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HomeMy WebLinkAboutItem 17 - Emergency Rental Assistance Program Spending Plan and Appropriation AdjustmentCommunity Development Agency https://www.santa-ana.org/cd Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 16, 2021 TOPIC: Emergency Rental Assistance Program Spending Plan and Appropriation Adjustment AGENDA TITLE: Appropriate $9.8 Million of Federal Emergency Rental Assistance Program Money Allocated from the Department of Treasury and Approve the Proposed Spending Plan (Non-General Fund) RECOMMENDED ACTION 1. Approve an appropriation adjustment recognizing an allocation of Emergency Rental Assistance Program funds from the U.S. Department of Treasury in the amount of $9,880,391.30 in revenue account (No. 17718700-52008) and appropriating same to expenditure account (Nos. 17718700-various). 2. Approve the proposed Emergency Rental Assistance Program spending plan, subject to adjustment by the City Manager as needed in response to shifting needs and priorities not to exceed the amount of funds available. 3. Direct the City Attorney to finalize and authorize the City Manager to enter into negotiations, execute agreements, and approve any other required actions necessary with various service providers, contractors, and sub-recipients, who will implement the Emergency Rental Assistance Program spending plan, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On December 27, 2020, the federal Consolidated Appropriations Act of 2021 was signed into law and included $25 billion in Emergency Rental Assistance Program funding. The City of Santa Ana received a direct federal allocation of $9,880,391.30. This $9.8 million allocation is separate from the $28.6 million of state CARES Act money passed-through to the City by the State of California and appropriated by City Council on August 4, 2020. It is also separate from the $2,936,476 of federal CARES Act money passed through to the City by the County of Orange and appropriated by the City Council Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 2 4 1 9 on July 7, 2020. Finally, it is also separate from the $21.6 million in federal and state CARES Act funding that the City has received in various installments and appropriated on April 21, 2020, August 18, 2020, and December 1, 2020. In accordance with the statutory provisions in the Consolidated Appropriations Act of 2021, the Emergency Rental Assistance Program (ERAP) makes available $25 billion to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic (Exhibit 1). The funds were provided directly to states, U.S. territories, local governments, and Indian tribes. Grantees must use the funds to provide assistance to eligible households through existing or newly created rental assistance programs. Not less than 90 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. Remaining funds are available for administrative costs. Funds generally expire on December 31, 2021. An “eligible household” is defined as a renter household in which at least one or more individuals meets the following criteria: 1. Qualifies for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced a financial hardship due to COVID-19; 2. Demonstrates a risk of experiencing homelessness or housing instability; and 3. Has a household income at or below 80 percent of the area median. Eligible households may receive up to 12 months of assistance, plus an additional three months if the grantee determines the extra months are needed to ensure housing stability and grantee funds are available. The payment of existing housing-related arrears that could result in eviction of an eligible household is prioritized. Assistance must be provided to reduce an eligible household’s rental arrears before the household may receive assistance for future rent payments. Once a household’s rental arrears are reduced, grantees may only commit to providing future assistance for up to three months at a time. Households may reapply for additional assistance at the end of the three-month period if needed and the overall time limit for assistance is not exceeded. A summary of information on the Emergency Rental Assistance Program by the National Community Development Association (NCDA) can be found within Exhibit 2. The Frequently Asked Questions for the program can be found within Exhibit 3. As an eligible grantee with a population greater than 200,000, the City applied for a direct allocation of these funds from the Department of Treasury on January 12, 2021, which included an agreement to comply with the statutory requirements summarized above (Exhibit 4). On January 21, 2021, our application was reviewed and approved and we received an allocation of $9,880,391. CARES funding is restricted money and the City must account for it in a special revenue fund. Accounting staff has established Fund 177 for this purpose. Staff recommends Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 3 4 1 9 appropriating the full amount of the CARES allocation, due to the short timeline for spending. Proposed ERAP Spending Plan Based on professional staff recommendations, the proposed spending plan below achieves two things. First, it builds upon our results and success to date with our existing CARES for Tenants Program. And second, it conforms to the statutory requirements of this new funding source. This is the approach staff recommends to most efficiently and effectively spend this $9.8 million in additional funding before the end of the year. Specifically, staff recommends allocating $8,892,352 to our CARES for Tenants Program that we have been administering since May 2020. The remaining $988,039 (10% of the total grant) will be allocated to administration of the program. The City has over 1,100 applicants waiting for assistance through our CARES for Tenants Program; staff has kept the applications open for new applicants since August 17, 2020. The CARES for Tenants Program currently provides a one-time emergency rental assistance payment of $3,000 per eligible household and the City has assisted over 1,238 families with emergency rental relief so far. With these additional funds, staff recommends to increase this one- time payment to $5,500 per eligible household. If the City Council does not change the core requirements of the CARES for Tenants Program, staff will be able to assist all 1,100 families waiting for assistance, who have already applied, and over 516 additional families. A flat assistance amount of $5,500 per household was calculated based upon the remaining number of households to be served with ERAP funding, the average monthly rent in the City of Santa Ana, and an analysis from Moody’s Analytics and the Urban Institute. First, the average cost of rent was established for the following housing types: studios, one-bedroom, two-bedroom, three-bedroom, and four-bedroom apartments. The average cost of rent for each type of housing was calculated based on three sources: HUD Fair Market Rents for the Santa Ana/Anaheim/Irvine Metroplex; a survey of Santa Ana landlords who participated in the 2020 “CARES for Landlords” program; and the average rent costs in Santa Ana based on estimates from a popular apartment search platform. The average monthly rent across all housing types was $1,983, which was rounded up to $2,000 per month. Based on this amount, it was determined that approximately 1,334 households could be served with three months of rent, at $6,000 each. This amount was reduced to $5,500 per household based on data published by Moody’s Analytics and the Urban Institute, which indicates that the typical delinquent renter owes $5,600 in rental payments across the country. A total of 1,616 households would receive $5,500 each in Emergency Rental Assistance funds. This amount is less than the County’s Emergency Rental Assistance Program which provides $10,000 per household, but our funding will go further to serve more families per dollar. In addition, staff launched our Santa Ana Vital Eviction Solutions (SAVES Program) on February 1, 2021 with over $5.5 million to provide families with additional eviction prevention assistance. Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 4 4 1 9 Our CARES for Tenants Program already conforms to the new statutory requirements of the ERAP funds. The components that staff need to add to the program to conform includes the following: Provision to allow for payments directly to tenants if a landlord does not agree to accept such payment from the City after the City documents outreach to the landlord. A prioritization (sorting of existing applications) for very low-income families who earn less than 50 percent of the area median income. A requirement to ensure that the City’s payment goes towards the family’s rental arrears first before current or future rent. A requirement that a family demonstrate a risk of homelessness or housing instability by providing a past due utility or rent notice; a self-certification of current housing-cost burden; a self-certification of doubling or tripling up with other households; and/or a rent ledger from the landlord documenting an accumulation of rent. A current requirement in the Frequently Asked Questions (FAQs) published by the Department of Treasury to verify the income of each family we assist as opposed to allowing the family to self-certify their income. (There is an effort by housing advocacy organizations across the country to recommend the Department of Treasury change this requirement to reduce the administrative burden on grantees and participants. Preliminary indications show that the Department is going to update the FAQs to respond to this recommendation.) Staff is attaching the draft Program Guidelines and Frequently Asked Questions for the CARES for Tenants Program that has been revised to conform with the new ERAP funding (Exhibit 5 and 6). The Program Guidelines and Frequently Asked Questions are provided in redline format for City Council to see what provisions were changed in order to comply with this new source of one-time emergency rental assistance funding. The draft Program Guidelines and Frequently Asked Questions are subject to further revision by staff as needed in response to this pandemic. This spending plan will be successful to assist as many families as possible if there are no major changes to the application requirements that would require staff to relaunch a new application process for our residents. This spending plan will allow us to assist an additional 1,616 families with emergency rental relief. For families that have already received assistance in the amount of $3,000, those families will be able to recertify for additional assistance up to the $5,500 of assistance per family. This will change staff’s projection of how many new families we will be able assist with these funds. State Allocation for the City of Santa Ana On January 28, 2021, the California Legislature passed the COVID-19 Tenant Relief Act (SB 91), extending eviction protections through June 30, 2021 and creating a mechanism Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 5 4 1 9 to deploy $2.6 billion in Federal Emergency Rental Assistance Program (ERAP) resources to assist struggling tenants and landlords impacted by the economic damage of COVID-19. Staff is attaching information from the Business, Consumer Services, and Housing Agency that explains these state funds further (Exhibit 7). The State received a direct allocation of ERAP funds from the Department of Treasury for the City of Santa Ana similar to the City. The City received a direct allocation of $9,880,391.30 and the State received an allocation of $10,633,695.01 that must be designated for the City of Santa Ana. This is a total of $20,514,086.31. Regarding the State’s allocation for our City, the following are the three options for cities and counties with over 200,000 in population: 1. State Program: Participate in a central state program where both federal allocation and state allocation are managed on behalf of the City or County by a Community Development Financial Institution partnered with the State; or 2. Self-Administer: Receive a state block grant allocation and self-administer the City’s share of rental funds in a manner consistent with state and federal program requirements; or 3. Self-Administer and State Administer: If a City or County chooses to self- administer its federal allocation but chooses to not conform their local program to the state requirements, it is not eligible for a block grant. Landlords and tenants located in their jurisdiction may still apply to the State Program (administered by a CDFI) for a proportionate share of the state funds, but the responsibility to manage duplication of benefits will rest with the City or County. To summarize, the State is offering the City three general options: 1) give our $9.8 million back to the State to administer a State Rental Assistance Program; 2) enter into a contract with the State for a block grant of the $10,633,695.01, but with the caveat that we must administer the funds in conformance with the State’s Rental Assistance Program; or 3) self-administer our own allocation of $9.8 million and the State will administer their $10.6 million for the City of Santa Ana. The State’s Emergency Rental Assistance Program will be administered statewide by the Local Initiatives Support Corporation (LISC) and includes the following key parameters per SB 91: The State’s rental assistance program will provide eligible landlords with immediate relief through the payment of 80% of their tenants’ rental arrears accumulated between April 1, 2020 and March 31, 2021. Landlords, in turn, agree to accept this payment as payment in full of any unpaid rent for that period. (This is nearly identical to our CARES for Landlords Program that we administered from August 17, 2020 to December 15, 2020.) In cases where a landlord chooses not to participate, an eligible tenant may apply to the program for 25% of their rental arrears, which will be paid to the landlord. Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 6 4 1 9 The program also allows for prospective payments of 25% of monthly rent for the months of April, May, and June. Establishes a requirement for funds to be administered in at least three rounds, prioritizing: (1) Below 50% AMI or unemployed for 90 days; (2) Below 80% AMI and in a community disproportionately impacted by Covid-19; (3) Below 80% AMI and not addressed by rounds 1 and 2. Staff has reviewed the three options and recommends Option # 3: Self-Administer and State Administer for three reasons. First, the City currently has 1,100 applicants waiting for assistance through our CARES for Tenants Program. If we were to allocate our funding back to the State (Option # 1), we would need to notify all of these families that they will need to reapply to the State for assistance, sending them through a new application process with LISC. Second, the State’s Rental Assistance Program essentially replicates our CARES for Landlords Program which was not as effective as our CARES for Tenants Program to allocate our funds. Specifically, we allocated $2.7 million of our State CARES Act funds to our CARES for Landlords Program in August 2020. By November 2020, we needed to reallocate $1.6 million of this funding back to our CARES for Tenants Program because landlords were not participating in the program as much as expected, even after staff exhausted outreach efforts with three mass mailings to every multi-family property owner in Santa Ana and two workshops to the Apartment Association of Orange County and California Apartment Association. If staff were to request the State’s funding be allocated to the City via Option # 2, staff would have to conform the City’s local program to the State program requirements and the City would have substantial difficulty in administering the assistance for landlords directly. Finally, the State’s Rental Assistance Program does not provide enough assistance per household. Specifically, the State’s Program will only pay 25 percent of a tenant’s rental arrears. To reach the City’s payment of $5,500 per household, the family would have to owe a total of $22,000 in rental arrears (25% of $22,000 equals $5,500). The City’s one- time assistance per family will go further to assist Santa Ana residents. Therefore, staff recommends Option # 3 because: 1) staff has 1,100 applicants already waiting for assistance through the City’s program; 2) not as many landlords will apply for the State’s program based on the City’s experience with the CARES for Landlords Program; and 3) the one-time assistance payments of $5,500 per household will go further to assist our residents than the 25 percent payment that the State will be able to provide to each household. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Approval of the appropriation adjustment will recognize $9,880,391.30 in the Emergency Rental Assistance Program grant revenue account (No. 17718002-52008) for expenditure as follows: Emergency Rental Assistance Program Spending Plan & Appropriation Adjustment February 16, 2021 Page 7 4 1 9 Fiscal Year Accounting Unit- Account Fund Description Accounting Unit, Account Description Amount FY 20-21 (Feb.-June)17718700-various Emergency Rental Assistance Program Emergency Rental Assistance Program, Various $3,950,000.00 FY 21-22 (July-Dec.)17718700-various Emergency Rental Assistance Program Emergency Rental Assistance Program, Various $5,930,391.90 Total $9,880,391.90 The spending plan above is only an estimate and is subject to change. EXHIBIT(S) 1. Statutory Provisions in the Consolidated Appropriations Act of 2021 2. Summary of Information on the Emergency Rental Assistance Program by NCDA 3. Frequently Asked Questions, January 19, 2021 4. Agreement for ERAP Funds 5. Program Guidelines in Redline Format for CARES for Tenants 6. Program FAQs in Redline Format for CARES for Tenants 7. Information from the Business, Consumer Services and Housing Agency on the State’s Emergency Rental Assistance Program Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager H.R.133—888 TITLE V—BANKING Subtitle A—Emergency Rental Assistance SEC. 501. EMERGENCY RENTAL ASSISTANCE. (a) APPROPRIATION.— EXHIBIT 1 H.R.133—889 (1) IN GENERAL.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appro- priated for making payments to eligible grantees under this section, $25,000,000,000 for fiscal year 2021. (2) RESERVATION OF FUNDS FOR THE TERRITORIES AND TRIBAL COMMUNITIES.—Of the amount appropriated under para- graph (1), the Secretary shall reserve— (A) $400,000,000 of such amount for making payments under this section to the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Common- wealth of the Northern Mariana Islands, and American Samoa; and (B) $800,000,000 of such amount for making payments under this section to eligible grantees described in subpara- graphs (C) and (D) of subsection (k)(2); and (C) $15,000,000 for administrative expenses of the Sec- retary described in subsection (h). (b) PAYMENTS FOR RENTAL ASSISTANCE.— (1) ALLOCATION AND PAYMENTS TO STATES AND UNITS OF LOCAL GOVERNMENT.— (A) IN GENERAL.