civic Center Plaza, Santa Ana, California 92702. All persons interested in this matter are notified to appear at this time. Note: Resolution No. 2021- 066, which allows for teleconferencing pursuant to AB 361, is set to expire on December 2, 2021. Therefore, virtual participation for City Council meetings will no longer be available beginning December 3, 2021. How To Make Comments – If you do not wish to appear at the public hearing, you may also send your written comments to the Clerk of the Council, by mail to City of Santa Ana, 20 Civic Center Plaza – M30, Santa Ana, CA 92701 or via e-mail at ecomments@santa-ana.org (reference “City Council meeting”) by 12:00 p.m. on Monday, the day before the meeting; e- mails received after said time will be on file for public viewing the day after the meeting. Who To Contact For Questions - Should you have any questions, please contact David Flores, Community Development Analyst, at (714) 647-6561 or by e-mail at dflores@santa-ana.org. EXHIBIT 2 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN Substantial Amendment # 1 9 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN 11/2021 Where To Get More Information - All staff reports regarding any item on this agenda are available for public inspection in the Clerk of the Council Office during regular business hours and posted on the City’s website the Friday before a Council meeting at: www.santa- ana.org/cc/city-meetings Si tiene preguntas en español, favor de llamar al (714) 647-6561. Nếu cần liên lạc bằng tiếng Việt, xin điện thoại cho Tony Lai số (714) 565-2627. If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council of the City of Santa Ana at, or prior to, the public hearing. EXHIBIT 2 Exhibit 2 Introduction City of Santa Ana HOME-ARP Allocation Plan November 18, 2021 The City of Santa Ana conducted significant consultation with citizens, elected officials, non-profit agencies, public housing authorities, private developers, governmental agencies, and the Orange County Continuum of Care in preparing the Program Year 2021 Annual Action Plan Substantial Amendment for the HOME-ARP Allocation Plan. This Substantial Amendment is being completed in order to receive and allocate HOME-ARP funds. To address the need for homelessness assistance and supportive services, Congress appropriated $5 billion in American Rescue Plan Act (ARP) funds to be administered through the HOME Program to perform four activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations. These activities include: (1) development and support of affordable housing, (2) tenant-based rental assistance (TBRA), (3) provision of supportive services; and (4) acquisition and development of non-congregate shelter units. The City of Santa Ana has been allocated $6,183,914 in HOME-ARP funds. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)). To enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies, the City of Santa Ana sought feedback from the Orange County Continuum of Care. Specifically, the Orange County Continuum of Care held a countywide consultation meeting in which they invited the CoC General Membership including public and assisted housing providers and private and governmental health, mental health and service agencies from across Orange County. The City of Santa Ana presented our HOME-ARP Allocation Plan at the meeting and received feedback and consultation from all attendees. The Housing Authority of the City of Santa Ana (CA093) was also consulted in the preparation of this Substantial Amendment. The Housing Authority provided data on the Housing Choice Voucher Program Waiting List, and future plans for allocating project- based vouchers for permanent supportive housing. In addition to the Housing Authority, the City invited private and governmental agencies, mental health, and service agencies associated with this Action Plan Substantial Amendment to the public hearing to provide input and feedback during the public participation process. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. EXHIBIT 2 Orange County’s Continuum of Care (CoC) is comprised of a large network of public, private, faith-based, for-profit, and non-profit service providers who utilize various federal, state and local resources to provide services and facilities for people experiencing homelessness. The region’s cities and public housing authorities, including the City of Santa Ana, also participate in the CoC and provide funding for resources and services for people experiencing homelessness and those at-risk of becoming homeless. Non-profit homeless service providers play a critical role in the CoC and in addressing homeless needs within the City of Santa Ana. These organizations provide a range of services throughout the city ranging from job training to creating permanent supportive housing opportunities. The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. The City of Santa Ana serves on the Board of the Orange County Continuum of Care and serves as the Chair of the CoC’s Housing Committee. In past years, the City also served as the Chair of the CoC Board. In drafting the City’s HOME-ARP Allocation Plan, the City sought feedback and consultation from the Orange County Continuum of Care. Specifically, the Orange County Continuum of Care held a countywide consultation meeting in which they invited the CoC General Membership including public and assisted housing providers and private and governmental health, mental health and service agencies from across Orange County. The City of Santa Ana presented our HOME-ARP Allocation Plan at the meeting and received feedback and consultation from all attendees. The City also reviewed the CoC’s current strategy and planning documents to ensure coordination in goals and objectives. The City will continue to proactively work with the CoC as well as its partners throughout the county to coordinate on the planning and implementation of the HOME-ARP Allocation Plan. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS. The Emergency Solutions Grants (ESG) Program provides funds to assist sheltered and unsheltered homeless individuals, as well as those at risk of homelessness to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. Recipients of ESG Program funding in Orange County include the following entitlement jurisdictions: County of Orange, City of Anaheim, City of Irvine, City of Santa Ana and City of Garden Grove. Collectively, this group is referred to as the Orange County ESG Collaborative. To ensure that funds are leveraged to create maximum impact, the Orange County ESG Collaborative manages a combined Request for Proposals process, with aligned values and priorities, and makes funding recommendations collaboratively to achieve the Orange County Continuum of Care goal to end homelessness. EXHIBIT 2 On November 7, 2019, three member cities of the Orange County ESG Collaborative released a combined ESG Request for Proposals (RFP) to support the Orange County Continuum of Care’s goal to end homelessness. (The County of Orange and City of Irvine allocated their funding independent of the Collaborative for this funding cycle). The Collaborative accepted applications until December 10, 2019, with supplemental applications and requirements for both the City of Santa Ana and Anaheim. Applications were reviewed by City staff together with housing and community development commissioners from Santa Ana, Garden Grove and Anaheim. Applicants were interviewed by the review panel on February 5, 2020. Following this RFP process, staff recommended approval of the FY 2020-21 ESG program funding to seven organizations. The funding recommendations were based upon applications received, performance and current needs identified by staff. The RFP included a provision for up to four one-year renewals that could be exercised by each Collaborative member. Should the OC Collaborative determine to exercise these annual renewals past the end of FY 20-21, an RFP would not be released again. This means that current subrecipients awarded funding in FY 20-21 would be required to submit a new budget and program summary each year, but a new RFP would not be issued again for five years. Any new forms and information would be provided by the Collaborative each year. In addition, the Collaborative reserves the right to redistribute funding and/or issue a new RFP at its discretion. Each annual renewal for the City of Santa Ana will be recommended for approval by City Council. The