Santa Ana City Council
September 6, 2022

EXHIBIT 1

City Council
23 –
21 9/6/2022

DocuSlgn Envelope ID: D9400988-4C42- 408F- A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit 1)(1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
California nsForAll Youth Jobs Corps Program
Outcome and Output Reporting
All CaliforniansForAll Youth Jobs Corps Program grantees will be responsible for providing periodic and timely reports on outcomes and outputs associated with the funding received from this program.

Reporting Metrics
Grantees will be required to report the following metrics on a quarterly and annual basis to California Volunteers in a format and method to be specified by California Volunteers. These metrics are subject to change, depending on the California Department of Finance' s review and approval:

Required by Department of Treasury:
o Number of workers enrolled in sectoral job training programs o Number of workers completing sectoral job training programs o Number of people participating in summer youth employment programs
Output: Total number of youth employed; number of hours of employment
Outcome: Percentage of participants who enroll in higher education or gain employment following program end; Number of industries served; Disadvantaged areas served
Additionally, CaliforniaVolunteers requires cities to report the following data, where feasible, on a quarterly and annual basis to Calif orniaVolunteers in a format and method to be specified by California Volunteers.

Number of youth participating in program
Number of youth employed in each focus area
Number of youth enrolled in job training/ readiness programs Number of youth completing job training/ readiness programs Number of youth participating in summer program ( if applicable) Average wage and hours worked of participants across program Information/ data/ member stories as requested for annual report Does this project serve an economically disadvantaged community? Number of youth employed in program who were previously unemployed EXHIBIT 1

City Council
23 –
22 9/6/2022

DocuSign Envelope ID: D9400988- 4C42408F- A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit D(1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
Number of youth who complete full program ( 1year or summer program) Percentage of youth employed in program who remain in college or stable employment
Percentage of youth employed after completion of program Percentage of youth who report job satisfaction after one year of employment, as reported by a survey
Percentage of youth who report an interest in a career in public service after one year of employment, as measured by a survey
Percentage of youth employed in public service after one year of employment
Job training evaluations
Reporting Deadlines:

Report Reporting Period Partner Reports Due_
1 ( if applicable) Award Date - December 31, 2021 January 10, 2022 2 January 1 - March 31, 2022 April 8, 2022
3 April 1 - June 30, 2022 July 8, 2022
4 July 1 - September 30, 2022 October 7, 2022
California Volunteers will update this reporting timeline with additional reporting periods, upon receipt of updated reporting timelines established by the federal government for projects leveraging State Fiscal Recovery Funds, as further identified by the California Department of Finance. Reporting metrics may be updated, depending on updated guidance from the California Department of Finance.

Reporting Process:

California Volunteers will be providing a comprehensive reporting template for grantees upon execution of a contract. Additionally, this reporting template and process may be updated during the period of the contract. At the time when the reporting process is updated, California Volunteers will roll out communication regarding this process and provide updates to grantees.

EXHIBIT 1

City Council
23 –
23 9/6/2022

DocuSign Envelope ID: D9400988- 4C42- 408F-A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit D(1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
Calif orniansForAll Youth Jobs Corps Program
Invoicing
This grant is a cost -reimbursement grant. As such, grantees will be required to submit periodic and timely invoices to California Volunteers for expenses already incurred for processing and payment, Grantees have the discretion to invoice monthly or quarterly. However, California Volunteers will not allow invoices for periods in excess of three months due to the need to provide quarterly financial reporting to the California Department of Finance, as well as the federal government, over the use of State Fiscal Recovery Funds (SFRF), federal stimulus funding.

Invoicing Deadlines:

Grantees have the discretion to invoice monthly or quarterly. If monthly, invoices should be submitted by the 15'h of the following month. If quarterly, invoices should be submitted with the financial report no later than the due date identified in the financial reporting deadlines below.

Financial Reporting Metrics:

Grantees will be required to report quarterly on expenditures and unliquidated obligations associated with the grant. As such, grantees will be required to provide the following:

Expenditure Amounts
o Cumulative Expenditures ( prior cycles)
o Expenditure Adjustments (+/-) prior cycles
o Expenditures ( Current Cycle)
o Total Cumulative Expenditures
Obligation Amounts
o Remaining Obligation
o Total Cumulative Expenditures
o Total Cumulative Expenditures + Obligation
o Award Amount
Notes ( if applicable)
These metrics are subject to change, depending on the California Department of Finance' s review and approval.

EXHIBIT 1

City Council
23 –
24 9/6/2022

DocuSlgn Envelope ID: D9400988- 4C42- 408F- A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit D( 1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
Financial Reporting Deadlines:

Report Reporting Period; Partner Reports Due
1 Award Date - December 31, 2021 January 10, 2022
2 January 1 - March 31, 2022 April 8, 2022
3 April 1 - June 30, 2022 July 8, 2022
4 July 1 - September 30, 2022 October 7, 2022
California Volunteers will update this reporting timeline with additional reporting periods, upon receipt of updated reporting timelines established by the federal government for projects leveraging State Fiscal Recovery Funds, as further identified by the California Department of Finance. Reporting metrics may be updated, depending on updated guidance from the California Department of Finance.

Reporting Process:

California Volunteers will be providing a comprehensive financial reporting template for grantees upon execution of a contract. Additionally, this reporting template and process may be updated during the period of the contract. At the time when the reporting process is updated, California Volunteers will roll out communication regarding this process and provide updates to grantees.

EXHIBIT 1

City Council
23 –
25 9/6/2022

DocuSign Envelope ID: D9400988- 4042- 408F- A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit D(1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
Californians ForAll Youth Jobs Corps Program
State Fiscal Recovery Funds
This program leverages 100% State Fiscal Recovery Funds. Grantees leveraging this funding are required to follow specific terms and conditions, reporting requirements, guidance, etc. associated with these funds. The requirements for the use of these funds are incorporated in their entirety through the inclusion of the links to specific resource pages in this Exhibit ( see below). This includes links and attachments referenced on the following pages.

Resources:

Coronavirus State and Local Fiscal Recovery Funds:
https:// home. treasu[y. gov/ policy- issues/coronavirus/ assistance- for-state- local- and- tribal- governments/ state-and- local- fiscal- recovery- funds State Fiscal Recovery Fund: https:// www.dof.co. gov/ budget/ COVID- 19/ State Fiscal Recovery Fund/
State Fiscal Recovery Fund Reporting Portal:
httr) s:// www. dof. ca. gov/ budget/ COVID-
19/ State Fiscal Recovery Fund Reporting Portal/
Through execution of the contract, grantees agree to follow the rules, guidance, regulations, and terms and conditions as outlined in the above links, as well as any other requirements and policies outlined throughout the exhibits of the executed contract.

EXHIBIT 1

City Council
23 –
26 9/6/2022

DocuSign Envelope ID: D9400988- 4C42- 408F- A8FD- 5AC4CB5A4BCF City of Santa Ana
JP1012
Exhibit D(1) California Volunteers Reporting Requirements, Invoicing, and Specific Requirements and Terms and Conditions
Programmatic and Fiscal Document Retention
In line with State and Federal requirements regarding record retention, grantees are required to maintain all documentation, programmatic and fiscal, pertaining to this contract for a period of five years after the close out the contract and the payment of the final invoice. The grantee is required to maintain books, records, documents, and other evidence pertaining to the reimbursable costs and hold them available for audit and inspection by the State or Federal Government for the five years following the close out of the contract and payment of the final invoice. These retention requirements pertain to all contracts associated with this program, regardless of funding source.

EXHIBIT 1

City Council
23 –
27 9/6/2022

A-2022- 089
Contractor Certification Clauses
CCC 04/ 2017

CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorizedto legally bind the prospectiveContractorto the clause(s) listed below. This certification is made under the laws of the State of California.

City of Santa Ana
Name and Title of Person Signing
Kristine Ridge
txecutea
June 9, 2022

CONTRACTOR CERTIFICATION CLAUSES
Orange
4M: I111I1ilY
as
Rya O.QHodge, AssistantCityAttorney

1. STATEMENT OF COMPLIANCE: Contractor has, unless xempted, complied with the nondiscrimination program requirements. ( Gov. Code § 12990 ( a-f) and CCR, Title 2, Section 11102) ( Not applicable to public entities.)

2. DRUG -FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug -Free Workplace Act of 1990 and will provide a drug -free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug -Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person' s or organization' s policy of maintaining a drug -free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and, 4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company' s drug -free workplace policy statement; and, EXHIBIT 1

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2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Contractor has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.)

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one ( 1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two- year period because of Contractor' s failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Pub. Contract Code § 10296) ( Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $ 50, 000 OR MORE- PRO BONO REQUIREMENT: Contractor hereby certifies that Contractor will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Contractor agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the contract equal to the lessor of 30 multiplied by the number of full time attorneys in the firm's offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its contract with the State.

Failure to make a good faith effort may be cause for non -renewal of a state contract for legal services, and may be taken into account when determining the award of future contracts with the State for legal services.

5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286. 1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:
a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penalsanction, abusiveforms of child labor orexploitationof children in sweatshop labor.

The contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www. dir. ca. gov, and Public Contract Code Section 6108. b. The contractor agrees to cooperate fully in providing reasonable access to the contractor's records, documents, agents or employees, or premises if reasonably EXHIBIT 1

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required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the contractor' s compliance with the requirements under paragraph ( a).

7. DOMESTIC PARTNERS: For contracts of $ 100, 000 or more, Contractor certifies that Contractor is in compliance with Public Contract Code section 10295. 3.

8. GENDER IDENTITY: For contracts of $ 100, 000 or more, Contractor certifies that Contractor is in compliance with Public Contract Code section 10295. 35.

DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California

1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees ( Pub. Contract Code § 10410)
1). No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. 2). No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees ( Pub. Contract Code § 10411)
1). For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision -making process relevantto the contract while employed in any capacity by any state agency. 2). For the twelve- month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy -making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Agreement void. ( Pub. Contract Code § 10420) Members of boards and commissions are exempt from this section if they do not receive payment otherthan payment of each meeting of the board or commission, paymentfor preparatory time and payment for per diem. ( Pub. Contract Code § 10430 ( e))

2. LABOR CODE/ WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self- insurance in accordance with the provisions, and EXHIBIT 1

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Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. ( Labor Code Section 3700)

3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act ( ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. ( 42 U.S.C. 12101 et seq.)

4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor' s name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled. b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutoryexceptionsto taxation, rarelywill a corporate contractorperformingwithin the state not be subject to the franchise tax.
c. Both domestic and foreign corporations ( those incorporated outside of California) must be in good standing in order to be qualified to do business in California. Agencies will determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; ( 2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not another state agency or other governmental entity.

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12 EXHIBIT B

PROGRAM IMPLEMENTATION

AND BUDGET NARRATIVE

EXHIBIT 1

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ORANGE COUNTY CONSERVATION CORPS
CaliforniansForAll Youth Job Corps
PY 2022-2024

PROGRAM IMPLEMENTATION
The OCCC shall conduct outreach and recruitment acti vities to targeted youth ages 18 to 30 who meet eligibility requirements and is within one or more of the following categories defined by the CaliforniansForAll Youth Workforce Development Program. The OCCC wil l conduct eligibility screening of all potential youth enrollments per established eligibility guidelines as set forth by the City and will focus on COVID-19 Recovery, Food Insecurities, and Climate Action.

The OCCC shall ensure that allocated funds be used to provide activities in thi s program for youth who are not younger than 18 or older than 30. Priority will be given to youth who:
• Have not participated in an AmeriCorps program
• Have difficulty finding employment
• Are low income
• Are unemployed and/or out of school
• Are justice-involved
• Are in transition from foster care
• Are engaged with the mental health or substance abuse system

Priority applicants (meeting two of the above criteria) should make no fewer than 75% of selected participants. Cities may create their priority criteria for approval by CaliforniaVolunteers if the above criteria do not meet city goals.

The OCCC shall provide youth partic ipants with a thorou gh program orientation and evidence of the orientation shall be maintained in the participant files which at a minimum should include the following:
• Program goals and objectives
• Length of the training period
• Civil rights and complaint-handling procedures
• Available supportive services
• Anticipated exit dates
• Participant requirements and related activities

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The OCCC shall provide an Objective Assessment of the individual’s readiness for meaningful work. The assessment will in clude academic and employability skill levels, service needs of each participant, a review of basic skills, occupational skills, prior work experience, employability, interests, aptitudes (including non -traditional job interest s), supportive service needs, and developmental needs of the participant.

The OCCC shall develop an Individualized Service Strategy for each participant that shall identify a career pathway goal , appropriate achie vement objectives, and planned supportive services. The OCCC shall provide preparation for post -secondary educational opportunities, strong linkages between academic and occupational learning, preparation for unsubsidized employment opportunities, and effective connections to intermediaries with strong links to the job market and local regional employers.

The OCCC shall provide eligible youth with information on the services available through the WORK Center and be referred for appropriate training and education programs.

The OCCC shall provide case management for each youth p articipant on an ongoing basis. Case managers shall assist yo uth as needed to ensure successful program completion, job placement , and goal attainment. The case manager will oversee the participant’s progress in his/her training activities, and provide counseling, guidance, and crisis intervention.

Program Goals include:
 Referrals to community resources
 Tracking progress on the job
 Increase youth employment to secure a better-paying job  Career pathway development and further education planning or training  Assistance with job/work-related problems
 Adult mentoring
 Leadership development
 Supportive services
 Strengthen local government capacity to address community challenges

In those instances where youth participants will engage in paid work experience o utside the direct supervision of the OCCC, the OCCC shall develop worksites that will provide youth with meaningful work experiences with capable, trained supervisors. Youth participants will engage in multiple projects related to food insecurities, clima te resilience and COVID 19 recovery. While addressing food insecurity, youth will be given EXHIBIT 1

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the opportunity to be placed at the Community Action Partnership headquarters where they will load and unload trucks, package boxes of food and deliver to 41 food and 8 diaper bank partner agencies. This includes labor support at drive up distribution events (traffic control, set up logistics, and data collection ) as well as , providing work experience in their administrative offices for energy and environmental services.

While addressing climate resilience, youth will work on OCCC projects that include fire fuel reduction removing debris from waterways, removing non -native/invasive trees/plants, install native plants and perform other erosion control measures at publi c parks, trails, and wetlands.

While addressing COVID-19 Recovery, youth will work with Goodwill of Orange County supporting adults with disabilities through their Human Services Division and Retail/Donations/Processing positions which include: Sales Assoc iates, E -Commerce, Used Goods Processor, Dock Helpers, Store Donation Attendants and Employment Training Support as Job Coaches.
• The OCCC shall develop a worksite agreement following established City guidelines, for each worksite training site developed and used for the youth work experience. Worksite supervisors shall receive an orientation regarding their roles and responsibilities and the intent and purpose of the program. A copy of the executed worksite agreement and evidence of the orientation is to be maintained on file and a copy is given to each worksite supervisor.

The OCCC shall ensure that the services are provided in a manner that is sensitive to literacy, language, and socio -cultural issues, which may impact the participants.

OCCC staff s hall be trained in cultural differences to ensure their ability to recognize and help participants who demonstrate language or cultural barriers to employment.

The OCCC must certify that it will comply with the California Drug -Free Workplace Act of 1990.

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Orange County Conservation Corps
Youth Jobs Corps
Program Year 2022‐24
August 2022 ‐ March 2024 (20 Months)
City of Santa Ana
Enrollment Plan
Month Count Month Enrollment  Goal Running  Enrollments 1 Aug‐22 ‐                          ‐
2 Sep‐22 3.00                        3.00
3 Oct‐22 5.00                        8.00
4 Nov‐22 5.00                        13.00
5 Dec‐22 5.00                        18.00
6 Jan‐23 5.00                        23.00
7 Feb‐23 6.00                        29.00
8 Mar‐23 6.00                        35.00
9 Apr‐23 6.00                        41.00
10 May‐23 6.00                        47.00
11 Jun‐23 6.00                        53.00
12 Jul‐23 6.00                        59.00
13 Aug‐23 6.00                        65.00
14 Sep‐23 5.00                        70.00
15 Oct‐23 5.00                        75.00
16 Nov‐23 5.00                        80.00
17 Dec ‐23 ‐                          80.00
18 Jan‐24 ‐                          80.00
19 Feb‐24 ‐                          80.00
20 Mar‐24 ‐                          80.00
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Orange County Conservation Corps
Californians For All Youth Job Corps
Proposal
PY 2022-2024 (August 2022 – March 2024, 20 months)

BUDGET NARRATIVE – 20 Months

Administrative Staff – .25 FTE & Benefits– $72,593.00 or 4.84% of budget Administrative staff consists of a small:

Chief Executive Officer 5% FTE - to oversee the organizational development and provide leadership.

Chief Financial Officer 10% FTE - to perform various administrative functions including; general & financial management, payroll, accounts payable and office coordination.

Accounts Payable 10% FTE - to perform various administrative functions including; processing invoices and executive office support.

Taxes and benefits include state unemployment at 6.2% of first $7,000 earned, 7.65% FICA, workers compensation, retirement plan and health benefits.

Programmatic Staff – 2.85 FTE – $384,856 or 25.67% of budget Program staff consists of up to 9 individuals of which 1 Program Specialist will be exclusively dedicated to ensure the programmatic success of the grant which includes recruit, enroll youths and overall case management. Other programs staff will be involved to provide overall support, leadership, management, coordination, daily supervision, work experience, training engagement and mentorship of enrolled youths.

Program Specialist – 110% FTE: fully responsible for the success of grant Director of Operations – 10% FTE: WEX project acquisition and management Operations Manager – 10% FTE: WEX daily projects management Payroll Specialist – 10% FTE: WEX tracking and processing of timesheets IT Manager – 10% FTE: Tracking and reporting of participants activities Program Manager – 10-% FTE: supervise al l aspect of programs including WEX Crew Supervisor I – 125% FTE: WEX project supervision and mentorship Taxes and benefits include state unemployment at 6.2% of first $7,000 earned, 7.65% FICA, workers compensation, retirement plan and health benefits.

Participant Wages, Taxes and Benefits – $850,920 or 56.76% of budget Wages are paid directly to participants who earn a minimum of $16.00 per hour and are scheduled to work up to 29 hours per week while enrolled in our program. Taxes and workers compensations are directly associated with participants wages and are paid by the Corps. 80 participants averaging @19 weeks with 29 hours per week average @$16 per hour, NOT including any additional leveraged wages by OCCC. Additional costs include taxes, workers compensation, sick pay and eligible retirement contribution.

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Orange County Conservation Corps
Californians For All Youth Job Corps
Proposal
PY 2022-2024 (August 2022 – March 2024, 20 months)

Support Services and Incentives – $81,200 or 5.42% of budget Supportive Services mainly include uniforms, bus passes, gas reimbursements and incentives.

Other supportive service may include hotel voucher, car repair, tattoo removal, dress for success, material and supply for certification training and any other related costs in helping the participants to successfully complete the program. Incentives are costs associated with prepaid cards given directly to the participants for successfully completing or accomplishing certain required or encouraged milestones. These include obtaining certification, earning a high school diploma and other milestones.

Operational Support - $114,468 or 7.31% of budget
Operational support include facility related, proportional cost of facility lease, maintenance and miscellaneous supplies. Other include insurance, telecom, utilities and transportation related expenses.

Budget Summary

Overall, almost 62% of the budget is directly benefiting the participants in form of wages, supportive service (gas reimbursement, uniforms, gears) and incentives (prepaid cards).

Over 95% of the budget is geared toward programmatic expenses, where less than 5% is directed to administrative costs.

In addition to the budget, the Corps will also be leveraging of various costs associated with operating the program throughout and at the end of grant so that our participants services will not end abruptly once the contract ends.

Tracking
OCCC uses finger biometric to track all participant hours in additional and/or daily field sign-in sheet. Time cards are generated bi-weekly and are signed off by participants with the corresponding supervisor. Various labor distribution reports are used to track participant hours and earnings. Incentives and supportive services are requested through an applicable form with proper approval before they are delivered. Incentives and supportive services report can be generated at will from our tracking databases.

Subcontracting – OCCC does not subcontract any obligations or duties in this proposal.

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Orange County Conservation Corps
Youth Jobs Corps
Program Year 2022‐24
August 2022 ‐ March 2024 (20 Months)
City of Santa Ana
Staff Salaries & Wages % FTE $ FTE Taxes & Benefits Sub-Total Totals Chief Executive Officer K. Muniz 5.00% 17,878.33 4,203.00 Chief Financial Officer T. Huynh 10.00% 31,886.67 7,581.00 Accounts Payable N. Hirales 10.00% 8,460.00 2,584.00 Total Administrative 58,225.00 14,368.00 72,593.00 4.84% Director of Operations J. Volp 10.00% 22,243.33 5,524.00 Project Manager J. Newton 10.00% 20,260.00 5,101.00
Payroll Specialist S. Cortez 10.00% 11,775.00 3,291.00 IT Manager P. StOnge 10.00% 20,745.00 5,205.00
Supervisor I TBD 75.00% 65,520.00 19,824.00
Supervisor II TBD 50.00% 43,680.00 13,216.00
Programs Manager/Supervisor S Soria 10.00% 14,556.67 3,885.00 Program Specialist TBD 100.00% 91,000.00 27,209.00
Program Specialist TBD 10.00% 9,100.00 2,721.00
Total Programatic & WEX Management 298,880.00 85,976.00 384,856.00 25.67% Avg WEX # hrs/wk Wages & Benefits
Participants WEX & Supportive Services # # Weeks
Wages 80 19 29 $16.00 705,280.00 $
Taxes, WC & Benefits 20.65% 145,640.00 850,920.00       56.76% Supportive Services and Incentives Avg Per
Supportive Services (Trainings and Supportive Services) 80 600 48,000.00 Uniforms & Gears 80 265 21,200.00
Incentives 80 150 12,000.00 81,200.00          5.42% Operational Support # Months Avg Mon OCCC % YJC Avg. Month Facilities Related and Supplies (lease, janitorial, maint, office & field supplies etc…) 20 18,356.00 15% 2,753.00 55,068.00 Insurance (liab, D&O, excess) 20 6,000.00 15% 900.00 18,000.00 Telecom and Utilities 20 5,000.00 15% 750.00 15,000.00 Transportations (leasing, insurance, maintenance, fuel) 20 16,500.00 7% 1,073.00 21,450.00 6,000.00 7% 109,518.00       7.31%
Total Proposed Budget 1,499,087.00 100.00%
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Clerk of the Council Office
www.santa-ana.org/departments/clerk-of-the-council/
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Assembly Bill 361
AGENDA TITLE:

Teleconferencing for Meetings of City Council and All Boards, Committees, and Commissions Pursuant to the Provisions of Assembly Bill 361

RECOMMENDED ACTION
Adopt a resolution to consider continuing the use of teleconferencing for City Council, board, committee, and commission meetings pursuant to the provisions of Assembly Bill 361 for the next 30 days.

DISCUSSION
On March 17, 2020, Governor Gavin Newsom issued Executive Order N-29-20, suspending certain provisions of the Brown Act to allow legislative bodies to conduct their meetings completely telephonically or by other electronic means. City Council meetings have been conducted by Zoom with councilmembers and staff all joining from remote locations when necessary.

The suspension of certain provisions of the Brown Act was further extended by Governor Newsom on June 11, 2021 by the issuance of Executive Order N-08-21, which continued to allow completely virtual City Council (and other legislative body) meetings. This order stayed in effect until September 30, 2021.

In response, AB 361 was signed into effect by Governor Newsom on September 16, 2021.

It amends the Brown Act to allow legislative bodies to meet virtually, provided there is a state of emergency, and either (1) state or local officials have imposed or recommended measures to promote social distancing, or (2) the legislative body determines by majority vote that meeting in person would present imminent risks to the health and safety of attendees.

The City of Santa Ana’s current practices with respect to live public comment via Zoom already satisfy all of the new requirements in AB 361. Additionally, the individual legislative bodies can make their own findings for the AB 361 teleconferencing resolution

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Assembly Bill 361
September 6, 2022

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for future meetings. Determinations to continue to utilize remote meetings as allowed by AB 361 must be re-visited by the legislative body every 30 days with the support of new findings. Staff recommends this extension period to act as a helpful transitional stage for boards, committees, and commissions who still currently meet virtually.

Most recently on August 16, 2022, the City Council adopted Resolution No. 2022-070, making the required findings under AB 361 to allow the City to continue to offer teleconference accessibility for public meetings after September 30, 2021, to help mitigate the spread of COVID-19. The attached resolution (Exhibit 1) declares additional findings to allow for the continued use of teleconferencing for City Council, board, commission, and committee meetings pursuant to AB 361.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Resolution
Submitted By: Norma Orozco, Deputy Clerk of the Council Approved By: Kristine Ridge, City Manager

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Resolution 2022-XXX

RESOLUTION 2022-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA , CALIFORNIA AUTHORIZING THE USE OF
REMOTE TELECONFERENCING PROVISIONS (AB 361)

WHEREAS, the Ralph M. Brown Act (Government Code section 54950 et seq.) generally requires local agencies meeting via teleconference , including through other virtual or electronic means, to, among other things, provide public access at each location in which members of the legislative body are teleconferencing; and WHEREAS, Assembly Bill 361 (AB 361) amends Government Code section 54953 to allow local agencies to meet fully virtually, without fully adhering to the rules otherwise applicable to teleconferencing, during a proclaimed state of emergency if state or local officials have imposed or recommended measures to promote social distancing; and WHEREAS, the Governor issued a proclamation declaring a state of emergency on March 4, 2020 due to the COVID-19 pandemic, pursuant to section 8625 of the California Emergency Services Act, and this proclaimed state of emergency currently remains in effect; and
WHEREAS, the City Council of the City of Santa Ana declared a local emergency on March 17, 2020 pursuant to Santa Ana Municipal Code section 2-404A (now section 2-646A); and
WHEREAS, in order to continue teleconferencing pursuant to the provisions of AB 361, the City Council is required to make certain findings every thirty (30) days; and WHEREAS, the Ci ty Council of the City of Santa Ana , consistent with those provisions, approved Resolutions 2021-055, 2021-66, 2021-072, 2022-004, 2022-015, 2022-021, 2022-026, 2022-033, 2022-037; 2022-043; 2022-050; 2022-063; and 2022 - 070 authorizing the use of remote teleconferencing provisions pursuant to AB 361; and WHEREAS, the City Council of the City of Santa Ana has reconsidered the circumstances of the state of emergency; and
WHEREAS, state and local officials continue to recommend measures to promote social distancing to prevent the spread of COVID-19; and WHEREAS, Orange County has a medium-level transmission rate of COVID -19 according to the Center for Disease Control and Prevention community transmission rates; and
WHEREAS, the continuation of remote teleconf erencing will allow for full participation by members of the public and the members of the City legislative bodies until social distancing recommendations are lifted; and

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Resolution 2022-XXX

WHEREAS, the City Council of the City of Santa Ana desires to continue to utilize remote teleconferencing pursuant to AB 361 and Government Code section 54953(e).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Santa Ana as follows:

SECTION 1. The above recitals are true and correct and shall be the findings of the City of Santa Ana’s City Council and each and every other legislative body of the City.