—The amount appropriated under paragraph (1) of subsection (a) that remains after the application of paragraph (2) of such subsection shall be allocated and paid to eligible grantees described in subpara- graph (B) in the same manner as the amount appropriated under subsection (a)(1) of section 601 of the Social Security Act (42 U.S.C. 801) is allocated and paid to States and units of local government under subsections (b) and (c) of such section, and shall be subject to the same require- ments, except that— (i) the deadline for payments under section 601(b)(1) of such Act shall, for purposes of payments under this section, be deemed to be not later than 30 days after the date of enactment of this section; (ii) the amount referred to in paragraph (3) of section 601(c) of such Act shall be deemed to be the amount appropriated under paragraph (1) of subsection (a) of this Act that remains after the application of paragraph (2) of such subsection; (iii) section 601(c) of the Social Security Act shall be applied— (I) by substituting ‘‘1 of the 50 States or the District of Columbia’’ for ‘‘1 of the 50 States’’ each place it appears; (II) in paragraph (2)(A), by substituting ‘‘ $200,000,000’’ for ‘‘ $1,250,000,000’’; (III) in paragraph (2)(B), by substituting ‘‘each of the 50 States and District of Columbia’’ for ‘‘each of the 50 States’’; (IV) in paragraph (4), by substituting ‘‘excluding the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Common- wealth of the Northern Mariana Islands, and American Samoa’’ for ‘‘excluding the District of Columbia and territories specified in subsection (a)(2)(A)’’; and (V) without regard to paragraph (6); EXHIBIT 1 H.R.133—890 (iv) section 601(d) of such Act shall not apply to such payments; and (v) section 601(e) shall be applied — (I) by substituting ‘‘under section 501 of sub- title A of title V of division N of the Consolidated Appropriations Act, 2021’’ for ‘‘under this section’’; and (II) by substituting ‘‘local government elects to receive funds from the Secretary under section 501 of subtitle A of title V of division N of the Consolidated Appropriations Act, 2021 and will use the funds in a manner consistent with such section’’ for ‘‘local government’s proposed uses of the funds are consistent with subsection (d)’’. (B) ELIGIBLE GRANTEES DESCRIBED.—The eligible grantees described in this subparagraph are the following: (i) A State that is 1 of the 50 States or the District of Columbia. (ii) A unit of local government located in a State described in clause (i). (2) ALLOCATION AND PAYMENTS TO TRIBAL COMMUNITIES.— (A) IN GENERAL.—From the amount reserved under subsection (a)(2)(B), the Secretary shall— (i) pay the amount equal to 0.3 percent of such amount to the Department of Hawaiian Home Lands; and (ii) subject to subparagraph (B), from the remainder of such amount, allocate and pay to each Indian tribe (or, if applicable, the tribally designated housing entity of an Indian tribe) that was eligible for a grant under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.) for fiscal year 2020 an amount that bears the same proportion to the such remainder as the amount each such Indian tribe (or entity) was eligible to receive for such fiscal year from the amount appropriated under paragraph (1) under the heading ‘‘NATIVE AMERICAN PROGRAMS’’ under the heading ‘‘PUBLIC AND INDIAN HOUSING’’ of title II of division H of the Further Consolidated Appro- priations Act, 2020 (Public Law 116–94) to carry out the Native American Housing Block Grants program bears to the amount appropriated under such para- graph for such fiscal year, provided the Secretary shall be authorized to allocate, in an equitable manner as determined by the Secretary, and pay any Indian tribe that opted out of receiving a grant allocation under the Native American Housing Block Grants program formula in fiscal year 2020, including by establishing a minimum amount of payments to such Indian tribe, provided such Indian tribe notifies the Secretary not later than 30 days after the date of enactment of this Act that it intends to receive allocations and pay- ments under this section. (B) PRO RATA ADJUSTMENT; DISTRIBUTION OF DECLINED FUNDS.— EXHIBIT 1 H.R.133—891 (i) PRO RATA ADJUSTMENTS.—The Secretary shall make pro rata reductions in the amounts of the alloca- tions determined under clause (ii) of subparagraph (A) for entities described in such clause as necessary to ensure that the total amount of payments made pursu- ant to such clause does not exceed the remainder amount described in such clause. (ii) DISTRIBUTION OF DECLINED FUNDS.—If the Sec- retary determines as of 30 days after the date of enact- ment of this Act that an entity described in clause (ii) of subparagraph (A) has declined to receive its full allocation under such clause then, not later than 15 days after such date, the Secretary shall redis- tribute, on a pro rata basis, such allocation among the other entities described in such clause that have not declined to receive their allocations. (3) ALLOCATIONS AND PAYMENTS TO TERRITORIES.— (A) IN GENERAL.—From the amount reserved under subsection (a)(2)(A), subject to subparagraph (B), the Sec- retary shall allocate and pay to each eligible grantee described in subparagraph (C) an amount equal to the product of— (i) the amount so reserved; and (ii) each such eligible grantee’s share of the com- bined total population of all such eligible grantees, as determined by the Secretary. (B) ALLOCATION ADJUSTMENT.— (i) REQUIREMENT.—The sum of the amounts allo- cated under subparagraph (A) to all of the eligible grantees described in clause (ii) of subparagraph (C) shall not be less than the amount equal to 0.3 percent of the amount appropriated under subsection (a)(1). (ii) REDUCTION.—The Secretary shall reduce the amount of the allocation determined under subpara- graph (A) for the eligible grantee described in clause (i) of subparagraph (C) as necessary to meet the requirement of clause (i). (C) ELIGIBLE GRANTEES DESCRIBED.—The eligible grantees described in this subparagraph are— (i) the Commonwealth of Puerto Rico; and (ii) the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. (c) USE OF FUNDS.— (1) IN GENERAL.—An eligible grantee shall only use the funds provided from a payment made under this section to provide financial assistance and housing stability services to eligible households. (2) FINANCIAL ASSISTANCE.— (A) IN GENERAL.—Not less than 90 percent of the funds received by an eligible grantee from a payment made under this section shall be used to provide financial assistance to eligible households, including the payment of (i) rent; (ii) rental arrears; (iii) utilities and home energy costs; (iv) utilities and home energy costs arrears; and EXHIBIT 1 H.R.133—892 (v) other expenses related to housing incurred due, directly or indirectly, to the novel coronavirus disease (COVID-19) outbreak, as defined by the Secretary. Such assistance shall be provided for a period not to exceed 12 months except that grantees may provide assistance for an additional 3 months only if necessary to ensure housing stability for a household subject to the availability of funds. (B) LIMITATION ON ASSISTANCE FOR PROSPECTIVE RENT PAYMENTS.— (i) IN GENERAL.—Subject to the exception in clause (ii), an eligible grantee shall not provide an eligible household with financial assistance for prospective rent payments for more than 3 months based on any application by or on behalf of the household. (ii) EXCEPTION.—For any eligible household described in clause (i), such household may receive financial assistance for prospective rent payments for additional months: (I) subject to the availability of remaining funds currently allocated to the eligible grantee, and (II) based on a subsequent application for addi- tional financial assistance provided that the total months of financial assistance provided to the household do not exceed the total months of assist- ance allowed under subparagraph (A). (iii) FURTHER LIMITATION.—To the extent that applicants have rental arrears, grantees may not make commitments for prospective rent payments unless they have also provided assistance to reduce an eligible household’s rental arrears. (C) DISTRIBUTION OF FINANCIAL ASSISTANCE.— (i) PAYMENTS.— (I) IN GENERAL.—With respect to financial assistance for rent and rental arrears and utilities and home energy costs and utility and home energy costs arrears provided to an eligible household from a payment made under this section, an eligible grantee shall make payments to a lessor or utility provider on behalf of the eligible house- hold, except that, if the lessor or utility provider does not agree to accept such payment from the grantee after outreach to the lessor or utility pro- vider by the grantee, the grantee may make such payments directly to the eligible household for the purpose of making payments to the lessor or utility provider. (II) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to invalidate any other- wise legitimate grounds for eviction. (ii) DOCUMENTATION.—For any payments made by an eligible grantee to a lessor or utility provider on behalf of an eligible household, the eligible grantee shall provide documentation of such payments to such household. EXHIBIT 1 H.R.133—893 (3) HOUSING STABILITY SERVICES.—Not more than 10 per- cent of funds received by an eligible grantee from a payment made under this section may be used to provide eligible house- holds with case management and other services related to the novel coronavirus disease (COVID-19) outbreak, as defined by the Secretary, intended to help keep households stably housed. (4) PRIORITIZATION OF ASSISTANCE.— (A) In reviewing applications for financial assistance and housing stability services to eligible households from a payment made under this section, an eligible grantee shall prioritize consideration of the applications of an eligible household that satisfies any of the following condi- tions: (i) The income of the household does not exceed 50 percent of the area median income for the house- hold. (ii) 1 or more individuals within the household are unemployed as of the date of the application for assistance and have not been employed for the 90- day period preceding such date. (B) Nothing in this section shall be construed to pro- hibit an eligible grantee from providing a process for the further prioritizing of applications for financial assistance and housing stability services from a payment made under this section, including to eligible households in which 1 or more individuals within the household were unable to reach their place of employment or their place of employ- ment was closed because of a public health order imposed as a direct result of the COVID-19 public health emergency. (5) ADMINISTRATIVE COSTS.— (A) IN GENERAL.—Not more than 10 percent of the amount paid to an eligible grantee under this section may be used for administrative costs attributable to providing financial assistance and housing stability services under paragraphs (2) and (3), respectively, including for data collection and reporting requirements related to such funds. (B) NO OTHER ADMINISTRATIVE COSTS.—Amounts paid under this section shall not be used for any administrative costs other than to the extent allowed under subparagraph (A). (d) REALLOCATION OF UNUSED FUNDS.—Beginning on Sep- tember 30, 2021, the Secretary shall recapture excess funds, as determined by the Secretary, not obligated by a grantee for the purposes described under subsection (c) and the Secretary shall reallocate and repay such amounts to eligible grantees who, at the time of such reallocation, have obligated at least 65 percent of the amount originally allocated and paid to such grantee under subsection (b)(1), only for the allowable uses described under sub- section (c). The amount of any such reallocation shall be determined based on demonstrated need within a grantee’s jurisdiction, as determined by the Secretary. (e) AVAILABILITY.— (1) IN GENERAL.—Funds provided to an eligible grantee under a payment made under this section shall remain avail- able through December 31, 2021. EXHIBIT 1 H.R.133—894 (2) EXTENSION FOR FUNDS PROVIDED PURSUANT TO A RE- ALLOCATION OF UNUSED FUNDS.—For funds reallocated to an eligible grantee pursuant to subsection (d), an eligible grantee may request, subject to the approval of the Secretary, a 90- day extension of the deadline established in paragraph (1). (f) APPLICATION FOR ASSISTANCE BY LANDLORDS AND OWNERS.— (1) IN GENERAL.—Subject to paragraph (2), nothing in this section shall preclude a landlord or owner of a residential dwelling from— (A) assisting a renter of such dwelling in applying for assistance from a payment made under this section; or (B) applying for such assistance on behalf of a renter of such dwelling. (2) REQUIREMENTS FOR APPLICATIONS SUBMITTED ON BEHALF OF TENANTS.—If a landlord or owner of a residential dwelling submits an application for assistance from a payment made under this section on behalf of a renter of such dwelling— (A) the landlord must obtain the signature of the ten- ant on such application, which may be documented elec- tronically; (B) documentation of such application shall be provided to the tenant by the landlord; and (C) any payments received by the landlord from a payment made under this section shall be used to satisfy the tenant’s rental obligations to the owner. (g) REPORTING REQUIREMENTS.— (1) IN GENERAL.—The Secretary, in consultation with the Secretary of Housing and Urban Development, shall provide public reports not less frequently than quarterly regarding the use of funds made available under this section, which shall include, with respect to each eligible grantee under this section, both for the past quarter and over the period for which such funds are available— (A) the number of eligible households that receive assistance from such payments; (B) the acceptance rate of applicants for assistance; (C) the type or types of assistance provided to each eligible household; (D) the average amount of funding provided per eligible household receiving assistance; (E) household income level, with such information disaggregated for households with income that— (i) does not exceed 30 percent of the area median income for the household; (ii) exceeds 30 percent but does not exceed 50 percent of the area median income for the household; and (iii) exceeds 50 percent but does not exceed 80 percent of area median income for the household; and (F) the average number of monthly rental or utility payments that were covered by the funding amount that a household received, as applicable. (2) DISAGGREGATION.—Each report under this subsection shall disaggregate the information relating to households pro- vided under subparagraphs (A) through (F) of paragraph (1) EXHIBIT 1 H.R.133—895 by the gender, race, and ethnicity of the primary applicant for assistance in such households. (3) ALTERNATIVE REPORTING REQUIREMENTS FOR CERTAIN GRANTEES.—The Secretary may establish alternative reporting requirements for grantees described in subsection (b)(2). (4) PRIVACY REQUIREMENTS.— (A) IN GENERAL.—Each eligible grantee that receives a payment under this section shall establish data privacy and security requirements for the information described in paragraph (1) that— (i) include appropriate measures to ensure that the privacy of the individuals and households is pro- tected; (ii) provide that the information, including any personally identifiable information, is collected and used only for the purpose of submitting reports under paragraph (1); and (iii) provide confidentiality protections for data col- lected about any individuals who are survivors of intimate partner violence, sexual assault, or stalking. (B) STATISTICAL RESEARCH.— (i) IN GENERAL.—The Secretary— (I) may provide full and unredacted informa- tion provided under subparagraphs (A) through (F) of paragraph (1), including personally identifi- able information, for statistical research purposes in accordance with existing law; and (II) may collect and make available for statis- tical research, at the census tract level, informa- tion collected under subparagraph (A). (ii) APPLICATION OF PRIVACY REQUIREMENTS.—A recipient of information under clause (i) shall establish for such information the data privacy and security requirements described in subparagraph (A). (5) NONAPPLICATION OF THE PAPERWORK REDUCTION ACT.— Subchapter I of chapter 35 of title 44, United States Code, shall not apply to the collection of information for the reporting or research requirements specified in this subsection. (h) ADMINISTRATIVE EXPENSES OF THE SECRETARY.—Of the funds appropriated pursuant to subsection (a), not more than $15,000,000 may be used for administrative expenses of the Sec- retary in administering this section, including technical assistance to grantees in order to facilitate effective use of funds provided under this section. (i) Inspector General Oversight; Recoupment (1) OVERSIGHT AUTHORITY.—The Inspector General of the Department of the Treasury shall conduct monitoring and over- sight of the receipt, disbursement, and use of funds made available under this section. (2) RECOUPMENT.—If the Inspector General of the Depart- ment of the Treasury determines that a State, Tribal govern- ment, or unit of local government has failed to comply with subsection (c), the amount equal to the amount of funds used in violation of such subsection shall be booked as a debt of such entity owed to the Federal Government. Amounts recov- ered under this subsection shall be deposited into the general fund of the Treasury. EXHIBIT 1 H.R.133—896 (3) APPROPRIATION.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Office of the Inspector General of the Department of the Treasury, $6,500,000 to carry out oversight and recoupment activities under this subsection. Amounts appropriated under the preceding sentence shall remain avail- able until expended. (4) AUTHORITY OF INSPECTOR GENERAL.—Nothing in this subsection shall be construed to diminish the authority of any Inspector General, including such authority as provided in the Inspector General Act of 1978 (5 U.S.C. App.) (j) TREATMENT OF ASSISTANCE.—Assistance provided to a house- hold from a payment made under this section shall not be regarded as income and shall not be regarded as a resource for purposes of determining the eligibility of the household or any member of the household for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (k) DEFINITIONS.—In this section: (1) AREA MEDIAN INCOME.—The term ‘‘area median income’’ means, with respect to a household, the median income for the area in which the household is located, as determined by the Secretary of Housing and Urban Development. (2) ELIGIBLE GRANTEE.—The term ‘‘eligible grantee’’ means any of the following: (A) A State (as defined in section 601(g)(4) of the Social Security Act (42 U.S.C. 801(g)(4)). (B) A unit of local government (as defined in paragraph (5)). (C) An Indian tribe or its tribally designated housing entity (as such terms are defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) that was eligible to receive a grant under title I of such Act (25 U.S.C. 4111 et seq.) for fiscal year 2020 from the amount appropriated under paragraph (1) under the heading ‘‘NATIVE AMERICAN PRO- GRAMS’’ under the heading ‘‘PUBLIC AND INDIAN HOUSING’’ of title II of division H of the Further Consolidated Appro- priations Act, 2020 (Public Law 116–94) to carry out the Native American Housing Block Grants program. For the avoidance of doubt, the term Indian tribe shall include Alaska native corporations established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.). (D) The Department of Hawaiian Homelands. (3) ELIGIBLE HOUSEHOLD.— (A) IN GENERAL.