Collaborative chose to exercise this renewal option for FY 2021-2022. While funding recommendations are made collaboratively, ESG funds are to be used to provide eligible activities within each jurisdiction in which they are funded. Subrecipients awarded funding in FY 2020-2021 and interested in FY 2021-2022 funding, were required to re-submit a budget and program summary for FY 2021-2022 ESG funding. On annual basis, the City provides funding for HMIS. As a member of the Orange County Continuum of Care Board, the City develops funding, policies and procedures for the operation and administration of HMIS for the CoC. The City is also on the Policies, Procedures, and Standards Committee which reviews any policies and procedures for the operation and administration of HMIS prior to consideration by the Board. In the development of the Consolidated Plan, the City of Santa Ana also consulted with numerous housing, social service, and homeless service providers whose work intersects with the goal of reducing and ending homelessness in Orange County and in Santa Ana. This consultation provided input on allocation methodologies and approaches for ESG programs. The City of Santa Ana regularly coordinates with the Orange County CoC to align performance standards, evaluate outcomes of current initiatives, coordinate program policies and procedures related to program design and HMIS administration. EXHIBIT 2 Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities. In drafting the City’s HOME-ARP Allocation Plan, the City sought feedback and consultation from the Orange County Continuum of Care. Specifically, the Orange County Continuum of Care held a countywide consultation meeting in which they invited the CoC General Membership including public and assisted housing providers and private and governmental health, mental health and service agencies from across Orange County. The City of Santa Ana presented our HOME-ARP Allocation Plan at the meeting and received feedback and consultation from all attendees. The CoC General Membership is attached to the City’s HOME-ARP Allocation Plan as Exhibit A. This list- serve may also include other organization and partners affiliated with the CoC, but are not listed on the CoC General Membership. The City also invited private and governmental agencies, mental health, and service agencies associated with this Action Plan Substantial Amendment to the public hearing to participate in this process and provide input and feedback during the public participation process. The following table is a list of organizations that were consulted: Agency/Group/ Organization Contact Information Agency/Group/ Organization Type Section of Plan Addressed by Consultation How Consulted OC Department of Education 200 Kalmus Services- Education Non- Homeless Special Needs Public Meeting Drive, Costa Mesa, CA 92626 714-966-4000 City Net 4508 Atlantic Services- Homeless Homeless Public Meeting Needs - Avenue STE Chronically 292, Long Beach, CA Homeless, Homeless 90807 Needs - 714-451-6198 Families with Children Veteran Affairs CRRC 888 W. Santa Ana Boulevard STE 150, Santa Ana, CA 92701 714-568-9803 Services- Homeless Other government- Federal Homeless Needs - Chronically Homeless, Homelessness Needs - Veterans Public Meeting EXHIBIT 2 The Rock Church 101 E. Other: Religious Institution Non- Homeless Special Needs Public Meeting Orangethorpe Avenue, Anaheim, CA 92801 714-526-8233 OC United Way 18012 Mitchell S., Irvine, CA 92614 949-660-7600 Regional Organization All Public Meeting Hope4Restoration 1295 E. Lincoln Avenue, Anaheim, CA 92805 714-818-6891 Services- Homeless Homeless Public Meeting Needs - Chronically Homeless, Homeless Needs - Families with Children Mercy House P.O. Box 1905, Services- Homeless Homeless Public Meeting Needs - Chronically Santa Ana, CA 92702 Homeless, Homeless 714-836-7188 Needs - Families with Children Friendship Shelter P.O. Box 4252, Services- Homeless Homeless Public Meeting Needs - Chronically Laguna Beach, CA 92652 Homeless, Homeless 949-494-6928 Needs - Families with Children City of Anaheim 200 South Anaheim Boulevard, Anaheim, CA 92805 714-765-4311 Other government- Local All Public Meeting Human Options 5540 Trabuco Services-Victims of Domestic Violence Non- Homeless Special Needs Public Meeting Road STE 100, Irvine, CA 92620 949-737-5242 EXHIBIT 2 Families Together of OC 661 First Street STE G, Tustin, CA 92780 800-597-7977 Health Agency All Public Meeting Jamboree Housing 17701 Cowan STE 200, Irvine, CA 92614 949-263-8676 Services-Housing Housing Need Assessment, Homelessness Strategy Public Meeting Health Care Agency 405 W . 5th Street, Santa Ana, CA 92701 800-564-8448 Services-Health All Public Meeting Public Participation To encourage citizen participation in the development of the Substantial Amendment, the City provided residents with the opportunity to comment on the proposed HOME-ARP Allocation Plan during a public comment period of no less than 15 calendar days. The public comment period starts on November 22, 2021 and will end on December 6, 2021. On December 7, 2021, the Substantial Amendment will be brought to the City Council for a public hearing prior to submission. Describe any efforts to broaden public participation: A public notice advertising the availability of the Program Year 2021 Annual Action Plan Substantial Amendment for the HOME-ARP Allocation Plan and public hearing was published on November 22, 2021 in the Orange County Register in English, La Opinion in Spanish, and in the Nguoi Viet in Vietnamese. Summarize the comments and recommendations received through the public participation process: To be continued. Summarize any comments or recommendations not accepted and state the reasons why: All comments received during the public comment period and public hearing will be acknowledged. EXHIBIT 2 Needs Assessment and Gap Analysis Describe the size and demographic composition of qualifying populations within the PJ’s boundaries: Every two years, the Orange County CoC conducts a Point in Time count, to create a census of unsheltered and sheltered individuals experiencing homelessness. From 2017 to 2019, the number of homeless residents in Orange County rose from 4,792 to 6,860 individuals. The share of sheltered individuals in Orange County rose by nearly 700 individuals and the share of unsheltered individuals rose by over 1,300 individuals. According to the 2019 Point in Time count, there were 1,769 people experiencing homelessness in Santa Ana in January 2019. Of these 1,769 people, 830 people were experiencing unsheltered homelessness and 939 people were experiencing sheltered homelessness. The demographic composition of the 1,769 people includes: Unsheltered Sheltered Total Individuals 795 868 1,663 Families 35 71 106 Transitional Age Youth 33 33 66 Seniors 69 138 207 Veterans 40 43 83 The City of Santa Ana has the highest concentration of people experiencing homelessness in Orange County with 26% of the homeless population in Orange County in the City. Santa Ana is considered part of the Central Service Planning Area (SPA) that has a total of 3,332 homeless individuals, most of these people being unsheltered individuals. A growing segment of individual adults is an increasing share of elderly adults and adult households who are becoming homeless. Adult only households are most likely to be chronically homeless and are most likely to be unsheltered and have a higher duration of days of experiencing homelessness. Chronically homeless individuals continue to be a more challenging population to assist and provide services and support in identifying potential housing solutions. Through the deployment of Santa Ana’s Quality of Life teams, the City has had more success in engaging these populations and supporting them to identify suitable long-term housing, but more is needed. The 2019 Point-in-Time Count is attached as Exhibit B. Describe the unmet housing and service needs of qualifying populations, including but not limited to:  Sheltered and unsheltered homeless populations;  Those currently housed populations at risk of homelessness; EXHIBIT 2  Other families requiring services or housing assistance or to prevent homelessness; and,  Those at greatest risk of housing instability or in unstable housing situations. According to the 2019 Point in Time count, there were 1,769 people experiencing homelessness in Santa Ana in January 2019. Of these 1,769 people, 830 people were experiencing unsheltered