SECTION 2. The City Council of the City of Santa Ana hereby authorizes the use of remote teleconferencing pursuant to AB 361.

SECTION 3. The City Council and all other legislative bodies of the City of Santa Ana created by the City Council or created through its City Charter shall continue to meet virtually in accordance with Government Code section 54953(e) and witho ut compliance with section 54953(b)(3) based upon the findings and determinations hereby made by the City Council.

SECTION 4. The City Clerk shall attest to and certify to the passage and adoption of this resolution and it shall be effective immediately upon its approval.

ADOPTED this ____ day of September, 2022.

___________________________
Vicente Sarmiento
Mayor

APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By: ________________________
Laura A. Rossini
Chief Assistant City Attorney

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Resolution 2022-XXX

AYES: Councilmembers

NOES: Councilmembers

ABSTAIN: Councilmembers

NOT PRESENT: Councilmembers

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022- ___ to be the original Resolution adopted by the City Council of the City of Santa Ana on _____________, 2022.

Date: ___________________ ____________________________

Clerk of the Council
City of Santa Ana

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Community Development Agency
www.santa-ana.org/departments/community-development/
Item # 25
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: First Amendment to Agreement with RSG, Inc.

AGENDA TITLE:

Approve a First Amendment to the Agreement with RSG, Inc. for the Administration, Management and Implementation of the Rent Stabilization and Just Cause Eviction Ordinances on an As–Needed Basis in an Amount not to exceed $500,000

RECOMMENDED ACTION

1. Authorize the City Manager to execute a First Amendment to the Agreement with RSG, Inc., for the administration, management and implementation of the Rent Stabilization and Just Cause Eviction Ordinances, for a one-year term beginning on September 6, 2022, in a total amount not to exceed $500,000, subject to non- substantive changes approved by the City Manager and City Attorney.

2. Authorize the City Manager to reallocate up to $500,000 from the Revive Santa Ana Spending Plan to pay for the administration, management and implementation of the Rent Stabilization and Just Cause Eviction Ordinances that will be provided by RSG, Inc.

DISCUSSION
On September 21, 2021, the City Council authorized the City Manager to reallocate up to $300,000 from the Revive Santa Ana Spending Plan to create an Eviction Defense Fund by entering into an Agreement with a consultant for the administration, management and implementation of the Rent Stabilization and Just Cause Eviction Ordinances. At this same meeting, the City Council also adopted a Resolution (No. 2021-054) that directed staff to “conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability. These measures are to include the creation and operation of a Rent Board or similar body, a rental registry, and the related costs thereof.”
On October 19, 2021, the City Council adopted the Rent Stabilization Ordinance (“RSO”) (Ord. No. NS-3009) and the Just Cause Eviction Ordinance (“JCEO”) (Ord. No. NS-3010).

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First Amendment to Agreement with RSG, Inc.

September 6, 2022

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These two ordinances became effective November 19, 2021. The City’s RSO limits rent increases to a maximum of 3%, or 80% of Consumer Price Index, whichever is less, per year for certain residential rental units and mobilehome spaces in the City. The City’s JCEO provides “just cause” eviction protections for most tenants that continuously and lawfully occupy a residential real property or mobilehome space for at least 30 days. The JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant.

Following the City Council actions on September 21, 2021 and October 19, 2021, staff executed an Agreement with RSG, Inc. (“RSG”) on October 28, 2021 for a one-year term in a total amount not to exceed $300,000 to administer the City’s Rent Stabilization and Just Cause Eviction Ordinances, to further study the additional regulatory framework and infrastructure, and to provide general consulting services. As part of the initial and general implementation of the City’s Ordinances, RSG has been providing the following services:
•Creation and dissemination of informational materials. •Development and coordination of webinars for landlords and tenants. •Creation of landlord to tenant required notices in multiple languages. •Responding to general public information inquiries.
•Coordination of on-site meetings with residents regarding RSO and JCEO questions.
•Referrals for tenant legal matters and interpretation questions to community legal aid organizations, as needed.
•Creation of the Fair Return Petition application and review process. •Review of Fair Return Petitions.
•Outreach and education including periodically mailed communication, workshops, and website updates.
•Creation and continued revisions to the Frequently Asked Questions document available on the City’s website.
•Development of training materials for new City staff.
•Resident referrals to other City departments for assistance with emergency housing needs.

As of July 2022, RSG has assisted over 2,500 tenants and landlords since the two Ordinances were adopted. Flyers, frequently asked questions, and press releases have been circulated to the community. The City also regularly updates a website devoted to the ordinances, which includes related documents and announcements ( www.santa- ana.org/renterprotections). During the contract period, staff and RSG fielded calls from the public and provided information and education to renters and landlords on the City’s RSO and JCEO. A breakdown of the number of inquiries is as follows:

Month # of Inquiries
October 2021 34
November 2021 231
December 2021 215

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RSG also worked with the City to announce the amount of allowable rent increase to be effective as of September 1, 2022. Staff and RSG informed the public of programmatic updates via Nixle, social media, newsletters, and email distribution lists. A breakdown of the means of outreach is a follows:

The City, in collaboration with RSG, have also conducted the following community workshops to provide a general overview of the Ordinances:

The City Requires that when changing the terms of a tenancy, an owner must submit proof of service to the City as evidence that the owner has complied with noticing requirements. RSG has assisted with the documentation of the following notices:

January 2022 215
February 2022 203
March 2022 332
April 2022 161
May 2022 174
June 2022 111
July 2022 94
Total 1,770
Platform Individuals Reached
Nixle 12,576
Facebook 7,816
Instagram 4,551
Twitter 337
Nextdoor 916
Total 26,196
Date # of Attendees
November 17, 2021 34
December 8, 2021 55
December 22, 2021 44
January 11, 2022 38
January 25, 2022 19
February 23, 2022 17
April 29, 2022 66
July 20, 2022 26
August 11, 2022 63
August 25, 2022 50
Total 412

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First Amendment to Agreement with RSG, Inc.

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In order to conduct the further study as directed by the Resolution adopted on September 21, 2021, RSG also completed the following tasks:

1. Developed a comprehensive list of California jurisdictions with RSOs and/or JCEOs;

2. Researched and analyzed existing RSO and JCEO programs and best practices in selected jurisdictions; and

3. Provided recommendations for the City’s long-term implementation of the ordinances.

Following this research and study, a Long-Term Implementation Plan for the City’s Rent Stabilization and Just Cause Eviction Ordinances is being recommended to the City Council in a separate Staff Report and action. Either way, if City Council adopts or does not adopt the Long-Term Implementation Plan in the separate Staff Report and action, staff will still require the consultation services of RSG for the administration, management and implementation of the City’s Rent Stabilization and Just Cause Eviction Ordinances.

Therefore, staff recommends that the City Council approve a First Amendment to the Agreement with RSG for a one-year term beginning on September 6, 2022 in a total amount not to exceed $500,000 (Exhibit 1). To pay for this Agreement, staff is also recommending that the City Council reallocate $500,000 in the Revive Santa Ana Spending Plan to pay for the services that will be provided through this Agreement with RSG. The funds will be reallocated from the Resident Direct Assistance Program for this Agreement.

ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.

FISCAL IMPACT
Reallocation of up to $500,000 in Revive Santa Ana Spending Plan to enter into a First Amendment to the Agreement with RSG, Inc. for the administration, management and implementation of Rent Stabilization and Just Cause Eviction Ordinances. Funds will be available in Accounting Unit 18118013-62300. There is $2.9M available to be carried forward from FY 21-22.

Month # of Notices
February 2022 8
March 2022 13
April 2022 13
May 2022 117
June 2022 91
July 2022 51
Total 293

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First Amendment to Agreement with RSG, Inc.

September 6, 2022

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EXHIBIT(S)

1. First Amendment to Agreement with RSG, Inc.

Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager

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FIRST AMENDMENT TO CONSULTANT AGREEMENT

CITY OF SANTA ANA
THIS FIRST AMENDMENT to Consultant Agreement is entered into on September 6, 2022, by and between RSG, INC., a California corporation (“Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”).

RECITALS
A. The parties entered into the Consultant Agreement (A-2021-192-01) on October 28, 2021, by which Consultant agreed to administer the City ’s rent stabilization and just cause eviction ordinances, to further study additional regulatory framework and infrastructure, and to provide general consulting services (“Agreement”).

B. The parties now wish to amend the Agreement to extend the term of the Agreement, append to the Scope of Services, and increase the compensation to be expended under the Agreement to cover costs during the extended term.

NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of the Agreement, except as hereinafter modified, the parties agree to the following:

1. Section 1, Scope of Services , shall be amended to replace the Proposal attached to the Agreement as Exhibit A with the Proposal and Scope of Services attached herewith as Exhibit A-1.

2. Section 2(a), Compensation, shall be amended to increase the compensation for services provided under this Agreement by $500,000.00. The total amount to be expended during the term of this Agreement, including any extension period, shall not exceed $800,000.00.

The Fee Estimate provided in the Proposal attached to the Agreement as Exhibit A shall be replaced with the Fee Estimate in the Proposal and Scope of Services attached herewith as Exhibit A-1.

3. Section 3, Term, shall be amended to extend the Term of the Agreement for one (1) year from the Effective Date of this First Amendment, through September 6, 2023.

4. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect.
{signatures on following page}
EXHIBIT 1

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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above.

ATTEST CITY OF SANTA ANA

_______________________________ ______________________________

KRISTINE RIDGE
Clerk of the Council City Manager

APPROVED AS TO FORM RSG, INC.

SONIA R. CARVALHO
City Attorney

By:___________________________ _______________________________ Ryan O. Hodge Tara E. Matthews
Assistant City Attorney Tax ID# 95-3435849

RECOMMENDED FOR APPROVAL

________________________________
STEVEN A. MENDOZA
Executive Director
Community Development Agency

EXHIBIT 1

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EXHIBIT A-1

PROPOSAL AND SCOPE OF SERVICES

EXHIBIT 1

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Via Email
August 22, 2022

Judson Brown, Housing Division Manager
City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
Santa Ana, CA 92701

PROPOSAL – ADMINISTER THE CITY’S RENT STABILIZATION AND JUST CAUSE EVICTION ORDINANCES AND

PROVIDE TRAINING, STAFF SUPPORT, AND GENERAL CONSULTING SERVICES

RSG, Inc. welcomes the opportunity to provide the City of Santa Ana (“City”) with services related to the City’s Rent Stabilization and Just Cause Eviction Ordinances (“RSO” and "JCEO", respectively). It is our understanding that the City is seeking a consultant to provide administrative services for the City’s two adopted ordinances NS-3009 (RSO) and NS -3010 (JCEO). We also understand that it is the intent of the City to further refine the RSO and JCEO administrative process over the next nine to twelve months. The following details the scope of services RSG will provide, the project team, and the fee schedule.

SCOPE OF SERVICES

RSG will perform the following Scope of Services:

RSO and JCEO Administration

RSG is available to assist the City in the continued implementation of the City’s RSO program and JCEO, and to respond to public inquiries as needed.

• Content Creation – RSG can prepare ongoing RSO program and JCEO information for property owners and tenants, including:
• press releases,
• website content creation, including a list of Frequently Asked Questions (FAQs), • maximum allowable rent increase,
• letters to rental property owners, and
• fliers and handouts.

• Staff Support and Training – RSG will continue to provide administrative suppor t services to City staff and is available to prepare training materials and support as needed for use by City staff for program implementation. Additionally, and as needed by City staff, RSG can provide temporary staffing to answer questions of property ow ners and residents, both in person for walk -ins and appointments at City Hall or the Housing Authority (or another location best suited for the clientele), and via the dedicated phone line and email address. Depending on the availability of City staff and the volume of inquiries, the number of days and hours of in -person staffing will be adjusted accordingly.

• CPI Rent Increase Calculations – RSG will prepare and distribute allowable rent increase amounts to affected property owners pursuant to the procedures detailed in the RSO. CPI calculations determine the allowable percentage a property owner/landlord is allowed to increase a tenant’s r ent by. The EXHIBIT 1

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RSO states that this shall be the lesser of 3% per annum or 80% of the change in CPI.

• Workshops/Webinars - RSG can continue to conduct tenant, landlord, and community organization workshops. These workshops will be in -person and online in the form of a webinar. They will be recorded and made available on the City website for future reference. The workshops can be tailored to specific groups such as non-profits and tenants’ organizations that may assist renters with the RSO and JCEO, and proper ty owners and property managers. RSG will work with the City to provide translation for these workshop/webinars in Spanish and Vietnamese.

• Written Notices to Tenants and Landlords/Owners - RSG can work with the City Attorney to prepare and update required notices as identified in the ordinances as well as any ordinance amendment documents requiring notices to tenants and/or landlords as noted in RSO Section 8 -1998 and JCEO Section 8-1994.

• Tenant Complaints under RSO and JCEO – RSG will provide information to tenants regarding the provisions of the RSO and JCEO but will not be expected to assist the tenant any further regarding complaints or enforcement. Rather, tenants will be directed to contact an attorney that can file a civil suit if warranted. RSG will also assist with expanding the compliance activities following adoption of the Lon g-Term Implementation Plan and amendments to the RSO and JCEO.

• Preparing Fair Return Petition Analysis - RSG will review the Fair Return Petition Application and evaluate an applicant's request to increase rents above the amount automatically allowed under the RSO, in order to receive a fair and reasonable return. Per the RSO Section 8 -1998.3, the Fair Return Petition Application analysis will be provided to the City Manager for final review and approval.

RSO and JCEO Advisory and Implementation Services

RSG understands that the City would like to continue to evaluate potential improvements to the RSO and JCEO. RSG is available to conduct necessary research as directed, including but not limited to best practices and procedures of rent stabilization and just cause eviction ordinances in other communities. RSG is also available to implement any policies, procedures, or any potential modifications to the existing RSO and JCEO as directed by City Council. RSG can attend and participate in City Council and Staff meetings, as requested.

We are also available to conduct community outreach as needed.

RSG will be available to provide analysis, expert testimony, or other support to the City regarding any legal challenges to the RSO and JCEO.

RSG will assist the City with all of the recommendations and follow -up actions to implement the Long-Term Implementation Plan for the RSO and JCEO.

RSG is available to assist with the regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability, including the potential of an Eviction Prevention Program.

PROJECT TEAM

Tara Matthews will serve as the Managing Principal providing oversight for all aspects for the engagement and will be the primary consultant. She will be assisted by Cindy Blot, Senior Associate, who will serve as the project manager and Rebecca Riddle, An alyst. Other RSG staff may be assigned as needed. Resumes of staff are available at www.webrsg.com or can be provided upon request.

EXHIBIT 1

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REFERENCES

Mobilehome Park Fair Return Rent Adjustment Petition Administrative Services – City of El Monte

Contact: Alma Martinez, City Manager
City of El Monte
11227 Valley Boulevard, Suite 200
El Monte, CA 91731
626.580.2001 / [email protected]

RSG assists the City of El Monte with administration of the City’s Mobilehome Park Rent Stabilization Program by providing services as it pertains to the El Rovia Trailer Village, LLC Rent Increase Petition Review and MNOI Analysis. The scope of services includes the following:
• Petition Review – RSG reviews the Petition to ensure that it is complete and adheres with the Program guidelines and that all claimed expenses are eligible Program operating expenses.

Additionally, RSG verifies park revenues. Petition Review also includes preparing correspondence to the Park Owner informing them if their Petition has been accepted or rejected. Should a petition be rejected, RSG will detail the reason for the rejection to inform the Park Owner of any deficiencies. • Maintenance of Net Operating Income (“ MNOI”) Analysis - RSG calculates the MNOI and the proposed MNOI Entitlement pursuant to Section 8.70.080 of the Municipal Code. • Public Hearing – RSG attends public hearings as needed to answer an y questions that the public or Hearing Officers may have on our portion of the analysis. • Settlement Agreement Analysis – RSG evaluates the rent differences between the terms proposed in the Settlement Agreement versus the MNOI Analysis as needed.

Mobilehome Park Rent Control Program Administration – City of Carson

Contact: Saied Naaseh, Director of Community Development 701 E. Carson Street
Carson, CA 90745
310.952.1770 / [email protected]

Since 2017, RSG principal Tara Matthews has served as the City of Carson’s Interim Housing Program Manager.

In this role, she administers the City’s mobilehome park rent control program. The scope of services includes the following:
• Rent Increase Application Review and Processing – RSG reviews all applications submitted by park owners seeking either a capital improvement or a fair return rent increase. RSG ensures that each application is complete and adheres to the Program guidelines. This review includes closely evaluating each of the expenses submitted by the park owner to ensure that each reported expense is reasonable, accurate, and sufficiently documented. RSG’s work includes frequent communication with park owners and residents, as well as collaboration with the City’s legal counsel. • Resident Noticing - Once an application is deemed complete, RSG prepares required noticing for the park residents and is available to answer any question s that the park residents may have. RSG is available for on-site visits as needed to allow park residents an opportunity to review the application and ask in-person questions.
• Park Inspections – The processing of each application requires an inspection of the mobilehome park which entails visually inspecting the condition of the park (Fair Return) or verifying the completion and quality of improvements to the park (Capital Improvement). The findings of the inspection are included in the staff report present to the Mobilehome Rental Review Board (“B oard”). One of the City’s contract inspectors accompanies RSG at these inspections to provide expertise on the park conditions and improvements.

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• Public Hearing – RSG prepares the public hearing notices mailed to park residents. RSG also prepares the staff reports presented to the Board for consideration at the public hearings. Each staff report includes all material facts related to the application and outlines various rent increase options for the Board to co nsider. RSG attends all public hearings to present information to the Board and answer any questions posed by the Board.
• Staff Training – RSG created a manual and templates for staff to administer the annual CPI calculations.
• Point of Contact – RSG responds to general inquiries from park owners, park residents, and the general public regarding the City’s mobilehome park rent control program.

FEE ESTIMATE
Our services for this engagement would be charged on a time -and-materials basis. RSG proposes the below hourly rate schedule for these services.

Principal / Director $ 275
Senior Associate $ 200
Associate $ 185
Senior Analyst $ 150
Analyst $ 135
Research Assistant $ 125
Technician $ 80
Clerical $ 60
Reimbursable Expenses Cost plus 10%

RSG does not charge clients for travel or mileage (except direct costs related to field work/surveys), parking, standard telephone/fax expenses, general postage, or incidental copies. However, we do charge for messenger services, overnight shipping/express mail costs, and teleconferencing services. We also charge for copies of reports, documents, notices, and support material in excess of five (5) copies. These costs are charged back at the actual expense plus a 10% surcharge.

RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance.

Invoices identify tasks completed to date, hours expended and the hourly rate.

We appreciate the opportunity to provide these services to the City and should you have any questions, please contact Tara Matthews at 714.316.2111 or [email protected].

Thank you,

Tara E. Matthews
RSG, INC.

EXHIBIT 1

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Community Development Agency
santa-ana.org/cd
Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances
AGENDA TITLE:

Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances

RECOMMENDED ACTION

1. Adopt the Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances.

2. Authorize the City Manager and City Attorney to begin drafting amendments to the Rent Stabilization and Just Cause Eviction Ordinances based upon the Long-Term Implementation Plan.

DISCUSSION
On October 19, 2021, City Council adopted the Rent Stabilization Ordinance (“RSO”) (Ord. No. NS-3009) and the Just Cause Eviction Ordinance (“JCEO”) (Ord. No. NS-3010).

These two ordinances became effective November 19, 2021. The City’s RSO limits rent increases to a maximum of 3%, or 80% of Consumer Price Index, whichever is less, per year for certain residential rental units and mobilehome spaces in the City. The City’s JCEO provides “just cause” eviction protections for most tenants that continuously and lawfully occupy a residential real property or mobilehome space for at least 30 days. The JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant.

During the adoption of these two new ordinances, City Council also adopted a Resolution (No. 2021-054) that directed staff to “conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability.

These measures are to include the creation and operation of a Rent Board or similar body, a rental registry, and the related costs thereof.” This Resolution is attached as Exhibit 1. In order to conduct this further study, the City retained RSG, Inc. (“RSG”) to complete the following tasks:

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Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances
September 6, 2022

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1. Develop a comprehensive list of California jurisdictions with RSOs and/or JCEOs;

2. Research and analyze existing RSO and JCEO programs and best practices in selected jurisdictions; and

3. Provide recommendations for the City’s long-term implementation of the ordinances.

RSG’s Long-Term Implementation Plan is attached as Exhibit 2. To create this Plan, RSG researched and interviewed seven (7) of twenty-three (23) jurisdictions across the State with RSO and/or JCEOs to understand their program requirements, administrative structure and resources, program revenue and expenses, program compliance, and best practices that the City should consider for its Long-Term Implementation Plan. Based upon this research, RSG created a Long-Term Implementation Plan with ten (10) recommendations for the implementation of the City’s Rent Stabilization and Just Cause Eviction Ordinances. These ten (10) recommendations for the City’s Long-Term Implementation Plan are summarized below:

1. Create a Rental Housing Board
The first recommendation is to create a Rental Housing Board. A Rental Housing Board is an appointed body that is responsible for RSO and JCEO program administration. Of the 23 jurisdictions across the state with ordinances, RSG found that 65% have Rental Housing Boards or Commissions that help guide their program and review decisions, including all seven (7) Sample Jurisdictions interviewed. Rental Housing Boards generally preside over hearings and appeals, provide enforcement of the ordinances, and make recommendations for pertinent changes to the ordinance(s). The standard size of these boards range between five (5) to nine (9) members who are typically appointed by the Mayor and/or City Council and are required to be equally balanced between landlords, tenants, and at-large representatives. The board will have equity and balance between landlords and tenants. RSG’s Long-Term Implementation Plan provides detailed information of the membership and scope of work of the Rental Housing Board in each Sample Jurisdiction. Examples of achieving a balanced board composition include:
•5 members appointed by the Mayor and approved by City Council including 2 Tenants, 2 Housing Providers, and 1 Residential Property Owner but not Housing Provider. (City of Alameda)
•6 members and 3 alternates appointed by City Council including 2 Landlords, 2 Tenants, and 2 members who are not tenants or managers or have financial interest in multi-family residential rental property. (City of Beverly Hills) •5 members appointed by the mayor and approved by City Council including 2 Landlords, 2 Tenants, and 1 City employee. (City of Inglewood) Staff recommends creating a 7-member board appointed by City Council including 2 Tenants, 2 Landlords, and 3 at-large members with no financial interest.

Staff would be responsible for reviewing petition materials, analyzing information, and preparing staff reports that would be presented to the Rental Housing Board to make determinations within their authority. However, any changes to the RSO or JCEO would

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remain with the City Council together with their general financial oversight in the City’s budget. The Rental Housing Board would be formed after staff begin collecting a rental registry fee such that there is sufficient funding for staff to support the board.

2. Create a Rental Registry
The next recommendation is to create a rental registry. A rental registry is a database where landlords register rental properties, update rental unit information, update tenancy information, and pay annual rental registry fees. At its core function, rental registries allow tenants, landlords and city staff to know which rental units are covered under the RSO and JCEO (e.g. rent-stabilized units). Currently, the City does not collect any rent or tenancy data for individual rental units. This means the City cannot confirm or deny which specific units are covered under the RSO and JCEO and which units are exempt – an essential public service for any jurisdiction administering these ordinances on behalf of tenants and landlords.

In their analysis of seven (7) Sample Jurisdictions, RSG concluded that a rental registry is the most important tool used by jurisdictions to implement their ordinances. A rental registry would allow the City to compile key data on rent-stabilized units, track allowable rent increases, monitor compliance with the City’s RSO and JCEO, and communicate rental unit data on a regular basis to both landlords and tenants. RSG found that of the 23 jurisdictions across the state with ordinances, 87% require landlords to register rental units within a rental registry and have a rental registry fee, including all seven (7) Sample Jurisdictions interviewed.

A rental registry provides the following benefits to both tenants and landlords:
•Landlords and tenants will be able to regularly access and verify their units’ rental information, increasing transparency.
•A rental registry will eliminate doubt regarding which units are covered under the ordinances.
•Additional support will be available for mediating disputes and settling matters outside of the Court system, resolving issues more quickly and efficiently. •Staff will be able to communicate with both landlords and tenants more effectively, which will allow both parties to better understand their rights and responsibilities under the RSO and JCEO.