—The term ‘‘eligible household’’ means a household of 1 or more individuals who are obligated to pay rent on a residential dwelling and with respect to which the eligible grantee involved determines— (i) that 1 or more individuals within the household has (I) qualified for unemployment benefits or (II) experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due, directly or indirectly, EXHIBIT 1 H.R.133—897 to the novel coronavirus disease (COVID–19) out- break, which the applicant shall attest in writing; (ii) that 1 or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability, which may include— (I) a past due utility or rent notice or eviction notice; (II) unsafe or unhealthy living conditions; or (III) any other evidence of such risk, as deter- mined by the eligible grantee involved; and (iii) the household has a household income that is not more than 80 percent of the area median income for the household. (B) EXCEPTION.—To the extent feasible, an eligible grantee shall ensure that any rental assistance provided to an eligible household pursuant to funds made available under this section is not duplicative of any other Federally funded rental assistance provided to such household. (C) INCOME DETERMINATION.— (i) In determining the income of a household for purposes of determining such household’s eligibility for assistance from a payment made under this section (including for purposes of subsection (c)(4)), the eligible grantee involved shall consider either (I) the household’s total income for calendar year 2020, or (II) subject to clause (ii), sufficient confirma- tion, as determined by the Secretary, of the house- hold’s monthly income at the time of application for such assistance. (ii) In the case of income determined under sub- clause (II), the eligible grantee shall be required to re-determine the eligibility of a household’s income after each such period of 3 months for which the house- hold receives assistance from a payment made under this section. (4) INSPECTOR GENERAL.—The term ‘‘Inspector General’’ means the Inspector General of the Department of the Treasury. (5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Treasury. (6) UNIT OF LOCAL GOVERNMENT.—The term ‘‘unit of local government’’ has the meaning given such term in paragraph (2) of section 601(g) of the Social Security Act (42 U.S.C. 801(g)), except that, in applying such term for purposes of this section, such paragraph shall be applied by substituting ‘‘200,000’’ for ‘‘500,000’’. (l) TERMINATION OF PROGRAM.—The authority of an eligible grantee to make new obligations to provide payments under sub- section (c) shall terminate on the date established in subsection (e) for that eligible grantee. Amounts not expended in accordance with this section shall revert to the Department of the Treasury. EXHIBIT 1 1 National Community Development Association Emergency Rental Assistance Overview Congress included $25 billion in emergency rental assistance in the Consolidated Appropriations Act of 2021. The President signed the measure into law on December 27, 2020. The legislation includes an extension of the federal eviction moratorium through January 31, 2021. The legislation also extends the disbursement deadline for the CARES Act Coronavirus Relief Fund from December 31, 2020 to December 31, 2021. Federal Administration The Treasury Department will administer the program. Distribution Formula Tribal communities, U.S. territories, states (including the District of Columbia), and local governments with populations over 200,000 are eligible to receive funding. Approximately $400 million will be allocated to U.S. territories and $800 million to tribal communities. Approximately $23.7 billion will be available for allocation to states and local governments. The funding will be distributed to states based on the state’s population according to the 2019 Census data. Each state will receive no less than $200 million. Forty-five percent of a state’s allocation will be made available to local governments with populations over 200,000 (based on the 2019 Census data). To receive funding, eligible local governments must submit a certification signed by the chief executive of the locality to the Treasury Department by January 26, 2021. Treasury has not released the certification form yet. NCDA encourages those localities that are not eligible for a direct allocation to reach out to their state or county (if they are located within an urban county) to seek funding. Duplication of Benefits No duplication of benefits. Renters receiving rental assistance through this program cannot also receive rental assistance under another federal program. Use of Funds Grantees can use up to 10% of their allocation for administrative expenses. The remaining 90% must be used for rent, rental arrears, utilities, utility arrears, and other housing expenses resulting from the pandemic for households meeting the criteria below; up to 10% can be used for case management or other services. The assistance can last up to 12 months plus an additional three months, if necessary, to ensure housing stability. Timeframe for Obligating Funds The Treasury Department will recapture any funds not obligated by September 30, 2021. Unobligated funds will be recaptured and reallocated to those grantees who have obligated at least 65 percent of their grant by September 30, 2021. The amount of the reallocation will be based on demonstrated need, to be determined by the Treasury Department. Eligible Households EXHIBIT 2 2 Renters with incomes up to 80% of area median income (AMI) who meet the following criteria are eligible to receive assistance. • One or more individuals in the household has qualified for unemployment benefits or can attest in writing that they have experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due to the coronavirus pandemic; and • One or more individuals in the household can demonstrate a risk of experiencing homelessness or housing instability which may include a past due utility or rent notice or an eviction notice; or unsafe or unhealthy living conditions; or any other evidence of such risk as determined by the grantee. Grantees must prioritize funding assistance to renter households at or below 50 percent of AMI and to households in which one or more household member is unemployed and has been unemployed for 90 days. Income Determination Household income must be recertified every three months if the household is receiving rental assistance. Eligibility for funds after each three-month period is subject to the availability of remaining funds. Payment Process Eligible households will apply for assistance through the grantee or grantee-designated agency. Grantees will make payments directly to landlords and/or utility providers on behalf of eligible households. Landlords can also apply for assistance directly or apply on behalf of their tenants but are required to notify the tenant that assistance is being provided (provide them with a copy of the application) on their behalf and obtain the tenant’s consent (landlords must obtain the signature of the tenant which may be electronic). If a landlord or utility provider is unwilling to participate, the grantee may provide funding directly to eligible households. Reporting Requirements The Treasury Department must provide quarterly public reports on the following information (which means that grantees will need to collect this information) aggregated by gender, race, and ethnicity of the primary applicant. • The number of eligible households that receive assistance • The acceptance rate of applicants for assistance • The types of assistance provided to each household • The average amount of funding provided per household • The income levels of the households assisted (30 percent or less of AMI; between 30 and 50 percent of AMI; between 50 and 80 percent of AMI) • The average number of monthly rental or utility payments that each household received Grantees will need to establish data privacy and security requirements. The Treasury will provide more information on these requirements. EXHIBIT 2 3 EXHIBIT 2 1 U.S. Department of the Treasury Emergency Rental Assistance Frequently Asked Questions January 19, 2021 The Department of the Treasury (Treasury) is providing these Frequently Asked Questions (FAQ) as guidance regarding the requirements of the Emergency Rental Assistance (ERA) program established by section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (Dec. 27, 2020) (the “Act”). These FAQ will be supplemented by additional guidance and FAQ on a rolling basis. 1.The statute provides that ERA funds may be used for “utilities and home energy costs.” How are those terms defined? Utilities and home energy costs are separately-stated charges related to the occupancy of rental property. Accordingly, utilities include separately-stated electricity, gas, water and sewer, trash removal and energy costs, such as fuel oil. Telecommunication services (telephone, cable, Internet) delivered to the rental dwelling are not considered to be utilities. Utilities that are covered by the landlord within rent will be treated as rent. 2.Must a beneficiary of the rental assistance program have rental arrears? No. The statute does not prohibit the enrollment of households for only prospective benefits. Section 501(c)(2)(B)(iii) of Division N of the Act does provide that assistance to reduce rental arrears, if any, must be provided before prospective rental benefits may be provided. The statute also provides a limitation on prospective benefits of three months at one time. 3.Must a grantee pay for all of a household’s rental or utility arrears? No. The full payment of arrears is allowed up to the 12-month limit established by the statute if the arrears can be shown to be due to COVID-19. (Grantees may provide assistance for an additional three months if necessary to ensure housing stability for a household.) However, a grantee may structure a program to provide less than full coverage of arrears. When structuring their program, grantees should consider how to best minimize any incentives for the non-payment of rent or utilities by potential beneficiaries of the program. 4.What outreach must be made by a grantee to a landlord or utility provider before determining that the landlord or utility provider will not accept direct payment from the grantee? Grantees must make reasonable efforts to obtain the cooperation of landlords and utility providers to accept payments from the ERA program. Outreach will be considered complete if a request for participation is sent in writing, by certified mail, to the landlord or utility provider, and the addressee does not respond to the request within 21 calendar days after mailing; or, if the grantee has made at least three attempts by phone or email over a 21 calendar-day period to request the landlord or utility provider’s participation. All efforts must be documented. The cost of the mailing would be an eligible administrative cost. EXHIBIT 3 2 5. The statute limits eligibility to households with income that does not exceed 80 percent of area median income as defined by the Department of Housing and Urban Development (HUD) but does not provide a definition of household income. How is household income defined for purposes of the ERA program? How will income be documented and verified? The statute provides that grantees may determine income eligibility by reference to either (i) household total income for calendar year 2020 or (ii) sufficient confirmation of the household’s monthly income at the time of application, as determined by the Secretary of the Treasury (Secretary). With respect to each household applying for assistance, grantees may choose between using the definition of “annual income” as provided by HUD in 24 CFR 5.609 and using adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual Federal annual income tax purposes. For determining annual income, grantees should obtain at the time of application source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement), or a copy of Form 1040 as filed with the IRS for the household. For determining monthly income, grantees must obtain income source documentation, as listed above, for at least the two months prior to the submission of the application for assistance. If an applicant qualifies based on monthly income, the grantee must redetermine the household income eligibility every three months for the duration of assistance. 6. In addition to providing an attestation in writing, must applicants document that they have experienced a reduction in income, incurred significant costs, or experienced other financial hardship due to the COVID-19 outbreak? Yes, to the extent administratively feasible, grantees must require applicants to document that they have (i) qualified for unemployment benefits or (ii) experienced a reduction in income, incurred significant costs, or experienced other financial hardship due directly or indirectly to COVID-19 that threaten the household’s ability to pay the costs of the rental property when due. Grantees must also require applicants to demonstrate a risk of experiencing homelessness or housing instability, which may include past due rent and utility notices and eviction notices, if any, as part of the application process. 7. Is there a requirement that the eligible household have been in its current rental home when the public health emergency with respect to COVID-19 was declared? No. However, payments under ERA are to be provided to households to meet housing costs that they are unable to meet as a result of the COVID-19 outbreak. There is no statutory requirement for the length of tenure in the current unit. 8. What data should a grantee collect regarding households to which it provides rental assistance in order to comply with Treasury reporting and recordkeeping requirements? Treasury will provide instructions at a later time as to what information grantees must report to Treasury and how this information must be reported. At a minimum, in order to ensure that Treasury is able to fulfill its quarterly reporting requirements under section 501(g) of Division N of the Act and its ongoing monitoring and oversight responsibilities, grantees should anticipate the need to collect from households and retain records on the following: EXHIBIT 3 3 • Address of the rental unit, • Name, address, social security number, tax identification number or DUNS number, as applicable, for landlord and utility provider, • Amount and percentage of monthly rent covered by ERA assistance, • Amount and percentage of separately-stated utility and home energy costs covered by ERA assistance, • Total amount of each type of assistance (i.e., rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears) provided to each household, • Amount of outstanding rental arrears for each household, • Number of months of rental payments and number of months of utility or home energy cost payments for which ERA assistance is provided, • Household income and number of individuals in the household, and • Gender, race, and ethnicity for the primary applicant for assistance. Grantees should also collect information as to the number of applications received in order to be able to report to Treasury the acceptance rate of applicants for assistance. Treasury’s Office of Inspector General may require the collection of additional information in order to fulfill its oversight and monitoring requirements.1 Treasury will provide additional information regarding reporting to Treasury at a future date. Grantees will need to comply with the requirement in section 501(g)(4) of Division N of the Act to establish data privacy and security requirements for information they collect. 9. The statute requires that ERA payments not be duplicative of any other federally-funded rental assistance provided to an eligible household. Are tenants of federally subsidized housing, e.g., Low Income Housing Credit, Public Housing, or Indian Housing Block Grant-assisted properties, eligible for ERA? An eligible household that occupies a federally-subsidized residential or mixed-use property may receive ERA assistance, provided that ERA funds are not applied to costs that have been or will be reimbursed under any other federal assistance. If an eligible household receives a monthly federal subsidy (e.g., a Housing Choice Voucher, Public Housing, or Project-Based Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter household may not receive ERA assistance. If a household receives rental assistance other than the ERA, the ERA assistance may only be used to pay for costs, such as the tenant-paid portion of rent and utility costs, that are not paid for by the other rental assistance. Pursuant to section 501(k)(3)(B) of Subdivision N of the Act and 2 CFR 200.403, when providing ERA assistance, the grantee must review the household’s income and sources of assistance to confirm that the ERA assistance does not duplicate any other assistance, including federal, state, and local assistance provided for the same costs. 1 Note that this FAQ is not intended to address all reporting requirements that will apply to the ERA program but rather to note for grantees information that they should anticipate needing to collect from households with respect to the provision of rental assistance. EXHIBIT 3 4 10. May a grantee provide assistance to households for which the grantee is the landlord? Yes, a grantee may provide assistance to households for which the grantee is the landlord provided that the grantee complies with the all provisions of the statute and this guidance and that no preferences beyond those outlined in the statute are given to households that reside in the grantee’s own properties. 11. May a grantee provide assistance for arrears that have accrued before the date of enactment of the statute? Yes, but not before March 13, 2020, the date of the emergency declaration pursuant to section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5191(b). 12. May a grantee provide assistance to a renter household with respect to utility or energy costs without also covering rent? Yes. A grantee does not need to provide assistance with respect to rent in order to provide assistance with respect to utility or energy costs. The limitations in section 501(c)(2)(B) of Division N of the Act limiting assistance for prospective rent payments do not apply to the provision of utilities or home energy costs. 13. May a grantee provide ERA assistance to homeowners to cover their mortgage payment, utilities, or energy costs? No. The statute requires that ERA assistance be provided only to eligible households, which is defined to include only households that are obligated to pay rent on a residential dwelling. 