homelessness and 939 people were experiencing sheltered homelessness. In 2019, according to the 2015-2019 American Community Survey (ACS), there were 76,624 occupied housing units in Santa Ana; 46 percent (35,315) owner-occupied and 54 percent (41,309) renter occupied. Comparable to the ACS, the 2014-2018 CHAS data below shows 41,200 renter units in the City. In total there are 6,835 rental units (16 percent) that are affordable to renter households that make 50 percent of the area median income and an even smaller portion (6 percent) affordable to households that make 30 percent of the area median income. Households that make 30 percent or less of the area median income are at an even greater disadvantage when units that are affordable to them are also affordable to those in higher income brackets. In Santa Ana, 9,400 households make 30 percent or less of the area median income and have 1 or more severe housing problem; lack of kitchen or plumbing, more than 1 person per room, or cost burden greater than 50 percent. Rental units affordable to these households is insufficient and CHAS data shows a gap of almost 7,000 units are needed to support them Non-Homeless Current Inventory Level of Need Gap Analysis # of units # of Households # of Households Total Rental Units 41,200 Rental Units Affordable to HH at 30% AMI 2,470 Rental Units Affordable to HH at 50% AMI 6,835 0%-30% AMI Renter HH w/1 or more severe housing problems 9,400 30%-50% AMI Renter HH w/1 or more severe housing problems 7,685 Current Gap for HH below 30% AMI -6,930 Current Gap for HH below 50% AMI -850 Source: Comprehensive Housing Affordability Strategy (CHAS), 2014-2018. Identify and consider the current resources available to assist qualifying populations, including congregate and non-congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: EXHIBIT 2 2021 Orange County Housing Inventory Count - Rapid Rehousing Beds Proj. Type Project Name Target Pop. Beds for Beds for Families Individuals Beds for Unaccomp. Minors Housing Type Year- Round Beds Overflow and Seasonal Beds Total Beds 2021 Orange County Housing Inventory Count - Permanent Supportive Housing Beds Proj. Type Project Name Target Pop. Beds for Beds for Families Individuals Beds for Unaccomp. Minors Housing Type Year- Round Beds Overflow and Seasonal Beds Total Beds Proj. Type Project Name Target Pop. Beds for Beds for Families Individuals Beds for Unaccomp. Minors Housing Type Year- Round Beds Overflow and Seasonal Beds Total Beds According to the 2021 Orange County Housing Inventory County, the following resources are available to assist qualifying populations, including congregate and non- congregate shelter units, supportive services, TBRA, and affordable and permanent supportive rental housing: 2021 Orange County Housing Inventory Count - Emergency Shelter Beds ES Yale Navigation Center Individuals 0 425 Site-based – single site 425 0 425 ES Courtyard in OC Individuals 0 238 0 Site-based – single site 238 12 250 ES Safe Place Individuals 0 30 0 Site-based – single site 30 0 30 ES The Link Individuals, Family Household 40 160 Site-based – single site 200 0 200 ES Santa Ana Armory Individuals, COVID Response 0 0 0 Site-based – single site 0 71 71 ES FEMA - Santa Ana Individuals, Family Households, COVID Response 0 0 0 Site-based – single site 0 22 22 ES SSVF EHA Veterans, COVID Response 0 0 0 Tenant-based – scattered site 0 106 106 RRH Bridges at Kraemer Place - RRH Individuals 0 15 0 Tenant-based – scattered site 15 0 15 RRH Steps to Independence - Rapid Re- Housing Individuals 0 4 0 Site-based – single site 4 0 4 RRH CA State ESG Individuals, Family Household 18 8 0 Tenant-based – scattered site 26 0 26 RRH HEAP - RRP Individuals, Family Household 3 4 0 Tenant-based – scattered site 7 0 7 RRH Release to Lease - RRH Individuals, Family Household 28 18 0 Tenant-based – scattered site 46 0 46 RRH SSVF Rapid Re-Housing Veterans, Individuals, Family Household 44 92 0 Tenant-based – scattered site 136 0 136 PSH CCH PSH Collaboration II Chronically Homeless, Individuals 0 1 0 Tenant-based – scattered site 1 0 1 PSH CCH PSH Collaborative Chronically Homeless, Individuals 0 1 0 Tenant-based – scattered site 1 0 1 PSH The Aqua Chronically Homeless, Individuals 0 56 0 Site-based – single site 56 0 56 PSH CoC Leasing Chronically Homeless, Individuals, Family Household 9 13 0 Tenant-based – scattered site 22 0 22 PSH MCY PSH Collaboration II Chronically Homeless, Individuals, Family Household 12 16 0 Tenant-based – scattered site 28 0 28 PSH MCY PSH Collaborative Chronically Homeless, Individuals, Family Household 12 106 0 Tenant-based – scattered site 118 0 118 PSH Heroes Landing Veterans, Individuals, Family Household 15 70 Site-based – single site 85 0 85 2021 Orange County Housing Inventory Count - Transitional Housing Beds Proj. Type Project Name Target Pop. Beds for Beds for Families Individuals Beds for Unaccomp. Minors Housing Type Year- Round Beds Overflow and Seasonal Beds Total Beds Transitional Housing Program- Santa TH Ana Family Household 8 0 Site-based – clustered / multiple 0 sites 8 0 8 TH Positive Steps House Individuals 0 5 0 Site-based – single site 5 0 5 TH Steps to Independence Transitional Living for Homeless Youth Individuals 0 19 0 Site-based – single site 19 0 19 TH Unaccompanied Minors 30 Site-based – single site 30 0 30 EXHIBIT 2 This list above of permanent supportive housing units is not exhaustive. The City also has the following permanent supportive housing units/projects: Depot at Santiago 10 units Santa Ana Arts Collective 15 units The following permanent supportive units/projects are in the pipeline: North Harbor Village 89 units FX Residences 16 units Legacy Square 33 units Crossroads at Washington 43 units Westview House 26 units In addition, the Housing Authority of the City of Santa Ana administers the following tenant-based vouchers for people experiencing homelessness: Mainstream Program Vouchers 231 HUD-VASH Vouchers 171 Foster Youth to Independence Vouchers 47 Emergency Housing Vouchers 89 The Housing Authority administers 2,754 Housing Choice Vouchers as of September 2021. The ESG-funded HEART outreach team, City Net and Illumination Foundation organizations provide outreach and engagement services in locations throughout the City. The County also runs an emergency cold-weather shelter in Santa Ana during the winter for approximately 200 individuals. Other support services, such as job and training assistance, food assistance, and counseling are also available to help individuals recover from homelessness and to avoid becoming homeless. The City works closely with the Continuum of Care who provides oversight for the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) to prioritize the most vulnerable chronically homeless individuals. Case management services are offered in all programs to help prevent individuals from falling back into homelessness. Non-homeless special needs populations require a variety of support services in order to remain stable and out of the homeless systems/cycle. Through 2-1-1 and other 2021 Orange County Housing Inventory Count - Other Permanent Housing Proj. Type Project Name Target Pop. Beds for Beds for Families Individuals Beds for Unaccomp. Minors Housing Type Year- Round Beds Overflow and Seasonal Beds Total Beds OPH AFH Housing for Health OC 2 Individuals 0 29 0 Tenant-based – scattered site 29 0 29 OPH MCY Housing for Health OC 2 Individuals, Family Household 42 48 0 Tenant-based – scattered site 90 0 90 EXHIBIT 2 service providers working in Santa Ana and across Orange County, the City of Santa Ana refers special needs populations to multiple providers to seek targeted assistance. Identify any gaps within the current shelter and housing inventory as well as the service delivery system: According to Orange County Continuum of Care HMIS Data, people experiencing homelessness spend an average of 140 days in emergency shelter before exiting. In addition, Housing is the Main Need in Orange County and in the Central SPA with over 11,000 individuals calling 2-1-1 OC for housing assistance or affordable housing. The At Risk/Homeless Housing Related Assistance Programs subcategory and Housing Expense Assistance are the two greatest needs for callers as well. The HMIS Data and 2-1-1 Call Center Information are attached as Exhibit C. The empirical evidence from the 2019 Point-in-Time Count, the Orange County Continuum of Care HMIS Data, and the 2-1-1 Call Center