3. Adopt a Rental Registry Fee
In order to create a rental registry and pay for the costs to administer the ordinances, the City will need to adopt a rental registry fee. This fee would be collected from landlords across the city on an annual basis, similar to the City’s current Proactive Rental Enforcement Program fee. A rental registry fee is collected to offset and cover 100% of the cost of administering the ordinances, including maintaining the rental registry, program administration, and compliance activities. This fee ensures that the program is completely cost-neutral to the City (e.g. 100% cost recovery) with no impact to the City’s General Fund. In their research of Sample Jurisdictions, RSG found that rental registry fees average approximately $195 per unit, and that many of the Sample Jurisdictions

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used a consultant to conduct a fee study to determine the rental registry fee amount.

However, the exact rental registry fee for the City will not be known until after a work plan is created (Recommendation # 4) and a fee study is conducted (Recommendation # 5).

Based upon the fee study, the rental registry fee will be set as conservatively as possible to reduce financial impacts on tenants and landlords. Specifically, the fee will be as low and lean as possible so as to not create an unnecessary burden on tenants and landlords.

Where staff can identify opportunities to contract out for services to keep the fee and costs as low as possible, staff will enter into consultant agreements. Staff will also identify ways to build upon other existing activities across the city to administer the ordinances. Staff intends for this fee to have a minimal financial impact on tenants and landlords. The fee study and ultimately the rental registry fee itself will be guided by these principles.

RSG found that the program surplus and deficits varied on an annual basis in the Sample Jurisdictions that were surveyed. Years in which the programs operate at a deficit will be subsidized by the City. Years in which the program collects a revenue surplus can be addressed by holding the funding as reserves to account for future deficits, as well as reducing the rental registry fee in the subsequent fiscal year. Staff will prepare annual financial reports summarizing budgeted expenses, actual expenses, revenue, and reserves, if any.

In addition, the City will allow landlords to pass-through no more than 50% of a unit’s rental registry fees to the tenant as a rent surcharge prorated over twelve months.

Allowing for the cost sharing of the rental registry fee appears to be an industry standard, with the intention of promoting equity and shared responsibility amongst tenants and landlords. For example, if 50% of the registry fee is passed through to the tenant, and the total rental registry fee amount is $180, $90 would be passed-through to the tenant.

When this is divided by 12 months, it equals an additional $7.50 per month for the City to monitor and ensure compliance for the tenant’s rent stabilized unit. The rental registry will be used to communicate the pass-through fee in a user-friendly system. Staff will also monitor landlord’s compliance with charging their tenants this pass-through fee in order to mitigate the risk of landlords charging their tenants 100% of the rental registry fee.

RSG identified other considerations to be taken into account in regards to a rental registry fee. For example, the City may establish a fee for fully and partially covered units and/or make certain units exempt from paying a rental registry fee. Generally, a fully covered unit refers to rental units where both the RSO and JCEO apply, and partially covered units refer to units where only the JCEO applies. The City may also consider making certain units exempt from paying the rental registry fee, such as rental units occupied by rent- subsidized tenants (e.g. Housing Choice Voucher / Section 8).

4. Develop a Work Plan
Providing staff for a Rental Housing Board (Recommendation #1), creating a rental registry (Recommendation # 2), and collecting rental registry fees (Recommendation # 3), will be included in an overall work plan to administer the ordinances. The City currently

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administers the RSO and JCEO through a consultant, RSG, and partial staff time from a Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney.

Before adopting a rental registry fee, staff will need to develop a work plan detailing and itemizing exactly how the RSO and JCEO will be administered (e.g. how the fee will be used). In their research of Sample Jurisdictions, the following services were provided as best practices to effectively implement rent stabilization and just cause eviction ordinances:
•Annual Registration – Process registration fees for the rental registry, maintain rental registry, and send annual notices of maximum allowable rent increases. •Compliance – Process notices of violations and complaints, send notices of non- compliance to landlords, and pursue compliance activities as necessary for non- compliant properties.
•Evictions/Termination of Tenancy – Review notices of eviction/termination of tenancy to ensure compliance with the JCEO.
•Hearings and Appeals – Process hearings for appeals to rent amounts and petitions. This includes communicating with the tenants and landlords involved, collecting supporting documentation, coordinating with the Rental Housing Board, and writing letters of determination.
•Housing Counseling/Mediation – Provide tenant and landlord housing counseling and mediation services.
•Petitions – Receive, review, and analyze data to provide decisions on petitions, subject to appeal.
•Public Information – Provide customer service to inquiring tenants and landlords and conduct on-going community outreach and education.
•Rental Housing Board Administration – Facilitate regular meetings and complete administrative tasks related to the Rental Housing Board.

Taking into account all of these best practices, a work plan will be prepared and provided to an outside consultant to conduct a fee study to determine the rental registry fee. A detailed budget to match the work plan would also be included in the process to develop a rental registry fee. The work plan will account for the principles surrounding the rental registry fee and the most cost-effective way to implement the long-term implementation plan, including the consideration of setting the fee as low and lean as possible, utilizing consultants, and building upon other services across the city.

5. Conduct a Fee Study Based on the Work Plan and Staffing Needs Next, a fee study will be conducted based upon the work plan (Recommendation # 4) and staffing needs identified. Based on their research of seven (7) Sample Jurisdictions, RSG found that the overall program budget is largely related to the number of units in a rental registry and the services provided. Santa Ana has approximately 36,350 rental units that may be subject to registration in the rental registry. A fee study will account for the number of units that may be included in the rental registry and the proposed budget based on the work plan to determine the fees required to fully recover costs of all budgeted operations (e.g. 100% cost recovery). Using an average rental registry fee per unit for all Sample Jurisdictions of $195 and 36,350 rental units in Santa Ana, RSG estimates that the City

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could potentially collect approximately $6.7 million annually for a fully operating program.

Currently, the City’s ordinance costs over $300,000 per year and will increase to $500,000 in the next fiscal year with no cost recapture. The fee study will account for the most cost- effective way to implement the long-term implementation plan, including the consideration of utilizing consultants. The results of the fee study will be used to establish the amount of the rental registry fee to be collected from landlords and tenants (Recommendation # 3).

The Sample Jurisdictions provided information on the staffing needed to effectively implement their ordinances and emphasized that staffing plans are constantly evolving based on annual analysis of the rental registry fees expended and collected for departmental operations since the inception of their programs. RSG’s Long-Term Implementation Plan includes organizational charts for a few of the Sample Jurisdictions.

In order to effectively implement the Long-Term Implementation Plan, staff estimates a minimum of 12 staff members would be needed upon initial program implementation. By completing a fee study and analyzing annual data after program inception, the City will be able to produce a financial projection of revenue, expenses, and reserves for a fully operational program.

6. Expand Compliance Activities
The next four recommendations for the Long-Term Implementation Plan are important activities to consider as part of the work plan (Recommendation # 4) and fee study (Recommendation # 5). The City’s RSO and JCEO currently states the following if any person is in violation, “It shall be unlawful for any person to violate or fail to comply with any provision of the ordinance. The violation of any provision of this ordinance shall first be punished through the use of an administrative citation, as provided in Santa Ana Municipal Code section 1-21, et. seq., prior to prosecution as a misdemeanor infraction”.

Currently, there are limited resources within the City that can adjudicate a dispute over tenant/landlord issues or concerns, short of the Court system, which can be time- consuming and costly. Identifying how the RSO and JCEO will be monitored for compliance will allow the City to more effectively uphold the provisions of the ordinances.

The positive impacts of the RSO and JCEO programs are directly correlated to effective monitoring of compliance with the ordinances. Furthermore, some Sample Jurisdictions mentioned that staffing capacity and resources were the major drivers in their ability to proactively enforce violations of the ordinances.

An analysis of the existing best practices and programs administered by Sample Jurisdictions determined that effective compliance activities include issuing notices and warnings in response to complaints and reported information in the rental registry, increasing staffing to issue citations and pursue criminal offenses, and contracting with a mediator to improve landlord-tenant relationships, among other activities.

7. Create a Landlord Capital Improvement Petition and Tenant Petition Generally, there are three types of petitions: 1) landlord fair return petitions, 2) landlord capital improvement petitions, and 3) tenant petitions. Currently, the City’s RSO only has

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one type of petition, fair return petitions for landlords with capital improvements included.

This fair return petition allows for relief from the maximum allowable rent increase, provided there is evidence that a rate increase in excess of the annual maximum is necessary to provide a fair and reasonable return for their property.

A landlord capital improvement petition is a request by a landlord to pass-through costs associated with certain capital improvements. A capital improvement is one that materially adds to the value of the property (this is often detailed as a specific amount in the ordinance), appreciably prolongs its useful life, or adapts it to new uses, and which may be amortized over the useful life of the improvement of the building. Creating a capital return petition is beneficial because it incentivizes landlords to improve their property knowing they can pass through some of these costs to their tenants. In general, a landlord capital improvement petition would allow a landlord to temporarily increase rents to recover the cost of capital improvements when the improvement(s) benefit the units in question and the improvement(s) were not necessitated by the current landlord’s neglect or failure to maintain the property.

The RSO states that the provisions of the ordinance do not apply to residential real property in which each of the units have been substantially rehabilitated within the previous 15 years. "Substantially rehabilitated" means that the cost to rehabilitate the residential real property was at least $40,000 per unit. Creating a landlord capital improvement petition will clear up who is responsible for approving this type of exemption in the ordinance by requiring substantive documentation of the work performed at the property.

A tenant petition is a request by tenants to assert a claim against a landlord. Examples include a decrease in rent due to a substantial decrease in housing services, failure to repair or maintain a unit, or failure to discontinue a capital or utility pass-through. Creating a tenant petition is beneficial because it gives tenants an administrative tool to address excess rent based on conditions of the rental unit, reduction in services, issues of habitability, and landlord violations of the ordinance outside of the legal system. These petitions are also beneficial for staff to monitor compliance with the ordinance and help maintain current rental data in the rental registry.

8. Establish Petition Fees and a Petition Review Process Currently, the City’s ordinance requires applicants to pay for the cost of a consultant to review fair return petitions. As a component of the fee study (Recommendation # 5), staff will assume the rental registry fee will fully cover the costs to review each type of petition while keeping the rental registry fee as low as possible. Staff do not want to layer a petition fee on top of the rental registry fee. The administrative work of reviewing and determining petition status varies widely, and as such, these costs will be included in the rental registry fee with a nominal petition deposit. By incorporating the petition fee into the rental registry fee, this will streamline the administration of the ordinance, while a nominal deposit will ensure landlords and tenants share a minimum responsibility for their petitions. The

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nominal deposit for landlords could be staggered based upon the number of units they own.

Additionally, the City’s ordinances currently place the decision-making responsibility for fair return petitions on the City Manager or a designee. Understanding that petitions require lengthy administrative work, communication with landlords and tenants, as well as processing time, staff will determine the most efficient use of time and resources for reviewing each type of petition. In their research of Sample Jurisdictions, RSG found that the decision-makers for petitions and appeals most commonly range from internal hearing officers, to contracted hearing officers/examiners, or the Rental Housing Board.

9. Create a Mediation Process
Mediation is defined as “a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable agreement.” Mediation differs from the conventional adversarial legal process by focusing on mutual agreement instead of trying to fight and argue against the other party in court.

RSG found that mediation is beneficial as a supplement to RSO and JCEO programs in that:
•Mediation generally lasts a shorter amount of time than a trial; •Mediation can be confidential such that nothing that is said during mediation can be used in court if mediation fails; and
•Mediation is generally more cost-effective and reduces the number of hearings.

For example, the City of Santa Monica provides voluntary mediation for rent decrease petitions, excess rent complaints, and other matters not raised by a petition. Mediation was successful during their fiscal year 2021 in which 61% of decrease petitions, 92% of construction petitions, and 92% of excess rent complaints were mediated and fully or partially resolved. Staff will develop a mediation program with contracted mediators to address landlord and tenant disputes that do not involve landlord violations. Mediation will be a public service offered to tenants and landlords as an alternative to escalating issues to the Rental Housing Board.

10.Join the Rent Stabilization Consortium
The Rent Stabilization Consortium is a group of representatives from California cities with rent stabilization programs. This consortium provides opportunities to discuss challenges, successes, and collaborate with other cities on the topic of rent stabilization. In their research of Sample Jurisdictions, RSG found an emphasis on the positive impact of being a member of the consortium. Staff will participate in the consortium to further opportunities for collaboration and knowledge of best practices for administering RSO and JCEO programs.

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Next Steps
Following adoption of this Long-term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances, staff will return and request City Council to:

1. Adopt amendments to the Rent Stabilization and Just Cause Eviction Ordinances, including the creation of a Rental Housing Board and a rental registry, among various other amendments.

2. Authorize staff to conduct a fee study to establish a rental registry fee to cover program administrative costs.

3. Authorize staff to contract with a consultant to implement a rental registry.

The following estimated timeline of activities is provided below:

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBITS

1. Resolution No. 2021-054

2. Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager

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RESOLUTION NO. 2021-054

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

ANA DIRECTING FURTHER STUDY OF THE ADDITIONAL

REGULATORY FRAMEWORK AND INFRASTRUCTURE

NECESSARY TO IMPLEMENT RESIDENTIAL RENT

STABILIZATION, JUST CAUSE EVICTION, AND OTHER

PROTECTIONS FOR RESIDENTS FACING HOUSING

INSTABILITY
WHEREAS, a shortage of decent, safe, affordable, and sanitary housing exists in the City of Santa Ana, causing the displacement of long-term residents, 54% of whom are renters according to the 2019 American Community Survey; and WHEREAS, eviction creates extreme hardships for individuals and households of limited means in Santa Ana, given the shortage of affordable housing within the City and Orange County in general; and
WHEREAS, the COVID-19 pandemic has taken an enormous physical, economic, and psychological toll on the residents of Santa Ana, many of whom are lower-income renters experiencing either reduction of work hours and job loss, or heightened risk of contracting COVID-19 where they have continued to work in service-sector and other positions that cannot be performed from home; and
WHEREAS, the City of Santa Ana, with a majority Latino population, has experienced nearly 50,000 confirmed COVID-19 cases, the highest in Orange County, and over 800 deaths from COVID-19, leading to even greater housing instability; and WHEREAS, housing instability threatens the public peace, health, and safety, because eviction from one's home can lead to prolonged homelessness, increased residential mobility, loss of community, strain on household finances due to the necessity of paying rental application fees and security deposits, stress and anxiety experienced by those displaced, increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work, and interruption of the education of children in the home; and
WHEREAS, since 2016, the Santa Ana City Council has considered and received public testimony at multiple meetings from residents threatened by eviction without good cause and rapidly escalating rental rates who have advocated for the adoption of rent stabilization and just cause eviction regulations, among others; and WHEREAS, displacement from eviction has been an acute risk for many tenants in Santa Ana, who are largely Latino and work in occupations most impacted by the COVID-19 pandemic; and
Resolution No. 2021-054

EXHIBIT 1

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WHEREAS, the financial impacts of displacement include, but are not limited to, packing, moving, temporary housing, application for new housing, and storage costs, as well as lost wages and time due to taking time off work; and WHEREAS, landlords often require that prospective tenants pay the equivalent of three months' rent up front to secure a lease-generally representing the first and last month's rent, and a security deposit, the total of which can exceed $10,000 and can frequently reach $20,000 or greater; and
WHEREAS, renter households are more likely to be low-income than the households of families who own their homes; and
WHEREAS, a household is generally rent-burdened if it spends more than 30% of its gross income on housing costs, and according to the 2019 American Community Survey, 58.5% of all renter households in the City of Santa Ana are either moderately or severely rent burdened; and
WHEREAS, renters in Santa Ana were protected from eviction for nonpayment of rent due to COVID-19 through September 30, 2020, by City Executive Order No. 10-2020 and remain similarly protected by state law but only through September 30, 2021; and WHEREAS, within the confines of existing state law, including the Costa-Hawkins Rental Housing Act and the Tenant Protection Act of 2019, the City of Santa Ana is presently taking steps to restrict rental increases and grounds for eviction in response to the above concerns; and
WHEREAS, these protections are designed to exceed those offered by state law wherever permissible and also to apply to mobilehome owners, as the City is home to 29 mobilehome home parks containing 3,913 spaces, most of which are owned or inhabited by low-income or fixed-income seniors and families; and WHEREAS, the concerns identified above related to housing instability warrant the further study of additional framework and infrastructure to optimize the implementation of related measures, including without limitation the creation of a Rent Board or similar body.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows:

Section 1. City staff is hereby directed to conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability.

Section 2. These measures are to include the creation and operation of a Rent Board or similar body, a rent registry, and the related costs thereof.

Resolution No. 2021-054

EXHIBIT 1

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Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution.

ADOPTED this 2151 day of September, 2021.

APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney
By: (1,.L �-f---L
�unk
Sr. Assistant City Attorney
Vicente Sarmiento
Mayor
AYES: Councilmembers Hernandez, Lopez, Phan, Sarmiento (4) NOES: Councilmembers Bacerra, Mendoza, Penaloza (3)
ABSTAIN: Councilmembers '""'N"""o"'""'ne-'--'-(0""') __________ _ NOT PRESENT: Councilmembers _N�o"'""'ne�<0�) __________ _

CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-054 to be the original resolution adopted by the City Council of the City of Santa Ana on September 21, 2021.

Da�'
a Clerk of the Council
City of Santa Ana
Resolution No. 2021-054

EXHIBIT 1

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August 29, 2022

City of Santa Ana
Long-Term Implementation Plan for the
Rent Stabilization and Just Cause
Eviction Ordinances
EXHIBIT 2

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13 9/6/2022

TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................... 1 TENANT PROTECTIONS ....................................................................................................... 2 EXISTING RSO AND JCEO PROGRAMS ............................................................................. 3 Overview of Sample Jurisdictions’ RSO and JCEO Programs ............................................. 4 Rental Housing Board ...................................................................................................... 4 Rental Registry and Fee ................................................................................................... 6 Program Administration .................................................................................................. 11 Compliance Activities ..................................................................................................... 14 Petitions.......................................................................................................................... 16 Other Notable Program Design Recommendations ....................................................... 20 PROGRAM DESIGN RECOMMENDATIONS ....................................................................... 21

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List of Tables
Table 1: Sample Jurisdictions ................................ ................................ ................ 3 Table 2: Sample Jurisdictions’ Rental Housing Board ................................ ............ 4 Table 3: Sample Jurisdictions’ Rental Registry ................................ ...................... 7 Table 4: Sample Jurisdictions’ Program Administration ................................ ....... 11 Table 5: Sample Jurisdictions’ Compliance Activities ................................ ........... 14 Table 6: Sample Jurisdictions’ Petitions ................................ ............................... 17 Exhibit A: Summary of All Jurisdictions with Rent Stabilization Ordinances ........... 23 Exhibit B: Sample Jurisdictions Organizational Charts ................................ ........... 25

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1 1

INTRODUCTION
On October 19, 2021, the Santa Ana City Council (“City”) adopted two tenant protection ordinances – the Rent Stabilization Ordinance (“RSO”) (Ord. No. NS -3009) and the Just Cause Eviction Ordinance (“JCEO”) (Ord. No. NS-3010), which became effective November 19, 2021:

 The City’s RSO limits rent increases to a maximum of 3%, or 80% of CPI, whichever is less, per year for certain residential rental units and mobilehome spaces in the City (Santa Ana Municipal Code section 8-1998.1).
 The City’s JCEO provides “just cause” eviction protections for most tenants that continuously and lawfully occupy a residential real property or mobilehome space for at least 30 days. The JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant (Sec. 8-1994).

On September 21, 2021, the City adopted a resolution that “directed [staff] to conduct further study of the additional regulatory framework and infrastructure necessary to implement residential rent stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability.

These measures are to include the creation and operation of a Rent Board or similar body, a rental registry, and the related costs thereof.” In order to conduct this study, the City retained RSG to complete the following tasks:

1. Develop a comprehensive list of California jurisdictions with RSO and/or JCEOs;

2. Research and analyze existing RSO and JCEO programs and best practices in selected jurisdictions; and

3. Provide recommendations for the City’s long-term implementation of the programs.

This report details RSG’s analysis, findings, and recommendations.

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TENANT PROTECTIONS
The topic of tenant protection in California is not new and has been around for decades. Many jurisdictions throughout the years have established rent control ordinances. Established in 1995, the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.50, et seq.) limit s the kind of rent control p olicies cities can impose by preventing cities from establishing rent restrictions on units constructed after 1995, protecting a landlord's right to raise the rent to market rate on a unit once a tenant moves out, and exempt ing single-family homes and cond os unless they are owned by a corporation or real estate investment trust. The Costa-Hawkins Rental Housing Act prohibits vacancy control on residential properties and exempts certain kinds of units (e.g., new construction, single units with separately alienable titles, like single-family houses and condominiums) from rent control.

Housing costs in the State of California continue to rise and many tenants are experiencing significant rent increases and/or evictions. Recognizing th is issue, the State Legislature enacted the Tenant Protection Act (Assembly Bill 1482, California Civil Code Section 1946.2, et seq.) which will be effective for 10 years from its effective date, through December 31, 2029 1. The Tenant Protection Act put in place a statewide rent stabilization cap that limits annual increases at 5%, plus any rise in the Consumer Price Index (“CPI”), not to exceed 10%. In addition to limiting annual rent increases, the Tenant Protection Act also provides tenant protections that prevent tenant evictions without just cause when all tenants have lived in the unit for 12 months or more, or where at least one tenant has occupied the unit for 24 months.

Excluding the City, twenty-three (23) jurisdictions in California have rent stabilization ordinances. Of these jurisdictions, nineteen (19) ordinances only apply to residential units and four (4) apply to both residential units and mobilehome park spaces.

Some characteristics vary amongst rent stabilization and just cause eviction programs, but of the twenty-three (23) jurisdictions:

 Twenty (20) jurisdictions require landlords to register rental units within a rental registry and have a registration fee that landlords are required to pay; and  Fifteen (15) jurisdictions have rent review boards or commissions that help guide the program and review decisions.

The protections provided in these ordinances are more restrictive, or provide greater benefits to tenants, than those set forth in the Tenant Protection Act. Exhibit A includes a summary of all the jurisdictions in the State of California with rent stabilization ordinances.

1 Assembly Bill 1482, Chapter 597

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EXISTING RSO AND JCEO PROGRAMS
In May 2022, RSG researched existing RSO and JCEOs and their associated programs in seven (7) of the twenty-three (23) jurisdictions to understand program requirements, administrative structure and resources, program revenue and expenses, program compliance, and identify best practices that the City should consider in its long-term implementation of the programs. After researching each program, RSG interviewed staff from each of the jurisdictions to gather pertinent anecdotal information that is not publicly available.

RSG selected the seven (7) jurisdictions based on the following criteria (“Sample Jurisdictions”):

 Preference for jurisdictions with both a rent stabilization and just cause eviction ordinance;  Similar number of approximate rental units as the City (40,000); and  Ordinance(s) applies to both Residential and Mobilehome units.

Table 1 below lists the seven Sample Jurisdictions that RSG identified and includes a comparison of each jurisdiction to the City’s ordinances.

Table 1: Sample Jurisdictions
Source: City Ordinances, May 2022

Jurisdiction Ordinance Year Approved By Just Cause
Eviction Ordinance
Allowable Rent
Increase

1. Alameda 2019 City Council Yes 70% of CPI, not
to exceed 5%

2. Berkeley 1980 Voter Yes 65% of CPI

3. Beverly Hills 1979 City Council Yes
3% or CPI,
whichever is
higher

4. Inglewood 2019
City Council Yes
3% or CPI for
properties with
greater than 5
units, and 5%
plus CPI for
properties with
less than 5 units

5. Richmond 2016 Voter Yes 100% of CPI

6. Santa Monica 1979 Voter Yes 75% of CPI

7. West
Hollywood 1985 City Council Yes 75% of CPI

8. Santa Ana 2021 City Council Yes
3% or 80% of
CPI, whichever is
less

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4 4
Overview of Sample Jurisdictions’ RSO and JCEO Programs The Sample Jurisdictions’ RSOs, JCEOs, and their associated programs vary in terms of program goals and design, thus representing different design options for the City. The following section summarizes each of the key components of the Sample Jurisdiction programs and is organized by topic rather than a summary of each jurisdiction. Based on our research, RSG discovered that most jurisdictions administer the two programs collectively and do not run them as separate programs since both programs are meant to protect tenants. For our summar y and recommendations , the information presented illustrates the combined programs.

Rental Housing Board
Each of the Sample Jurisdictions have a selected body that is responsible for rent stabilization program administration, which is generally described as a Rental Housing Board, Commission, or Commit tee.

For the purposes of this report, RSG refers to this appointed body as a Rental Housing Board. Table 2 presents a summary of the Sample Jurisdictions’ Rental Housing Board.