14. The statute provides that ERA funds may be used for “other expenses” as related to housing incurred due, directly or indirectly, to COVID-19, as defined by the Secretary. What are some examples of these “other expenses”? The Secretary has not made such a determination at this time. EXHIBIT 3 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 EXHIBIT 4 Coronavirus Emergency Rental Relief Fund for Tenants Page | 1 Program Guidelines as of November 3March 1, 20210 The City of Santa Ana recognizes the financial hardships faced by many of its residents due to the Coronavirus (COVID-19). In response, the Santa Ana City Council established the Coronavirus Emergency Rental Relief Fund for Tenants (Santa Ana “CARES for Tenants”) to provide emergency rental relief for qualified, low-income households who are not able to pay their rent due to the Coronavirus. Low-income Santa Ana renters impacted by the Coronavirus may apply online to receive up to $3,0005,500 in emergency rental assistance toward any rent due after March 19th13th, 2020, the date of the emergency declaration pursuant to section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5191(b). With respect to financial assistance for rent and rental arrears provided to an eligible household, payments shall be made directly to the landlord on behalf of the eligible household, except that, if the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. The assistance is paid directly to the landlord. These Program Guidelines describe the Background, How it Works, Eligibility Criteria, Duplication of Benefits Requirements, Application Requirements and Instructions. Applications are available on the Santa Ana CARES website (www.santa- ana.org/covid19/rental-relief/cares-for-tenants), at our City offices, in-person or can be requested directly from the Salvation Army or Catholic Charities. The City is accepting CARES for Tenants applications until all of the funds are exhausted. *(The guidance contained herein supersedes any previously published Coronavirus Emergency Rental Relief Fund Guidelines. The CARES for Tenants Program has received funding from the Emergency Rental Assistance Program (ERAP) administered by the Department of Treasury; the Community Development Block Grant – Coronavirus (CDBG-CV) funds administered by the Department of Housing and Urban Development; and the State of California Coronavirus Relief Funds (CRF). The Program Guidelines have been updated to conform to the requirements of each funding source. Therefore, the guidance contained herein supersedes any previously published Coronavirus Emergency Rental Relief Fund Program Guidelines. **Renters who have already applied or been approved for $1,500 or $3,000 in emergency rental assistance, will may be considered for an additional assistance $1,500 (up to afor a maximum of $5,53,000) in assistance after re-certifying their eligibility. ***Where this guidance refers to the “City”, this includes the Salvation Army of Orange County and Catholic Charities of Orange County as the subcontractors for the City.) Background The Coronavirus crisis has hit many Santa Ana families hard. Paying rent may already be difficult under normal circumstances, but lost jobs and reduced work hours due to the virus have made it near impossible. Santa Ana’sThe State’s eviction moratorium has helped renters stay in their homes, but we know paying rent to the landlord can be a big mountain to climb. We are here to help. The Coronavirus Emergency Rental Relief Fund for Tenants (Santa Ana “CARES for Tenants”) aims to help struggling low-income renters who have been unable to make their rent payments since March 19th13th, 2020. Payments shall be made Field Code Changed Formatted: Font: 10 pt Formatted: Indent: Left: 0.5" Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Font: 10 pt Formatted: Justified EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 2 Program Guidelines as of November 3March 1, 20210 directly to the landlord on behalf of the eligible household, except that, if the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlordAssistance is paid directly to the landlord or property owner. Low-income tenants who earn less than 80% of the Area Median Income and who are in need of direct rental assistance should apply. In reviewing applications for financial assistance to eligible households, the City shall prioritize consideration of the applications of an eligible household where the income of the household does not exceed 50 percent of the area median income. This assistance is a grant and does not have to be paid back. See the Frequently Asked Questions on the program at www.santa- ana.org/covid19/rental-relief/cares-for-tenants. Read more below. How does it work? Low-income renters who are struggling to pay their rent due to the Coronavirus who have not previously received assistance from this program can get one-time assistance in the form of a $35,5000 payment to their landlord. The assistance is a one-time payment only flat amount of $35,5000 per household. Assistance can must first be used to pay rent owed since March 1913, 2020 before payment of current or future rent, current rent, or future rent if your family has been impacted by the Coronavirus. Specifically, to the extent that applicants have rental arrears, the City may not make payments for prospective rent payments (current or future rent) unless the City has also provided assistance to reduce an eligible household’s rental arrears. For any payments made by the City to a landlord on behalf of an eligible household, the City shall provide documentation of such payments to such household. The City of Santa has partnered with two local nonprofit organizations to review applications and make payments directly to landlords. Specifically, the City is working with the Salvation Army of Orange County and Catholic Charities of Orange County. Payments will be made from one of these two nonprofit organizations to the landlord. Applications must be complete, including the required documents, before the application can be submitted. Applications will be selected based on a lottery and sorting methodology process that prioritizes eligible households where the income of the household does not exceed 50 percent of the area median income. Each approved applicant will receive $35,5000 paid to their landlord or property manager for any rent payments incurred after the State of Emergency was declared on March 19th13th, 2020. If the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. Specifically, the City must make reasonable efforts to obtain the cooperation of landlords to accept payments. Outreach will be considered complete if a request for participation is sent in writing, by certified mail, to the landlord, and the landlord does not respond to the request within 21 calendar days after mailing; or, if the City has made at least three Field Code Changed EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 3 Program Guidelines as of November 3March 1, 20210 attempts by phone or email over a 21 calendar-day period to request the landlord’s participation. All efforts will be documented. Here is a general flowchart of how the CARES for Tenants Program works:: EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 4 Program Guidelines as of November 3March 1, 20210 Renters who have already applied or been approved for $1,500 or $3,000 in emergency rental assistance prior to November 1, 2020, will may be considered for an additional $1,500additional assistance ((up to a maximum of $5,500)for a maximum of $3,000) in assistance after re-certifying their eligibility that they are still having difficulty paying rent because of a COVID-19 impact and submission of the additional verification of income and at risk of homelessness documentation. Re-certification must be documented before a second payment will be sent to the landlord. These renters will be contacted EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 5 Program Guidelines as of November 3March 1, 20210 by the Salvation Army of Orange County or Catholic Charities of Orange County by e- mail and/or telephone. A standard set of questions will be asked of either the landlord or renter to determine if the renter qualifies for an additional one -time payment of $1,500 (for a maximum ofup to a maximum of $5,53,000). If the renter is re-certified as eligible following this recertification process, a check for $1,500 will be sent to their landlord with a letter that states that the $1,500payment must be returned to the nonprofit if there is a duplication of benefits for a month that has already been paid by the CARES for Tenants Program. Who is Eligible? The term ‘‘eligible household’’ means a household of 1 or more individuals who are obligated to pay rent on a residential dwelling and with respect to which the City determines: (i) Must be a resident of the City of Santa Ana with a current lease or sublease agreement with an address in the City. (ii) That 1 or more individuals within the household has: (I) qualified for unemployment benefits or (II) experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due, directly or indirectly to the novel coronavirus disease (COVID–19) outbreak, which the applicant shall attest in writing. Must provide documentation of your inability to pay rent due to the Coronavirus verified by a letter to your landlord. *IMPORTANT:* Households must notify their landlord in writing (typed, handwritten, text) that they are unable to pay their rent due to a COVID-19 related hardship and must explain the reason AND provide this proof in their application (upload a picture of the document or text). (iii) That 1 or more individuals within the household can demonstrate a risk of experiencing homelessness or housing instability, which may include— (I) a past due utility or rent notice or eviction notice; (II) self-certification of current housing-cost burden; (III) self-certification of doubling or tripling up with other households, or (IV) a rent ledger from the landlord documenting an accumulation of rent arrears. (iv) The household has a household income that is not more than 80 percent of the area median income for the household: Family Size Maximum Family Income (80% AMI) Family Size Maximum Family Income (80% AMI) 1 $71,750 5 $110,650 2 $82,000 6 $118,850 3 $92,250 7 $127,050 4 $102,450 8 $135,250 *In reviewing applications for financial assistance to eligible households, the City shall prioritize Formatted: Font: (Default) Arial, 12 pt Formatted: List Paragraph, Add space between paragraphs of the same style, Numbered + Level: 1 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.5" Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.5", Pattern: Clear (White) Formatted: Font: (Default) Arial, 12 pt Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: I, II, III, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 1" Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: List Paragraph, Indent: Left: 1" Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.5", Pattern: Clear (White) Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: I, II, III, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 1" Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: i, ii, iii, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.5", Pattern: Clear (White) Formatted: Font: (Default) Arial, 12 pt Formatted: Font: 10 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 6 Program Guidelines as of November 3March 1, 20210 consideration of the applications of an eligible household where the income of the household does not exceed 50 percent of the area median income. Only Santa Ana renters who have lost jobs, had their work hours reduced, or have experienced a loss of income due to the economic or health impacts of the Coronavirus and who have been unable to maintain their rent payments under their lease agreements are eligible for rent assistance. These tenants have been unable to pay their rent due to the Coronavirus and have notified their landlord in writing. Here are the specific eligibility requirements: 1. Must be a resident of the City of Santa Ana with a current lease or sublease agreement with an address in the City. 2. Must have a COVID-19 related financial hardship impacting your ability to pay rent. 3. Must provide documentation of your inability to pay rent due to the Coronavirus verified by a letter to your landlord. *IMPORTANT:* Households must notify their landlord in writing (typed, handwritten, text) that they are unable to pay their rent due to a COVID-19 related hardship and must explain the reason AND provide this proof in their application (upload a picture of the document or text). 4. The family must qualify as a Low-Income Household according to the income limits below: Family Size Maximum Family Income (80% AMI) Family Size Maximum Family Income (80% AMI) 1 $71,750 5 $110,650 2 $82,000 6 $118,850 3 $92,250 7 $127,050 4 $102,450 8 $135,250 While we do require identification for all members of your household, we will not ask about your citizenship status. We will ask about your race and ethnicity on the application as part of the Department of Housing and Urban Development’s (HUD) and Department of Treasury data collection purposes. It may even help Santa Ana get more federal and/or state funds to help our residents. Your race or ethnicity does not impact your eligibility for rental assistance. Households residing in temporary housing such as motels or homeless shelters are not eligible. Duplication of Benefits: The City shall ensure that any rental assistance provided to an eligible household is not duplicative of any other Federally funded rental assistance provided to such household. An eligible household that occupies a federally-subsidized residential or mixed-use property may receive assistance, provided that the funds are not applied to costs that have been or will be reimbursed under any other federal assistance. If an eligible Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: Not Italic Formatted: Font: Not Italic Formatted: Space After: 0 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 7 Program Guidelines as of November 3March 1, 20210 household receives a monthly federal subsidy (e.g., a Housing Choice Voucher or Project-Based Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter household may not receive assistance. If a household receives rental assistance other than CARES for Tenants, the assistance may only be used to pay for costs, such as the tenant-paid portion of rent, that are not paid for by the other rental assistance. W hen providing CARES for Tenants assistance, the City must review the household’s income and sources of assistance to confirm that the CARES for Tenants assistance does not duplicate any other assistance, including federal, state, and local assistance provided for the same costs. Renters As such, rwho receive assistance through the Housing Choice Voucher Program, also known as Section 8, or those who receive other government rental assistance are not eligible. Renters who receive rent subsidies from a nonprofit rental assistance program are not eligible. Households residing in temporary housing such as motels or homeless shelters are not eligible. Renters who receive(d) assistance through the Coronavirus Rental Relief Program for Landlords (“CARES for Landlords”) are not eligible. Households who are receivinge assistance from another emergency rental relief or rental assistance program are not eligible. Receiving unemployment benefits or a stimulus check does not make your household ineligible. While we do require identification for all members of your household, we will not ask about your citizenship status. We will ask about your race and ethnicity on the application as part of the Department of Housing and Urban Development’s (HUD) data collection purposes. It may even help Santa Ana get more federal funds to help our residents. Your race or ethnicity does not impact your eligibility for rental assistance. How do I apply and what are the requirements for my application? Applications for the CARES for Tenants Program are available on our webpage, at our City offices, in-person or can be requested directly from the Salvation Army or Catholic Charities.. The following documents are required at the time of submittal for a complete application packet:  Copy ofA valid photo I.D for each adult family member  Landlord/Property Management’s name and contact information. Including phone number, email, and/or fax number  Copy of your lease or sublease agreement. o To pay rental arrears when there is only a verbal lease, the following documentation must be provided: 1) Proof of most recent rent payments to the landlord (provided by the tenant – receipts, bank statements, canceled checks); 2) Proof of address for the tenant (copy of utility bill), if tenant pays for utilities; 3) Proof of payments from the tenant & balance owed (provided by the landlord/owner – rent ledger); 4) Written Formatted: Space After: 0 pt Formatted: Space After: 0 pt Formatted EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 8 Program Guidelines as of November 3March 1, 20210 statement signed by both tenant and landlord indicating the address, monthly rent amount, who the tenant is and who the landlord is. o The following documentation may also be accepted in place of a lease or sublease: Regular payment receipts to the owner or leaseholder (including money orders, bank statements showing a regular withdraw, cancelled checks, or a Venmo statement) AND at least one of the following: a letter, utility statement, bill, ID or written statement for anyone in the primary household that has the unit address.  Copy of a letter to your landlord providing notification of your inability to pay rent. o IMPORTANT: In order to apply for assistance, you MUST notify your landlord of your inability to pay rent due to a COVID-19 related hardship. The sample landlord letter below is only a template and it can be modifiedCity recommends using the State of California’s Declaration of COVID-19-Related Financial Distress form. The letter is the documentation that the City is requesting to show that the tenant cannot make rent due to a reason related to COVID-19. (If you have a concern about sending a letter to your landlord, you can address the letter to the City). You can find a copy of the Declaration of COVID-19-Related Financial Distress here: https://landlordtenant.dre.ca.gov/tenant/forms.html  Verification of Income Eligibility: o In determining the income of a household for purposes of determining such household’s eligibility for assistance, the City shall consider either (I) the household’s total income for calendar year 2020, or (II) sufficient confirmation, as determined by the Secretary of the Department of Treasury, of the household’s monthly income at the time of application for such assistance. o For determining annual income, the family must provide income source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement), or a copy of Form 1040 as filed with the IRS for the household. o For determining monthly income, the family must provide income source documentation, as listed above, for at least the two months prior to the submission or processing of the application for assistance.  