shows that there is a gap in permanent supportive housing for people experiencing homelessness in the City of Santa Ana. There is a gap in access for unsheltered people experiencing homelessness to emergency shelter beds, and there is a gap in access for sheltered people experiencing homelessness to permanent supportive housing exits from homelessness. This includes a gap in both tenant-based and project-based permanent supportive housing opportunities. Identify the characteristics of housing associated with instability and an increased risk of homelessness if the PJ will include such conditions in its definition of “other populations” as established in the HOME-ARP Notice: The PJ is not going to serve “Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability.” Identify priority needs for qualifying populations: For people who are experiencing homelessness as defined in 24 CFR 91.5, the priority need is for permanent supportive housing. This priority need also applies to a specific category of qualifying individuals and families: chronically homeless as defined in 24 CFR 91.5. People experiencing homelessness and chronic homelessness are the only qualifying populations that the City of Santa Ana will serve by financing the development of permanent supportive housing. Explain how the level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined. The level of need and gaps in its shelter and housing inventory and service delivery systems based on the data presented in the plan were determined based upon a review and comparison of the empirical evidence in the 2019 Point-in-Time Count, the Orange EXHIBIT 2 County Continuum of Care HMIS Data, and the 2-1-1 Call Center with the most effective strategy for ending the homelessness for a person experiencing homelessness. Permanent supportive housing is the most effective practice to end the homelessness for a person experiencing homelessness. The City has implemented this strategy and best practice in various permanent supportive housing projects. The Housing Authority has also implemented this best practice by providing tenant-based vouchers (HUD- VASH, Mainstream, FYI and EHVs) for people experiencing homelessness. Specifically, the nexus between the number of people experiencing unsheltered and sheltered homelessness in the City of Santa Ana, the amount of time people are spending in an emergency shelter before exiting, and the solution to provide permanent supportive housing was justified and determined based upon the evidence-based solution locally and nationally that permanent supportive housing ends homelessness. HOME-ARP Activities Describe the method for soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors and whether the PJ will administer eligible activities directly: The City of Santa Ana provides financial assistance to support the acquisition, rehabilitation, and new construction of properties to preserve and increase affordable housing opportunities for lower income households through the following Programs:  Low and Moderate Income Housing Asset Fund (Housing Successor Agency Fund) including land assets owned by the Housing Successor Agency  Inclusionary Housing Fund  HOME Investment Partnerships Program (HOME)  Community Development Block Grant Program (CDBG) and  Project-Based Voucher Program (PBV) These Programs are administered by the Housing Division of the City of Santa Ana (under the direct supervision of the Housing Division Manager, the direction of the Executive Director of Community Development, and the general supervision of the City Manager). The City of Santa Ana (City) and the Housing Authority of the City of Santa Ana (Authority) will be soliciting applications for funding and/or selecting developers, service providers, subrecipients and/or contractors by issuing a Request for Proposals (RFP) for the development of permanent supportive housing in the City using HOME-ARP Program funds. Proposed developments may be for the development and support of affordable housing, and the acquisition and development of non-congregate shelter units as the only two eligible activities. The RFP will include $5,256,326 in HOME-ARP EXHIBIT 2 Program funds. The RFP will also include over $10 million in Inclusionary Housing Funds, $3 million in HOME Program funds, and twenty-five project-based vouchers to be used as additional local resources for the proposed project(s). The Request for Proposals will be announced through notices to the following parties: • Interested Developers and Nonprofit Organizations on the Housing Division’s RFP Process Database. o Developers and Nonprofit Organizations interested in being added to the RFP Process Database can do so by contacting the City’s Housing Division at any time. • Other affordable housing membership association resources (e.g. Southern California Association of Nonprofit Housing, Kennedy Commission, 2-1-1 OC) • Public Notice in the local newspaper • Published on www.Planetbids.com A Qualified Developer (an “Applicant”) shall complete and submit to the Housing Division the Proposal for HOME-ARP funds and prepare all required attachments and exhibits, including, but not limited to, the project proforma, budget, sources and uses, project management plan, tenant selection and marketing plan, relocation plan (if applicable), signed purchase agreement and escrow instructions, preliminary title report, and limited partnership documents (if applicable). After the deadline for the RFP, the Housing Division staff shall review the proposal(s) to determine that the minimum program and RFP requirements are met (minimum threshold review) and the proposal(s) is eligible under CPD Notice 21-10. Proposals that do not meet the minimum threshold review will be considered non-responsive. If the proposal(s) meets the minimum threshold review, the Housing Division will form a Review Panel. The Review Panel for the RFP will consist of at least one employee from the City’s Public Works Agency, Planning and Building Agency, and Community Development Agency and one outside agency or government-entity. If an employee is not available in one department, a second employee may be requested from one of the other two departments so long as there are at least two of the three City Agencies represented on the Review Panel. Using the scoring and selection criteria provided in the RFP, the Review Panel shall determine whether the proposal(s) is recommended for a pre-loan commitment, with or without conditions, of HOME-ARP Program funds. Including the scoring and selection criteria, the Review Panel shall review the design of the proposed project for appropriateness for the proposed target group, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long term durability. Proposed projects must receive a minimum threshold score of 75 points to move forward with the proposal review process. If the Review Panel determines, in its discretion, that the proposal(s) may be recommended for approval, the Housing Division shall request a underwriting and subsidy layering review EXHIBIT 2 by a real estate advisor selected by the City. The real estate advisor shall confirm the underwriting for the project, the financial gap, and other programmatic requirements related to the HOME-ARP funds and any other funding sources requested for the development of the project. Following the RFP, proposal review process, and underwriting and subsidy layering review, a pre-loan commitment letter may be drafted by the Housing Division, reviewed and approved by the Housing Division Manager, the City Attorney’s Office, and the Executive Director of Community Development, before being recommended for approval by the City Council. The letter shall state the maximum amount of HOME-ARP Program funds and any other funding sources to be reserved for the project and list all of the additional conditions, documents and steps that must be taken by the developer prior to loan closing. After the pre-loan commitment letter has been drafted, staff will prepare a written staff report recommending a commitment of HOME-ARP funds and any other funding sources for a proposal(s) and explaining the reasons for the commitment. The recommendation will be made first by the Housing Division to the Community Development Commission to issue the commitment of program funds to the project in the form of an award of program funds. If recommended by the Commission to City Council, a recommendation will then be made by the Housing Division to the