Table 2: Sample Jurisdictions’ Rental Housing Board
Jurisdiction Board Name Members Scope of Work
Alameda
Rent Review
Advisory
Committee
5 members appointed
by the Mayor and
approved by City
Council
 2 Tenants
 2 Housing Providers
 1 Residential
Property Owner but
not Housing
Provider

 Review requests from
tenants concerning rent
increases
 Hold hearings for requests
for a rent increase review
 Make recommendations to
the tenants and their
housing providers about
the increases

Berkeley
Rent Board (with
a number of
Committees)

9 Commissioners
elected by voters
 Must submit a
verified statement of
their interests and
dealings in real
property during the
previous three years

 Implement and oversee
program
 Enact regulations
 Hearing petition appeals
filed by tenants and
landlords
Beverly Hills Rent Stabilization
Commission

6 members and 3
alternates appointed by
City Council
 2 Landlords
 2 Tenants
 2 members who are
not tenants or
managers or have
 Make recommendations to
the City Council
concerning amendments
to chapters of the Code
that have not been
resolved by the City
Council
 Perform any other
functions that may be

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financial interest in
multi-family
residential rental
property

designated by resolution
or motion of the City
Council
Inglewood

Rental Housing
Board
5 members appointed
by the mayor and
approved by City
Council
 2 Landlords
 2 Tenants
 1 City employee

 Review applications
submitted by landlords or
tenants
 Establish policies and
procedures for
administration and
compliance of the program
 Conduct hearings on
petitions filed or appeals
of decisions of a Hearing
Officer filed

Richmond
Rent Board
5 members, appointed
by the Mayor subject to
three additional votes by
City Council members
 Shall be no more
than two members
that own or manage
any rental property
or are realtors

 Establish Base Rent
 Make adjustments in rent
increases and decreases
 Establish rules and
regulations
 Charge and collect
registration fees
 Collect/receive copies of
landlord notices
 Refer violations to
appropriate authorities

Santa Monica Rent Control
Board
5 elected
Commissioners

 Controlling residential
rents
 Limiting the grounds for
eviction
 Preserving rental housing
 Encouraging maintenance
 Ensuring landlords receive
a fair return

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20 9/6/2022

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Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022

Program Design Recommendations
The City should consider the following as part of their long-term implementation of the RSO and JCEO programs:

1. Create a Rental Housing Board – Currently, the City does not have a Rental Housing Board.

All Sample Jurisdictions with an ordinance that was approved by their City Council appoint members to the Rental Housing Board. Half of the Sample Jurisdictions boar ds are appointed by the Mayor and the other half by City Council. These appointees are typically required to be stakeholders in their respective jurisdiction’s residential rental market and are required by city code to be equally balanced between landlords and tenants. The standard size of these boards range between five (5) to nine (9) members with a median of five (5). The City will need to determine if the Mayor or City Council will appoint members to the board.

Across all Sample Jurisdictions, the rent boards typically preside over hearings and appeals, monitor compliance with the ordinances through differing methods, and make recommendations for pertinent changes to the regulations regarding the ordinance(s). The City’s RSO currently gives the City Manager or designee the authority to approve or deny fair return petitions or any other matters. By creating a Rental Housing Board, a board composed of representatives from the community would hear all appeals of decisions made by the authorized designee. St aff would review petition materials, analyze information, and prepare staff reports that would be used by the Rental Housing Board to make a determination. Any changes to the RSO or JCEO ordinances would remain with the City Council along with the financial oversight.

Rental Registry and Fee
A rental registry is a database where landlords register rental properties, update rental unit information, update tenancy information, and pay annual rent registration fees as may be required by RSO and/or JCEO program s. Most systems also allow landlords and tenants to file and submit required documentation and verify coverage under the programs. Rental registries allow tenants, landlords and West Hollywood Rent Stabilization
Commission
7 members who shall be
residents of the city.
 Each member of the
City Council shall
appoint one member
of the Commission.
 The Council as a
whole will appoint
the remaining two
members.

 Responsible for
promulgating policies,
rules, forms, or regulations
found necessary to
implement the program
 Hear all appeals of
decisions by a hearing
examiner
 Submit an annual written
report to the City Council
describing its activities.
 Evaluate and make
recommendations to the
City Council relative to the
city’s rent stabilization
policies.

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city staff to know which rental units are covered under the RSO (e.g. rent-stabilized units). 1 Rental registries increase transparency for rental units by providing a way to collect rental unit data and track changes including rent increases, vacancies, notices, and violations. All seven (7) Sample Jurisdictions have a rental registry and six (6) of the seven (7) require landlords to pay an annual registration fee.

The one (1) jurisdiction that does not currently have a fee is planning to conduct a fee study to establish a fee. Table 2 presents a summary of the Sample Jurisd ictions’ rental registries. [A fully covered unit refers to rental units where both the RSO and JCEO apply, and partially covered units refers to units where only the JCEO applies.]

Table 3: Sample Jurisdictions’ Rental Registry

1 Rental units also include mobilehome park rental spaces.

Jurisdiction Registry Fee Unit Type Number of Rental
Units
Alameda

$155 fully covered
units

$105 partially covered
units

$0 (None) Section 8
Housing

Fee system is
estimated in terms of
staff time required for
fully vs. partially
covered units

Fee initially set
through study
conducted by SCI
Consulting Group

Multi-family units built
before 1995 are fully
covered

Single-family homes,
condos, post-1995
multi-family units, and
Section 8 are partially
covered

Landlords can pass
through half of the fee
to tenants

12,000 fully covered
units

2,000 partially covered
units

94% compliance rate

Rental registry: 3Di
Berkeley

$250 fully covered
units

$150 partially covered
units

Adjustments are made
by the Board
depending on staffing
and budgetary needs

Fee initially
established by annual
fee study (1980-2004)

Units that meet rent
control, rent
registration, security
deposit interest, and
eviction protections
requirements are fully
covered

Single family homes,
condominiums, post-
1980 constructions,
units with tenants
using Section 8, and
units exempt from rent
control are partially
covered

20,000 fully covered
units

5,000 partially covered
units

Rental registry: 3Di

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Landlords can pass
through up to
$100/year to tenants
Beverly Hills

$0 (None)

Note: City is
considering
establishing a fee with
a fee study completed
by Revenue Cost
Specialists LLC

All Units

7,700 units

99% compliance

Rental registry: 3Di

Inglewood

$206 all units

$92 units with a
Section 8 tenant

$0 units less than 70%
of FMR

Fee based on
estimated costs and
number of units
All units must register
even if exempt, except
single-family homes
not owned by
company

Landlords can pass
through half of the fee
to tenants, except to
Section 8 tenants

23,000 units

Rental registry: 3Di
Richmond
$218 fully covered
units

$123 partially covered
units

Annual fee study
conducted by
Management Partners
Multi-unit properties
built before February
1995 are fully covered

Subsidized units,
single family homes,
condos, and units built
after February 1995
are partially covered
7,500-8,000 fully
covered units

10,700 partially
covered units

96.5% compliance

Rental registry: Not yet
selected
Santa Monica

$198 fully covered
units/rent-controlled
units, with waivers
available for units with
Section 8 tenants

Fee adjustments are
based on costs and
number of units

Board establishes fees
based on the budget
and number of units

Pre 1979 construction
units are fully covered

Post 1979
constructions are
partially covered

Landlords can pass
through half of the fee
to tenants
27,484 units

90-95% compliance

Rental registry:

Internal system
West Hollywood
$144 fully covered
units

$60 units with a
Section 8 tenant

Pre-July 1979 multi-
family residential rental
units and single-family
homes and condos
16,707 units

95% compliance

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23 9/6/2022

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Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022

Program Design Recommendations
Currently, the City does not collect any rent or tenancy data for individual rental units. The City cannot confirm or deny which specific units are covered under the RSO and JCEO and which units are exempt – a key piece of information for any jurisdiction administering these ordinances. All jurisdictions reported having a higher rate of compliance with their jurisdictions’ program requirements following the implementation of a rental registry. Collection of this data through a rental registry will provide a critical means of administering the ordinances and will provide the means to make informed, data-driven policy and administrative decisions to fulfill the objectives of the ordinances . The City should consider the following as part of their long-term implementation of the RSO and JCEO programs:

2. Create a Rental Registry – A rental registry is the most important tool used by jurisdictions to implement renter protections. A rental registry would allow the City to compile key data on rent- stabilized units, track allowable rent increases, monitor compliance with the City’s RSO and JCEO, and communicate rental unit data on a regular basis to both landlords and te nants.

Through the collection, monitoring, and dissemination of allowable rents and rent increases, a rental registry establishes and makes accessible the rent limits for each covered unit. This in turn increases transparency, eliminates doubt regarding re nt maximums, and provides a clear basis for both landlords and tenants to verify that their rents and rent increases comply with ordinance requirements. A well-maintained rental registry also increases compliance and in turn, creates a robust database full of accurate data. In general, the rental registry compliance rate was over 90% in the jurisdictions that provided this information indicating that the system paired with staff efforts to facilitate registration are effective.

Note: City Council has
recently enacted an
ordinance for
registering partially
covered units. Fee
undetermined.

Fee study conducted
by MGT of America
built pre-July 1979
units whose tenants
moved in before
January 1996 are fully
covered

Post-January 1979
new construction units,
properties with only
one dwelling unit
whose current tenant
moved in after January
1996, and government
owned or subsidized
residential rental
properties are partially
covered

Landlords of fully
covered units can pass
through half of the fee
to tenants, except for
Section 8 tenants

Rental registry:

HdL software

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26 –
24 9/6/2022

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In addition to the benefits that rent al registries provide for rent -stabilized units, the implementation of a rent al registry also provides stronger protections for rental units that are covered only by the JCEO. The registry can be used to determine whether a landlord serving an eviction notice is in compliance with all aspects of the o rdinance and inform tenants who have received eviction notices of their rights and responsibilities. Furthermore, registries all ow for the monitoring of rental activity after a landlord has evicted a tenant for no-fault just cause reasons.

A rental registry provides the following benefits to both tenants and landlords:
 Landlords and tenants w ill be able to regularly access and verify their units’ rental information, increasing transparency.
 A rental registry will eliminate doubt regarding which units are covered under the ordinances.
 Additional support will be available for mediating disputes and settling matters outside of the Court system, resolving issues more quickly and efficiently.  Staff will be able to communicate with both landlords and tenants more effectively, which will allow both parties to better understand their rights and responsibilities under the RSO and JCEO.

There was an overwhelming recommendation from the Sample Jurisdictions encouraging the City to explore contracting with 3Di Systems to develop a database to organize the rental registry. 3Di Systems is a software development firm, based in the City of Brea, that specializes in working with local governments in the areas of housing, public safety, and community engagement. They have been in business for over twenty (20) years and expressed during an inquiry meeting with City staff that they have never had a client change services. Five (5) of the seven (7) Sample Jurisdictions use their services and all have expressed positive interactions and outcomes with them. Many expressed that they appreciated that 3Di Systems tailored the rental registry to meet the specific needs and nuances requested for program implementation.

3. Adopt a Rental Registry Fee – A rental registry fee is collected to offset and ultimately cover 100% of the cost of the programs, including maintaining the registry, program administration, and compliance activities. This fee ensures that the program is completely cost -neutral to the City. Sample Jurisdiction rental registry fees average approximately $195 per unit. Many of the Sample Jurisdictions used a consultant to conduct a fee study to determine the rental registry fee amount. However, it should be noted that the City will need to develop a work plan before hiring a consultant to complete a fee study. Depending on the work plan, this framework can be prepared and provided to the consultant that will be responsible for determining the rental registry fee. During this process, the City can determine if they would like the fee to be adjusted annually by the Rental Housing Board, or if routine fee studies will be completed to adjust the rental registry fee amount.

Another consideration related to the rental registry fee is whether the City would like to establish a fee for fully and partially covered units and/or make certain units exempt from paying a registration fee. Generally, a fully covered unit refers to rental units where both the RSO and JCEO apply, and partially covered units refer to units where only the JCEO applies. The City may consider making certain units exempt from the requirem ent to pay a rental registry fee, such as rental units occupied by rent-subsidized tenants (e.g. Housing Choice Voucher / Section

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25 9/6/2022

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8). Additionally, the City may consider allowing 50% of a unit’s fees to be passed-through to its tenants as a rent surcharge prorated over twelve months. Allowing for the cost-sharing of the rental registry fee may promote equity and shared responsibility amongst tenants and landlords; however, the increased cost to tenants may undermine the s tabilizing effects that the program seeks.

Program Administration
Program administration varies widely across jurisdictions. There are a few factors for determining the scale, breadth, and cost to administer the programs of which the number of rental units covered by the ordinances and the services provided are the most important. Table 4 presents a summary of the Sample Jurisdictions’ program administration frameworks.

Table 4: Sample Jurisdictions’ Program Administration
Jurisdiction
Full-Time
Equivalent
(“FTE”)
Annual Budget
Allocation Division of Work Total Number of
Rental Units
Alameda
10 Note: FTEs are
split between the
City and Housing
Authority

Start-up budget:
$1.7 million

Expenses: $2.2
million

Revenues: $1.8
million

Compliance,
Hearings,
Petitions, Public
Information,
Registration,
Termination of
Tenancy
14,000
Berkeley
24 Projected to
reach 30
Start-up budget:
$225,000

Expenses:
$5,466,666

Revenues:
$4,850,000

Administration,
Compliance,
Counseling,
Hearings,
Housing,
Mediation,
Petitions, Public
Information,
Termination of
Tenancy

25,000

Beverly Hills

6 Expenses: $1.1
million

Revenues: Paid
from General
Fund

Commission,
Complaints,
Compliance,
Petitions,
Registration,
7,700
Inglewood
8 Projected to
reach 17

Start-up costs:
$352,379
Personnel,
$788,500 Office,
Administration
Inspection, Public
Information,
Registration,
Termination of
Tenancy
23,000

City Council
26 –
26 9/6/2022

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Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022

Program Design Recommendations
The City should consider the following as part of their long-term implementation of the RSO and JCEO programs:

4. Develop a Work Plan – The City currently administers the RSO and JCEO through a consultant, RSG, Inc., and partial staff time from a Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney. The limited activities include:
 Conduct o utreach and education including periodically mailed communications, workshops, and website updates.
 Respond to general public information inquiries.
and professional
services

Expenses:
$3,427,121

Revenues: N/A
(Still within first
year of program)
Richmond 12

Start-up costs:
$1.1 million

Expenses:
$2,425,312

Revenues:
$2,609,056

Compliance,
Counseling,
Hearings,
Housing, Legal
Assistance,
Petitions, Public
Information,
Registration,
Termination of
Tenancy

18,450
Santa Monica 24

Expenses:
$5,287,331

Revenues:
$5,307,131

Administration,
Hearings,
Mediation,
Petitions, Public
Information,
Registration
27,484
West Hollywood 10

Start-up costs:
$200,000
Software and
additional
personnel

Expenses:
$2,659,262

Revenues:
$2,211,000

Administration,
Complaints,
Compliance,
Hearings,
Inspections,
Public
Information,
Registration
16,707

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26 –
27 9/6/2022

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 Prepare RSO and JCEO informational materials and notices.  Refer tenant legal matters and interpretation questions to community legal aid organizations, as applicable.
 Review Fair Return Petitions.

A division of work plan should be prepared and provided to a consultant who will be responsible for determining the rental registry fee. Across Sample Jurisdictions, the following services were provided as best practices to effectively implement rent stabilization and just cause eviction ordinances:
 Annual Registration – Process registration fees for the rental registry, maintain rental registry, and send annual notices of maximum allowable rent increases.  Compliance – Process notices of violations and complaints, send notices of non - compliance to landlords, and pursue compliance activities as necessary for non - compliant properties.
 Evictions/Termination of Tenancy – Review notices of eviction/termination of tenancy to ensure compliance with the JCEO.
 Hearings and Appeals – Process hearings for appeals to rent amounts and petitions.

This includes communicating with the tenants and landlords involved, collect ing supporting documentation , coordinating with the Rental Housing Board , and writing letters of determination.
 Housing Counseling/Mediation – Provide tenant and landlord housing counseling and mediation.
 Petitions – Receive, review, and analyze data to provide decisions on petitions, subject to appeal.
 Public Information – Provide customer service to inquiring tenants and landlords and conduct on-going community outreach and education.
 Rental Housing Board Administration – Facilitate regular meetings and comp lete administrative tasks related to the Rental Housing Board.

Each Sample Jurisdiction is unique in how these services are organized amongst various departments, demonstrated in their organizational charts in Exhibit B. In developing this work plan, the City may also consider if it will need the help of outside consultants or organizations to help with items such as mediations, hearing officers, petitions, and tenant/landlord legal advisors. A detailed budget to match the work plan would be the next step in the process to develop a rental registry fee.

5. Conduct a Fee Study Based on the Work Plan and Staffing Needs – Based on the information provided by the Sample Jurisdictions, the overall budget is mostly related to t he number of units in the rental registry and services provided . Santa Ana has approximately 36,350 rental units that may be subject to registration in the rental registry. The number of units in the rental registry for all Sample Jurisdictions ranges from 7,700 to 27,484 with an average of 18,906 units. The rental registry compliance rate ranges from 92.5% to 99% with an average of 95%. The overall expenses range from $433,000 to $5.46 million with an average of $3.5 million.

The rental registry fee ranges from $0 to $250 with an average of $167. [To avoid skewing the results, RSG removed the $0 fee amount that resulted in a range of $144 to $250 and an average fee of $195.]

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26 –
28 9/6/2022

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Using an average rental registry fee per unit for all Sample Jurisdictions of $195 and 36, 350 rental units, the City could potentially collect approximately $6.7 million annually for a fully operating program. To come up with this estimate, RSG multiplied the average rental registry fee per unit for all Sample Jurisdictions of $195, by the number of rental units in Santa Ana equal to 36,350, and adjusted for a rental registry compliance rate of 95% to estimate that it could collect approximately $6.7 million to administer the RSO and JCEO programs . This does not include the startup costs. The average startup cost for all jurisdictions was $1,313,626. It should be noted that four (4) of seven (7) Sample J urisdictions were unable to provide their start -up costs but indicated that the major components are the rental registry and department staffing.

A fee study that takes into account the number of units that may be included in the rental registry and the proposed budget based on the work plan will allow the City to determine the fees required to fully recover costs of all budgeted operations (e.g. 100% cost recovery). Currently, the City’s ordinance costs over $300,000 per year through an agreement with RSG and will increase to $500,000 in the next fiscal year with no cost recapture. This estimate does not include partial staff time from a Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney.

Compliance Activities
Each RSO and JCEO program from the Sample Jurisdictions includes monitoring the compliance of the programs. Compliance activities vary widely amongst the jurisdictions and depend partially on the design of the Program Administration. Table 5 presents a summary of the Sample Jurisdictions’ compliance activities.

Table 5: Sample Jurisdictions’ Compliance Activities
Jurisdiction Penalties and Remedies Activities
Alameda
Series of citations for Article
violations ($250 – $1,000) or
by imprisonment not to
exceed 6 months, or by both a
fine and imprisonment

Any aggrieved person,
including the City and State of
CA, may enforce this article
by means of a civil action
Housing Authority provides annual
report of Ordinance violations to the
City

City Attorney’s Prosecution Unit is
responsible for administering warning
notices

Berkeley
Petition the board for
appropriate relief

Withhold up to the full amount
of periodic rent in good faith

Seek injunctive relief

File a damage suit against the
landlord

City Department is responsible for
proactive compliance activities
including the provision of online tools
to assess landlord compliance in
addition to mailed communications to
tenants and landlords

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26 –
29 9/6/2022

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Beverly Hills
Series of citations for code
violations ($100 -$500)

City Code Enforcement division is
responsible for proactive annual
inspections

Warning notices are first method of
compliance for registration
violations

Contracted Criminal Prosecutor
issues citations

Mediation services are provided
through a contracted program on
behalf of the City

Inglewood

Misdemeanor

Administrative Fine ($500)

The City’s decision regarding
enforcement shall not affect a
Tenant’s right to pursue the
following civil remedies: file a
petition with the Program
Administrator, establish
eligibility for exemptions, or
dispute the amount of
Relocation Assistance due

City department is responsible for
contacting violators including by
phone following a complaint by
tenant

City’s legal aid provides further
assistance by working with tenant to
resolve further disputes

Richmond

Misdemeanor- any landlord
who retains unentitled rent
from a Tenant shall be liable
for costs incurred by the
Tenant

In lieu of filing a civil action, a
Tenant retains the right to file
an administrative complaint

City is responsible for the proactive
administration of penalty fees

Santa Monica
Landlord who retains
unentitled rent from a Tenant
shall be liable for costs
incurred by the Tenant and
Tenant retains the right to file
an administrative complaint

Misdemeanor citations not
exceeding $500,
imprisonment not exceeding
six months, or both

City software system responsible for
notifying users of fees

If fee remains unpaid, enforcement is
handled through City’s legal
department and small claims court

City’s legal department is responsible
for making recommendations to the
Board in the case of appeals

Mediation services are provided
through a contracted program

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30 9/6/2022

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Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022

Program Design Recommendations
Currently, the City’s RSO and JCEO Ordinance states the following if any person is in violation, “It shall be unlawful for any person to violate or fail to comply with any provision of the ordinance. The violation of any provision of this ordinance shall f irst be punished through the use of an administrative citation, as provided in Santa Ana Municipal Code section 1-21, et. seq., prior to prosecution as a misdemeanor infraction, as provided in Santa Ana Municipal Code section 1-8” (Santa Ana Municipal Code section 8- 1998.8). The Sample Jurisdictions have similar provisions in their ordinances. However, the extent of actual compliance activities and the responsible party significantly varies.

6. Expand Compliance Activities – As part of the work plan prepared for Program Administration, the City should identify how the RSO and JCEO programs will be monitored for compliance.

Currently, there are limited resources within the City that can adjudicate a dispute over tenant/landlord issues or concerns, short of the court system which can be time-consuming and costly. The positive impacts of the RSO and JCEO programs are directly correlated to effective monitoring of compliance with the ordinances. Some jurisdictions mentioned that s taffing capacity and resources were the major drivers in the ability to proactively enforce violations of the ordinances. As part of this consideration, the City could consider hiring additional City staff for these compliance activities.

An analysis of t he existing best practices and programs administered by Sample Jurisdictions determined that effective compliance activities include issuing notices and warnings in response to complaints and reported information in the rental registry, increasing staffing to issue citations and pursue criminal offenses, and contracting with a mediator to improve landlord -tenant relationships, among other activities. Additionally, the RSO and JCEO compliance activities provisions could be revised to add civil actions that may be utilized by any aggrieved person to monitor compliance with the ordinances.

Petitions
Generally, there are three types of petitions: 1) landlord fair return pet itions, 2) landlord capital improvement petitions, and 3) tenant petitions.

Landlord Fair Return Petitions
A landlord is entitled under the law to receive a fair return on their rental property or mobilehome park.

If a landlord believes that the maximum allowable rent under the RSO does not constitute a fair return, they have the right to file a fair return petition requesting an increase greater than what the RSO provides. This is a legal requirement that applies to all RSO programs.

West Hollywood

Series of citations for code
violations ($100 to $500)

Misdemeanor upon 4th offense

City Code Enforcement is primarily
responsible for citations

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Landlord Capital Improvement Petitions
Some jurisdictions allow for a separate capital improvement pass -through petition that is considered separately from the fair return petition. A capital improvement is one that materially adds to the value of the property (this is often detailed as a specific amount in the ordinance), appreciably prolongs its useful life, or adapts it to new uses, and which may be amortized over the useful life of the improvement of the building. As such, these fees are considered temp orary and do not permanently increase a tenant’s rent. In general, a capital improvement petition would allow a landlord to increase rents to recover the cost of capital improvements when the improvement(s) benefit the units in question and the improvements were not necessitated by the current landlord’s neglect or failure to maintain the property.

In some cases , the monthly rent increase cannot exceed a certain percentage of a tenant’s monthly rental amount. In this case, the capital expense is amortized, with interest, over a longer term to allow the landlord to recover the cost of capital improvemen ts while not causing an undue burden to the tenant. A capital expense can affect all the units in a building, some of the units in a building, or just one unit in a building . Examples of capital improvements include new windows, a roof replacement, and exterior painting to the entire building. Repair and maintenance work, such as replacing a broken windowpane, patching a roof, clearing a clogged pipe, or unit-specific repairs are not considered capital improvements.

Tenant Petitions
All of the Sample Jurisdictions have provisions in their programs that allow a tenant to file a petition asserting various types of claims against a landlord. Examples include a decrease in rent due to a substantial decrease in housing services, failure to repair or maintain a unit, or failure to discontinue a capital or utility pass-through. Table 6 presents a summary of the Sample Jurisdictions’ petitions.

Table 6: Sample Jurisdictions’ Petitions
Jurisdiction Type of Petition Petition Fee Approves
Petitions
Petitions
Received
Annually
Alameda
Fair Return,
Separate Capital
Improvement
Plan, Tenant

$0 (None)

Rent Review
Advisory
Committee,
Appeal to Hearing
Officer

3 Fair Returns, 17
Tenant Petitions,
10 progress to
hearing
Berkeley
Fair Return,
Separate Capital
Improvement,
Tenant

$0 (None)
Petition; $100-
$200 Fair Return
and Capital
Improvement
appeal

Hearing
Examiner, Appeal
to Rent
Stabilization
Board

0 Fair Returns
since Ordinance
Effective date,
Limited Capital
Improvements
Beverly Hills
Fair Return,
Separate Capital
Improvement,
Tenant
$896 Fair Return
and Capital
Improvement; $0
(None) Tenant
petition

Hearing Officer,
Appeal to Rent
Stabilization
Commission

0 Fair Returns

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Jurisdiction Type of Petition Petition Fee Approves
Petitions
Petitions
Received
Annually
Inglewood

Fair Return,
Separate Capital
Improvement,
Tenant

$199 petition,
$265 appeal; $0
(None) Tenant
petition
Rental Housing
Board
New program, 0
Petitions
Richmond Fair Return,
Tenant $0 (None) Hearing Officer,
Rent Board

5-7 Fair Returns,
60 Rent Changes
(majority tenant
downward)

Santa Monica Fair Return,
Tenant

$100 per petition
for all properties
up to ten (10)
units; $150
properties with
between eleven
(11) and fifteen
(15) units; $200
properties with
sixteen (16) or
more units; $0
(None) Tenant
petition

Hearing Officer,
Appeal to Rent
Review Board
Limited Fair
Returns, 89
Tenant Petitions
West Hollywood
Fair Return,
Separate Capital
Improvement,
Tenant

$500 for buildings
with 1-4 rental
units; $500 base
fee for buildings
with 5-9 rentals
plus additional
fee of $25 per
unit; $500 base
fee for buildings
with 10+ units
plus additional
fee of $35 per
unit; $25 Tenant
decrease petition
(low-income
waiver available)

Hearing Officer,
Appeal to Rent
Stabilization
Commission
2 Fair Returns in
the past 10 years,
30-40 Tenant
Petitions annually
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022

Program Design Recommendations
As explained above, there are generally three types of petitions. Currently, the City’s RSO and JCEO ordinances only have one type of petition, fair return petitions for landlords with capital improvements

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included. Notably, all Sample Jurisdictions report receiving very few fair return petitions annually with the largest amount being seven. For example, West Hollywood received only two (2) fair return petitions in the past ten (10) years. Jurisdictions stat ed that they believe there are two reasons for this : 1) landlords do not want to go through the administrative petition process that is required; and 2) landlords, even when adhering to rent stabilization ordinances, do receive a fair return from their ren tal property.