Documentation to demonstrate a risk of experiencing homelessness or housing instability, which may include— (i) a past due utility or rent notice or eviction notice; (ii) self-certification of current housing-cost burden; (iii) self- certification of doubling or tripling up with other households, or (iv) a rent ledger from the landlord documenting an accumulation of back rent.  o Examples of letters to landlord: Notice of Inability to Pay Rent Template: Click Here for a English Template Letter Aviso de incapacidad para pagar la plantilla de alquiler: Haga clic aquí para obtener una carta de plantilla en Español Formatted: Space After: 0 pt Formatted: Font: Not Italic Formatted: Space After: 0 pt Formatted: Font: Not Italic Formatted: Font: Not Italic Field Code Changed Formatted: Font: Bold Formatted: Space After: 0 pt Formatted: Font: Bold Formatted: Space After: 0 pt Formatted: Font: Bold Formatted: Space After: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 9 Program Guidelines as of November 3March 1, 20210 Thông báo về việc không thể trả tiền thuê mẫu: Bấm vào đây để xem Thư mẫu tiếng Việt. Application Process: Households with access to the Internet, including computers, smart phones or tablets can complete the on-line application themselves. An email address is required to register. Registrant must have access to their email account to verify registration. The application is available in English, Spanish and Vietnamese. Any adult that is listed on the lease or sublease can submit the application for rental assistance on behalf of the household. Your household should only submit one application. For Households with Internet Access and an Email Address: Step 1. Visit the Neighborly online application portal at this link: https://portal.neighborlysoftware.com/santaanaca/participant/Login You can also access the online application portal here: https://www.santa-ana.org/covid19/rental-relief/cares-for-tenants Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Left, Indent: Left: 0" Formatted: Font: (Default) Arial, 12 pt Formatted: No underline, Font color: Auto Formatted: Font: (Default) Arial, 12 pt Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Not Bold EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 10 Program Guidelines as of November 3March 1, 20210 Step 2. Select the option to “Register” and create your account information. Passwords must be eight letters long, have one upper case and one number and one special character. Step 3. After registering, log into your email account and click on the email from Neighborly, follow the instructions to confirm your email. Step 4. Return to the Neighborly portal at https://portal.neighborlysoftware.com/santaanaca/participant/Login and “Sign In” using your account information. Step 5. Read the instructions for the application and proceed to enter your household’s information into the application portal. Step 6. If you have not done so already, write a letterprovide the Declaration of COVID-19-Related Financial Distress to your landlord notifying them that you are unable to pay your rent due to COVID-19 related hardship and explain how COVID- 19 has impacted you.u (see sample letters in English, Spanish and Vietnamese). Upload a copy of this letter to your application portal. Step 7. Upload the supporting documents as requested by the application portal. Applications will be reviewed to ensure the correct documents have been uploaded in order to receive assistance. Step 8. Make sure you have completed all information properly and correctly before submitting. Important! Applications cannot be submitted without all of the supporting documents. YOU CANNOT EDIT YOUR APPLICATION ONCE IT HAS BEEN SUBMITTED. Formatted: Font: (Default) Arial, 12 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 11 Program Guidelines as of November 3March 1, 20210 For Households with No Internet or Email Address Family members, friends, or a case manager from the Salvation Army or Catholic Charities can assist you with completing the application by computer. If you do have someone to assist you, please ensure you have the required documents for the application. The documents will need to be uploaded to complete the application. If you do not have access to the internet, please call one of these two nonprofit organizations to request an application:  Catholic Charities can provide assistance in English, Spanish and V ietnamese. Please contact Loy GibsonAlba Ramiro at Catholic Charities at (714) 347-9602 9668 or aramiro@ccoc.orglgibson@ccoc.org.  The Salvation Army can provide assistance in English and Spanish. Please contact Tabitha Walton at the Salvation Army at (714) 384-0481 ocfamilyservices@gmail.com. If the household does not have anyone to assist them by computer: There are two options: Option 1. You can fill out a copy of the physical application in English, Spanish, or Vietnamese at The Salvation Army Red Shield Community Center at 1515 W. North Street, Anaheim; (714) 783-2344. Please call beforehand to inform the Community Center if the applicant chooses this option; t; the Community Center is closed to the public.  If households chooses Option 1, household will need to bring copies or originals of the required documents for the application. Applications will not be accepted without the supporting documents. Supporting Documents: o Copy of valid photo I.D for each adult family member o Landlord/Property Management’s name and contact information. Including phone number, email, and/or fax number o Copy of your lease or sublease agreement  The following documentation may also be accepted in place of a lease or sublease: Regular payment receipts to the owner or leaseholder (including money orders, bank statements showing a regular withdraw, cancelled checks, or a Venmo statement) AND at least one of the following: a letter, utility statement, bill, ID or written statement for anyone in the primary household that has the unit address. Field Code Changed Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 12 Program Guidelines as of November 3March 1, 20210 o Copy of a letter to your landlord providing notification of your inability to pay rent. IMPORTANT: In order to apply for assistance, you MUST notify your landlord of your inability to pay rent due to a COVID-19 related hardship. The Neighborly Administrator will complete the application through the Neighborly portal on your behalf. Option 2. If household cannot come to one of the non-profit office locations, the Neighborly Administrator can complete the application with the household over the phone. Household will need to provide the supporting documents to the Administrator by email or fax before the application can be started. The application cannot be submitted without the required documents. Email: ocfamilyservices@gmail.com Fax: (714) 783-2324 Duplicate Applications:  For applications with the same address or and applicant first name and last name, the City will accept one application submitted and reject the duplicate application. (Scenario # 1)  For applications with the same address but a different applicant first name and last name, the City will review the application to determine if there is a preponderance of evidence that the application is a duplicate by reviewing the names listed as members of the household, the household size, landlord information and any variations of the name or mailing address. (Scenario # 2)  Duplicate applications will be rejected without any form of notification to the applicant other than a “change of status” in the Neighborly Software System to “Withdrawn” with the word “duplicate” noted in the status details. Applications with Addresses Outside of Santa Ana:  Applications from residents living outside of the City of Santa Ana will be rejected without any form of notification to the applicant other than a “change of status” in the Neighborly Software System to “Denied” with the statement “Out of Area” noted in the status details. Once the Application is Submitted The City uses a lottery process. A total of 100 lottery winners will be selected from the list of applicants using a computerized, random selection tool/formula in Microsoft Excel. Formatted: Font: (Default) Arial, 12 pt Formatted: Space After: 0 pt Formatted: Space Before: 0 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 13 Program Guidelines as of November 3March 1, 20210 This lottery process will take place once a week until all funds are expended. Applicants who have been randomly assigned numbers 1 - 100 will be divided into groups of 50 and assigned to either the Salvation Army or Catholic Charities. Processing time depends on each applicant. The average length of time for processing is expected to be four weeks from the date the application is submitted selected in the lottery until payment has been processed and sent to the landlord. If there is unverifiable information or there are multiple applications submitted all at one time, the four-week turnaround time may turn into six to eight weeks. Applicants will be able to view the status of their application by going online and logging into their account at https://portal.neighborlysoftware.com/santaanaca/participant/Login. You will need to log-in using the username and password that you used to complete your application. If you have any trouble logging in, please contact Alba Ramiro at Catholic Charities at (714) 347-9668 or aramiro@ccoc.org or Tabitha Walton at the Salvation Army at (714) 384-0481 ocfamilyservices@gmail.com.Loy Gibson at Catholic Charities at (714) 347- 9602 or lgibson@ccoc.org; or Tabitha Walton at the Salvation Army at (714) 384-0481 ocfamilyservices@gmail.com. If you are approved and selected to receive $3,0005,500 in rental assistance, you will receive an email notification that your application has been selected and you will be awarded the rental assistance payment paid directly to your landlord. If the $3,0005,500 does not cover your entire rent, you should work with your landlord to set up a payment plan that will allow you to repay the remaining rent you owe. The City is also offering eviction prevention assistance for those tenants at risk of eviction. Please go to www.santa-ana.org/covid19/santa-ana-vital-eviction-solution-saves for more information. CARES for Tenants Timeline Program begins taking applications from Tenants ......................... August 17, 2020 Applications will be accepted until all of the funds are exhausted. Still have questions? Check out our Frequently Asked Questions on our website at www.santa-ana.org/covid19/rental-relief/cares-for-tenants The City of Santa has partnered with two local nonprofit organizations to review applications and make payments directly to landlords. Please contact one of the two organizations listed below if you have any questions: Catholic Charities of Orange County (Languages Spoken: English, Spanish, Vietnamese) Loy GibsonAlba Ramiro 1820 E. 16th Street Santa Ana, CA 92701 (714) 347-9668 aramiro@ccoc.org Formatted: Font: (Default) Arial, 12 pt Field Code Changed Field Code Changed Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Field Code Changed Field Code Changed Field Code Changed EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 14 Program Guidelines as of November 3March 1, 20210 (714) 347-9602 lgibson@ccoc.org Salvation Army of Orange County (Languages Spoken: English, Spanish) Tabitha Walton The Red Shield Community Center 1515 W. North Street Anaheim, CA 92801 (714) 384-0481 ocfamilyservices@gmail.com If you have any additional questions or you are unable to reach one of the two nonprofit organizations listed above, please contact: Maricela Marquez City of Santa Ana (714) 647-6962 mmarquez@santa-ana.org Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt EXHIBIT 5 Coronavirus Emergency Rental Relief Fund for Tenants Page | 1 Frequently Asked Questions as of March 1, 2021 The City of Santa Ana recognizes the financial hardships faced by many of its residents due to the Coronavirus (COVID-19). In response, the Santa Ana City Council established the Coronavirus Emergency Rental Relief Fund for Tenants (Santa Ana “CARES for Tenants”) to provide emergency rental relief for qualified, low-income households who are not able to pay their rent due to the Coronavirus. Low-income Santa Ana renters impacted by the Coronavirus may apply online to receive up to $5,500 in emergency rental assistance toward any rent due after March 13th, 2020, the date of the emergency declaration pursuant to section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5191(b). With respect to financial assistance for rent and rental arrears provided to an eligible household, payments shall be made directly to the landlord on behalf of the eligible household, except that, if the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. Low-income Santa Ana renters impacted by the Coronavirus may apply online to receive up to $3,000 in emergency rental assistance toward any rent due after March 19th, 2020. The assistance is paid directly to the landlord. *Renters who have already been approved for $1,500 or $3,000 in emergency rental assistance, may be considered for additional assistance (up to a maximum of $5,500) in assistance after re- certifying their eligibility Renters who have already applied or been approved for $1,500 in emergency rental assistance, will be considered for an additional $1,500 (for a maximum of $3,000) in assistance after re-certifying their eligibility. These Frequently Asked Questions provide answers to the most common questions regarding the CARES for Tenants Program. Q1) Who can apply? (Updated March 1, 2021) A.Low-income City of Santa Ana renters who have been impacted by COVID-19. The renter must be a resident of the City of Santa Ana with a current lease or sublease agreement with an address in the City. The family must be able to demonstrate a risk of experiencing homelessness or housing instability. The family must qualify as a low-Income household according to the income limits below: Family Size Maximum Family Income (80% AMI) Family Size Maximum Family Income (80% AMI) 1 $71,750 5 $110,650 2 $82,000 6 $118,850 3 $92,250 7 $127,050 4 $102,450 8 $135,250 Family Size Maximum Family Income (80% AMI) Family Size Maximum Family Income (80% AMI) 1 $71,750 5 $110,650 Formatted: Indent: Left: 0.5" Formatted: Font: Italic, Font color: Red Formatted: Font: Italic EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 2 Frequently Asked Questions as of March 1, 2021 2 $82,000 6 $118,850 3 $92,250 7 $127,050 4 $102,450 8 $135,250 *In reviewing applications for financial assistance to eligible households, the City shall prioritize consideration of the applications of an eligible household where the income of the household does not exceed 50 percent of the area median income. Q2) What is the eligibility criteria? (Updated March 1, 2021) A. Renters must meet the income qualifications as a low-income family earning no more than 80% of the Area Median Income. The financial impact on the family’s inability to pay their rent must be as a result of COVID-19. Renters must provide documentation of their inability to pay rent due to the Coronavirus in the form of a written letter to their landlord. The letter is the documentation that the City is requesting to show that the tenant cannot pay their rent due to a reason related to COVID-19. (If you have a concern about sending a letter to your landlord, you can address the letter to the City). The City shall ensure that any rental assistance provided to an eligible household is not duplicative of any other Federally funded rental assistance provided to such household. An eligible household that occupies a federally- subsidized residential or mixed-use property may receive assistance, provided that the funds are not applied to costs that have been or will be reimbursed under any other federal assistance. If an eligible household receives a monthly federal subsidy (e.g., a Housing Choice Voucher or Project-Based Rental Assistance) and the tenant rent is adjusted according to changes in income, the renter household may not receive assistance. If a household receives rental assistance other than CARES for Tenants, the assistance may only be used to pay for costs, such as the tenant-paid portion of rent, that are not paid for by the other rental assistance. When providing CARES for Tenants assistance, the City must review the household’s income and sources of assistance to confirm that the CARES for Tenants assistance does not duplicate any other assistance, including federal, state, and local assistance provided for the same costs. As such, renters who receive(d) assistance through the Coronavirus Rental Relief Program for Landlords (“CARES for Landlords”) are not eligible. Households who are receiving assistance from another emergency rental relief or rental assistance program are not eligible. Renters who receive assistance through the Housing Choice Voucher Program, also known as Section 8, or those who receive other government rental assistance are not eligible. Renters who receive rent subsidies from a nonprofit rental assistance program are not eligible. Households residing in temporary housing such as motels or homeless shelters are not eligible. Renters who receive assistance through the EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 3 Frequently Asked Questions as of March 1, 2021 Coronavirus Rental Relief Program for Landlords (“CARES for Landlords”) are not eligible. Households who receive assistance from another emergency rental relief or rental assistance program are not eligible. Receiving unemployment benefits or a stimulus check does not make your household ineligible. Q3) When can I apply? (Updated March 1, 2021) A. Applications will beare available online, at our City offices, in-person or can be requested directly starting at 8:00AM on August 17thfrom the Salvation Army or Catholic Charities. You will need to submit several documents with your application, so make sure you have them ready to go before you start filling it out. You can find a list of requirements under our Program Guidelines at www.santa- ana.org/covid19/rental-relief/cares-for-tenants. There is no deadline to submit the application. A weekly lottery and application sorting procedure will be conducted to randomly select applications that will be processed until all of the funds are exhausted. If you do not complete all of the steps in the application and it does not have a status of “application submitted”, it will not be included in the lottery process. Q4) What are examples of COVID-19 impacts to show that I cannot pay my rent due to a reason related to COVID-19? A. Examples include, but are not limited to you are no longer working because you were laid off; you are no longer working because you have to take care of children; you are no longer working because you are sick or you are taking care of a family member who is sick. Q5) How much financial assistance is available? (Updated March 1, 2021) A. A household can receive $3,0005,500 for rental assistance. With respect to financial assistance for rent and rental arrears provided to an eligible household, payments shall be made directly to the landlord on behalf of the eligible household, except that, if the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. Renters who have already been approved for $1,500 or $3,000 in emergency rental assistance, will be considered for additional assistance (up to a maximum of $5,500) in assistance after re-certifying their eligibility. A. The assistance is paid directly to the landlord. Formatted: Indent: Left: 0.44" Formatted: Indent: Left: 0.69", No bullets or numbering EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 4 Frequently Asked Questions as of March 1, 2021 B. Q6) How many people will receive assistance? (Updated March 1, 2021) Q6) A. We estimate that we will be able to serve over 1,500 families with emergency rental assistance. This number is subject to change if we receive additional funding from the State or Federal government. Q7) If I receive this assistance will I have to pay it back? A. No, this assistance is a grant and does not have to be paid back. Q8) Will the rent payment be paid to me or the landlord? (Updated March 1, 2021) Q8) A. With respect to financial assistance for rent and rental arrears provided to an eligible household, payments shall be made directly to the landlord on behalf of the eligible household, except that, if the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. Q9) The payment will be made directly to the landlord in accordance with strict federal guidelines. Q9) My rent is less than $3,000 per month. How will that affect my award amount? (Updated March 1, 2021) Q10) A. The Coronavirus Emergency Rental Relief Fund for Tenants is a flat amountone- time payment of $5,5003,000 per household and will apply to past, current or future rent due to your landlord. To the extent that applicants have rental arrears, the City may not make payments for prospective rent payments (current or future rent) unless the City has also provided assistance to reduce an eligible household’s rental arrears. If the tenant’s rental arrears plus rent for the next three months exceeds $5,550, the amount of assistance will be reduced to only pay for the rental arrears plus no more than the tenant’s rent for the next three months as indicated in their lease agreement. Q11)Q10) Is the application available in languages besides English? A. Yes, the application is available in English, Spanish and Vietnamese. Q11) How can I apply to receive rental assistance? (Updated March 1, 2021) Formatted: Indent: Left: 0.31", No bullets or numbering Formatted: Indent: Left: 0.25", No bullets or numbering Formatted: Indent: Left: 0.44", Line spacing: Multiple 1.15 li, Numbered + Level: 2 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5", Widow/Orphan control Formatted: Indent: Left: 0.25", No bullets or numbering EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 5 Frequently Asked Questions as of March 1, 2021 Q12) A. Beginning August 17th at 8:00 a.m. pPlease visit https://www.santa- ana.org/covid19/rental-relief/cares-for-tenants www.santa-ana.org to complete an on-line application. There is no deadline to submit the application. A weekly lottery and application sorting procedure will be conducted to randomly select applications that will be processed until all of the funds are exhausted. A weekly lottery will be conducted to select submitted applications until all funds are expended. The application is available in English, Spanish, and Vietnamese. The following documents are required at the time of submittal for a complete application packet:  A valid photo I.D for each adult family member  Landlord/Property Management’s name and contact information. Including phone number, email, and/or fax number  Copy of your lease or sublease agreement. o To pay rental arrears when there is only a verbal lease, the following documentation must be provided: 1) Proof of most recent rent payments to the landlord (provided by the tenant – receipts, bank statements, canceled checks); 2) Proof of address for the tenant (copy of utility bill), if tenant pays for utilities; 3) Proof of payments from the tenant & balance owed (provided by the landlord/owner – rent ledger); 4) Written statement signed by both tenant and landlord indicating the address, monthly rent amount, who the tenant is and who the landlord is.  