City Council and/or Housing Authority for final approval of the commitment of program funds by motion adopted by the affirmative votes of at least two-thirds (2/3) of the members. After issuance of a pre-loan commitment letter, the Housing Division will work with the developer to secure all of their remaining financing and ensure compliance with CDP Notice 21-10. If any portion of the PJ’s HOME-ARP administrative funds were provided to a subrecipient or contractor prior to HUD’s acceptance of the HOME-ARP allocation plan because the subrecipient or contractor is responsible for the administration of the PJ’s entire HOME-ARP grant, identify the subrecipient or contractor and describe its role and responsibilities in administering all of the PJ’s HOME-ARP program: NOT APPLICABLE PJs must indicate the amount of HOME-ARP funding that is planned for each eligible HOME-ARP activity type and demonstrate that any planned funding for nonprofit organization operating assistance, nonprofit capacity building, and administrative costs is within HOME-ARP limits. The following table may be used to meet this requirement. EXHIBIT 2 Use of HOME-ARP Funding Funding Amount Acquisition and Development of Non- Congregate Shelters $5,256,327 Development of Affordable Rental Housing Administration and Planning $927,587 Total HOME-ARP Allocation $6,183,914 Additional Narrative: The City will not restrict the eligibility / availability of proposals that may be submitted to the City under the RFP that will be issued to solicit applications for funding and/or selecting developers, service providers, subrecipients and/or contractors for the use of HOME-ARP Program funds. The City cannot anticipate if proposals will be submitted for eligible projects under the Acquisition and Development of Non-Congregate Shelters or for the Development of Affordable Rental Housing category because the solicitation is going to be available for either type of project. The City also does not want to limit the possibility of proposals for either eligible activity. Therefore, HOME-ARP funds may be allocated to either Acquisition and Development of Non-Congregate Shelters or for the Development of Affordable Rental Housing based on proposals that the City receives in response to the RFP solicitation process. After the City has selected a proposal(s), the City will know how much specific funding will be allocated in either category. Describe how the characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund eligible activities: The characteristics of the shelter and housing inventory, service delivery system, and the needs identified in the gap analysis provided a rationale for the plan to fund these two eligible activities because: 1) the empirical evidence from the 2019 Point-in-Time Count, the Orange County Continuum of Care HMIS Data, and the 2-1-1 Call Center shows that there is a gap in permanent supportive housing for people experiencing homelessness in the City of Santa Ana; 2) permanent supportive housing is the most effective practice to end the homelessness for a person experiencing homelessness; and 3) there is a nexus between the number of people experiencing unsheltered and sheltered homelessness in the City of Santa Ana, the amount of time people are spending in an emergency shelter before exiting, and the solution to provide permanent supportive housing. The eligible activities to provide permanent supportive housing addresses the gaps in the shelter and housing inventory and service delivery system in the city because permanent supportive housing will end the homelessness for a person experiencing homelessness in the City. This also aligns with the Orange County Continuum of Care’s Leadership Vision to: “Permanently House those Experiencing Homelessness”. EXHIBIT 2 HOME-ARP Production Housing Goals Estimate the number of affordable rental housing units for qualifying populations that the PJ will produce or support with its HOME-ARP allocation: The estimated number of permanent supportive housing units for people experiencing homelessness that the City will produce or support (finance) with its HOME-ARP allocation is thirty-four (34) units. This was calculated by dividing $5,256,327 by the average amount of City and Housing Authority funds provided per affordable unit over the last ten years, equal to $153,045. Describe the specific affordable rental housing production goal that the PJ hopes to achieve and describe how it will address the PJ’s priority needs: The specific affordable rental housing production goal that the City of Santa Ana hopes to achieve is to produce or support (finance) the development of at least thirty-four (34) permanent supportive housing units. This will address the City’s priority needs to provide a housing opportunity with wrap-around supportive services to people experiencing unsheltered and sheltered homelessness in the City of Santa Ana referred to the City by the Orange County Coordinated Entry System. This will also address the City’s need to reduce the amount of time people experiencing sheltered homelessness are spending in an emergency shelter before exiting to a housing solution. Preferences Identify whether the PJ intends to give preference to one or more qualifying populations or a subpopulation within one or more qualifying populations for any eligible activity or project:  Preferences cannot violate any applicable fair housing, civil rights, and nondiscrimination requirements, including but not limited to those requirements listed in 24 CFR 5.105(a).  PJs are not required to describe specific projects to which the preferences will apply. The City of Santa Ana will give a preference to chronically homeless individuals. Chronically homeless means: (1) A ‘‘homeless individual with a disability,’’ as defined in section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), who: (i) Lives in a place not meant for human habitation, a safe haven, or in an emergency shelter; and (ii) Has been homeless and living as described in paragraph (1)(i) of this definition continuously for at least 12 months or on at least 4 separate occasions in the last 3 years, as long as the combined occasions equal at least 12 EXHIBIT 2 months and each break in homelessness separating the occasions included at least 7 consecutive nights of not living as described in paragraph (1)(i). Stays in institutional care facilities for fewer than 90 days will not constitute as a break in homelessness, but rather such stays are included in the 12-month total, as long as the individual was living or residing in a place not meant for human habitation, a safe haven, or an emergency shelter immediately before entering the institutional care facility; (2) An individual who has been residing in an institutional care facility, including a jail, substance abuse or mental health treatment facility, hospital, or other similar facility, for fewer than 90 days and met all of the criteria in paragraph (1) of this definition, before entering that facility; or (3) A family with an adult head of household (or if there is no adult in the family, a minor head of household) who meets all of the criteria in paragraph (1) or (2) of this definition, including a family whose composition has fluctuated while the head of household has been homeless. The City will also have a local residency preference for chronically homeless individuals with strong ties to the City of Santa Ana. If a preference was identified, explain how the use of a preference or method of prioritization will address the unmet need or gap in benefits and services received by individuals and families in the qualifying population or category of qualifying population, consistent with the PJ’s needs assessment and gap analysis: The use of a preference for chronically homeless individuals will prioritize the people experiencing homelessness in the City by those individuals who most need access to permanent supportive housing. Chronically homeless individuals have the most barriers to accessing and maintaining residency in permanent housing. Therefore, this preference will ensure that these individuals are prioritized for the permanent supportive housing units first. The local residency preference will also ensure that the City is serving chronically homeless individuals in the jurisdiction of the City instead of people from outside the City of Santa Ana. If a preference was identified, describe how the PJ will use HOME-ARP funds to