The City should consider the following as part of their long-term implementation of the RSO and JCEO programs:

7. Create a Landlord Capital Improvement Petition and Tenant Petition - Some Sample Jurisdictions include capital improvements as part of a fair return petition while others have a separate petition. The benefit to having a separate landlord capital improvement petition is that it incentivizes landlords to improve their property knowing they can pass through some of these costs to their tenants. Alternatively, while tenants may benefit from the capital improvement in the long term, it results in an increase in rent for tenants above the annual allowable rent increase imposed by the RSO.

All Sample Jurisdictions allow for tenant rent change petitions, allowing tenants to have an administrative tool to address excess rent based on conditions of the rental unit, reduction in services, issues of habitability, and landlord violations of the ordinance. These petitions are also beneficial in aiding in monitoring compliance with the ordinance and help maintain current rental data in the rental registry.

8. Establish Petition Fees and a Petition Review Process – Currently, the City’s ordinance requires applicants to pay for the cost of a consultant to review Fair Return petitions. The City should establish individual petition fees and appeal fees that are separate from the rental registry fee by including this component in the fee study. The fee study should consider the options of having the rental registry fee fully cover the expense of petitions or having additional petition fees to recover staff costs for the review of petitions . Two (2) of the seven (7) Sample Jurisdictions do not have individual petitions fees but are fully funded through their rental registry fees. Jurisdictions with petitions fees expressed that they chose to institute these fees due to a large amount of work that is required per petition, which many are eventually resolved through administrative means rather than going through the full petition review process.

Currently, the City’s ordinances place the decision-making responsibility for fair return petitions on the City Manager or a designee. Understanding that petitions require lengthy administrative work, communication with landlords and tenants, as well as processing time , the City should determine the most efficient use of time and budget for petitions. Many of the Sample Jurisdictions have specific staff members coordinating petition reviews with the applicant to ensure proper document submission while smaller organizations contract these services out.

After a review and approval, the application is forwarded to the decision-maker. The decision- makers for appeals in the Sample Jurisdictions range from internal hearing officers, to contracted hearing officers/examiners, or the Rental Housing Board. Tying into the overall organization of the program administration, the City will need to determine what the petition review process will be for each type of petition.

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Other Notable Program Design Recommendations
RSG has identified o ther notable considerations such as relocation payments for tenants, “banking” restrictions for rent incr eases, and establishing a mediation process . As it relates to banking and relocation, RSG is not recommending any amendments to the Ordinances due to the complexity of the issue and the pote ntial negative impact to tenants. Specifically, banking can cause excessive rent increases, which may be harmful to tenants. Additionally, relocation regulations are already specified in the City’s JCEO wherein the City’s current ordinance states that if evicting a tenant for no -fault just cause termination, the landlord must provide three (3) months of relocation assistance or waive the payment of rent for the last three (3) months of the te nants’ tenancy. Among other notable program design recommendations, a mediation process is the final consideration.

9. Create a Mediation Process – California Evidence Code §§1115-1128 defines “mediation” as “a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable agreement.” Mediation differs from the conventional adversarial legal process by focusing on mutual agreement instead of trying to fight and argue against the other party in court. The City should develop a mediation program with contracted mediators to address landlord and tenant disputes that involve unresolved disputes, not landlord violations. Mediation can settle disputes without the need for a legal hearing.

Some advantages to mediation include:
a. Mediation generally lasts a shorter amount of time than a trial; b. Mediation can be confidential such that nothing that is said during mediation can be used in court if mediation fails; and
c. Mediation is generally more cost-effective and reduces the number of hearings.

Mediation programs have been successful in a few of the Sample Jurisdictions. For example, the City of Santa Monica provides voluntary mediation for rent decrease petitions, excess rent complaints, and other matters not raised by a petition. Mediation was successful during their fiscal year 2021 in which 61% of decrease petitions, 92% of construction petitions, and 92% of excess rent complaints were mediated and fully or partially resolved.

Separate from mediation, Sample Jurisdictions also stressed the importance of having low or no-cost legal services to refer landlords and tenants to help maintain equity . Sample Jurisdictions provide guidance regarding legal issues through housing counseling, but not legal advice. Therefore, Sample Jurisdictions rely on local legal organizations to refer tenants and landlords. Generally, the Jurisdictions contract with the organizations to ensure access . The funding for the contracts is provided from the Jurisdiction outside of the rental registry fee. Many organizations only provide services for tenants ; therefore using the rental registry fee that is provided by landlords is not equitable. Other Sample Jurisdictions have self -help lines that provide services to tenants and landlords, but this is still funded outside of the rental registry fee. The City should continue coordinating with local legal organizations that provide services to landlords and/or tenant s to understand the impact of the ordinances on their organization, identify areas of need for additional funding, and gather information to determine if additional City resources are needed for local tenant and landlord legal providers.

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PROGRAM DESIGN RECOMMENDATIONS
Based on our analysis of the Sample Jurisdictions, RSG developed several recommendations for the City to consider in designing its RSO and JCEO long-term implementation program . The following details RSG’s program design recommendations:

1. Create a Rental Housing Board : A Rental Housing Board should be assembled to preside over hearings and appeals, monitor compliance with the ordinances through differing methods, and make recommendations for pertinent changes to the regulations regarding th e ordinance(s). The Board will guide staff in the long-term implementation of the program.

2. Create a Rental Registry: A rental registry is a critical component of administering an RSO and JCEO program. Landlords, tenants and the City need to know which units are rent - stabilized units. The City should seek assistance from a qualified consultant experienced in the development of a rental registry to create a registry for the City.

3. Adopt a Rental Registry Fee: A rental registry fee is necessary to offset and ultimately cover the cost of the programs, including maintaining the registry, program administration, and compliance activities. This fee is intended to ensure that the program is completely cost-neutral to the City.

4. Develop a Work Plan: The City must develop a work plan based on the division of work to be undertaken by the City, needed resources, and a budget.

5. Conduct a Fee Study Based on the Work Plan and Staffing Needs: The City should complete a fee study establishing a rental registry fee amount and petition fees. A fee study will take into account the number of units that may be included in the rental registry and determine the fees required to fully recover costs of all budgeted operations (e.g. 100% cost recovery).

6. Expand Compliance Activities : As part of the work plan, the City should identify how the RSO and JCEO programs will be monitored for compliance.

7. Create a Landlord Capital Improvement Petition and Tenant Petition: A separate capital improvement petition incentivizes landlords to upkeep their property knowing they can pass through some of these costs to their tenants. A tenant petition gives tenants an administrative tool to address excess rent based on conditions of the rental unit, reduction in services, issues of habitability, and landlord violations of the ordinance outside of the legal system.

8. Establish Petition Fees and a Petition Review Process: The petition fees would be separate from the rental registry fee and recover staff costs for the review of petitions. The petition review process will determine the most efficient use of time and budget for petitions as part of the work plan.

9. Create a Mediation Process: Mediation provides the opportunity for landlord and tenant issues to be resolved prior to court action and is facilitated by a neutral person or persons that

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communicates between the disputants to assist them in reaching a mutually acceptable agreement. Mediation differs from the conventional adversarial legal process by focusing on mutual agreement instead of trying to fight and argue against the other party in court. Mediation generally lasts a shorter amount of time than a trial, can be confidential, and is generally more cost-effective.

Additional program design recommendations not previously mentioned above in the report include:

10. Join the Rent Stabilization Consortium: In addition to implementing the previous recommendations, the City should consider joining the Rent Stabilization Consortium. The Rent Stabilization Consortium is a group of representatives from California cities with rent stabilization programs. This consortium provides opportunities to discuss challenges, successes, and collaborate with other cities on the topic of rent stabilization. Multiple Sample Jurisdictions mentioned the positive impact of being a member of the consortium as a way to further opportunities for collaboration and knowledge of best practices for administering RSO and JCEO programs.

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Exhibit A: Summary of All Jurisdictions with Rent Stabilization Ordinances

Jurisdiction Approved by Ordinance Effective
Date
Population
(2020
Census)
Rent
Stabilization
Ordinance
Just Cause
Ordinance
Applies to
Residential
Units
Applies to
Mobilehome
Park Units
Rent Cap Rent Review
Board/Committee
Rental
Registration
Required
Rental Registration Fee Petition for Rent
Increase
Petition for Rent
Increase Has Fee
Santa Ana City Council 10/19/21 310,227 x x x x 3% or 80% of change in CPI, whichever is lower. TBD TBD TBD TBD TBD
Alameda City City Council
Former Article XI
pertaining to rent
stabilization and
limitations on evictions
was repealed and
reenacted as Article
XV by Ordinance No.
3249 effective 9/4/19.
78,280 x x x
Rent is limited to the base rent charged
as of 9/1/19 plus the Annual General
Adjustment (AGA). For tenancies
beginning after 9/1/19, the base rent is
the initial rent amount. The AGA is
calculated using 70% of the regional
Consumer Price Index (CPI), with a 1%
floor and 5% ceiling.

Rent Review
Advisory
Committee
Required
$155/fully regulated
units; $105/partially
regulated units;
$0/rental units occupied
by subsidized tenants
Yes None
Baldwin Park City Council 12/4/19 effective
1/3/20. 72,176 x x x x
Annual rent increases are effectively
limited to 3% (based on the Consumer
Price Index) of the “base rent ceiling”
(rent in effect on 3/5/19, or if none the
initial rent charged on the first day of
tenancy).

None Required $28/unit Yes N/A
Berkeley Voter
Rent Stabilization
6/3/80; Tenant Buyout
3/14/17. ADU
Clarification,
Emergency Exemption
11/3/20.
124,321 x x x
Each January 1 rent ceilings are
increased by the Annual General
Adjustment (AGA). The AGA is set by
October 31 of the preceding year, but has
been 65% of the percentage increase of
the regional Consumer Price Index since
2005.

Rent Stabilization
Board Required
$250/full regulated unit;
$150/partially regulated
units; $37/subsized unit;
$70/summer
sorority/fraternity
outside member rental
unit
Yes $0 petitions, $100-
200 appeal
Beverly Hills City Council 4/27/79. Last
amended 11/06/18. 37,701 x x x
Landlord may increase rent once every
12 months, limited to 3% of the current
rent, or the regional Consumer Price
Index (CPI), whichever is higher.

Rent Stabilization
Commission Required $55/unit Yes
$896 fair return
and capital
improvement, $0
tenant petitions
Culver City City Council
Mediation: 5/11/19.

Rent Control and
Tenant Protections,
10/30/20.
40,799 x x x
The rent as of 10/30/20 on then-existing
tenancies, or the initial rent charged on
tenancies beginning thereafter, is the
"base rate" from which increases are
calculated. Increases are limited per 12-
month period to the average annual
change in the Consumer Price Index (CPI)
with a cap of 5%; if the CPA increase is
less than 2%, the cap is 2%.

None Required $167/unit Yes N/A
East Palo Alto City Council
Tenant Protections
5/6/14; Rent
Stabilization
06/08/2010. Last
amended 11/8/16.
30,034 x x x
Yearly rent increases are limited to 80%
of the percentage increase in the
Consumer Price Index (CPI). The overall
rent increase, including the CPI- based
rent adjustment and banked rent
increases, may not exceed 10% in any
twelve-month period.

Rent Stabilization
Board Required $222/non-exempt unit Yes N/A
Hayward City Council 6/25/19 effective
7/25/19. 162,954 x x x
A landlord may only increase rent up to
5% per year on the anniversary date of
the lease.

None Not Required
Complaint Based Fees
$40/residential covered
rental unit,
$19/residential rental
unit
Yes None
Inglewood City Council 11/5/19 107,762 x x x
Rent increases are capped at 3% or the
percentage change in the regional CPI-
whichever is greater-of the lowest rent
during the 12 months preceding the
increase. Increases are limited to one per
year.

Rental Housing
Board Required
Before 3/31/22 free;
starting 4/1/22 -
$184/unit; $92/unit with
section 8 tenant; $0/
unit duplex and owner
start tenancy before
tenant, Certification of
Occupancy not older
than 15 years, rents are
less than 70% Fair
Market Value,
affordable housing
developments with
restricted deeds
Yes
$199 petition, $265
appeal, $66
inspection, $33 re-
inspection, $67
exemption
Los Angeles City City Council 4/21/79. Last
amended 5/20. 3,898,747 x x x x
Only one rent increase is allowed every
12 months based upon the regional
Consumer Price Index (CPI).

Rental Housing
Oversight
Commission
Required $38.75/unit Yes $25
Los Gatos City Council
10/27/80. Last
amended 9/19/11 (§

14.80.315).
33,529 x x
Rent may be increased only once
annually and the increase cannot exceed
the greater of 5% of existing rent, or 70%
of the regional Consumer Price Index
(CPI).

None Not Required None Yes N/A
Mountain View Voter
November 8, 2016;
effective December
23, 2016. Last
amended 5/2018.
82,376 x x x
Rents may be raised starting September
1st each year by board-determined
amount that is no less than 2%, nor more
than 5%, of the existing rent.

Rental Housing
Committee Required
Annual registration and
fee required, amount
not posted
Yes N/A
Oakland City Council 10/7/80. Last
amended 6/4/2019. 440,646 x x x
Only one rent increase is allowed
annually based upon the regional
Consumer Price Index (CPI) or prior
"banked" increases.

Residential Rent
and Relocation
Board
Required $101/unit Yes None
Oxnard City Council Effective 6/4/22
through 1/1/30 202,063 x x x
Rent increases are limited to 4%
annually, and one increase in any twelve
(12) month period.

None Required
Annual registration and
fee required, amount
not posted
Yes
Yes, not specificed
but as determined
by City for
consultancy needs
Palm Springs Voter 9/1/79. Last amended,
by initiative, 12/94. 44,575 x x x
Rents are limited to 75% of the increase
in the Consumer Price Index (CPI), and
increases are limited to one per year.

Landlords reducing “base year” services
(the base year is 1979) must also reduce
rents.

Rent Review
Commission Required
Annual registration and
fee required, amount
not posted
Yes N/A
Richmond Voter
Fair Rent adopted
11/08/16. Relocation
adopted 12/20/16,
effective 01/2017.
116,448 x x x
Maximum allowable rent for controlled
units is the rent charged as of July 21,
2015 (“Base Rent”) plus annual increases
capped at 100% of the Consumer Price
Index; if tenant moved in after that date,
base rent is the rent paid for the first
month. Landlords may raise rents on
September 1 of each year, by an amount
tied to the CPI for the region. Rents may
be raised starting September 1 each year
by an amount equal to the regional
Consumer Price Index (CPI).

Rent Board Required
$218/unit fully covered,
$123/unit partially
covered and
govermentally
subsidized
Yes None

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Jurisdiction Approved by Ordinance Effective
Date
Population
(2020
Census)
Rent
Stabilization
Ordinance
Just Cause
Ordinance
Applies to
Residential
Units
Applies to
Mobilehome
Park Units
Rent Cap Rent Review
Board/Committee
Rental
Registration
Required
Rental Registration Fee Petition for Rent
Increase
Petition for Rent
Increase Has Fee
Sacramento City Council
Effective 9/12/19.

Ordinance expires on
December 31, 2024.
524,943 x x x
A rent increase cannot exceed 5% plus
the percentage of the annual increase in
the cost of living adjustment promulgated
by the U.S. Department of Labor, Bureau
of Labor Statistics. The total increase is
capped at 10%, and only one increase is
allowed in any 12-month period. (SCC §

5.156.050.) The “base rent” for purposes
of calculating increases is the monthly
rent in effect on 7/1/19. For tenancies
commencing thereafter, the base rent is
the initial monthly rent set forth in the
lease—or if no lease exists the amount
charged upon initial occupancy.

None Required $20/unit Yes None
San Francisco Board of
Supervisors
6/79. Last amended
12/19. 873,965 x x x
Annual rent increases are limited to 60%
of the regional Consumer Price Index
(CPI).

Rent Board Required
$59.00/apartment unit,
$29.50/residential hotel
room
Yes
None for Capital
Improvement
Petition , but must
hire independent
estimator if more
than 25k in
improvements
San Jose City Council
§ 17.23.1200 and
following, adopted
11/2016. Last
amended 12/2018.
1,013,240 x x x
Rent increases may only be given once in
a 12-month period. Annual general rent
increases may not exceed the monthly
rent charged for the previous 12 months
multiplied by 5%.

None Required
Annual registration and
fee required, amount
not posted
Yes N/A
Santa Monica Voter
Charter: 4/10/79. Last
amended 2010.

Tenant Relocation:
2/27/90 last amended
3/28/17.Tenant
Harassment: 10/10/95
last amended
01/13/15.
93,076 x x x
The Rent Control Board determines each
year’s increase (“General Adjustment” or
GA). The Maximum Allowable Rent
(MAR) for any unit is its base rent plus
the increase allowed per the annual GA.

A tenancy must be in place for at least
one year before a GA is allowed. A GA
may then be implemented the following
September 1st or anytime thereafter.

Rent Control Board Required $198/unit Yes
$100 per petition
for all properties
up to ten (10) units;
$150 for properties
with between
eleven (11) and
fifteen (15) units;
$200 for properties
with sixteen (16) or
more units.

Thousand Oaks* City Council 7/1/80. Last amended
5/20/97. 126,966 x x x
*Apartment rent control does not apply
to tenants who moved into their
apartment units after 1987. Only tenants
who have lived in the same rent-
controlled unit since 1987 are eligible for
rent control.

Rent Adjustment
Commission Required
Annual registration and
fee required, amount
not posted
None None
Unincorporated Los Angeles
County
Board of
Supervisors Effective 04/1/20. 1,057,162 x x x x
Allowable annual rent increases are
based on the change in the regional
Consumer Price Index (CPI), up to a total
of 8% including passthroughs and fees:

When CPI is 8% or more, the maximum
increase is 8%. When CPI is between 3%-
8%, the maximum increase will be equal
to the CPI. When CPI is between 1%-3%,
the maximum increase will be 3%. When
CPI is -2%-1%, the maximum increase will
be CPI plus 2%. When CPI is less than -2%,
the maximum increase is zero. For DCBA
“Certified” luxury market-rate units with
two or less bedrooms in buildings of 25+
units, where the units had a base rent of
$4,000+/month on 11/11/18, landlord
may increase rents by an additional 2%
above CPI.

Rental Housing
Oversight
Commission
Required
Before 4/22 - Free, May -
Sept 2022 - $90/fully
covered units
Yes None
West Hollywood City Council 6/27/85. Last
amended 12/2019. 35,757 x x x
Rent increases are limited to 75% of the
increase in the regional Cost of Living
Index (CPI) during the preceding 12
months.

Rent Stabilization
Commission Required $144/unit Yes
$500 for buildings
with 1-4 rental
units; $500 base
fee for buildings
with 5-9 rentals
plus additional fee
of $25 per unit;
$500 base fee for
buildings with 10+
units plus
additional fee of
$35 per unit
Westlake Village* City Council 6/4/05 8,029 x x x
*Has only ever applied to 1 apartment
complex (now condos) and 1 MHP. Rent
control ordinance that applies to
apartment complexes of five units or
more as well as to mobile home parks.

Rental price of mobile home lots has
been frozen at the level of May, 1978,
plus 30%.

None Not Required None None None

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Exhibit B: Sample Jurisdictions Organizational Charts

City of Berkeley
Source: Staff Report 2022

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City of Inglewood
Source: Emailed by Deputy Director of Housing Protection on 8/10/22

City of Richmond
Source: FY 2022-23 Budget & Rental Housing Fee Study

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City of Santa Monica
Source: FY 2021-22 Annual Operating Budget

City of West Hollywood
Source: Emailed by Rent Stabilization Division Manager on 8/9/2022

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Community Development Agency
santa-ana.org/cd
Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Consolidated Annual Performance and Evaluation Report for Fiscal Year 2021- 2022
AGENDA TITLE:

Public Hearing - Consolidated Annual Performance and Evaluation Report for Fiscal Year 2021-2022

RECOMMENDED ACTION
Authorize submission of the Consolidated Annual Performance and Evaluation Report to the U.S. Department of Housing and Urban Development.

DISCUSSION
The Five-Year Consolidated Plan is a comprehensive planning and application document that covers the three entitlement grants that the City receives annually from the U.S.

Department of Housing and Urban Development (“HUD”). The Consolidated Plan outlines a strategy for using the three grants and other resources to meet community needs as they were identified in the Plan. These three entitlement grants are the Community Development Block Grant (“CDBG”), Emergency Solutions Grant (“ESG”), and HOME Investment Partnerships Program (“HOME”). The Consolidated Plan also identifies five- year numeric goals for meeting the identified community needs that Santa Ana will work toward during the period covered.

As part of the Consolidated Plan process, HUD requires the City to submit a Consolidated Annual Performance and Evaluation Report (“CAPER”) (Exhibit 1.) The CAPER describes the activities and accomplishments for the three federal entitlement grants during the past Fiscal Year. It also reports on the City’s success in achieving the five-year numeric goals and objectives that are established in the Five-Year Consolidated Plan. Fiscal Year 2021- 2022 is the second year covered by the July 1, 2020 through June 30, 2024 Consolidated Five-Year Plan.

The following table highlights accomplishments achieved during Fiscal Year 2021-2022 with funding from the CDBG, ESG and HOME Program:

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Consolidated Annual Performance and Evaluation Report for Fiscal Year 2021 September 6, 2022

2 9
3 1
General Activity Accomplishments
Capital Improvements
•Completed street improvements that includes FY 2019-2020 Heninger Park Neighborhood Street Improvement.
•Completed the rehabilitation of multiple curb ramps to comply with ADA accessibility regulations.
•Completed the rehabilitation and improvement of Jerome Park Lighting.
•A total of 47,410 residents were assisted.

Economic Development •Provided 25 small business incentive grants to small businesses that were effected by the COVID-19 Pandemic.

Public Services
•Provided funding for 18 nonprofit organizations to administer 20 programs and served a total of 2,273 persons.
•America on Track, Boys & Girls Club of Santa Ana, OC
Children’s Therapeutic Arts Center, Neutral Ground, YMCA, the Delhi Center, Girls Inc., Taller San Jose, and Relampago del Cielo specifically, provided youth services that included tutoring, education, recreation, fitness, and a classical music program and gang prevention.
•The Cambodian Family and the Delhi Center provided youth and family services that included tutoring, education,
leadership, parent workshops, and anti-bullying workshops. •The Legal Aid Society of Orange County, Lutheran Social Services of Southern California and Human Options provided criminal record expungement and domestic violence services that included housing and legal services.
•Community Health Initiative of OC and Radiant Health
Services, provided access to health and social service
programs by conducting outreach, education and enrollment.

Affordable Housing
•Funded two (2) first-time homebuyer down payment
assistance loans with $240,000 in CDBG funds.
•Participated in eight (8) down payment assistance workshops and one (1) community fair
•Westview House affordable housing project located at 2530 & 2534 Westminster Avenue, Santa Ana, CA 92701 closed on
their financing.

Code Enforcement
•Community preservation efforts continue in deteriorated and deteriorating areas to preserve the City's aging housing stock.

In FY 2021 Code Enforcement funds were used to respond to complaints covering residential properties within the CDBG eligible deteriorating and deteriorated areas. During the program year, the City issued a total of 4,112 violations to single-family units and 100% of the violations were corrected by homeowners.
•Code Enforcement staff also issued 212 Notices of Violation, 171 Notice and Orders, and 5,932 Administrative Citations involving residential housing. As a result of these efforts,

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Consolidated Annual Performance and Evaluation Report for Fiscal Year 2021 September 6, 2022

2 9
3 1
The draft CAPER reflects data that was available in the HUD system as of August 15, 2022. The final CAPER will capture performance information from the fourth quarter that is not available to date. For this reason, several tables in the draft CAPER are blank. Each table in the final CAPER will be complete to show the progress made in meeting the Five- Year Consolidated Plan objectives.

FISCAL IMPACT
There is no fiscal impact associated with this item.

EXHIBIT

1. Consolidated Annual Performance and Evaluation Report for Fiscal Year 2021-2022 Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
property owners have made approximately $1,215,473 in
repairs and upgrades encompassing 221 permits.

Homeless Services
•Provided assistance to 177 persons through Street Outreach, Homeless Prevention, Rapid Re-housing or Shelter. This number includes 72 children and 105 individuals who reported as adults. Numbers also include 43 that identified as Male and 81 who identified as Female.