Copy of a letter to your landlord providing notification of your inability to pay rent. o In order to apply for assistance, you MUST notify your landlord of your inability to pay rent due to a COVID-19 related hardship. The City recommends using the State of California’s Declaration of COVID-19- Related Financial Distress form. The letter is the documentation that the City is requesting to show that the tenant cannot make rent due to a reason related to COVID-19. (If you have a concern about sending a letter to your landlord, you can address the letter to the City). You can find a copy of the Declaration of COVID-19-Related Financial Distress here: https://landlordtenant.dre.ca.gov/tenant/forms.html  Verification of Income Eligibility: o In determining the income of a household for purposes of determining such household’s eligibility for assistance, the City shall consider either (I) the household’s total income for calendar year 2020, or (II) sufficient confirmation, as determined by the Secretary of the Department of Treasury, of the household’s monthly income at the time of application for such assistance. o For determining annual income, the family must provide income source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement), or a copy of Form 1040 as filed with the IRS for the household. Formatted: Indent: Left: 0.25", No bullets or numbering EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 6 Frequently Asked Questions as of March 1, 2021 o For determining monthly income, the family must provide income source documentation, as listed above, for at least the two months prior to the submission or processing of the application for assistance.  Documentation to demonstrate a risk of experiencing homelessness or housing instability, which may include— (i) a past due utility or rent notice or eviction notice; (ii) self-certification of current housing-cost burden; (iii) self- certification of doubling or tripling up with other households, or (iv) a rent ledger from the landlord documenting an accumulation of back rent.  Copy of valid photo I.D for each adult family member  Landlord/Property Management’s name and contact information. Including phone number, email, and/or fax number  Copy of your lease or sublease agreement o The following documentation may also be accepted in place of a lease or sublease: Regular payment receipts to the owner or leaseholder (including money orders, bank statements showing a regular withdraw, cancelled checks, or a Venmo statement) AND at least one of the following: a letter, utility statement, bill, ID or written statement for anyone in the primary household that has the unit address.  Copy of a letter to your landlord providing notification of your inability to pay rent. IMPORTANT: In order to apply for assistance, you MUST notify your landlord of your inability to pay rent due to a COVID-19 related hardship. Q12) I already submitted my application. What do I do now? [New] A. Gather the documentation below to verify your income eligibility and the documentation needed to demonstrate that you are risk of experiencing homelessness or housing instability: o In determining the income of a household for purposes of determining such household’s eligibility for assistance, the City shall consider either (I) the household’s total income for calendar year 2020, or (II) sufficient confirmation, as determined by the Secretary of the Department of Treasury, of the household’s monthly income at the time of application for such assistance. o For determining annual income, the family must provide income source documents evidencing annual income (e.g., wage statement, interest statement, unemployment compensation statement), or a copy of Form 1040 as filed with the IRS for the household. o For determining monthly income, the family must provide income source documentation, as listed above, for at least the two months prior to the submission or processing of the application for assistance.  Documentation to demonstrate a risk of experiencing homelessness or housing instability, which may include— (i) a past due utility or rent notice or eviction notice; (ii) self-certification of current housing-cost burden; (iii) self-certification Formatted: Font color: Red Formatted: Font color: Red Formatted: Indent: Left: 0.44", Line spacing: Multiple 1.15 li, Numbered + Level: 2 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5" Formatted: Font: Not Bold EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 7 Frequently Asked Questions as of March 1, 2021 of doubling or tripling up with other households, or (iv) a rent ledger from the landlord documenting an accumulation of back rent. Q13) I DO NOT have internet access; how do I apply for rental assistance? Q13) A. If you do not have access to the internet, please call or e-mail one of these two nonprofit organizations to request a physical application: o Catholic Charities can provide assistance in English, Spanish and Vietnamese. Please contact Alba Ramiro at Catholic Charities at (714) 347-9668 or aramiro@ccoc.orgLoy Gibson at Catholic Charities at (714) 347-9602 or lgibson@ccoc.org. o The Salvation Army can provide assistance in English and Spanish. Please contact Tabitha Walton at the Salvation Army at (714) 384-0481 ocfamilyservices@gmail.com. You may also contact Maricela Marquez at (714) 647-6962 or mmarquez@santa- ana.org. Q14) How long will it take to process my application? (Updated March 1, 2021) Q14) A. The City uses a lottery process. A total of 100 lottery winners will be selected from the list of applicants using a computerized, random selection tool/formula in Microsoft Excel. This lottery process will take place once a week until all funds are expended. Applicants who have been randomly assigned numbers 1 - 100 will be divided into groups of 50 and assigned to either the Salvation Army or Catholic Charities. Processing time depends on each applicant. The average length of time for processing is expected to be four weeks from the date the application is selected in the lottery until payment has been processed and sent to the landlord. If there is unverifiable information or there are multiple applications submitted all at one time, the four-week turnaround time may turn into six to eight weeks. A. Processing time depends on each applicant. The average length of time for processing is expected to be four weeks from the date the application is selected in the lottery and assigned to either Catholic Charities or The Salvation Army. Applications will be considered on a weekly basis until all funds are expended. If there is unverifiable information or there are multiple applications submitted all at one time, the four-week turnaround time may turn into six to eight weeks. Formatted: Indent: Left: 0.25", No bullets or numbering Formatted: Indent: Left: 0.25", No bullets or numbering Formatted: Font: (Default) Arial, 12 pt, Bold Formatted: Normal, No bullets or numbering Formatted: List Paragraph, Justified, Indent: Left: 0.44", Line spacing: Multiple 1.15 li, Numbered + Level: 2 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5" Formatted: List Paragraph, Justified, Indent: Left: 0.69", Line spacing: Multiple 1.15 li Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Font: (Default) Arial, 12 pt, No underline, Font color: Auto EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 8 Frequently Asked Questions as of March 1, 2021 Q15) I already submitted an application. How can I check the status of my application? A. You can check the status of your application on-line by logging into the Neighborly application system that you used to submit your original application. You should have a username and password that you used to complete your application. Please write these down as well as the application number that is assigned to you once you start an application. If you have any trouble logging in, please contact Alba Ramiro at Catholic Charities at (714) 347-9668 or aramiro@ccoc.orgLoy Gibson at Catholic Charities at (714) 347-9602 or lgibson@ccoc.org; Tabitha Walton at the Salvation Army at (714) 384-0481 ocfamilyservices@gmail.com; or Maricela Marquez at (714) 647-6962 or mmarquez@santa-ana.org. Q16) I already submitted an application for $1,500 or I already received a payment for $1,500 or $3,000 in rental assistance. Will I automatically be considered for the increased amount of $3,0005,500? (Updated March 1, 2021) Q16) A. YesNo. You will need to contact the Salvation Army or Catholic Charities to recertify for additional assistance. Q17) My landlord submitted an application for the Coronavirus Rental Relief Fund for Landlords (Santa Ana “CARES for Landlords”). Am I still eligible? A. If your landlord’s application for the CARES for Landlords program was approved, and your rental unit was included in that application, you are not eligible for the Coronavirus Rental Relief Fund for Tenants Program. Q18) Are citizenship documents required for this program? A. No, while we do require identification for all members of your household, we will not ask about your citizenship status. Q19) Why are you asking about my race and ethnicity? (Updated March 1, 2021) Q19) A. We ask about your race and ethnicity on the application as part of the Department of Housing and Urban Development’s (HUD) and Department of Treasury data collection purposes. It may even help Santa Ana get more federal and/or state funds to help our residents. Your race or ethnicity does not impact your eligibility for rental assistance. Q20) We use this information for the Department of Housing and Urban Development’s (HUD) data collection purposes. It may even help Santa Ana get Formatted: Highlight Formatted: Indent: Left: 0.25", No bullets or numbering Commented [BJ1]: Formatted: Indent: Left: 0.25", No bullets or numbering Formatted: Indent: Left: 0.44", Numbered + Level: 2 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Indent at: 0.5" EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 9 Frequently Asked Questions as of March 1, 2021 more federal funds to help our residents. Your race or ethnicity does not impact your eligibility for rental assistance. Q21)Q20) Should I tell my landlord that I am applying for this program? A. Yes. Communication between renters and landlords is important. Most landlords do not want to lose good tenants and communication can go a long way to help maintain a good relationship. Q22)Q21) What if my landlord refuses to participate in the program? (Updated March 1, 2021) A. We hope that will not happen, but if it does, the City must make reasonable efforts to obtain the cooperation of landlords to accept payments. Outreach will be considered complete if a request for participation is sent in writing, by certified mail, to the landlord, and the landlord does not respond to the request within 21 calendar days after mailing; or, if the City has made at least three attempts by phone or email over a 21 calendar-day period to request the landlord’s participation. All efforts will be documented. If the landlord does not agree to accept such payment from the City after outreach to the landlord by the City, the City may make such payments directly to the eligible household for the purpose of making payments to the landlord. we cannot require your landlord to participate. We believe most landlords will be glad to receive rental income and will be inclined to participate. Q23)Q22) How will I be notified if I am approved to receive rental assistance? A. You will receive an email notification that your application has been selected and you will be awarded the rental assistance payment paid directly to your landlord. You may also receive a phone call if you do not respond to the e-mail. Q24)Q23) Why can’t you pay my entire rent? A. The need in Santa Ana is great due to the Coronavirus and we want to help as many families as possiblethe most families. We are doing our best to make our available funding go as far as possible. Q25)Q24) I have multiple adults living in my household. Who should submit the application? A. Any adult that is listed on the lease can submit the application for rental assistance on behalf of the household. Your household should only submit one application. Formatted: Font: (Default) Arial, 12 pt, Bold EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 10 Frequently Asked Questions as of March 1, 2021 Q26)Q25) I had to leave my job/reduce my hours because I could not n’t find childcare. Am I eligible? A. Yes. If you your childcare provider or school closed due to coronavirus and you had to leave your job or reduce hours to care for them, you are eligible for this program. Q25) If I have questions, who do I contact at the City? A. The City of Santa has partnered with two local nonprofit organizations to review applications and make payments directly to landlords. Please contact one of the two organizations listed below if you have any questions. It is most helpful if you have your application number available when you call: Catholic Charities of Orange County (Languages Spoken: English, Spanish, Vietnamese) Alba Ramiro 1820 E. 16th Street Santa Ana, CA 92701 (714) 347-9668 aramiro@ccoc.org Loy Gibson 1820 E. 16th Street Santa Ana, CA 92701 (714) 347-9602 lgibson@ccoc.org Salvation Army of Orange County (Languages Spoken: English, Spanish) Tabitha Walton The Red Shield Community Center 1515 W. North Street Anaheim, CA 92801 (714) 384-0481 ocfamilyservices@gmail.com If you have any additional questions or you are unable to reach one of the two nonprofit organizations listed above, please contact: Maricela Marquez EXHIBIT 6 Coronavirus Emergency Rental Relief Fund for Tenants Page | 11 Frequently Asked Questions as of March 1, 2021 City of Santa Ana (714) 647-6962 mmarquez@santa-ana.org EXHIBIT 6 California Emergency Rental Assistance Program Expression of Intent On December 27, 2020, the federal Consolidated Appropriations Act 2021, a $900 billion COVID-19 relief bill, was signed into law and $25 billion was allocated to the United States Treasury (UST) for the Emergency Rental Assistance Program (ERAP) to assist households that are unable to pay rent or utilities due to the COVID-19 pandemic. California will receive $2.6 billion of the federal ERAP funds. To implement these rental assistance resources, the state of California worked with the state Legislature to develop a programmatic framework that eases administrative burden and most effectively deploys these resources to those most in need. On January 28 the State Senate and State Assembly passed the COVID-19 Tenant Relief Act (SB 91), extending eviction protections through June 30, 2021 and creating a mechanism to deploy $2.6 B in Federal Emergency Rental Assistance Program (ERAP) resources to assist struggling tenants and landlords impacted by COVID-19. In an effort to understand how local jurisdictions plan to deploy these rental assistance resources, the state is requesting Counties and Cities with populations of 200,000 and above that are eligible for a direct allocation from the UST to complete an Expression of Intent survey by February 3, 2021. Jurisdictions are encouraged to submit their responses as soon as possible. By February 12, the same Cities and Counties with populations of 200,000 and above will be required to complete a final Expression of Intent Form submitted to the Department of Housing and Community Development (HCD) indicating: A.The Jurisdiction will participate in the State Program and will also direct its Federal Allocation through the State Program to serve its population. B.The Jurisdiction requests a State Block Grant and will conform to the State Program Rules when self-administering a combined Federal Allocation and State Block Grant local program. C.The Jurisdiction will not conform to the State Program Rules, will self-administer the Federal Allocation, acknowledges that the State will also serve its population via the State Program, and accepts responsibility for duplication of benefits checks between the two programs. Based on the final Expression of Intent Form, HCD will issue a Standard Agreement to eligible jurisdictions that select A or B to facilitate the transfer of funds either from the jurisdiction to HCD (option A) or from HCD to the jurisdiction (option B). EXHIBIT 7 2 of 6 Proposed Framework Elements: The state of California is expected to receive approximately $2.6 billion in rental assistance for individuals economically impacted by COVID-19. This funding will be split between larger jurisdictions (those with a population of at least 200,000) receiving approximately $1.1 billion directly from the United States Department of the Treasury (UST) and the remaining $1.5 billion in funds