address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference: The City of Santa Ana will address the unmet needs or gaps in benefits and services of the other qualifying populations that are not included in the preference by serving people experiencing homelessness after all of the referrals for chronically homeless individuals has been exhausted. The City will address the housing needs for people experiencing homelessness by approving them for residency after serving all of the chronically homeless individuals with a local residency preference referred by the Orange County Continuum of Care Coordinated Entry System. The unmet needs and gaps in benefits and services of other qualifying populations (At risk of Homelessness; Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, EXHIBIT 2 Stalking, or Human Trafficking; or Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability) will not be served by the City’s use of HOME-ARP funds until the City has achieved functional zero for chronically homeless and homeless individuals in the City. The City will have achieved functional zero for chronically homeless individuals when the number of people experiencing chronic homelessness is zero, or if not zero, than either 3 or .1% of the total number of individuals reported in the most recent point-in-time count, whichever is greater. However, the other qualifying populations will be served through the City’s various other programs and services available in the City. EXHIBIT 2 CoC General Memberships Agency Authorized CoC Representative Alternate #1 Alternate #2 American Family Housing Milo Peinemann Executive Director Carolina Cortazar Anaheim Supportive Housing Jimmy Gaston Lou-Anne Keith Kathy Ramsey Build Futures Kevin O’Grady Executive Director Beth Brown CalOptima Tiffany Kaaiakamanu Community Relations Manager Lisa Nguyen Shelly Manjarrez CHAT – H / HCA Comprehensive Health Assessment Team- Homeless Becky Stone SPHN Larry Pritchett Public Health Nurse Jessika Almiranez Public Health Nurse Christian Services Cheryl Garcia Curtis Listerman Dave Lewis Chrysalis Michael Graff-Weisner VP Strategy Molly Larson VP Programs Shawn Bolton City Net Matt Bates VP Advancement Brad Fieldhouse Executive Director City of Mission Viejo Leslie McDonald Community Services Supervisor Sarah Gibson Community Resources Assistant Colette’s Children’s Home William O’Connell Deby Wolford Community Action Partnership of Orange County Curtis Gibbs Director of Planning Carolyn Coleman Community Engagement Liaison Dolores Barrett CPSD Covenant House California Polly Williams Director of OC Programs Bill Bedrossian CEO Families Forward Madelynn Hirneise Executive Directors Nishtha Mohendra Chief Program Officer Rosalinda Bermudez Director of Programs Families Together of Orange County Soledad Rivera Director of Business Development Izabella Sahakian Director of Operations David Becerra Director of Programs Family Assistance Ministries Elizabeth Andrade Executive Director Family Promise of Orange County Cyndee Albertson Executive Director Malia Cary Community Impact Manager Family Solutions Collaborative Nikki Buckstead Executive Director Katherine Rodriguez Family System Specialist Jocelyn Morales Family System Specialist Fresh Beginnings Ministries Jim Woest Bill Nelson ARP Allocation Plan Exhibit AEXHIBIT 2 CoC General Memberships Agency Authorized CoC Representative Alternate #1 Alternate #2 Friendship Shelter Dawn Price Executive Director Rick Scott Director of Programs Mia Ferreira Program Manager Fullerton Interfaith Emergency Services aka Pathways of Hope David Gillanders Executive Director Mychael Blinde Grandma’s House of Hope Jenet Kreitner Executive Director Taylor Montano Virginia DePaola Guardians of Life Foundation Heidi Echeverria Director of Business Jay Tukhi Executive Director HIS House – Homeless Intervention Shelter Carrie Buck Executive Director Christine Stellino Program Director Kim Rios-Ramos Housing Navigator HomeAid Orange County Yvette Ahlstrom Director of Housing Gina Scott Executive Director Hope 4 Restoration Tim Houchen Executive Director Human Options Maricela Rios Faust Chief Executive Officer Judith Rose Chief Programs Manager Yvette Visconte Residential Services Manager Illumination Foundation Jack Toan COO Deby Wolford Director of Housing Services Pooja Bhalla Executive Director of Healthcare Services Innovative Housing Opportunities Emilie Dang Director, Comm Impact and Programs Rochelle Mills Housing and Business Development Interval House Sharon Wie Director of Programs Christine Delabre Operations Director Adrianna Guerrero Client Services Coordinator Jamboree Housing George Searcy COO Helen Cameron Community Outreach Director Danielle Latteri League of Women Voters of Orange County Susan Guilford President, Orange County Kristina Fruneaux President, North Orange County Chris Collins Member – Orange Coast Lutheran Social Services of Southern California LaSharnda Beckwith CEO Darren Veracruz EVP Ellen Waild EVP Mercy House Larry Haynes Executive Director Patti Long Operations Director Allison Davenport Development Director Mental Health Ass. of Orange County Pam Presnall Director of Development Jeff Thrash CEO Sandy Yokoyama Regional Clinical Director New South Development Corporations Joy Thompson-Webb Shameria Phillips OCHA (Orange County Housing Authority) Candy Halamuda Marie Vu One Church in Orange Ric Olson Diane Ferrante EXHIBIT 2 CoC General Memberships Agency Authorized CoC Representative Alternate #1 Alternate #2 One Step Ministry Jackie Jordan Executive Director Martha Tillman Pat Railey Orange County Equality Coalition Felicity Figueroa, Chair Anna Barvir-Boone Secretary Hamid Nazish Treasurer Orange County United Way Brenyale Toomer-Byas Director, Housing and Income Becks Heyhoe Orangewood Foundation Chris Simonsen CEO Dr. Shay Sorrells CPO Our Father’s Table Gina Seriel Founder & CEO Kyle Miller COO People for Irvine Community Health dba 2-1-1 Orange County Karen Williams President & CEO Erin DeRycke Director, CoC Data & Operations People’s Homeless Task Force Orange County David Duran Secretary Linda Lehnkering Treasurer Michael Robbins President Precious Life Shelter, Inc. Theresa E. Murphy President & CEO Wanda Crawford Case Manager Martha Alejandre Director Project Hope Alliance Jennifer Friend CEO Rachel Cardenas Director of Behavior Health Bonita Vecchio Program Manager Providence St. Joseph Health Barry Ross Cecilia Bustamante-Pixa Christy Cornwall Salvation Army OC Renay Panoncialman Director or Social Services Shannon Lamb Homeless Services Case Manger Benjamin Anozie Santa Ana Housing Authority Judson Brown Operations Supervisor Miriam Zepeda Senior Housing Specialist Victoria Nguyen Senior Housing Specialist Santa Ana Unified School District Jenny Shumar Program Specialist Mc Kinney-Vento Liaison Serving People In Need Stephanie Smolkin Executive Director Sandra Lopez Sr. Case Manager South County Outreach LaVal Brewer President & CEO Renee Stevenson COO Beata Wilson Director of Housing SquareOne Affordable Housing Advocacy and Consulting Kymberly Mcclain President Jasmine Mcclain Treasurer Jade Walker Secretary Stand Up For Kids Justine Palmore Executive Director Carlia Oldfather Director The Eli Home Lorri Galloway Kim Tulleners EXHIBIT 2 CoC General Memberships Agency Authorized CoC Representative Alternate #1 Alternate #2 VA Community Resource & Referral Center Natalie Bui Sofia Nava Jennifer Vallejo Volunteers of America Los Angeles Virginia Adame Program Manager Volunteers of America Orange County Jessica Fajota Program Manager Alfonso Ceja Housing Coordinator Carmen Goss Housing Coordinator WISEPlace/SAFEPlace Brateil Aghasi Executive Director Demona Barlow Women’s Transitional Living Center Gigi Tsontos Executive Director Mark Lee Kiana Porter Young Lives Redeemed Robert K. Brown 1736 Family Crisis Center Ed Gonzalez Director of Veteran Programs Tobi Quintiliani Senior Director EXHIBIT 2 CoC General Memberships Individual Memberships Authorized CoC Representative Ashleigh Reyes James R. Aced Lubna Hammad Mark Richard Daniels Pat Davis Patrick Cahill Rebecca Kovacs-Stein Robert Morse Updated 11.2.21 EXHIBIT 2 Plan Exhibit B 2019 POINT IN TIME COUNT: CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 694 508 1,202 Brea 30 0 30 Buena Park 142 145 287 Cypress 39 0 39 Fullerton 308 165 473 La Habra 45 0 45 La Palma 9 0 9 Los Alamitos 1 21 22 Orange 193 148 341 Placentia 55 108 163 Stanton 71 45 116 Villa Park 0 0 0 Yorba Linda 1 0 1 