City Council
27 –
3 9/6/2022

DRAFT CAPER
OMB Control No: 2506-0117 (exp. 09/30/2021))
The City of Santa Ana
Community Development Agency
FY2021-2022 CAPER
JULY 1, 2021 THROUGH JUNE 30, 2022
EXHIBIT 1

City Council
27 –
4 9/6/2022

DRAFT CAPER 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table of Contents
CR-05 - Goals and Outcomes ................................ ................................ ................................ ...........3 CR-10 - Racial and Ethnic composition of families assisted ............................................................. .9 CR-15 - Resources and Investments 91.520(a) ............................................................................... 10 CR-20 - Affordable Housing 91.520(b) ........................................................................................... 15 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ............................ 17 CR-30 - Public Housing 91.220(h); 91.320(j) ................................................................................... 19 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ............................................................................ 20 CR-40 - Monitoring 91.220 and 91.230 .......................................................................................... 25 CR-45 - CDBG 91.520(c) ................................................................................................................. 27 CR-50 - HOME 91.520(d) ............................................................................................................... 28 CR-60 - ESG 91.520(g) (ESG Recipients only) .................................................................................. 32 CR-65 - Persons Assisted ............................................................................................................... 36 CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes .......................................................... 40 CR-75 – Expenditures.................................................................................................................... 41

APPENDICES
Appendix 1: Public Notices
Appendix 2: Summary of Public Comments
Appendix 3: IDIS Reports

City Council
27 –
5 9/6/2022

DRAFT
CAPER 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) The 2021 Consolidated Annual Performance and Evaluation Report (CAPER) covers the period of July 1, 2021 through June 30, 2022 and reports on completed projects in the 2021 program year. This CAPER is the third of the 2020-2024 Consolidated Plan. For the 2021 program year, the City followed its allocation strategy by funding public services, public facilities, affordable housing projects, homeless related projects, and fair housing services to address unmet community needs. As part of this CAPER process, the City conducted a 15-day public review and comment period and held a public hearing on September 6, 2022 to obtain further public comment on this report. Accomplishments in addressing the priority needs include:

Affordable Housing Development, Maintenance & Preservation- Efforts to increase affordable housing include committing HOME, CDBG, Project-Based Vouchers, Inclusionary Housing, and Housing Successor Agency funds for aquisition, construction, rehabilitation and provision of affordable rental and ownership housing. Projects completed this year were limited by the COVID-19 pandemic, but included housing services for two downpayment assistance payments to CDBG-eligible individuals.

Code Enforcement - Community preservation efforts continue in deteriorated and deteriorating areas to preserve the City's aging housing stock.

In FY2021 Code Enforcement funds were used to respond to complaints covering residential properties within the CDBG eligible deteriorating and deteriorated areas. During the program year, the City issued a total of 4112 violations to to single family units and a total of 4112 violations were corrected by home owners.

Public Facilities & Infrastructure - A total of XXX capital improvement project were completed including street improvements, park and lighting improvements, and installation of ADA compliant curb ramps and bathrooms in facilities across the City.

Public Service Programs - Public Services funded by the City during the report period were aimed at assisting low to moderate-income households. A total of 20 activities were funded to assist homeless, seniors, youth and families through a variety of programs. A total of 2273 persons were served.
&nbsp;
City Council
&nbsp;27 &ndash;&nbsp;6
9/6/2022
&nbsp;

DRAFT
CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
Economic Development – CDBG funds were allocated to support workforce training and development and business assistance via training, technical assistance and general support. Activities were limited due to prioritization of COVID-19 economic development programs.

Fair Housing Services - To affirmatively further Fair Housing, the City continues to provide CDBG funds to Orange County Fair Housing Council.

HOME Program – HOME funding .....

Homeless Services and Facilities - Emergency Solutions Grant funding was used to reduce homelessness in the City by funding homeless service providers for emergency shelter, homelessness prevention, data services, and street outreach.

COVID-19 Response – On April 21, the City of Santa Ana amended the 2019 Annual Action Plan to include special CDBG and ESG allocations from the CARES Act to target the impact of the COVID-19 pandemic. These activities continued during the 2021-2022 Program Year. – ESG-CV funds were allocated to homelessness prevention and emergency shelter services to individuals and hosueholds experiencing homelessness or at-risk of homelessness as a result of the COVID-19 pandemic.

Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source
/
Amount
Indicator Unit of
Measure
Expected
–
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Public service activities
for Low/Moderate
Income Housing Benefit
Households
Assisted 0 1 0 1
&nbsp;
City Council
&nbsp;27 &ndash;&nbsp;7
9/6/2022
&nbsp;

DRAFT
CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Rental units constructed
Household
Housing
Unit
40 0 0.00% 24 0 0.00%
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Rental units rehabilitated
Household
Housing
Unit
60 0 0.00% 4 0 0.00%
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Homeowner Housing
Added
Household
Housing
Unit
10 0 0.00%
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Homeowner Housing
Rehabilitated
Household
Housing
Unit
40 13 32.50% 11 13 118.18%
Affordable
Housing
Development
&
Maintenance
Affordable
Housing
CDBG:
$ /
HOME:
$
Direct Financial
Assistance to
Homebuyers
Households
Assisted 12 1 8.33% 3 2 66.67%
Code
Enforcement
Affordable
Housing
CDBG:
$
Housing Code
Enforcement/Foreclosed
Property Care
Household
Housing
Unit
15000 411 2.74% 2500 4112 164.48%
&nbsp;
City Council
&nbsp;27 &ndash;&nbsp;8
9/6/2022
&nbsp;

DRAFT
CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
Economic
Development
Programs
Non-Housing
Community
Development
CDBG:
$ Businesses assisted Businesses
Assisted 25 2 8.00% 6 25 416.67%
Homeless
Services and
Facilities
Homeless ESG: $
Tenant-based rental
assistance / Rapid
Rehousing
Households
Assisted 150 0 0.00%
Homeless
Services and
Facilities
Homeless ESG: $ Homeless Person
Overnight Shelter
Persons
Assisted 1000 0 0.00% 150 0 0.00%
Homeless
Services and
Facilities
Homeless ESG: $
Overnight/Emergency
Shelter/Transitional
Housing Beds added
Beds 50 0 0.00% 10 0 0.00%
Homeless
Services and
Facilities
Homeless ESG: $ Homelessness
Prevention
Persons
Assisted 175 0 0.00% 35 0 0.00%
Homeless
Services and
Facilities
Homeless ESG: $ Housing for Homeless
added
Household
Housing
Unit
400 0 0.00% 40 0 0.00%
Program
Administration
& Fair Housing
Services
Affordable
Housing
Public
Housing
Homeless
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
CDBG:
$ /
HOME:
$
Other Other 5 0 0.00% 1 1 100.00%
&nbsp;
City Council
&nbsp;27 &ndash;&nbsp;9
9/6/2022
&nbsp;

DRAFT
CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Public Facilities
&
Infrastructure
Non-Housing
Community
Development
CDBG:
$
Public Facility or
Infrastructure Activities
other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 0 38600 4500 47410 1,053.56%
Public Facilities
&
Infrastructure
Non-Housing
Community
Development
CDBG:
$
Public service activities
other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 10000 0 0.00%
Public Service
Programs
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
CDBG:
$
Public Facility or
Infrastructure Activities
other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 0 0 0 0
Public Service
Programs
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
CDBG:
$
Public service activities
other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 10000 837 8.37% 2000 2273 113.65%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date &nbsp;
City Council
&nbsp;27 &ndash;&nbsp;10
9/6/2022
&nbsp;

DRAFT
CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified. &nbsp;
City Council
&nbsp;27 &ndash;&nbsp;11
9/6/2022
&nbsp;

DRAFT
CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)

CDBG HOME ESG
White 1,169 5 0
Black or African American 35 4 0
Asian 54 0 0
American Indian or American Native 10 0 0
Native Hawaiian or Other Pacific Islander 3 0 0
Total 1,271 9 0
Hispanic 1,113 4 0
Not Hispanic 158 5 0
Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative
In FY2021, CDBG, HOME and ESG resources provided assistance to residents through an array of programs. The race and ethnicity of these individuals are summarized above.

City Council
27 –
12 9/6/2022

DRAFT
CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal 6,253,414 4,636,633
HOME public - federal 8,943,271 2,128,575
ESG public - federal 489,141 449,895
Table 3 - Resources Made Available
Narrative
Available funds that were not expended during the FY2021 program year will be prioritized for spending in FY2022. Due to the COVID-19 pandemic, some activities were delayed or paused, resulting in not all funds being spent.

The identified resources made avalibale in the "Other" catagory equals $6,255,596 from CDBG-CV, ESG- CV, and HOME-ARP. Information was identified from the PR07 report run on 8/1/2022.

Identify the geographic distribution and location of investments Target Area Planned Percentage of
Allocation
Actual Percentage of
Allocation
Narrative Description
Citywide 100 100 Citywide
Table 4 – Identify the geographic distribution and location of investments Narrative
The City continues to prioritize funds to address the needs of low- and moderate-residents - by targeting neighborhoods and individual residents. The funding distribution reflects a lower share of funding targeted to low- and moderate-income areas, in part due to the continued impacts of COVID-19.

City Council
27 –
13 9/6/2022

DRAFT
CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

In planning and implementing all HUD funded activities, The City regularly works to identify and leverage other funding streams to maximize the impact of the CDBG, HOME, and ESG activities.

Cities receiving HOME Program funds are generally required to provide a HOME match of 25% of their annual allocation. The City of Santa Ana has qualified for a HOME match reduction of 100%, therefore not requiring the City to provide any match as part of the HOME Program. The ESG program requires a dollar-for-dollar match requirement. The City of Santa Ana requires its ESG subrecipients to meet the match requirement. This is done through a mix of cash and in- kind match as allowed under 24 CFR Part 576. In accordance with State law and local priority, the City consistently looks to leverage state and locally owned property to achieve its annual goals.

Fiscal Year Summary – HOME Match

1. Excess match from prior Federal fiscal year 0

2. Match contributed during current Federal fiscal year 0

3. Total match available for current Federal fiscal year (Line 1 plus Line 2) 0

4. Match liability for current Federal fiscal year 0

5. Excess match carried over to next Federal fiscal year (Line 3 minus Line 4) 0 Table 5 – Fiscal Year Summary - HOME Match Report

City Council
27 –
14 9/6/2022

DRAFT
CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
Match Contribution for the Federal Fiscal Year
Project No. or
Other ID
Date of
Contribution
Cash
(non-Federal
sources)
Foregone
Taxes, Fees,
Charges
Appraised
Land/Real
Property
Required
Infrastructure
Site
Preparation,
Construction
Materials,
Donated labor
Bond
Financing
Total Match
N/A 0 0 0 0 0 0 0 0
Table 6 – Match Contribution for the Federal Fiscal Year HOME MBE/WBE report
Program Income – Enter the program amounts for the reporting period Balance on hand at begin-
ning of reporting period
$
Amount received during
reporting period
$
Total amount expended
during reporting period
$
Amount expended for
TBRA
$
Balance on hand at end of
reporting period
$
0 0 0 0 0
Table 7 – Program Income
&nbsp;
City Council
&nbsp;27 &ndash;&nbsp;15
9/6/2022
&nbsp;

DRAFT
CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
Minority Business Enterprises and Women Business Enterprises – Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total Minority Business Enterprises White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Contracts
Dollar
Amount 0 0 0 0 0 0
Number 0 0 0 0 0 0
Sub-Contracts
Number 0 0 0 0 0 0
Dollar
Amount 0 0 0 0 0 0
Total Women
Business
Enterprises
Male
Contracts
Dollar
Amount 0 0 0
Number 0 0 0
Sub-Contracts
Number 0 0 0
Dollar
Amount 0 0 0
Table 8 - Minority Business and Women Business Enterprises Minority Owners of Rental Property – Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Total Minority Property Owners White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Number 0 0 0 0 0 0
Dollar
Amount 0 0 0 0 0 0
Table 9 – Minority Owners of Rental Property

City Council
27 –
16 9/6/2022

DRAFT
CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
Relocation and Real Property Acquisition – Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 0
Businesses Displaced 0 0
Nonprofit Organizations
Displaced 0 0
Households Temporarily
Relocated, not Displaced 0 0
Households
Displaced
Total Minority Property Enterprises White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Number 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Table 10 – Relocation and Real Property Acquisition

City Council
27 –
17 9/6/2022

DRAFT
CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 235 0
Number of Non-Homeless households to be
provided affordable housing units 42 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 277 0
Table 11 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 75 0
Number of households supported through
The Production of New Units 34 0
Number of households supported through
Rehab of Existing Units 15 0
Number of households supported through
Acquisition of Existing Units 153 0
Total 277 0
Table 12 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City of Santa Ana continues to actively market its CDBG rehabilitation and homebuyer assistance programs and the HOME rehabilitation programs through city publications, city website, and key stakeholders throughout the City.

Rehabilitation and new construction programs were delayed due to the COVID-19 pandemic.

City Council
27 –
18 9/6/2022

DRAFT
CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Additionally, 2 households received downpayment assistance through the CDBG downpayment assistance program.

Discuss how these outcomes will impact future annual action plans.

The City will continue to issue RFPs for CDBG and HOME funds to support the development and rehabilitation of affordable multi-family rental housing. Additionally, the City will continue to provide single-family rehabilitation and homebuyer assistance programs.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 0 0
Low-income 2 0
Moderate-income 0 0
Total 2 0
Table 13 – Number of Households Served
Narrative Information
The above table reflects a duplicative count of units assisted as part of the XXXXX. CDBG funds were used for the acquisition, consisting of the 58 units and HOME funds were used to assist 11 of those units. Table 12 provides an accurate count of the number of housing units assisted. The City of Santa Ana generally refers “worst-case” housing needs to the Orange County CoC and homeless service providers for potential homeless prevention assistance and/ or other services. As specific needs arise for persons with disabilities, the City of Santa Ana offers reasonable accommodations and modifications, as necessary.

City Council
27 –
19 9/6/2022

DRAFT
CAPER 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
Santa Ana prioritizes effective, targeted, and safe outreach to individuals experiencing homelessness to support these individuals in identifying resources and establishing pathways to safe and sustainable housing. The City has outreach staff regularly working and interfacing with individuals experiencing homelessness to provide assistance and support in enrolling in shelter and/ or seeking other services.

During the 2021-2022 Program Year, the City of Santa Ana worked towards the following objectives:

1. Prioritized street outreach through Quality of Life Teams

2. Preserved existing and increase the supply of permanent supportive housing

3. Preserved existing and increase the supply of affordable housing

4. Provided housing services and assistance to special needs populations

5. Improved critical services to low-income and special needs populations

6. Coordinated services within the City as well as regionally in collaboration with the Continuum of Care

7. Collaborated with all communities in Orange County to address homelessness with coordinated, regional approaches
Addressing the emergency shelter and transitional housing needs of homeless persons The ESG funded programs provided Homelessness Prevention, Rapid Re-Housing, Emergency Shelter, and Street Outreach services. The City targeted actions to addres the needs of individuals who are homeless that includes unaccompanied women, victims of domestic violence, chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth.

The range of services include emergency shelter, transitional housing and permanent supportive housing. ESG funds provided assistance for street outreach services, homeless prevention and rapid re- housing.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs

City Council
27 –
20 9/6/2022

DRAFT
CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
Through the objective summarized above in the Outreach section, the City strives to help individuals and families from becoming homeless. The ESG program funds Homelessness Prevention, Rapid Re-Housing, Emergency Shelter, and Street Outreach services. Additionally, the County of Orange is equipped to serve people discharged from publicly funded institutions or systems of care such as health care facilities or correction programs.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City supported a number of programs to assist low-income individuals and families to avoid becoming homeless, including Section 8 Housing Choice vouchers. Other support services, such as job and training assistance, food assistance, and counseling are also available to help individuals recover from homelessness and to avoid becoming homeless. The City worked closely with the Continuum of Care who provided oversight for the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) to prioritize the most vulnerable chronically homeless individuals. Case management services were offered in all programs to help prevent individuals from falling back into homelessness.

City Council
27 –
21 9/6/2022

DRAFT
CAPER 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
N/A – The City does not have any public housing.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
N/A – The City does not have any public housing.

Actions taken to provide assistance to troubled PHAs
N/A – The City’s PHA is not designated as troubled.

City Council
27 –
22 9/6/2022

DRAFT
CAPER 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The 2020–2024 Consolidated Plan identified several barriers to the development of affordable housing including the following:
 Limited funding sources, financial costs, and the costs of development.  Market constraints primarily the availability, cost, and competition for land.  Available land in the City mostly consists of small parcels that must be assembled for significant new construction projects. Relocation costs and housing replacement requirements for redeveloping improved properties also presents barriers to the development of affordable housing.
 The region’s rents have continued to increase. Higher rents limited the ability of some lower income households to obtain decent and affordable housing. Households with no or poor credit history are severely impacted.

In an effort to mitigate these barriers, Santa Ana undertook the following actions during the report period:
 Construction of new rental and homeownership units
 Rehabilitation and/ or preservation of existing rental units  Homeowner rehabilitation programs for low- and moderate-income households Through the City’s compliance with AB 1486 (Surplus Lands Act) as well as a constant monitoring of state land made available through Executive Order N-06-19, the City will look to identify potential parcels of underutilized land that can be leveraged for potential affordable housing development.  Continued to enforce the City’s inclusionary housing ordinance in which new residential projects that meet the specified criteria must provide: 1) if the new residential project consists of units for sale, then a minimum of 10% of the total number of units in the project shall be sold to moderate income households; 2) If the new residential project consist of rental units, a minimum of 15% of the units shall be rented to low income households, or 10% rented to very low income households; or 3) the developer may elect to satisfy these requirements for the project by payment of a fee in lieu of constructing some or all of the affordable units.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) Based on the 2022 Point in Time Count and Survey, there are 5,718 individuals experiencing

City Council
27 –
23 9/6/2022

DRAFT
CAPER 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
homelessness in the County, with 990 in the City of Santa Ana. This is a decrease of 779 individuals in Santa Ana since the 2019 Point in Time Count. One challenge for Santa Ana is that many individuals experiencing homelessness gravitate to specific cities, one of which is Santa Ana. A goal of the City is to work closely with community and faithbased groups, other municipalities and the County to provide a coordinated and regional effort to address homelessness throughout the County. In addition, several programs were funded by HOME, CDBG and ESG to assist underserved individuals. The number of persons assisted during the report period is highlighted throughout this report.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) Lead-paint hazards are typically found in buildings constructed prior to 1978; the year lead based paint was banned in the United States. Until 2012, children were identified as having a blood lead “level of concern” if blood tests resulted in 10 or more micrograms of lead per deciliter. Experts now use a reference level of 5 micrograms per deciliter to identify children with blood levels that are much higher than most children’s levels. Although many children remain at risk exposure to harmful lead levels (i.e., blood lead levels greater than the CDC recommended level of 5 micrograms of lead per deciliter of blood), the CDC reported a decline in blood levels in children age five and younger, largely a result of the phase-out of leaded gasoline and efforts by federal, state, and local agencies to limit lead paint hazards in housing.In all housing activities, the City complies with requirements to examine for the potential risk of lead exposure. If and when lead is identified, the City works with the property owner and/ or subrecipient to remediate the lead-based paint.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) Santa Ana’s anti-poverty strategy includes expanding housing opportunities and support services for low-income residents, and coordinating public and private resources to address their specific needs.

Services and activities supported by the City included:
 Economic development program to stimulate the local economy and further increase job opportunities for low- and moderate-income individuals.  Provide housing assistance through the City’s ESG and ESG-CV programs offering services including: Homelessness Prevention, Rapid Re-Housing, Emergency Shelter, and Street Outreach services to reduce the number of poverty-level families that may have their housing status negatively impacted by the COVID-19 pandemic.
 Partner with and leverage local job training programs focused on supporting residents prepare for and access living wage job opportunities.
 Through the City’s housing programs, it will reduce the number of cost burdened households living in the City, allowing them to allocate personal resources to other critical household needs.  Public services will be targeted to address critical needs of low-income and vulnerable residents

City Council
27 –
24 9/6/2022

DRAFT
CAPER 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
through the provision of programming, transportation, education, childcare and other key needs that are identified by the City and its stakeholders. Services such as these are components to assist individuals to be better suited to secure and retain living wage employment.  Homeless assistance, including prevention, will provide critical services to extremely low-income households in need of immediate assistance and support to be better suited and able to take steps to identify sustainable housing and employment options.

Improving public facilities eliminates existing facilities and infrastructure that negatively impacts residential neighborhoods.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The institutional delivery system in Santa Ana is high-functioning and collaborative, particularly the relationship between city departments and the nonprofit sector comprised of a network of capable nonprofit organizations operating in Santa Ana and throughout Orange County that are delivering a full range of services to residents. Affordable housing development and preservation activities are carried out by the Housing Department of the Community Development Agency in partnership with housing developers and contractors. The Planning and Building Agency supports code enforcement activities.

Public service activities are carried out by nonprofit organizations with support and oversight from the Community Development Agency as necessary to achieve the Strategic Plan goals. The Community Development, Public Works and Planning and Building Agencies work together with contractors to implement public facilities and improvement projects.

The greatest challenge behind COVID-19, in the City’s institutional delivery system is the breadth and diversity of need and exceeds the amount of available funding to completely address all needs within the community. Consequently, even high priority needs cannot be fully funded. Further, due to the scale of need within the community – nonprofit service providers are also operating at maximum capacity. As a result, non-profit leadership has less time to dedicate to coordination and alignment with other partner agencies and organizations to strategically target needs. In PY21 the Community Development Agency worked to increase the efficiency of collaboration and coordination among different providers operating in the City and throughout the region.

The City also supported programs aimed at enhancing. Examples of actions undertaken during the report period to overcome gaps and enhance coordination included the following:
 The City’s Workforce Development Board played a key role in developing employment opportunities for lower income Santa Ana residents. The WDB is comprised of various community leaders representing private employment, education, social services and government. This diversity in the board’s representation ensures that the community’s workforce needs are identified and addressed through a variety of public and private resources.

This advisory board also brings key community contacts together resulting in enhanced coordination of program delivery and resource utilization.

City Council
27 –
25 9/6/2022

DRAFT
CAPER 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
 The City participated in several homeless forums and committees. Specifically, the City served on the Orange County Continuum of Care Board and participated in several committes including the Housing Opportunity Committee, the Emergency Shelter Committee and the Data and Performance Committee. The City also served on the Leadership Council for the United to End Homelessness campaign empowered by the United Way and participated on the Executive Committee. Through this participation, the City can ensure that barriers to housing and the needs of the homeless are identified and addressed through the coordinated regional implementation of limited funding and resources.
 The City sought to encourage home ownership opportunities to promote neighborhood stability.

With a high median purchase price of homes, homeownership remains a challenge for households earning less than 80% of county median income. Recent increases in housing costs have exacerbated this situation.
 Neighborhood residents were encouraged to participate in the preparation and implementation of neighborhood assessments and plans, and were kept informed on homelessness issues. Santa Ana’s Neighborhood Initiatives Program provided the means to facilitate this participation. This coordination included working with a variety of city departments, public utilities, property owners, tenants, nonprofit agencies and the school district.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
As in past years, Santa Ana made an effort to leverage private and federal funds with local and state funds to increase and preserve the City’s supply of affordable rental housing. The greatest barrier to affordable housing in the City is a limited supply of resources and available land to support the development and preservation of affordable housing within the City. The City works closely with non- governmental, state and federal agencies to identify potential funding streams and resources.

Several affordable housing projects are moving forward currently in the City and two projects for individuals/veterans experiencing homelessness are in the pipeline. These are examples of how the City is coordinating with private developers and social service agencies to create affordable housing opportunities in Santa Ana.

The City’s owner-occupied housing rehabilitation programs have been instrumental in preserving housing units occupied by lower income households. Furthermore, homeownership opportunities for low- and moderate-income homebuyers were available via the City’s participation in the City’s Down Payment Assistance Program. The City worked closely with Habitat for Humanity in completing the last phase of the scattered site project where single family homes were developed to be sold at affordable price and to restrict to income qualified households for a period of at least 45 years. Additionally, the Santa Ana Housing Authority provided rental assistance vouchers to very-low income households.

Participants in the Housing Authority’s Family Self-Sufficiency (FSS) program were also referred to classes (available in English, Spanish and Vietnamese) on how to prepare for homeownership.

City Council
27 –
26 9/6/2022

DRAFT
CAPER 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
City staff met regularly with public and private organizations to coordinate various efforts. The City's relationship with nonprofit organizations in the community allowed for an integrated approach for funding requests from local, state and federal agencies. The City worked with nonprofits as they applied for funds for activities consistent with the objectives in the Consolidated Plan. The City also communicated with various institutions to facilitate the exchange of information and to develop strategies to provide benefits and housing services.

Homeless needs and priorities continue to be identified through the County’s CoC system. The City consults with the County and local ESG entitlement grantees in regard to the use of ESG funds. On-going meetings are held to coordinate the development of eligibility criteria, performance standards and outcome measurements, as well as to establish funding, policies, and procedures for the operation and administration of the Homeless Management Information System (HMIS).

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City evaluated barriers and constraints to the development of affordable housing as a critical component of the Housing Element. The California Department of Housing and Community has received Santa Ana’s Adopted Housing Element for certification. The element includes actions to affirmatively further fair housing.

The City participated in the update to the County’s Regional Analysis of Impediments to Fair Housing Choice for the period of 2020 - 2024. Through this process, the City has identified a set of city-specific and regional goals and approaches to address barriers to affordable housing and affirmatively further fair housing in the City.

City Council
27 –
27 9/6/2022

DRAFT
CAPER 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
To ensure that HUD funds are used efficiently and in compliance with applicable regulations, the City provides technical assistance to all subrecipients at the beginning of each program year and monitors subrecipients throughout the program year. The City of Santa Ana applied the same monitoring standards to its CDBG-CV and ESG-CV programs.

Technical Assistance
To enhance compliance with federal program regulations, the City provides an annual Notice of Funding Availability (NOFA) workshop to review the Plan goals, program requirements and available resources with potential applicants. Subsequent to the approval of the Annual Action Plan, a mandatory subrecipient workshop is held to review program regulations in detail, to provide useful forms and resources for documenting compliance and to review the City’s compliance procedures and requirements. Additionally, individualized technical assistance is provided on an as-needed basis throughout a program year.

Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to determine eligibility, conformance with a National Objective and conformance with a Plan goal. This review also examines the proposed use of funds, eligibility of the service area, eligibility of the intended beneficiaries and likelihood of compliance with other federal requirements such as the National Environmental Policy Act, the System for Award Management (SAM) debarment list, prevailing wage, Minority and Women Business Enterprise, Section 3 and federal acquisition and relocation regulations, as applicable.