allocated directly to the state for administration. The state has established a funding reservation table (attachment 1) with estimated allocation amounts for each eligible jurisdiction. While not a comprehensive list, key federal requirements include: o Funds must be used to support eligible households up to 80% Area Medium Income (AMI), with a priority for those up to 50% AMI and those who have been unemployed for 90 days prior to the date of application, with funding focused to ensure rental arrears are addressed to stabilize households and prevent evictions. o 90% of funds must be used to provide financial assistance, including back and forward rent and utility payments and other housing expenses. o Payments should be made directly to landlords or utility companies on behalf of renters; if a landlord refuses to accept the rental assistance the assistance may be provided directly to the tenant. o The UST is required to recapture excess funds not obligated by September 30, 2021 and will re-obligate them to jurisdictions that have met obligation targets. Programs must be established to avoid duplication of federal rental assistance benefits to households. California COVID-19 Tenant Relief Act (SB 91) • SB 91 extends the state’s current eviction moratorium for tenants unable to pay rent due to COVID-related financial hardships, as established under AB 3088, by 5 months, from January 31, 2021 until June 30, 2021. • Tenants must continue to pay 25% of their rental obligations, as required under AB 3088, through June 30, 2021. During this time, if tenants continue to pay at least 25% of their rent, then they are protected from eviction for any unpaid rent that has accumulated through June 30 and it can never be used as the basis for eviction. The 25% may be paid monthly, or as a lump sum, by June 30, 2021. SB 91 also establishes required elements for the state rental assistance program. Though not comprehensive, the list below highlights some of the key program parameters: • The rental assistance program will provide eligible landlords with immediate relief through the payment of 80% of their tenants’ rental arrears accumulated between April 1, 2020 and March 31, 2021. Landlords, in turn, agree to accept this payment as payment in full of any unpaid rent for that period. • In cases where a landlord chooses not to participate, an eligible tenant may apply to the program for 25% of their rental arrears, which will be paid to the EXHIBIT 7 3 of 6 landlord. The program also allows for prospective payments of 25% of monthly rent for the months of April, May, and June. • Establishes a requirement for funds to be administered in at least three rounds, prioritizing: (1) Below 50% AMI or unemployed for 90 days; (2) Below 80% AMI and in a community disproportionately impacted by Covid-19; (3) Below 80% AMI and not addressed by rounds 1 & 2. • For purposes of stabilizing households and preventing evictions, rental arrears shall be given priority. Proposed Implementation Model Last year, AB 3088 included a provision requiring the California’s Business, Consumer Services and Housing Agency (Agency) to conduct a stakeholder engagement process to ensure the state is ready to implement future federal relief. As part of this stakeholder process as well as ongoing workshops and listening sessions, the Agency learned a great deal both from stakeholders and other state and local partners which has informed our administrative framework on how to most effectively deploy these resources. Key tenants of this implementation model include: o Ability to meet the new federal AMI targets within a rapid implementation timeframe. o Desire for consistent treatment of landlords and tenants throughout the state to support equity of distribution as well as clarity of messaging. o Balancing the need of fraud prevention and controlling duplication of benefits with the need to be flexible and provide landlords and tenants with multiple methods to verify eligibility. o Ensuring the state allocation is directed equitably across the state and is expended in alignment with direct UST allocations. o Structuring a program to provide local, regional and community facing outreach to encourage participation and support applicants. o Recognition that there are many competing priorities locally and that many jurisdictions could benefit from having a central solution that removed the administrative and logistical burden to managing this program. o Provide flexibility in the model to account for local jurisdictions’ preference and needs. Accordingly, the State of California will be utilizing its allocation of federal rental assistance resources as follows: A. Create a State Rental Assistance Program managed centrally by a Community Development Financial Institution (CDFI) to serve counties with populations under 200,000 and the cities within those counties. Ensure equitable distribution by providing these jurisdictions a state reservation based on population. UST funds administered through the program will be expended solely within each participating jurisdiction. EXHIBIT 7 4 of 6 B. If requested, Block grant a portion of the state’s direct allocation of funds (based on a jurisdiction’s share of statewide population) to direct allocation jurisdictions over 200k in population that wish to administer their share of state block grant funds, as well as their share of funds allocated directly from the UST, in a manner consistent with state and federal law. C. For Jurisdictions that wish to operate their own rental assistance program with funds provided directly by the UST in a manner that does not align with the State program, they will be able to do so, but their share of block grant funds will be administered by the state on their behalf through the state’s rental assistance program and controlling for duplication of benefits will fall to the jurisdiction. Jurisdictions are encouraged to opt-in to the state administered Rental Assistance Program. Given the one-time nature of these funds, rapid implementation timeframes, programmatic complexity, among other considerations, the State believes that a centralized administrative structure would be most effective in deploying these resources in an effective and compliant manner. As part of the State’s Rental Assistance Program, resources will be available to provide robust multi-lingual technical support, IT, and communications capabilities needed to ensure the success of such a program, including support to ensure compliance with the program requirements provided under federal law, such as the prohibition of the duplication of benefits. Such a solution removes a local jurisdiction’s administrative burden and risk while also providing ownership, partnership, and communications tailored to local jurisdictions who can utilize existing channels to refer constituents to the central application. If a jurisdiction is not interested in the state CDFI program, the state would encourage requesting the block grant and implementing the direct federal funds in accordance with the state block grant program to enable braiding of the funds to provide consistency to landlords and tenants across the state. To support the implementation of ERAP, the State will also create a robust statewide public education and outreach campaign to reach hardest hit communities with culturally sensitive messaging to deepen awareness of rental assistance resources and eviction protections. A. State Rental Assistance Program As part of the State’s efforts to provide coordinated relief, jurisdictions and Federally- recognized tribal nations may allocate their direct share of federal assistance to the state and opt into the State’s Rental Assistance Program. The State will supplement jurisdictions’ resources by reserving a portion of the State’s direct share of resources for each jurisdiction that elects to have the State administer their rental assistance on their behalf. A set-aside of $150 million will be created for counties with populations under 200,000 and the cities within those counties that roughly doubles the state allocation share in order to compensate for them not receiving a direct federal allocation. Within this pool funds will be reserved at the County level to be administered through the State’s Rental Assistance Program. EXHIBIT 7 5 of 6 All jurisdictions seeking to claim their State Reserved Funds by opting-in to the State’s Rental Assistance Program are encouraged to submit an Expression of Intent Survey to the Department of Housing and Community Development (HCD) by February 3, 2021. The final Expression of Interest Form (attachment 2) will be required by February 12 and will initiate a Standard Agreement Process with HCD. In order to opt-in to the State’s Rental Assistance Program, jurisdictions do not need to apply to the UST for a direct federal allocation. If the jurisdiction did NOT apply to the UST for direct federal allocation by the January 12 deadline, these funds will roll into the state’s direct allocation and the amount the jurisdiction would have received directly will be added to that jurisdiction’s reservation amount. If the jurisdiction has already applied, they may sign a reimbursement agreement with HCD, allowing HCD to administer the jurisdiction’s direct federal funding in addition to the jurisdiction’s allocation of state administered funding. Features of the State Rental Assistance Program: • State outreach and education campaign with adaptability for local messaging. • Standardized, federally consistent application and eligibility criteria, accessible to both landlords and tenants. • Contracted solution with a state-wide network, including rural areas. • Robust, multi-lingual client support and technical assistance. • Processing of Applications (input, review, verification, fraud control, notifications to tenant and landlord, verification of accounts, disbursement of payment, reporting per state and federal government requirements, downstream audit management). • Central privacy protections and fraud control. • Management of duplication of benefits in accordance with the Consolidated Appropriations Act, 2021. • Application portal will open in early March 2021 to begin receiving applications from landlords and tenants. B. Block Grant Option Under the proposed framework, counties and cities with populations over 500,000 are eligible to request their state reservation amount through a block grant. Cities and Counties with populations between 200,000 and 499,999 are also eligible to request a block grant, but must attest that they have the capability to implement the resources within the parameters established by federal and state law. All counties that receive a block grant must also attest that they will distribute assistance equitably and consistent with demonstrated need within the jurisdiction. The size of the block grant is based on a jurisdiction’s proportionate share of statewide population, as set by the State Reservation Table (attachment 1). All eligible jurisdictions are encouraged to complete the survey by February 3, 2021, but must submit the Expression of Interest Form to HCD by February 12, 2021 to be eligible EXHIBIT 7 6 of 6 for a Block Grant (attachment 2). Jurisdictions are highly encouraged to submit their preference as soon as possible and before the deadline. Contract Requirements Participation in the state administered Rental Assistance Program through the acceptance of a block grant will require a standard agreement with the HCD. Agreements will include performance milestones for obligation and funding liquidation as conditions of ongoing funding. Funding provided through the State Block Grant will be subject to the same reporting and verification requirements as provided under state and federal law. This includes quarterly reporting requirements, income verification, prioritizing direct payments to landlords and utility providers before directing funds to tenants, prioritizing arrears, validating tenancy, prioritizing households at 50% or less of Area Median Income (AMI), as determined by the Department of Housing and Urban Development, complying with tenant and landlord notification requirements, and all other programmatic requirements in the bill. Participating jurisdictions will be required to meet all of the personal identifying information protections identified in the bill. Further, recipients of Block Grants must also conform their UST allocation to the State Program rules in order to be eligible for a Block Grant. 8.5% of the 10% Administration Fee allowable under federal law will be passed through to the Jurisdiction to support implementation. C. Non-Conforming Local Implementation of Federal Allocation. If a Direct Allocation Jurisdiction will not conform to State Program rules, but chooses to self-administer the Federal Allocation, the State will still serve its population via the State Rental Assistance Program but will look to the local jurisdiction to ensure there is no duplication of benefits checks between the two programs. EXHIBIT 7 Total County/City Pop > 200,000 Estimated Allocation Estimated Allocation Estimated Direct Federal and State Allocation Alameda $29,648,131.05 $31,908,572.69 $61,556,703.74 Fremont $7,168,619.03 $7,715,171.02 $14,883,790.06 Oakland $12,874,763.67 $13,856,365.24 $26,731,128.91 Butte $6,516,780.44 $7,013,634.75 $13,530,415.19 Contra Costa $34,296,331.30 $36,911,162.41 $71,207,493.71 Fresno $13,900,330.20 $14,960,123.31 $28,860,453.51 Fresno $15,804,677.66 $17,009,662.61 $32,814,340.27 Kern $15,343,270.84 $16,513,077.07 $31,856,347.91 Bakersfield $11,421,297.99 $12,292,084.00 $23,713,381.99 Los Angeles $160,073,410.74 $172,277,775.41 $332,351,186.14 Long Beach $13,754,733.88 $14,803,426.40 $28,558,160.28 Los Angeles $118,319,705.78 $127,340,672.03 $245,660,377.81 Santa Clarita $6,332,235.55 $6,815,019.74 $13,147,255.29 Marin $7,695,346.48 $8,282,057.38 $15,977,403.86 Merced $8,255,908.64 $8,885,358.09 $17,141,266.74 Monterey $12,905,387.36 $13,889,323.75 $26,794,711.11 Orange $65,576,556.30 $70,576,263.64 $136,152,819.94 Anaheim $10,416,959.93 $11,211,172.89 $21,628,132.81 Irvine $8,544,930.86 $9,196,416.02 $17,741,346.88 Santa Ana $9,880,391.27 $10,633,695.01 $20,514,086.28 Placer $11,843,012.94 $12,745,951.47 $24,588,964.41 Riverside $57,267,219.73 $61,633,404.15 $118,900,623.88 Moreno Valley $6,334,495.16 $6,817,451.63 $13,151,946.79 Riverside $9,851,908.27 $10,603,040.40 $20,454,948.67 Sacramento $30,874,446.26 $33,228,384.99 $64,102,831.25 Sacramento $15,270,933.53 $16,435,224.59 $31,706,158.12 San Bernardino $52,023,225.20 $55,989,595.44 $108,012,820.64 Fontana $6,378,854.91 $6,865,193.47 $13,244,048.38 San Bernardino $6,415,633.07 $6,904,775.68 $13,320,408.75 San Diego $48,819,125.14 $52,541,207.42 $101,360,332.55 Chula Vista $8,101,660.39 $8,719,349.60 $16,821,009.99 San Diego $42,333,563.02 $45,561,171.14 $87,894,734.16 San Francisco $26,209,982.75 $28,208,292.06 $54,418,274.81 San Joaquin $13,362,958.79 $14,381,781.47 $27,744,740.26 Stockton $9,297,024.87 $10,005,851.41 $19,302,876.28 San Luis Obispo $8,417,381.71 $9,059,142.23 $17,476,523.94 San Mateo $22,791,546.59 $24,529,226.48 $47,320,773.07 Santa Barbara $13,275,190.70 $14,287,321.75 $27,562,512.45 Santa Clara $26,938,648.15 $28,992,512.59 $55,931,160.74 San Jose $30,379,739.89 $32,695,961.07 $63,075,700.97 DRAFT - Federal Coronavirus Relief Funds State Rental Assistance Reservation Table Direct Federal 1, 3 State 2, 3, 5 Attachment 1: State Reservation Table EXHIBIT 7 Santa Cruz $8,123,096.98 $8,742,420.56 $16,865,517.53 Solano $13,309,203.81 $14,323,928.09 $27,633,131.90 Sonoma $14,697,467.79 $15,818,036.51 $30,515,504.30 Stanislaus $9,973,927.32 $10,734,362.46 $20,708,289.77 Modesto $6,398,150.81 $6,885,960.53 $13,284,111.34 Tulare $13,860,786.99 $14,917,565.24 $28,778,352.22 Ventura $18,942,832.74 $20,387,077.84 $39,329,910.58 Oxnard $6,210,394.89 $6,683,889.67 $12,894,284.56 Yolo $6,555,847.94 $7,055,680.85 $13,611,528.79 Total County/City > 200,000 $1,112,988,029.30 $1,197,844,794.21 $2,310,832,823.51 County Pop < 200,000 $150,000,000 4 Alpine $81,501.34 $81,501.34 Amador $2,869,655.61 $2,869,655.61 Calaveras $3,313,834.29 $3,313,834.29 Colusa $1,555,455.56 $1,555,455.56 Del Norte $2,007,719.41 $2,007,719.41 El Dorado $13,921,135.97 $13,921,135.97 Glenn $2,049,661.19 $2,049,661.19 Humboldt $9,785,791.29 $9,785,791.29 Imperial $13,081,722.72 $13,081,722.72 Inyo $1,302,216.68 $1,302,216.68 Kings $11,040,579.82 $11,040,579.82 Lake $4,647,958.50 $4,647,958.50 Lassen $2,207,033.13 $2,207,033.13 Madera $11,357,272.80 $11,357,272.80 Mariposa $1,241,866.71 $1,241,866.71 Mendocino $6,262,320.25 $6,262,320.25 Modoc $638,222.61 $638,222.61 Mono $1,042,697.36 $1,042,697.36 Napa $9,943,596.36 $9,943,596.36 Nevada $7,201,209.89 $7,201,209.89 Plumas $1,357,657.81 $1,357,657.81 San Benito $4,534,044.31 $4,534,044.31 Shasta $12,999,788.25 $12,999,788.25 Sierra $216,927.83 $216,927.83 Siskiyou $3,143,035.21 $3,143,035.21 Sutter $7,000,235.82 $7,000,235.82 Tehama $4,698,346.39 $4,698,346.39 Trinity $886,841.40 $886,841.40 Tuolumne $3,932,710.26 $3,932,710.26 Yuba $5,678,961.25 $5,678,961.25 Total County Pop < 200,000 $150,000,000.00 $150,000,000.00 Total County/City $1,347,844,794.21 $2,460,832,823.51 State Administration $149,760,532.69 $149,760,532.69 Grand Total $1,112,988,029.30 $1,497,605,326.90 $2,610,593,356.20 3 Adjusted population reflects total county less population for cities that exceed 200,000. 4 Reflects a carve-out of $150 million for counties with a population below 200,000 to account for smaller counties that did not receive a direct federal allocation. Allocation distribution is based on population percent-to-total for the $150 million set-aside. 5 Assumes an estimated 1.50 percent state administrative carve-out prior to state allocation distribution. 