County Unincorporated 8 0 8 Domestic Violence Programs N/A 29 29 NORTH SERVICE PLANNING AREA 1,596 2,765 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 187 6 193 Fountain Valley 28 14 42 Garden Grove 163 62 225 Huntington Beach 289 60 349 Newport Beach 64 0 64 Santa Ana 830 939 1,769 Seal Beach 8 0 8 Tustin 95 264 359 Westminster 159 25 184 County Unincorporated 4 31 35 Domestic Violence Programs N/A 104 104 CENTRAL SERVICE PLANNING AREA 1,827 1,505 3,332 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 1 0 1 Dana Point 32 0 32 Irvine 127 3 130 Laguna Beach 71 76 147 Laguna Hills 24 0 24 Laguna Niguel 7 3 10 Laguna Woods 5 0 5 Lake Forest 76 36 112 Mission Viejo 22 9 31 Rancho Santa Margarita 15 0 15 San Clemente 96 49 145 San Juan Capistrano 62 0 62 County Unincorporated 0 0 0 Domestic Violence Programs N/A 49 49 SOUTH SERVICE PLANNING AREA 538 225 763 Page 10 1,169 ARP Allocation Individuals 2019 POINT IN TIME COUNT CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 625 429 1,054 Brea 30 0 30 Buena Park 117 70 187 Cypress 35 0 35 Fullerton 289 88 377 La Habra 38 0 38 La Palma 6 0 6 Los Alamitos 1 3 4 Orange 163 19 182 Placentia 53 7 60 Stanton 67 1 68 Villa Park 0 0 0 Yorba Linda 1 0 1 County Unincorporated 2 0 2 Unknown Location/Domestic Violence Programs N/A 4 4 NORTH SERVICE PLANNING AREA 1,427 621 2,048 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 178 3 181 Fountain Valley 28 0 28 Garden Grove 149 13 162 Huntington Beach 271 5 276 Newport Beach 62 0 62 Santa Ana 795 868 1,663 Seal Beach 8 0 8 Tustin 71 81 152 Westminster 143 21 164 County Unincorporated 4 31 35 Unknown Location/Domestic Violence Programs 0 1 1 CENTRAL SERVICE PLANNING AREA 1,709 1,023 2,732 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 1 0 1 Dana Point 30 0 30 Irvine 72 0 72 Laguna Beach 71 76 147 Laguna Hills 22 0 22 Laguna Niguel 4 0 4 Laguna Woods 5 0 5 Lake Forest 59 0 59 Mission Viejo 18 0 18 Rancho Santa Margarita 9 0 9 San Clemente 78 8 86 San Juan Capistrano 57 0 57 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs N/A 6 6 SOUTH SERVICE PLANNING AREA 426 90 516 Page 11 Families 2019 POINT IN TIME COUNT CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 69 79 148 Brea 0 0 0 Buena Park 25 75 100 Cypress 4 0 4 Fullerton 18 77 95 La Habra 7 0 7 La Palma 3 0 3 Los Alamitos 0 12 12 Orange 29 129 158 Placentia 2 101 103 Stanton 4 44 43 Villa Park 0 0 0 Yorba Linda 0 0 0 County Unincorporated 6 0 6 Unknown Location/Domestic Violence Programs 0 25 25 NORTH SERVICE PLANNING AREA 169 542 711 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 9 3 12 Fountain Valley 0 14 14 Garden Grove 14 49 63 Huntington Beach 18 50 68 Newport Beach 2 0 2 Santa Ana 35 71 106 Seal Beach 0 0 0 Tustin 24 183 207 Westminster 16 4 20 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 0 103 103 CENTRAL SERVICE PLANNING AREA 118 477 595 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 0 0 0 Dana Point 2 0 2 Irvine 55 3 58 Laguna Beach 0 0 0 Laguna Hills 2 0 2 Laguna Niguel 3 3 6 Laguna Woods 0 0 0 Lake Forest 17 36 53 Mission Viejo 4 9 13 Rancho Santa Margarita 6 0 6 San Clemente 18 41 59 San Juan Capistrano 4 0 4 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 0 43 43 SOUTH SERVICE PLANNING AREA 111 135 246 Page 12 Transitional Age Youth 2019 POINT IN TIME COUNT CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 24 17 41 Brea 2 0 2 Buena Park 7 1 8 Cypress 0 0 0 Fullerton 10 4 14 La Habra 1 0 1 La Palma 0 0 0 Los Alamitos 0 1 1 Orange 5 14 19 Placentia 5 2 7 Stanton 3 2 5 Villa Park 0 0 0 Yorba Linda 0 0 0 County Unincorporated 1 0 1 Unknown Location/Domestic Violence Programs 1 2 3 NORTH SERVICE PLANNING AREA 59 43 102 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 4 1 5 Fountain Valley 1 1 2 Garden Grove 4 4 8 Huntington Beach 12 2 14 Newport Beach 0 0 0 Santa Ana 33 33 66 Seal Beach 0 0 0 Tustin 1 13 14 Westminster 6 10 16 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 2 2 4 CENTRAL SERVICE PLANNING AREA 63 66 129 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 0 0 0 Dana Point 2 0 2 Irvine 7 0 7 Laguna Beach 2 2 4 Laguna Hills 1 0 1 Laguna Niguel 0 0 0 Laguna Woods 0 0 0 Lake Forest 4 0 4 Mission Viejo 3 0 3 Rancho Santa Margarita 2 0 2 San Clemente 9 0 9 San Juan Capistrano 5 0 5 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 1 6 7 SOUTH SERVICE PLANNING AREA 36 8 44 Page 13 Seniors 2019 POINT IN TIME COUNT CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 39 60 99 Brea 8 0 8 Buena Park 9 8 17 Cypress 4 0 4 Fullerton 31 13 44 La Habra 1 0 1 La Palma 1 0 1 Los Alamitos 0 0 0 Orange 28 1 29 Placentia 3 0 3 Stanton 2 0 2 Villa Park 0 0 0 Yorba Linda 0 0 0 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 4 1 5 NORTH SERVICE PLANNING AREA 130 83 213 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 23 0 23 Fountain Valley 2 0 2 Garden Grove 15 0 15 Huntington Beach 23 1 24 Newport Beach 9 0 9 Santa Ana 69 138 207 Seal Beach 1 0 1 Tustin 13 1 14 Westminster 14 7 21 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 5 0 5 CENTRAL SERVICE PLANNING AREA 174 147 321 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 0 0 0 Dana Point 1 0 1 Irvine 15 0 15 Laguna Beach 13 23 36 Laguna Hills 8 0 8 Laguna Niguel 1 0 1 Laguna Woods 2 0 2 Lake Forest 4 0 4 Mission Viejo 1 0 1 Rancho Santa Margarita 0 0 0 San Clemente 4 1 5 San Juan Capistrano 2 0 2 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 2 1 3 SOUTH SERVICE PLANNING AREA 53 25 78 Page 14 Veterans 2019 POINT IN TIME COUNT CITY BY CITY CITY UNSHELTERED SHELTERED TOTAL Anaheim 33 25 58 Brea 3 0 3 Buena Park 5 2 7 Cypress 0 0 0 Fullerton 15 4 19 La Habra 2 0 2 La Palma 1 0 1 Los Alamitos 0 0 0 Orange 14 2 16 Placentia 4 1 5 Stanton 1 0 1 Villa Park 0 0 0 Yorba Linda 0 0 0 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 0 1 1 NORTH SERVICE PLANNING AREA 78 35 113 CITY UNSHELTERED SHELTERED TOTAL Costa Mesa 20 0 20 Fountain Valley 0 0 0 Garden Grove 7 0 7 Huntington Beach 16 1 17 Newport Beach 4 0 4 Santa Ana 40 43 83 Seal Beach 0 0 0 Tustin 5 16 21 Westminster 9 1 10 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 0 0 0 CENTRAL SERVICE PLANNING AREA 101 61 162 CITY UNSHELTERED SHELTERED TOTAL Aliso Viejo 1 0 1 Dana Point 5 0 5 Irvine 6 0 6 Laguna Beach 6 3 9 Laguna Hills 2 0 2 Laguna Niguel 0 0 0 Laguna Woods 0 0 0 Lake Forest 4 0 4 Mission Viejo 2 0 2 Rancho Santa Margarita 0 0 0 San Clemente 6 0 6 San Juan Capistrano 1 0 1 County Unincorporated 0 0 0 Unknown Location/Domestic Violence Programs 0 0 0 SOUTH SERVICE PLANNING AREA 33 3 36 Page 15 /Count of ClientsHomeless Prevention Street Outreach PSH-OPH Rapid Re-Housing Emergency Shelter Transitional Housing 11,499 3,536 3,071 2,334 2,250 343 PerformanceSpecial Populations Of clients who did not have these resources, at project entry, the cards below represent adults (age 18 or older) who gained income, employment, non-cash benefits, or health insurance during their enrollment. Disability Information Filtering is not available for the HIV/AIDS card to protect client privacy Demographics Entry Situations Hover over the chart to see detailed counts of specific prior living situations Orange County Continuum of Care: HMIS Data 07/01/21 - 09/30/21 Household Composition Count of HouseholdsAdults Only Adults and Children Children Only 8,680 3,086 106 Physical Disability 2,344 Gender Count of ClientsMale Female TransgenderOther Gender 11,506 10,821 28 19 Mental Health Disability 2,892 Exit Destinations Count of Clients Permanent Housing Unknown Homeless Situations Non-Permanent Institutional Setting 9,176 2,073 1,311 140 83 Average 2,006 Ethnicity 46%54% Hispanic/Latin(a)(o)(x)Non-Hispanic/Non-Latin(a)(o)(x) Substance Abuse Disability 1286 Living Situations Prior to Project Entry 7,937 (83%) 1,405 (15%)(2%) 168 Homeless Situation Not Homeless Institutional Race 0%20%40%60%80%100% Percent of Clients 10% 11% 4%72% American India/AK Native Asian Black/African American Multi-Racial Native Hawaiian/API White Chronic Homelessness (CH) and Disability Status 17,417 (76%) 3,086 (13%) 2,530 (11%) Not Disabled or CH Chronically Homeless Disabled not CH Prevalence of Comorbidity Among Clients Who Reported Disabilities Count of Clients 1 Disability 2 Disabilities 3 Disabilities 4 Disabilities 5 Disabilities 2.6K 1.7K 0.9K 0.4K 0.1K Age Group Count of Clients Under 18 18 to 24 25 to 61 62+ 7,795 1,361 11,988 1,889 Counts of clients or households (noted in title) in special populations. Note that no filtering is