Subrecipients are required to submit an audit and other documentation to establish their capacity, and any findings noted in the audit are reviewed with the applicant. Eligible applications are then considered for funding. Once funded, desk monitoring includes ongoing review of required quarterly performance reports. For CDBG public service activities, an on-site monitoring is conducted once every two (2) years, or more frequently as needed to ensure compliance. These reviews include both a fiscal and programmatic review of the subrecipient’s activities. The reviews determine if the subrecipient is complying with the program regulations and City contract. Areas routinely reviewed include overall

City Council
27 –
28 9/6/2022

DRAFT
CAPER 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
administration, financial systems, appropriateness of program expenditures, program delivery, client eligibility determination and documentation, reporting systems, and achievement toward achieving contractual goals. Following the monitoring visit, a written report is provided delineating the results of the review and any findings of non-compliance and the required corrective action. Subrecipients normally have 30 days to provide the City with corrective actions taken to address any noted findings.

Individualized technical assistance is provided, as noted above, as soon as compliance concerns are identified. For CDBG capital projects, monitoring also includes compliance with regulatory agreement requirements
Citizen Participation Plan 91.105(d); 91.115(d)
The City published a notice in the general circulation of papers in English, Spanish and Vietnamese that its CAPER was available for review for public comment. The CAPER was made available for review at the Office of the Clerk of the Council, Community Development Agency 6th Floor Reception Area, Main Library, and on the City’s website.There was a 15-day public comment period prior to the submission of the CAPER to HUD. In addition, a public hearing was held by the Community Redevelopment and Housing Commission and at the City Council meeting to obtain public comments, with the City Council authorizing the submission of the report to HUD.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

The City published a notice in the general circulation of papers in English, Spanish and Vietnamese that its CAPER was available for review for public comment. The CAPER was made available for review at the Office of the Clerk of the Council, Community Development Agency 6th Floor Reception Area, Main Library, and on the City’s website.There was a 15-day public comment period prior to the submission of the CAPER to HUD. In addition, a public hearing was held by the Community Redevelopment and Housing Commission and at the City Council meeting to obtain public comments, with the City Council authorizing the submission of the report to HUD.

City Council
27 –
29 9/6/2022

DRAFT
CAPER 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

The 2021-2022 Program Year was the third year of the 2020-2024 Consolidated Plan. The City made progress towards its five-year and one-year goals for this reporting period and did not change its program objectives or the projects & activites that utilized CDBG, ESG, and HOME funds.

CDBG activities were slowed as a result of the onset of the COVID-19 pandemic. This includes public service, public facility and housing activities. In part, this is due to prioritizing COVID-19 response activities and programs/ services/ activities that were either not applicable due to the pandemic or were generally delayed due to the pandemic. The City anticipates that activities originally planned for completion during program year 2021 will be completed in program year 2022.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

City Council
27 –
30 9/6/2022

DRAFT
CAPER 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-50 - HOME 91.520(d)
Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Please list those projects that should have been inspected on-site this program year based upon the schedule in §92.504(d). Indicate which of these were inspected and a summary of issues that were detected during the inspection. For those that were not inspected, please indicate the reason and how you will remedy the situation.

The City of Santa Ana conducts onsite inspections of HOME-assisted rental units during the required affordability period to determine compliance with HUD property standards in accordance with 24 CFR

92.251. HOME-assisted rental projects with one to four units are inspected every three years, projects with five to 25 units are inspected every two years, and projects with 26 or more units are inspected annually. The City of Santa Ana received COVID-19 waivers regarding on-site inspections of rental housing and for housing units of recipients of TBRA funding. Inspection schedule dates have been shifted accordingly as per HUD regulations.

Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units.

92.351(b)
The City’s affirmative marketing procedures and requirements apply to rental and homebuyer projects containing 5 or more HOME or CDBG-assisted housing. These procedures and requirements do not apply to families with Section 8 tenant-based rental housing assistance or families with tenant-based rental assistance provided with HOME funds. The procedures include:

Methods to inform the public about Federal fair housing laws:
 The City displays the Equal Housing logo or slogan in housing-related press releases and solicitations for owners, and on the website page for the City’s Housing and Neighborhood Development Division.
 The City requests the County of Orange to include information on the City’s HOME and CDBG- assisted rental units in its countywide Affordable Housing List maintained by the County.

Requirements and practices owners must adhere to:
 Owners must display the Equal Housing Opportunity logo or slogan in all correspondence with current or potential tenants, on lease agreements, and display the fair housing poster in their leasing offices, and develop written procedures for selecting tenants.  The City required owners of City HOME- and CDBG-assisted rental units to continuously review the demographic makeup of their tenants. If and when such review indicated that their tenants no longer reflected the City’s minority population, they were required to inform the City of that

City Council
27 –
31 9/6/2022

DRAFT
CAPER 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
fact and request City review and approval for the steps they took to correct that deficiency.  Compliance with the City’s affirmative marketing requirements and procedures will be made an obligation of all rental property owners receiving HOME or CDBG assistance from the City of Santa Ana, and will be enforceable by means of appropriate actions described in loan documents recorded through the County of Orange.

Record keeping:
 The City will require owners of its HOME- and CDBG- assisted rental units covered under this marketing plan to make an annual report to the City detailing the steps they have taken to comply with this Program. They will also be required to report on the ethnicity of their tenants, as well as rents, income levels, and other household characteristics. Reports will be made on a form that is acceptable to the City of Santa Ana, and that will enable the City to capture the data it needs to evaluate owner compliance with this Program.  The City will maintain records on owner reports and its evaluation of those reports for a period of not less than ten years after expiration of the affordability period required by applicable HUD regulations.

Annual assessment:
 Upon receipt of owner reports, the City will evaluate the ethnic and racial characteristics of tenants being served to determine if they reflect the City’s housing market. If they do not, the City will direct the owner to take further affirmative marketing steps to correct the imbalance.

The City will track and evaluate the steps taken to insure they have the desired effect.

Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics Not applicable. The City receipted $360,402 in program income during FY2021. The City did not expend any program income during the FY2021 program year, but anticipates that such funds will be included in forthcoming RFPs during program year 2022.

Describe other actions taken to foster and maintain affordable housing. 91.220(k) (STATES ONLY: Including the coordination of LIHTC with the development of affordable housing).

91.320(j)
The City coordinates HOME funding and activities with other federal, state, and local affordable housing resources to maximize the assistance provided in the City and construct and/ or rehabilitate affordable housing throughout the City.

City Council
27 –
32 9/6/2022

DRAFT
CAPER 30
OMB Control No: 2506-0117 (exp. 09/30/2021)

City Council
27 –
33 9/6/2022

DRAFT
CAPER 31
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 1 0 0 0 0
Total Labor Hours 0
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 14 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers
Outreach efforts to generate job applicants who are Other Funding Targeted Workers.

Direct, on-the job training (including apprenticeships).

Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

Outreach efforts to identify and secure bids from Section 3 business concerns.

Technical assistance to help Section 3 business concerns understand and bid on contracts.

Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.

Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services.

Held one or more job fairs.

Provided or connected residents with supportive services that can provide direct services or referrals.

Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation.

Assisted residents with finding child care.

Assisted residents to apply for, or attend community college or a four year educational institution.

Assisted residents to apply for, or attend vocational/technical training.

Assisted residents to obtain financial literacy training and/or coaching.

Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

Provided or connected residents with training on computer use or online technologies.

Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses.

Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.

City Council
27 –
34 9/6/2022

DRAFT
CAPER 32
OMB Control No: 2506-0117 (exp. 09/30/2021)
Other.

Table 15 – Qualitative Efforts - Number of Activities by Program Narrative
CR-60 - ESG 91.520(g) (ESG Recipients only)
ESG Supplement to the CAPER in e-snaps
For Paperwork Reduction Act

1. Recipient Information—All Recipients Complete
Basic Grant Information
Recipient Name SANTA ANA
Organizational DUNS Number 083153247
UEI
EIN/TIN Number 956000785
Indentify the Field Office LOS ANGELES
Identify CoC(s) in which the recipient or
subrecipient(s) will provide ESG assistance
Santa Ana/Anaheim/Orange County CoC
ESG Contact Name
Prefix Mr
First Name Judson
Middle Name J
Last Name Brown
Suffix
Title Housing Division Manager
ESG Contact Address
Street Address 1 20 Civic Center Plaza, M-26
Street Address 2
City Santa Ana
State CA
ZIP Code 92701-
Phone Number 7146672241
Extension
Fax Number 7146476549
Email Address [email protected]

City Council
27 –
35 9/6/2022

DRAFT
CAPER 33
OMB Control No: 2506-0117 (exp. 09/30/2021)
ESG Secondary Contact
Prefix Mr
First Name David
Last Name Flores
Suffix
Title Senior Community Development Analyst
Phone Number 7146476561
Extension
Email Address [email protected]

2. Reporting Period—All Recipients Complete
Program Year Start Date 07/01/2021
Program Year End Date 06/30/2022
3a. Subrecipient Form – Complete one form for each subrecipient Subrecipient or Contractor Name: SANTA ANA
City: Santa Ana
State: CA
Zip Code: 92701, 4058
DUNS Number: 083153247
UEI:

Is subrecipient a victim services provider: N
Subrecipient Organization Type: Unit of Government
ESG Subgrant or Contract Award Amount: 366860
Subrecipient or Contractor Name: INTERVAL HOUSE
City: Seal Beach
State: CA
Zip Code: 90740, 2356
DUNS Number: 113510176
UEI:

Is subrecipient a victim services provider: Y
Subrecipient Organization Type: Other Non-Profit Organization ESG Subgrant or Contract Award Amount: 80000

City Council
27 –
36 9/6/2022

DRAFT
CAPER 34
OMB Control No: 2506-0117 (exp. 09/30/2021)
Subrecipient or Contractor Name: 2-1-1 ORANGE COUNTY
City: Irvine
State: CA
Zip Code: 92623, 4277
DUNS Number: 884339003
UEI:

Is subrecipient a victim services provider: N
Subrecipient Organization Type: Other Non-Profit Organization ESG Subgrant or Contract Award Amount: 140575
Subrecipient or Contractor Name: MERCY HOUSE TRANSITIONAL LIVING CENTERS City: Santa Ana
State: CA
Zip Code: 92702, 1905
DUNS Number: 879797165
UEI:

Is subrecipient a victim services provider: N
Subrecipient Organization Type: Other Non-Profit Organization ESG Subgrant or Contract Award Amount: 100000
Subrecipient or Contractor Name: WISEPLACE
City: Santa Ana
State: CA
Zip Code: 92706, 3904
DUNS Number: 002322894
UEI:

Is subrecipient a victim services provider: Y
Subrecipient Organization Type: Other Non-Profit Organization ESG Subgrant or Contract Award Amount: 50000
Subrecipient or Contractor Name: Second Chance Orange County City: Costa Mesa
State: CA
Zip Code: 92626, 3314
DUNS Number: 004380842
UEI:

Is subrecipient a victim services provider: N
Subrecipient Organization Type: Other Non-Profit Organization ESG Subgrant or Contract Award Amount: 30000

City Council
27 –
37 9/6/2022

DRAFT
CAPER 35
OMB Control No: 2506-0117 (exp. 09/30/2021)
Subrecipient or Contractor Name: Santa Ana Police Dept-Heart City: Santa Ana
State: CA
Zip Code: ,
DUNS Number: 083153247
UEI:

Is subrecipient a victim services provider: N
Subrecipient Organization Type: Unit of Government
ESG Subgrant or Contract Award Amount: 51880

City Council
27 –
38 9/6/2022

DRAFT
CAPER 36
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-65 - Persons Assisted

4. Persons Served
4a. Complete for Homelessness Prevention Activities
Number of Persons in
Households
Total
Adults 9
Children 8
Don't Know/Refused/Other 0
Missing Information 0
Total 17
Table 16 – Household Information for Homeless Prevention Activities 4b. Complete for Rapid Re-Housing Activities
Number of Persons in
Households
Total
Adults 24
Children 0
Don't Know/Refused/Other 0
Missing Information 0
Total 24
Table 17 – Household Information for Rapid Re-Housing Activities 4c. Complete for Shelter
Number of Persons in
Households
Total
Adults 72
Children 64
Don't Know/Refused/Other 0
Missing Information 0
Total 136
Table 18 – Shelter Information

City Council
27 –
39 9/6/2022

DRAFT
CAPER 37
OMB Control No: 2506-0117 (exp. 09/30/2021)

City Council
27 –
40 9/6/2022

DRAFT
CAPER 38
OMB Control No: 2506-0117 (exp. 09/30/2021)
4d. Street Outreach
Number of Persons in
Households
Total
Adults 0
Children 0
Don't Know/Refused/Other 0
Missing Information 0
Total 0
Table 19 – Household Information for Street Outreach
4e. Totals for all Persons Served with ESG
Number of Persons in
Households
Total
Adults 105
Children 72
Don't Know/Refused/Other 0
Missing Information 0
Total 177
Table 20 – Household Information for Persons Served with ESG

5. Gender—Complete for All Activities
Total
Male 43
Female 81
Transgender 0
Don't Know/Refused/Other 0
Missing Information 53
Total 177
Table 21 – Gender Information

City Council
27 –
41 9/6/2022

DRAFT
CAPER 39
OMB Control No: 2506-0117 (exp. 09/30/2021)

6. Age—Complete for All Activities
Total
Under 18 72
18-24 1
25 and over 51
Don't Know/Refused/Other 0
Missing Information 53
Total 177
Table 22 – Age Information

7. Special Populations Served—Complete for All Activities Number of Persons in Households
Subpopulation Total Total Persons
Served –
Prevention
Total Persons
Served – RRH
Total
Persons
Served in
Emergency
Shelters
Veterans 0 0 0 0
Victims of Domestic
Violence 0 0 0 0
Elderly 0 0 0 0
HIV/AIDS 0 0 0 0
Chronically Homeless 0 0 0 0
Persons with Disabilities:

Severely Mentally
Ill 0 0 0 0
Chronic Substance
Abuse 0 0 0 0
Other Disability 0 0 0 0
Total
(Unduplicated if
possible) 0 0 0 0
Table 23 – Special Population Served

City Council
27 –
42 9/6/2022

DRAFT
CAPER 40
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes

10. Shelter Utilization
Number of New Units - Rehabbed 0
Number of New Units - Conversion 0
Total Number of bed-nights available 200
Total Number of bed-nights provided 200
Capacity Utilization 100.00%
Table 24 – Shelter Capacity

11. Project Outcomes Data measured under the performance standards developed in consultation with the CoC(s)
City staff along with other the cities of Anaheim, Garden Grove and the County of Orange have formed the Orange County ESG Collaborative to discuss policies and procedures, how best to allocate ESG funds, as well as a variety of program and homeless issues. The City of Santa Ana along with this Collaborative continues to use mutually agreed upon forms including: intake forms, client participation agreements, checklists for monitoring and evaluating project and agency performance, and reimbursement forms for purposes of consistency and streamlining the process for all applicable parties. Staff consults with the CoC on a regular basis, attends numerous meetings and is involved in the Continuum of Care. *Shelter Utilization data is provided for Interval House. Mercy House is set up as an entry and exit program and does not maintain bed utilization data.

City Council
27 –
43 9/6/2022

DRAFT
CAPER 41
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-75 – Expenditures

11. Expenditures
11a. ESG Expenditures for Homelessness Prevention
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation &
Stabilization Services - Services 0 0 0
Expenditures for Homeless Prevention under
Emergency Shelter Grants Program 0 0 0
Subtotal Homelessness Prevention 0 0 0
Table 25 – ESG Expenditures for Homelessness Prevention 11b. ESG Expenditures for Rapid Re-Housing
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation &
Stabilization Services - Services 0 0 0
Expenditures for Homeless Assistance under
Emergency Shelter Grants Program 0 0 0
Subtotal Rapid Re-Housing 0 0 0
Table 26 – ESG Expenditures for Rapid Re-Housing
11c. ESG Expenditures for Emergency Shelter
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Essential Services 0 0 0
Operations 0 0 0
Renovation 0 0 0

City Council
27 –
44 9/6/2022

DRAFT
CAPER 42
OMB Control No: 2506-0117 (exp. 09/30/2021)
Major Rehab 0 0 0
Conversion 0 0 0
Subtotal 0 0 0
Table 27 – ESG Expenditures for Emergency Shelter
11d. Other Grant Expenditures
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Street Outreach 0 0 0
HMIS 0 0 0
Administration 0 0 0
Table 28 - Other Grant Expenditures
11e. Total ESG Grant Funds
Total ESG Funds Expended 2019 2020 2021
0 0 0 0
Table 29 - Total ESG Funds Expended
11f. Match Source
2019 2020 2021
Other Non-ESG HUD Funds 0 0 0
Other Federal Funds 0 0 0
State Government 0 0 0
Local Government 0 0 0
Private Funds 0 0 0

City Council
27 –
45 9/6/2022

DRAFT
CAPER 43
OMB Control No: 2506-0117 (exp. 09/30/2021)
Other 0 0 0
Fees 0 0 0
Program Income 0 0 0
Total Match Amount 0 0 0
Table 30 - Other Funds Expended on Eligible ESG Activities 11g. Total
Total Amount of Funds
Expended on ESG
Activities
2019 2020 2021
0 0 0 0
Table 31 - Total Amount of Funds Expended on ESG Activities

City Council
27 –
46 9/6/2022

Community Development Agency
santa-ana.org/cd
Item # 28
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Joint Public Hearing – Resolution and Purchase and Sale Agreement for Acquisition of Real Property for Park Space
AGENDA TITLE:

Joint Public Hearing – Adopt Resolution and Approve Purchase and Sale Agreement for Acquisition of Real Property at 915 N Flower Street, 921 N Flower Street, and 842 N Garnsey Street (APN 005-142-58, 005-142-35, and 005-142-47) for Park Space

RECOMMENDED ACTION

1. Adopt a resolution making certain findings with respect to the consideration to be received by the Successor Agency pursuant to a Purchase and Sale Agreement between the Successor Agency and the City for the sale of various properties: 915 N Flower Street, 921 N Flower Street, and 842 N Garnsey Street (APN 005-142-58, 005- 142-35, and 005-142-47), and authorize the City Manager to execute all required documents as necessary.

2. Authorize the City Manager to execute the Purchase and Sale Agreement and all required documents for the acquisition of real property located at 915 N Flower Street, 921 N Flower Street, and 842 N Garnsey Street (APN 005-142-58, 005-142-35, and 005-142-47) in the amount of $598,000 plus closing costs and escrow fees, subject to non-substantive changes approved by the City Manager and City Attorney.

DISCUSSION
The Parks Master Plan, adopted in May 2022, echoes and reinforces the City’s goals to provide parkland within a 10-minute walk for all residents, and three acres of parkland per 1,000 residents citywide. In July 2022, City Council approved American Rescue Plan Act (ARPA) Funding for the acquisition and expansion of parks and open space. In an effort to work towards the Parks Master Plan objectives, the City has identified the following three parcels that are suitable for park space, currently owned by the Successor Agency of the former Redevelopment Agency of the City of Santa Ana:

Address APN Property Type
915 N Flower Street 005-142-58 Vacant Lot
921 N Flower Street 005-142-35 Vacant Lot
842 N Garnsey Street 005-142-47 Vacant Lot
The Successor Agency properties are located in a “park gap” area. In June 2022, the City acquired three properties adjacent to the three Successor Agency properties for park

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Joint Public Hearing – Resolution and Purchase and Sale Agreement for Acquisition of Real Property for Park Space
September 6, 2022

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space. The newly acquired City properties (0.38 acres), combined with the Successor Agency properties (0.27 acres), would provide a new walkable 0.65-acre neighborhood park to serve four adjacent neighborhoods. (Exhibit 4)
The City may purchase the three Successor Agency properties upon Countywide Oversight Board and the Department of Finance approval of the sale. The purchase price of $598,000 was established by an appraisal conducted on April 29, 2022.

Successor Agency
The City of Santa Ana adopted an ordinance in 1973 to create a Redevelopment Agency.

Throughout the years, the Community Redevelopment Agency (RDA) of the City of Santa Ana completed numerous projects to eliminate blight, spur economic growth, funded construction of affordable housing projects, and provided infrastructure and community facility improvements within the defined project areas and through this process acquired real property for future development.

On February 1, 2012, in accordance with the Dissolution Act and the California Supreme Court’s decision in California Redevelopment Association v. Matosantos, Case No.

S194861, the RDA was dissolved and the City began to serve as the “Successor Agency.” The City Council serves as the governing body of the Successor Agency under the Dissolution Act as amended by Assembly Bill (AB) 1484, to administer the enforceable obligations of the Agency and otherwise unwind the Agency’s affairs.

The Oversight Board to the Successor Agency has oversight with respect to the Dissolution process, including final review and approval of the Long Range Property Management Plan (LRPMP). The Oversight Board has fiduciary responsibilities to holders of enforceable obligations and to the taxing entities that benefit from distribution of property tax and other revenue. As of June 30, 2018, the Orange County Auditor Controller is overseeing this function.

The three properties identified by the City for park space are identified in the LRPMP for disposition. The Successor Agency may dispose of these properties after authorization from the Oversight Board and the Department of Finance.

Approval of the resolution will allow staff to present the sale of the properties to the Oversight Board and the Department of Finance for Authorization. Once authorized, the Successor Agency may proceed with the sale of the properties to the City and remit the proceeds to the Orange County Auditor Controller for distribution amongst taxing entities.

Notice of the time and place for the public hearing was published in the OC Register on August 23, 2022 and August 30, 2022, once a week for two weeks in newspaper of general circulation, pursuant to Health and Safety Code Section 33431.

Surplus Lands Act
The property is being disposed of in accordance with the California Surplus Lands Act,

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Joint Public Hearing – Resolution and Purchase and Sale Agreement for Acquisition of Real Property for Park Space
September 6, 2022

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Government Code §54220 et seq. On April 21, 2020, the City of Santa Ana, acting as Successor Agency, declared the properties as surplus. On January 27, 2021, the City released Notice of Availability (“NOA”) of surplus properties for a period of sixty (60) days.

The NOA’s were sent to all “local public entities,” as defined in Health and Safety code section 50079, within whose jurisdiction the surplus land is located and to “Housing Sponsors” that have notified the California Department of Housing and Community Development (“HCD”) of their interest in surplus land. The NOA’s were also sent to local parks agencies and school districts.

One response was received to the NOA, negotiations for the property commenced, and the respondant withdrew interest in the properties. Negotiations ended and the properties may now be sold with affordability restrictions. While the property will be sold for the purposes of park space, the sale of the property will include a deed restriction indicating that any future residential development on the properties that contains 10 or more units must restrict 15% of the units for affordable housing to conclude Surplus Land Act requirements for disposition.

Approval of this action finalizes authorizations for the City’s acquisition of the six parcels, at 10th and Flower, for Parks and Recreation to develop a new park as identified in the Parks Master Plan.

FISCAL IMPACT
Funds in the amount of $598,000 for the purchase price plus closing and escrow costs are available in the ARPA account (no. 18113013-65100) for expenditure in FY 2022-23.

Funds for the Successor Agency’s closing and escrow costs as the seller are available in the Redevelopment Obligation Retirement Fund account (no. 67018843-62300). Upon approval by the Oversight Board and DOF, and completion of the transaction, $598,000 in proceeds from the sale will be deposited in the Redevelopment Obligation Retirement Funds Revenue account (no. 67018002-57071) and payment to the County of Orange, Auditor-Controller will be made from expenditure account (no. 67018850-69142).

EXHIBIT(S)

1. City Council Resolution

2. Successor Agency Resolution

3. Purchase and Sale Agreement

4. Location Map
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager

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RESOLUTION NO. 2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA APPROVING THE PURCHASE AND SALE

AGREEMENT FOR THE ACQUISITION OF PROPERTY

FROM THE SUCCESSOR AGENCY TO THE FORMER

REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA LOCATED AT 915 NORTH FLOWER STREET, 921
NORTH FLOWER STREET, AND 842 NORTH GARNSEY
STREET

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows:

A. Pursuant to AB X1 26 (enacted in June 2011 and amended from time to time, the “Dissolution Act”) and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopmen t agencies within the State of California, including the Community Redevelopment Agency of the City of Santa Ana (“Former Agency”), were dissolved.

B. On January 9, 2012, pursuant to section 34173 of the California Health and Safety Code (“HSC”), the City of Santa Ana (“City”) elected to serve as the Successor Agency to the dissolved Former Agency (“Successor Agency”).

C. The Successor Agency is tasked with winding down the Former Agency’s affairs.

D. Pursuant to HSC section 34175(b), all assets, including real properties, of the Former Agency transferred to the control of the Successor Agency by operation of law.

E. The Former Agency acquired certain sites, delineated as follows: (i) 915 North Flower Street, APN 005-142-58; (ii) 921 North Flower Street, APN 005-142-35; and (iii) 842 North Garnsey Street , APN 005-142-47 (collectively referred to herein as the “Properties”).

F. The Properties are not suitable for use by the Successor Agency .

However, the City believes that the Properties will be useful in pursuing the public purpose activities of the City, including park space.

EXHIBIT 1

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2 G. Accordingly, in furtherance of its wind -down of the Former Agency’s affairs, the Successor Agency desires to transfer the Properties to the City pursuant to HSC section 34181(a).

H. The City and the Successor Agency have reviewed the fair market value of the Properties, as aggregated, and have concluded that the value of such Properties are consistent with the purchase price as set forth in the draft “Purchase and Sale Agreement” in the form submitted to the City and the Successor Agency concurrently herewith (the “Agreement”).