1 Estimated direct federal allocation for local governments with populations over 200,000 based on 2019 US census data. 2 Estimated state allocation methodology for local governments is based on 2019 US census data. EXHIBIT 7 Attachment 2: Example of Expression of Interest Form The following information is an example of the information that will need to be submitted to the Department of Housing and Community Development by February 12, 2021. The final form will be made available after the Expression of Intent Survey closes on February 3. For questions, please write to: housing@bcsh.ca.gov. City or County? A) City B) County If a City, what County does your City Reside in? Name of City/County Contact (Name, Phone, Email) Name) Phone) Email) Secondary Contact Name) Phone) Email) What is the size of the Population you Serve? A) Over 500,000 B) Between 200,000 and 499,999 C) Under 200,000 If your population is over 500,000: A) Opt-In to State Rental Assistance Program (Direct Federal Allocation + State Reservation Amount) -or- B) Request State Reservation Amount via Block Grant and attest local implementation of Direct Federal Allocation will conform to State Requirements. -or- C) Will not be conforming Direct Federal Allocation to State Program; Acknowledge that the State will still Serve Jurisdictions’ Population through the State Program but Jurisdiction assumes responsibility for Duplication of Benefits If your population is over 500,000 and you are Requesting a Block Grant, do you currently have an existing rental assistance program? If your population is over 500,000, you opted into the State Program and you already requested a UST distribution, what was the value received? A) Yes, the county/city I represent has an existing rental assistance program B) No $ EXHIBIT 7 If your Population is Between 200,000 – 499,999: A) Opt-In to State Rental Assistance Program (Direct Federal Allocation + State Reservation Amount) -or- B) Request State Reservation Amount via Block Grant and attest local implementation of Direct Federal Allocation will conform to State Requirements AND Complete Attestation Form that City/County has an existing rental assistance program and will be able to meet all program requirements. -or- C) Will not be conforming Direct Federal Allocation to State Program; Acknowledge that the State will still Serve Jurisdictions’ Population through the State Program but Jurisdiction assumes responsibility for Duplication of Benefits If your population is between 200,000 and 499,999 and you are Requesting a Block Grant, do you currently have an existing rental assistance program? If your population is between 200,000 and 499,999, you opted into the State Program and you already requested a UST distribution, what was the value received? B) Yes, the county/city I represent has an existing rental assistance program that is capable of meeting the state and federal program requirements. B) No $ EXHIBIT 7 Emergency Rental Assistance Program Spending Plan FEBRUARY 16, 2021 COMMUNITY DEVELOPMENT AGENCY AGENDA ITEM # 12 1 Outline •Emergency Rental Assistance: How has the City responded so far? oCARES for Tenants oCARES for Landlords oEviction Prevention: SAVES Program •Emergency Rental Assistance Program SpendingPlan •State of California SB 91 Funding and City Options •Response to Concerns from Tenants United CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 2 CARES for Tenants Since May 2020, the CARES for Tenants Program has provided emergency rental assistance for Santa Ana residents who have been impacted by the Coronavirus. The program provides $3,000 in rental assistance per household. •The household must have a COVID‐19 related financial hardship impacting their ability to pay rent and they must have notified their landlord (or the City). •The household must be able to prove they lost income or have increased expenses due to the COVID‐19 pandemic. •The household must not make more than 80% of the Area Median Income. The maximum amount depends on the number of people in the household. •Families can apply for for the program on‐line at: www.santa‐ana.org/covid19/rental‐ relief/cares‐for‐tenants or in person at Catholic Charities or the Salvation Army. •Once the rental application is selected and the family is approved, the rent payment is then sent directly to the landlord on the tenants behalf. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 320 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 CARES for Tenants •The application for the program was opened for two weeks in May 2020 and then reopened on August 17th, 2020. •Since then, the City has continued to receive and process applications by conducting a weekly lottery. •Together with the Salvation Army and Catholic Charities, the City has provided emergency rental assistance to over 1,238 families. •$4.8 million in funding has been allocated from two funding sources so far: o CDBG‐CV:$3,287,519 o State CARES Act: $1,576,260 CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 4 CARES for Landlords •Program began August 17th and ended December 15th, 2020. •When it was operational, the CARES for Landlords Program helped pay the entire past‐due rent that was owed from tenants who had been financially impacted by COVID‐19 dating back to April 1, 2020. •Any authorized landlord with a rental unit in Santa Ana was eligible to apply with no income eligibility requirements. The Program paid 80% of the rental arrears due to landlords, provided that they forgave the remaining 20% of the total arrears. •Landlords who participated also agreed not to increase rent for the unit for the next 6 months; not assess late fees for the past due rent paid by the program; and not to evict for 6 months from the date of the Grant Agreement. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 520 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 CARES for Landlords •The CARES for Landlords grant program disbursed $1,140,957 to 45 different residential property owners to assist 323 households in paying their past due rent. •A total of $285,239 was forgiven by the participating landlords. •The funding for the Program came from the State CARES Act funds. 6 Overall Outcomes to Date Total # of families assisted: 1,561 Total funding allocated: $6,004,736 Program Source of Funds Amount CDBG-CV Funds $3,287,519.00 CARES for Tenants State CARES Act Funds $1,576,260.00 CARES for Landlords State CARES Act Funds $1,140,957.00 TOTAL $6,004,736.00 CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 720 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 SAVES Program •On August 18, 2020, City Council approved an allocation of $5.7 million in Emergency Solutions Grant Coronavirus (ESG‐CV) funds from the CARES Act to provide assistance to very‐low income (<50% AMI) Santa Ana residents facing eviction and subsequent homelessness o ESG‐CV funds have more restrictive eligibility and implementation requirements than CDBG‐CV and State CARES Act funds. •Following this approval, staff allocated: o $5,514,747 for the SAVES Program for Eviction Prevention administered through the Salvation Army of Orange County. o $250,000 for an Eviction Defense Fund for SAVES Program participants administered by the Public Law Center. •The SAVES Program successfully launched on February 1, 2021 CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 8 SAVES Program •The SAVES Program provides eviction prevention / homelessness preventionby providing up to 12 months of rental assistance based on need forhouseholds threatened by eviction: https://www.santa‐ana.org/saves Eligibility Requirements: 1. Santa Ana Resident 2. Annual income no greater than 50% AMI according to family size 3. Household unable to pay full rent because of a COVID‐19 relatedhardship 4. Household has been notified in writing that their right to occupytheir current housing will be terminated (examples: eviction notice,email or text notification asking you to move out, handwritten ortyped notification) 5. The following declaration applies, “If evicted I would likely becomehomeless, need to move into a homeless shelter, or need to move intoa new residence shared by other people who live in close quartersbecause I have no other available housing options.” CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 9 Emergency Rental Assistance Program Spending Plan (ERAP) •$9.8 million allocation received by the City directly from the Department of Treasury •Made possible through the Consolidated Appropriations Act of 2021 adopted on December 27, 2020. o These are not State CARES Act, ESG‐CV, or CDBG‐CV funds. •The $9.8 million must comply with statutory provisions in the Consolidated Appropriations Act of 2021. •Eligibility restricted to families who have been financially impacted by COVID‐19; who are at 80% AMI and below, with a priority for families at 50% AMI, and who are at risk of homelessness CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 10 Emergency Rental Assistance Program Spending Plan (ERAP) •The eligibility and other requirements for the ERAP funds generally mirror the City ’s CARES for Tenants Program. •Staff recommends City Council to allocate the $9.8 million to the CARES for Tenants Program that has been in place since May 2020: oThere are still over 1,100 applicants waiting for assistance. o1,238 families have been assisted so far with the one‐ time assistance through CARES for Tenants. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 11 Emergency Rental Assistance Program Spending Plan (ERAP) •With approval of the ERAP Spending Plan, staff will increase the amount per household from $3,000 per household to $5,500 per household: o Based on analysis of average cost of rent in Santa Ana. o 1,616 households could be served with the $9.8 million, including all of the families currently waiting for assistance. o Urban Institute study found average delinquent rent is $5,600. o May serve more families per dollar than the County ’s $10,000 per household assistance cap. •Families that have already received $3,000 per household will be able to recertify for an additional $2,500 in assistance. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1220 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 State of California SB 91 Funding and City Options Direct Federal Allocation State Allocation Direct Federal and State Allocation $9,880,391.27 $10,633,695.01 $20,514,086.28 • State allocation falls under SB 91 ERA Program framework • If City were to administer the State’s allocation in Santa Ana (e.g. the full $20.5M), then must conform local program to the SB 91 Program framework. • Between Option # 1, 2 and 3, staff recommend Option # 3 CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1320 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 State of California SB 91 Funding and City Options Option # 1: State Administers entire $20.5 Million ◦ Pros: ◦ Efficient, economy of scale (Statewide contract with LISC) ◦ City only responsible to market the State’s program; State responsiblefor all program administration and implementation ◦ No financial or administrative liability for the City ◦ Cons: ◦ Ineffective: SB 91 State Program is based upon CARES for Landlordsmodel that did not fully expend our $2.7M in funding in Santa Ana ◦ Santa Ana landlords are not likely to participate ◦ SB 91 Program framework tenant rental assistance is limited to 25% ofrental arrears and will be insufficient to serve our residents ◦ Average arrears is $4,000 in Santa Ana; 25% would be only $1,000per household ◦ CARES for Tenants Program currently pays $3,000 per household; thetenant would have to have $12,000 in arrears to qualify CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 14 State of California SB 91 Funding and City Options Option # 2: City Administers the entire $20.5 Million in conformitywith the State’s SB 91 ERA Program framework ◦ Pros: ◦ Brings resources local ◦ Cons: ◦ Inefficient: if City administers all of the funds, then should chooseOption # 1 ◦ City can heavily market the State’s Program instead of being fullyresponsible for the Program implementation ◦ Ineffective: SB 91 State Program is based upon CARES for Landlordsmodel that did not fully expend our $2.7M in funding in Santa Ana;Santa Ana landlords are not likely to participate ◦ Lack of City capacity: CDA program operations on hold includingdown payment assistance and single‐family rehab programs;impact on Finance ◦ Liability of City for financial and administrative operations CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 15 State of California SB 91 Funding and City Options Option # 2: City Administers $20.5 Million in conformance with SB 91 ERA Program framework ◦ Cons (Continued) ◦ CARES for Tenants currently provides $3,000 per household. If we administer the State funds, we will have to re‐launch the program with a lower amount of assistance per household – and we will have to explain w hy. Residents with rental arrears of $12,000 or more would be the only ones to qualify for $3,000 from the State’s program design. ◦ Staff is recommending tonight to increase the amount per household to $5,500. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1620 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 State of California SB 91 Funding and City Options Option # 2: City Administers $20.5 Million in conformance with SB 91 ERA Program framework ◦ Cons (Continued) ◦ Many residents – including Tenants United – have pointed out that they are worried about (and currently experiencing) retaliation from landlords for simply sending them a Declaration of COVID‐19 hardship letter. If we administer the State’s program, we would be encouraging those same tenants to reach out to their landlords to apply to the program and forgive 20% of the rental debt owed to them. ◦ The State’s program will not work well in Santa Ana with our vulnerable residents and absentee landlords. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1720 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 State of California SB 91 Funding and City Options Option # 3: City Administers $9.8M; State Administers $10.5M ◦ Pros: ◦ Deeper subsidy per household than SB 91 Programframework ◦ City would administer only $9.8M instead of entire $20.5M ◦ Maintain local control of funding for Santa Ana residents ◦ Landlords can apply to State for State’s SB 91 Program funds; City can market State’s SB 91 funds to landlords without theadministrative burden to administer the State’s funds ◦ Cons: ◦ Relative to Option # 1: lack of local capacity to administer the$9.8M, but staff can do it for our residents and community. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1820 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 State of California SB 91 Funding and City Options •Staff recommends Option # 3: City Administers $9.8M; StateAdministers $10.5M o If not Option # 3, then staff recommends Option # 1 instead ofOption # 2 •Option # 3 maintains local control while maximizing the impact ofthis funding on local residents with $5,500 per household •Option # 1 would be the next best option, with staff marketing the State’s program as widely as possible without theadministrative burden to administer their funds •Option # 2 is least preferred option due to poor SB 91 Programdesign, lack of capacity and least efficient and effective option CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 1920 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Response to Concerns from Tenants United •February 2nd City Council meeting, eight volunteer tenant rights counselors from Tenants United spoke during public comment. •On February 3rd, staff met with Tenants United for a first meeting to address their public comments and discuss solutions on how to work together. On February 11th, staff met again with Tenants United to continue the discussion. •In follow-up to those public comments and feedback from Tenants United, staff have taken (or will take) the following actions in the next few slides. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 20 Response to Concerns from Tenants United “There are people who have waited for more than 4 weeks and still don’t know if they qualified for funding. How can the city increase this response time?” • Residents will begin receiving a step by step email confirmation after they apply, so anyone applying knows what to expect in the application process. • Staff will also provide biweekly updates on application status. • Staff will also be expanding our contracts with two more non-profit organizations to expedite the payment processing time. A total of four nonprofits will be working with the City to administer CARES for Tenants instead of two as beforehand. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 2120 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Response to Concerns from Tenants United “Establish an appointment system for in-person assistance to help tenants who have difficulty using the computer or no access to internet/computer devices to apply for rental assistance in a socially distanced manner. Allow for tenants to have access to printing, copying and scanning their personal documents.” • Santa Ana residents are currently provided with the ability to make an appointment for in‐person assistance. Our residents also have the opportunity to opt for walk‐in rental assistance at one of our two current non‐profit locations, conveniently located in Santa Ana. • Residents are offered assistance in various languages, English, Spanish and Vietnamese. The application is also made available in English, Spanish, and Vietnamese. • If our residents are need of assistance filling out and answering questions they are also provided the assistance in person or by phone. • Applications can be dropped‐off and copies of the documents can be requested in order to submit complete application packets. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 2220 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Response to Concerns from Tenants United “Update the requirement around sending a letter to the landlord to give tenants by giving tenants the option to write a letter to the city in the case that they are afraid of landlord retaliation. Especially because tenants might not receive funds for 4 or more weeks, and find other ways to pay rent in the meantime. Writing a letter to their landlord can make them a target for retaliation just in applying for rental assistance. In the past the city has allowed tenants flexibility around this requirement, but it isn't explained anywhere on the website.” • The letter to the tenant’s landlord is required by both the State’s Eviction Moratorium and the CDC’s Eviction Moratorium as a Declaration of COVID-19 Hardship in order to avoid eviction. • The City gives the option to residents to write a letter to the city and not the landlord for our assistance. This option is described in the Program Guidelines in English, Spanish and Vietnamese. • This information is now highlighted on the City’s webpage. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 23 Response to Concerns from Tenants United “Get city staff to create a video in English, Spanish and Vietnamese that walks tenants step by step through the application process so that tenants who better understand visually know how to apply.” • Staff will be creating a How-to-Video for the application process, in both English, Spanish and Vietnamese. • A Zoom Q&A meeting from February 3rd and February 10th, was also recorded and posted to the City’s webpage, which included a Spanish translation. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 2420 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Response to Concerns from Tenants United “Landlords can apply for rental assistance on behalf of their tenants but what is the city doing to ensure they aren't double- charging their tenants?” • Tenants are notified that the landlord is receiving rental assistance on their behalf including the amount of assistance that was provided on behalf of the household toward their back- rent or prospective rent. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 2520 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Response to Concerns from Tenants United “Increase visibility and responsiveness of the city's help line for tenant support. Currently the phone number to call for help from the city is difficult to find on the website.” • Staff will be expanding our contracts with two more non-profit organizations to be more responsive to calls and e-mails. A total of four nonprofits will be working with the City to administer CARES for Tenants instead of two as beforehand. • Staff will continue to improve visibility on the City’s website. • Staff will host various community Zoom meetings after the CARES for Tenants Program is relaunched on March 1st. • Staff will also heavily market the forthcoming State’s Program after it is launched. CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 2620 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 Recommended Actions: ‐ Approve Appropriation Adjustment to recognize $9.8 million ‐ Approve proposed ERAP Spending Plan CITY OF SANTA ANA, COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702 27