available on Clients Fleeing Domestic Violence (DV) in order to protect client privacy and safety. "TAY" refers to "Transitional Aged Youth," clients under age 25.Clients must have a disability to be considered Chronically Homeless "Permanent Housing" means any permanent destination such as a unit rented by the client, a Permanent Supportive Housing unit, or staying with friends/family permanently. Hover over the chart to see detailed counts of specific destinations. Gained Employment 125 Developmental Disability 1251 Gained Cash Income 263 Chronic Health Disability 2,540 Median 390 Project Type Filter Gained Health Insurance 106 TAY (<25) Households 1974 Gained Benefits 245 Veteran Clients 1,414 Clients Fleeing DV 432 Days Homeless Prior to Project Entry Days in Emergency Shelter or Transitional Housing Average 140 Median 87 13,392 Households Served 23,033 Clients Served 45 Active Agencies 230 Active Projects HIV/AIDS 162 Hover to see household sizes for each household type ARP Allocation Plan Exhibit C EXHIBIT 2 / Sample of Persons in Need From Quarterly Demographics Survey All Interactions Information & Referral Needs To filter the Main Need Category down into Subcategories for all of 211OC's client interactions, click on the need label. To filter for Subcategories by Main Need Category and Service Planning Area, click the car associated with the Service Planning Area as indicated by the legend. Demographics 211OC Contact Center Data 07/01/21 - 09/30/21 Call & Text Volume Main Need Category 0K 5K 10K Count of Referrals Housing Food/Meals Information Services Mental Health/Addictions Health Care Legal, Consumer and Public Safety Services Utility Assistance 4093 1099 820 834 640 5260 1261 683 933 729 740 851 1711 654 SPA Central North Outside OC South Unknown Need Subcategory 0K 1K 2K 3K 4K Count of Referrals At Risk/Homeless Housing Related Assistance Programs Housing Expense Assistance Emergency Shelter Housing Search and Information Information and Referral Nutrition Related Public Assistance Programs Utility Assistance 1286 1262 1126 902 486 524 508 2038 1608 1414 1018 597 608 578 845 448 669 332 372 259 277 283 SPA Central North Outside OC South Unknown Age Group of Person in Need 7%57%21%9%4% Birth-5 6-11 12-17 18-24 25-54 55-64 65-74 75-84 85 and older Service Planning Area July August September 7898 6659 59446427 7618 7722 2020 2021 Contact Language English Spanish Vietnamese Farsi Other Language Mandarin Korean Portugese Cantonese 16833 3508 45 16 16 12 6 2 1 Race/Ethnicity of Person in Need 4%9%50%5%28% API Asian Black/African American Latino/Hispanic Middle Eastern Multiple Native American White Number of Children in Household of Person in Need 63%17%10%8% 0 1 2 3 4 5 6 or more Veteran Status of Person In Need 21048 (97%) 719 (3%) No YesNote that not all callers or people in need answer the veteran status question.Contact language refers to the language the call or text was conducted in, not necessarily the language of the person in need. Count of Contacts by Service Planning Area 8833 (41%) 7603 (35%) 3338 (15%) 1404 (6%)(3%) 589 North Central South Outside OC Unknown Gender of Person In Need 12534 (68%) 5836 (32%) 14 (0%) Female Male Transgender EXHIBIT 2 / Homeless Contact Information All Housing Contact Information Click here for a glossary of housing taxonomy definitions Veteran Information Virtual Front Door Housing Data 07/01/21 - 09/30/21 No filtering is available on this page Housing Needs by Referral Type 0K 1K 2K 3K 4K Count of Referrals At Risk/Homeless Housing Related Assistance Programs Housing Expense Assistance Emergency Shelter Housing Search and Information 3889 3624 2893 2437 174 Need Was Met Unmet Homeless Contacts With HMIS Profiles Existing HMIS Records New Links to CES 104 63 41 36 Family Coordinated Entry Assistance Veteran Coordinated Entry Assistance Veteran Housing Needs by Referral Type 0 50 100 150 200 Count of Referrals At Risk/Homeless Housing Related Assistance Pro… Housing Search and Information Housing Expense Assistance Emergency Shelter Transitional Housing/Shelter Landlord/Tenant Assistance Supportive Housing Placement/Referral Residential Housing Options Subsidized Housing Administrative Organizations 168 135 123 86 35 17 15 8 7 Veterans Linked With Care Coordinator 129 Referrals to Access Points For Homeless Contacts Count of Calls Individual Family Veteran TAY 1023 278 1423 596 310 SPA Central North Outside OC South Unknown Referrals by Agency 0K 2K 4K Count of Referrals Share Our Selves Orange County Housing and Community Development Illumination Foundation Pathways of Hope The Salvation Army Southern California Mercy House Living Centers, Inc California Business, Consumer Services, and Housing Agency 4631 3505 2739 2672 2590 2272 1568 Homeless Contact Household Type Count of Contacts Individual Family 2508 750 Crisis, Critical & Vulnerable Calls 83%6%11% Crisis Critical Vulnerable Veteran Contacts with Housing Needs 416 Hover to see detailed counts of each crisis type Hover to see detailed counts of each agency referred to Veterans who contact 211 can opt in to care coordination for specialized navigation through the veteran program landscape. The Veteran Care Coordinator gathers intake information, provides initial I&R resources, makes a warm hand-off to a peer navigator, conducts follow-up, and provides intake through closed- loop case management reporting across all veteran agencies. EXHIBIT 2 Request for Proposals for Affordable Housing Development DECEMBER 7, 2021 COMMUNITY DEVELOPMENT AGENCY AGENDA ITEM # 36 1 Background In accordance with the City’s Affordable Housing Funds Policies and Procedures amended by City Council on August 18, 2020, the Community Development Agency, upon City Council approval, will issue a Request for Proposals (RFP), for available funds. The available funds for this RFP includes funds available in the Inclusionary Housing Fund, HOME Investment Partnerships (HOME) Program, HOME-American Rescue Plan (HOME-ARP) Program, Project-Based Voucher Program, and Neighborhood Stabilization Program. 2CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Available Funds 3CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Inclusionary Housing Fund $10,093,318 HOME Investment Partnerships Program (HOME)$3,161,226 HOME –American Rescue Plan (HOME –ARP)$5,256,327 Neighborhood Stabilization Program (NSP)$135,107 Project-Based Vouchers Twenty -Five (25) TOTAL $18,645,978 and 25 Project- Based Vouchers The RFP also includes a land asset currently held by the Housing Authority at 302 E. Twenty-Second Street. Priorities 1.Acquisition and rehabilitation projects 2.Homeownership projects Projects that do not fit these two priorities will still be eligible to submit a proposal. Competitive Selection Criteria also includes: ◦Project provides at least 50% or more of the units for extremely low-income families at 30% AMI (possible points based on a tiered scoring –10 pts. for 50%, 8 pts. for 40%, 6 pts. for 30%, 4 pts. for 20%, etc.) ◦BONUS POINTS: Project provides at least 75% or more of the units for extremely low-income families at 30% Area Median Income 4CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 HOME-ARP Funds The City was awarded $6,183,914 in HOME-ARP funds that are restricted to serve people experiencing homelessness. A Substantial Amendment to the FY 2021-2022 Annual Action Plan is required to allocate these new HOME-ARP funds which includes the City’s HOME-ARP Allocation Plan. HOME-ARP Allocation Plan: The City will issue an RFP for Affordable Housing Development to commit the funds for the following two eligible activities:◦To acquire, rehabilitate, or construct affordable rental housing primarily for individuals and families experiencing homelessness; and ◦To acquire and develop HOME-ARP non-congregate shelter for individuals and families experiencing homelessness (e.g. motels). 5CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 RFP Issuance and Deadline With approval by City Council, the RFP for Affordable Housing Development will be issued on December 8, 2021. ◦Staff will publicize the RFP as widely as possible to affordable housing developers. The deadline for the RFP will be February 28, 2022. Following this competitive selection process, staff will return to City Council with a recommendation to award affordable housing funds to one or more projects. 6CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Questions CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 7