I. The fair market value and purchase price was established as $598,000 by an appraisal conducted on April 29, 2022.

J. A joint public hearing of the Successor Agency and City Council on the proposed Agreement was duly noticed in accordance with HSC sections 33431.

K. On September 6, 2022, the governing board of the Successor Agency and the City Council held a joint public hearing on the proposed Agreement, at which time the C ity Council and the Successor Agency reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing.

L. All actions required by all applicable law with respect to the proposed Agreement have been taken in an appropriate and timely manner.

M. The City Council has reviewed the staff report in connection with this matter and has evaluated other information provided to it pertaining to the findings proposed to be made hereunder.

N. The City Council has considered all of the terms and conditions of the proposed Agreement and believe s that the sale of the Properties pursuant to the Agreement is in the best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable S tate and local laws and requirements.

Section 2. The City Council hereby finds and determines that the disposition by sale of the Properties by the Successor Agency to the City pursuant to the Agreement will further the achievement of the City’s public purposes by making property available for use by the City for park space.

Section 3. The City Council finds and determines that, based upon substantial evidence provided in the record , the consideration for the Successor Agency’s sale of

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3 the Properties to the City pursuant to the terms and conditions of the Agreement is not less than the fair market value of the Properties.

Section 4. The City Council hereby approves the Agreement in substantially the form presented to the City Council, subject to such revisions as may be made by the City Manager , or designee. The City Manager is hereby authorized to execute the Agreement, as so revised (including without limitation all attachments thereto), on behalf of the City , together with any instruments necessary or convenient to implement the Agreement. A copy of the Agreement shall, when executed by the City, be placed on file in the Office of the Clerk of the Council.

Section 5. The City Manager, or designee, is hereby authorized, on behalf of the City, to make revisions to the Agreement that do not materially or substantially increase the City’s obligations thereunder or materially or substantially change the uses or development permitted on the Properties, to sign all documents, to m ake all approvals and take all actions necessary or appropriate to carry out and implement the Agreement and to administer the City’s obligations, responsibilities and duties to be performed under the Agreement and related documents.

ADOPTED this 6th day of September, 2022.

By: ___________________________
Vicente Sarmiento, Mayor

APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney

By: ___________________________
Ryan O. Hodge
Assistant City Attorney

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

NOT PRESENT: COUNCILMEMBERS:

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4 CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, , Clerk of the Council , do hereby attest to and certify the attached Resolution No. 2022-______________________ to be the origin al resolution adopted by the City Council of the City of Santa Ana on September 6, 2022.

Date: ____________________________ _____________________________ Clerk of the Council
City of Santa Ana

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RESOLUTION NO. 2022-____

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE

FORMER COMMUNITY REDEVELOPMENT AGENCY OF

THE CITY OF SANTA ANA APPROVING THE PURCHASE

AND SALE AGREEMENT FOR THE DISPOSITION OF

PROPERTY TO THE CITY OF SANTA ANA LOCATED AT
915 NORTH FLO WER STREET, 921 NORTH FLOWER
STREET, AND 842 NORTH GARNSEY STREET

BE IT RESOLVED BY THE GOVERNING BOARD OF THE SUCCESSOR

AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1: The Governing Board of the Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows:

A. Pursuant to AB X1 26 (enacted in June 2011 and amended from time to time, the “Dissolution Act”) and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies within the State of California, including the Community Redevelopment Agency of the City of Santa Ana (“Former Agency”), were dissolved.

B. On January 9, 2012, pursuant to section 34173 of the California Health and Safety Code (“HSC”), the City of Santa Ana (“City”) elected to serve as the Successor Agency to the dissolved Former Agency (“Successor Agency”).

C. The Success or Agency is tasked with winding down the Former Agency’s affairs.

D. Pursuant to HSC section 34175(b), all assets, including real properties, of the Former Agency transferred to the control of the Successor Agency by operation of law.

E. The Former Agency acq uired certain sites, delineated as follows: (i) 915 North Flower Street, APN 005-142-58; (ii) 921 North Flower Street, APN 005-142-35; and (iii) 842 North Garnsey Street , APN 005-142-47 (collectively referred to herein as the “Properties”).

F. The Pr operties are not suitable for use by the Successor Agency .

However, the City believes that the Properties will be useful in pursuing the public purpose activities of the City, including park space.

EXHIBIT 2

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2 G. Accordingly, in furtherance of its wind -down of the Form er Agency’s affairs, the Successor Agency desires to transfer the Properties to the City pursuant to HSC section 34181(a).

H. The City and the Successor Agency have reviewed the fair market value of the Propert ies, as aggregated, and have concluded that the value of such Propert ies are consistent with the purchase price as set forth in the draft “Purchase and Sale Agreement” in the form submitted to the City and the Successor Agency concurrently herewith (the “Agreement”).

I. The fair market value and purchase price was established as $598,000 by an appraisal conducted on April 29, 2022.

J. A joint public hearing of the Successor Agency and City Council on the proposed Agreement was duly noticed in accordance with HSC sections 33431.

K. On September 6, 2022, the governing board of the Successor Agency and the City Council held a joint public hearing on the proposed Agreement, at which time the City Council and the Successor Agency reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing.

L. All actions required by all applicable law with respect to the proposed Agreement have been taken in an appropriate and timely manner.

M. The Successor Agency has reviewed the staff report in connection with this matter and has ev aluated other information provided to it pertaining to the findings proposed to be made hereunder.

N. The Successor Agency has considered all of the terms and conditions of the proposed Agreement and believes that the sale of the Properties pursuant to the A greement complies with the Oversight Board’s direction to dispose of all assets and properties of the Former Agency pursuant to HSC section 34181(a), and in accord with the public purposes and provisions of applicable S tate and local laws and requirements.

Section 2. The Successor Agency hereby finds and determines that the disposition by sale of the Properties by the Successor Agency to the City pursuant to the Agreement will further the achievement of the Successor Agency’s purpose of winding down the Fo rmer Agency’s affairs in compliance with the Oversight Board’s direction to dispose of all assets and properties of the Former Agency pursuant to HSC section 34181(a).

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3 Section 3. The Successor Agency finds and determines that, based upon substantial evide nce provided in the record, the consideration for the Successor Agency’s sale of the Properties to the City pursuant to the terms and conditions of the Agreement is not less than the fair market value of the Properties.

Section 4. The Successor Agency hereby approves the Agreement in substantially the form presented to the Successor Agency , subject to such revisions as may be made by the Executive Director of the Successor Agency, or designee. The Executive Director of the Successor Agency is hereby autho rized to execute the Agreement, as so revised (including without limitation all attachments thereto), on behalf of the Successor Agency , together with any instruments necessary or convenient to implement the Agreement. A copy of the Agreement shall, when executed by the Successor Agency , be placed on file in the Office of the Secretary of the Successor Agency.

Section 5. The Executive Director of the Successor Agency , or designee , is hereby authorized, on behalf of the Successor Agency , to make revisions to the Agreement that do not materially or substantially increase the Successor Agency ’s obligations thereunder or materially or substantially change the uses or development permitted on the Properties, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Agreement and to administer the Successor Agency ’s obligations, responsibilities and duties to be performed under the Agreement and related documents.

ADOPTED this 6th day of September, 2022.

By: ___________________________
Vicente Sarmiento, Chair
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By: ___________________________
Ryan O. Hodge
Assistant City Attorney

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4 AYES: SUCCESSOR AGENCY MEMBERS:

NOES: SUCCESSOR AGENCY MEMBERS:

ABSTAIN: SUCCESSOR AGENCY MEMBERS:

NOT PRESENT: SUCCESSOR AGENCY MEMBERS:

CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, , Secretary of the Successor Agency, do hereby attest to and certify the attached Resolution No . 2022-______________________ to be the original resolution adopted by the Governing Board of the Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana on September 6, 2022.

Date: ____________________________ _____________________________ Successor Agency Secretary

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PURCHASE AND SALE AGREEMENT
SELLER: Successor Agency to the Former Community
Redevelopment Agency of the City of Santa
Ana
BUYER: City of Santa Ana
DATED: September 6, 2022
(915 N. Flower Street, APN 005-142-58;
921 N. Flower Street, APN 005-142-35;
and 842 N. Garnsey Street, APN 005-142-47)
EXHIBIT 3

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BASIC TERMS
Buyer: City of Santa Ana, a charter city and municipal corporation organized under the Constitution and laws of the State of California Buyer’s Address: City of Santa Ana
Attention: Clerk of the Council
20 Civic Center Plaza
Santa Ana, CA 92701
Tel. (714) 647-6520
Closing Date (or Closing): Estimated to occur by N ovember 1, 2022, but not later than the Outside Date
Contingency Date: S ixty (60) days after the Effective Date Deed: A grant deed in the form of Exhibit B hereto
Effective Date: September 6, 2022
Outside Date: 60 da ys after Oversight Board and Department of Finance Approval Oversight Board: The Oversight Board to the Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana approval is a condition of closing
Purchase Price: Five-Hundred and Ninety-Eight Thousand Dollars ($598,000) Real Property: That property described in Exhibit A hereto; the subject property consists of: (i) 915 North Flower Street, APN 005-142-58; (ii) 921 North Flower Street, APN 005-142-37; and (iii) 842 North Garnsey, APN 005-142-47
Seller: Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana
Seller’s Address: 20 Civic Center Plaza
Santa Ana, California 92701
Attention: Director of Community Development Agency
Tel. (714) 647-5360
Title Company: First American Title Insurance Company
5 First American Way
Santa Ana, CA 92707
Tel: (714) ___-____
Attention: ________________, _______________
(direct: (714) ___-____; email: [email protected]) (or another title insurer mutually acceptable to Buyer and Seller)

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PURCHASE AND SALE AGREEMENT

This PURCHASE AND SALE AGREEMENT (“Agreement”) is made and entered into as of the Effective Date by and between Seller and Buyer.

RECITALS
A. Seller is the fee owner of that real property which is legally described on Exhibit A attached hereto and made a part hereof (the “Real Property”). The Real Property is unimproved and unoccupied vacant lots.

B. Seller has offered to sell to Buyer the Real Property described herein for the price and subject to the terms set forth below. Buyer has considered the offer by Seller and agrees to buy from Seller the Real Property, as more specifically described below.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows:

1. Purchase and Sale. Seller hereby agrees to sell the Real Property to Buyer, and Buyer hereby agrees to purchase the Real Property from Seller, on the terms and conditions set forth in this Agreement. The term Real Property is defined collectively as the following:
(a) The fee interest in the Real Property to be conveyed by the Deed (defined in Section 8(a) below);
(b) All rights, privileges, easements, licenses and interests appurtenant to the Real Property. Such rights shall be deemed to include, without limitation, al l royalties, minerals, oil and gas rights and profits, water and water rights (whether or not appurtenant) owned by Seller; and (c) All personal property, equipment, supplies, and fixtures owned by Seller and located at the Real Property; and
(d) All of Seller’s interest under contracts, leases, and other agreements associated with the Real Property, subject to a power of termination as set forth in the Deed.

2. Payment of Consideration. As consideration for the sale of the Real Property from Seller to Buyer, Buyer s hall, at the Closing (as defined below), pay to Seller the Purchase Price of Five-Hundred and Ninety-Eight Thousand Dollars ($598,000) for the Real Property.

3. Closing without Escrow.
(a) Closing without use of Escrow. At the election of Seller, the parties will effect the conveyance of the Property and payment of the Purchase Price without use of an escrow holder provided that: (i) Seller confirms to Buyer that Seller agrees that the Deed may be recorded among the official records of the County Recorder of t he County of Orange after Buyer confirms to Seller that Buyer holds moneys equal to the Purchase Price and will transfer such moneys to City within one (1) business day after the Deed is recorded, and (ii) Seller confirms to Buyer that the Title Company

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2 has committed to issue the “Buyer’s Title Policy” (as described in Section 6 hereof) in a form and subject only to exceptions that are acceptable to Buyer. (b) Closing. For purposes of this Agreement, the “Closing” or “Closing Date” shall be the date the Deed (as defined below) is recorded pursuant to applicable law in the county in which the Real Property is located. Unless changed in writing by Buyer and Seller, the Closing shall occur on the Closing Date, or as soon thereafter as the conditions precedent to closing are satisfied pursuant to Sections 6 and 7 of this Agreement. If the Closing has not, for any reason, occurred by the Closing Date, then either Buyer or Seller may terminate this Agreement by delivering written notice to the other at any time aft er the outside Closing Date; provided, however, that if either party is in default under this Agreement at the time of such termination, then such termination shall not affect the rights and remedies of the non-defaulting party against the defaulting party.

4. Seller’s Delivery of Real Property and Formation Documents . Within ten (10) days after the Effective Date, Seller shall deliver to Buyer the following items (collectively, the Property Documents”):
(a) Copies of tax bills.
(b) Such proof of Sellers’ authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company consistent with the terms of this Agreement.

5. Buyer’s Right of Entry . From and after the Effective Date through the earlier to occur of the termination of this Agreement or the Closing, Buyer and Buyer’s employees, agents, consultants and contractors shall have the right to enter upon the Real Property during normal business hours, provided reasonable prior notice has been given to Seller. (a) Investigation of the Real Property . In addition to the foregoing, the Buyer shall have the right, at its sole cost and expense, prior to the Contingency Date, to engage its own environmental consultant (the “Environmental Consult ant”) to make such investigations as Buyer deems necessary or appropriate, including any “Phase 1” or “Phase 2” investigations of the Real Property. If, based upon such evaluation, inspections, tests or investigation, Buyer determines that it, in its discretion, does not wish to proceed with purchase of the Real Property based upon the condition of the Real Property, Buyer may cancel this Agreement by giving written notice of termination to Seller on or before the Contingency Date which specifically references this Section 5. If Buyer does not cancel this Agreement by the time allowed under this Section 5, Buyer shall be deemed to have approved the evaluation, inspections and tests as provided herein and to have elected to proceed with this transaction on the terms and conditions of this Agreement. Buyer shall be provided a copy of all reports and test results provided by Buyer’s Environmental Consultant promptly after receipt by the Buyer of any such reports and test results.

Buyer shall bear all costs, i f any, associated with restoring the Real Property to the condition prior to its testing by or on behalf of Buyer if requested to so do by Seller. (b) No Warranties as To the Real Property . The physical condition and possession of the Real Property, is and shall be delivered from Seller to Buyer in an “as is” condition, with no warranty expressed or implied by Seller, including without limitation, the presence of

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3 Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of the Real Property for development purposes. (c) Buyer Precautions after Closing. Upon and after the Closing, Buyer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which are located in, on or under the Real Property. Such precautions shall include compliance with all laws, ordinances, statutes, codes, rules, regulations, orders, and decrees of the United States, the state, the County, the City, or any other politic al subdivision in which the Real Property is located, and of any other political subdivision, agency, or instrumentality exercising jurisdiction over the Real Property (“Governmental Requirements”) with respect to “Hazardous Materials”, as defined below. “Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code , Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous subst ance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (x) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (xi) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §6901 et seq.

6. Buyer’s Conditions Precedent and Termination Right.
(a) Conditions Precedent. The Closing and Buyer’s obligation to consummate the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following conditions precedent (collectively, “Buyer’s Contingencies”), which are for Buyer’s benefit only.
(i) Title Review . Within ten (10) calendar days after the Date of Agreement, Seller shall cause the Title Company to deliver to Buyer a preliminary title report (the “Report”) describing the title to the Real Property, together with copies of the plotted easements and the exceptions (the “Exceptions”) set forth in the Report; provided that the cost of the Report shall be borne by Seller. Seller acknowledges that the Report shall include an endorsement against the effect of any mechanics’ liens; Seller will provide such indemnity or other assurances as necessary to induce the Title Company to provide such endorsement. On or befo re the Contingency Date, Buyer shall have approved in writing, in Buyer’s sole discretion, any matters of title disclosed by the following (collectively, the “Title Documents”): (i) the Report; (ii) the Exceptions; (iii) the legal description of the Real Property and (iv) any survey Buyer desires to obtain at Buyer’s sole cost and expense. Buyer shall have the same rights to approve or disapprove any exceptions to title that are not created by

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4 Buyer and that come into existence after issuance of the Report but prior to Closing. Seller shall, on or before the Closing, remove all deeds of trust, mortgages and delinquent taxes (but not the lien for any real property taxes or assessments not yet delinquent). (ii) Buyer’s Title Policy . On or before the Closing, th e Title Company shall, upon payment (by Buyer) of the Title Company’s premium, have agreed to issue to Buyer, a CLTA owner’s policy of title insurance (“Buyer’s Title Policy”) in the amount of the Purchase Price showing fee title to the Real Property vested solely in Buyer and subject only to the (i) the standard, preprinted exceptions to Buyer’s Title Policy; (ii) liens to secure payment of real estate taxes or assessments not yet delinquent; (iii) matters affecting the Real Property created by or with the written consent of Buyer; and (iv) those matters specifically approved in writing by Buyer. Buyer shall have the right, at its sole cost and expense, to obtain coverage beyond that offered by a CLTA policy; provided, however, that Buyer’s ability to obta in such extended coverage shall not be a Buyer’s Contingency and Buyer’s obligations hereunder shall in no way be conditioned or contingent upon obtaining such extended coverage. Buyer shall have sole responsibility for obtaining, and bearing the cost of, any endorsements and for any survey or other matters required by the Title Company for such extended coverage.
(iii) Physical and Legal Inspections and Studies . On or before the Contingency Date, Buyer shall have approved in writing, in Buyer’s sole and absolute discretion, the results of any physical and legal (but not feasibility or economic) inspections, investigations, tests and studies Buyer elects to make or obtain, including, but not limited to, investigations with regard to zoning, building codes and ot her governmental regulations; engineering tests; soils, seismic and geologic reports; environmental audits, inspections and studies; environmental investigation or other invasive or subsurface testing; and any other physical or legal inspections and/or inv estigations as Buyer may elect to make or obtain.
(iv) Property and Formation Documents . On or before the Contingency Date, Buyer shall have approved in writing, in Buyer’s reasonable discretion, the terms, conditions and status of all of the Property Documents.
(v) Delivery of Documents. Seller’s delivery of all documents described in Section 8, below.
(vi) Representations and Warranties . All representations and warranties of Seller contained in this Agreement shall be materially true and correct as of the date made and as of the Closing.
(vii) Title Company Confirmation . The Title Company shall have confirmed that it is prepared to issue the Buyer’s Title Policy consistent with the provisions of this Agreement.
(viii) No Default. As of the Closing, Seller shall not be in defaul t in the performance of any material covenant or agreement to be performed by Seller under this Agreement. (ix) Oversight Board and Department of Finance (“DOF”) Approval. The Oversight Board and, if required as a condition of the issuance of title insurance or by either party hereto, approval by DOF, shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement.

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5 (b) Termination Right. Should any of Buyer’s Contingencies not be met by the Outside Date, and Buyer so informs Seller, Buyer may, by written notice to Seller, terminate this Agreement. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any escrow, title or other cancellation fees shall be pa id by Buyer, unless Seller is in default hereunder, in which case Seller shall pay all such fees. If Buyer has neither terminated this Agreement in writing (“Termination Notice”) on or before 5:00 p.m. on the Contingency Date as to the items set forth in Sections 6(a)(i)-(v) inclusive, nor provided a written satisfaction or waiver notice to Seller of each Buyer’s Contingency to be satisfied as of the Contingency Date, then all such Buyer’s Contingencies shall be deemed to have been satisfied and this Agreement shall continue pursuant to its terms. If Buyer has not delivered a Termination Notice as the items set forth in Sections 6(a)(vi)-(viii) inclusive, prior to the Closing, such Buyer’s Contingencies shall be deemed to have been satisfied.
(c) Seller’s Cure Right. Buyer shall notify Seller, in Buyer’s Termination Notice, of Buyer’s disapproval or conditional approval of any Title Documents. Seller shall then have the right, but not the obligation, to (i) remove from title any disapproved or conditionally a pproved Exception(s) (or cure such other title matters that are the basis of Buyer’s disapproval or conditional approval of the Title Documents) within five (5) business days after Seller’s receipt of Buyer’s Termination Notice, or (ii) provide assurances reasonably satisfactory to Buyer that such Exception(s) will be removed (or other matters cured) on or before the Closing. With respect to any such Exception, it shall be sufficient for purposes hereof for Seller to commit in writing, within the applicable period, to remove such Exception at or before the Closing. Seller’s failure to remove such Exception after committing to do so shall be a default hereunder. An Exception shall be deemed removed or cured if Seller furnishes Buyer with evidence that the Title Company will issue the Buyer’s Title Policy, as defined herein, at the Closing deleting such Exception or providing an endorsement (at Seller’s expense) reasonably satisfactory to Buyer concerning such Exception. If Seller cannot or does not remove or agree to remove any of the disapproved Exception(s) (or cure other matters) within such five (5) business day period, Buyer shall have three (3) business days after the expiration of such five (5) business day period to give Seller written notice that Buyer elects to proceed with the purchase of the Real Property subject to the disapproved Title Document(s), it being understood that Buyer shall have no further recourse against Seller for such disapproved Title Exception(s).

7. Seller’s Conditions Precedent and Termination Right. The Closing and Seller’s obligations with respect to the transaction contemplated by this Agreement are subject to the timely satisfaction or written waiver of the following conditions precedent (“Seller’s Contingencies”), which are for Seller’s benefit only:
(a) Completion of Title Review. Seller shall have received written confirmation from Buyer that Buyer has completed its review of title and that the condition of title is satisfactory. (b) Confirmation Concerning Site . Seller shall ha ve received written confirmation from Buyer that Buyer has reviewed the condition of the Real Property, including without limitation concerning Hazardous Materials, zoning and suitability, and approves the condition of the Real Property.
(c) Oversight Board an d, if applicable, DOF Approval. The approval by the Oversight Board and DOF shall have been given as to the disposition of the Real Property by Seller to Buyer under this Agreement, and, if required as a matter of law or as a condition by the Title Company as a condition of the Title Company issuing its policy of title insurance, DOF approval.

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6 (d) Confirmation Regarding Buyer’s Title Policy . Seller shall have received written confirmation from Buyer that Buyer has approved a pro forma title policy. (e) Delivery of Documents . Buyer’s delivery of all doc uments described in Section 9, below.

Should any of Buyer’s Contingencies not be met by the Outside Date and Buyer has so informed Seller , Seller may, by written notice to Buyer, terminate this Agreement. If this Agreement is so terminated, then (except to the extent expressly allocated to one party hereto by this Agreement) any title or other cancellation fees shall be paid by Buyer.

8. Seller’s Deliveries to Buyer.
(a) Seller’s Delivered Documents . At least one (1) busi ness day prior to the Closing Date, Seller shall deposit or cause to be deposited with Buyer the following items, duly executed and, where appropriate, acknowledged (“Seller’s Delivered Items”):
(i) Deed. The Grant Deed in the form attached hereto as Exhibit B (the “Deed”).
(ii) Possession of Real Property. Possession of the Real Property free of any tenancies or occupancy.
(iii) Authority. Such proof of Seller’s authority and authorization to enter into this Agreement and to consummate this transaction as may be reasonably requested by Buyer and the Title Company.
(iv) Further Documents or Items . Any other documents or items reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company.
(b) Failure to Deliver . Should any of Sel ler’s Delivered Items not be timely delivered to Buyer, Buyer may, by written notice to Seller, terminate this Agreement; provided, however, that Buyer may (but shall not be obligated to) in such notice provide Seller with five (5) business days to deliver all of Seller’s Delivered Items. If Buyer’s notice provides Seller such five (5) business days to deliver Seller’s Delivered Items, and if Seller’s Delivered Items are not delivered within such period, then this Agreement shall automatically terminate without further action or notice.

In the event of any such termination, any cash deposited by Buyer shall immediately be returned to Buyer. Under no circumstances shall Buyer have any responsibility to or duty to pay consultants or real estate brokers reta ined by Seller, Seller being solely responsible in connection with any such contractual arrangements of Seller.

9. Buyer’s Deliveries to Seller. At least one (1) business day prior to the Closing Date, Buyer shall deposit or cause to be deposited with Seller the following, each duly executed and acknowledged by Buyer, as appropriate (“Buyer’s Delivered Items”):
(a) Purchase Price. The Purchase Price, together with additional funds necessary to pay Buyer’s closing costs set forth in Section 10(b) herein.

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7 (b) Authority. Such proof of Buyer’s authority and authorization to enter into this Agreement and to consummate the transaction contemplated hereby as may be reasonably requested by Seller or the Title Company.
(c) Further Documents or Items . Any other documents or it ems reasonably required to close the transaction contemplated by this Agreement as determined by the Title Company.

10. Costs and Expenses.
(a) Seller’s Costs . If the transaction contemplated by this Agreement is consummated, then Seller shall be debited for and bear the following costs: (i) costs and charges associated with the removal of encumbrances; (ii) Seller’s share of prorations; and (iii) costs, if any, allocable to Seller under this Agreement (which foregoing items collectively constitute “Seller’s Costs and Debited Amounts”).
(b) Buyer’s Costs . If the transaction contemplated by this Agreement is consummated, then Buyer shall bear the following costs and expenses: (i) Buyer’s share of prorations, (ii) the premium for an owner’s policy of title insurance which, at the election of Buyer, will be an ALTA owner’s extended coverage policy of title insurance and the cost for any survey required in connection with the delivery of an ALTA owner’s extended coverage policy of title insurance; (iii) documentary reco rding fees, if any; ( iv) documentary transfer tax, if any; and (v) any costs associated with Buyer borrowing money in order to pay to Seller the Purchase Price (collectively, “Buyer’s Costs and Debited Amounts”). Since Buyer and Seller elected to close without use of escrow pursuant to Section 3(b) hereof, Buyer and Seller shall make the prorations described in this subsection (b).

Generally. Each party shall bear the costs of its own attorneys, consultants, and real estate brokers in connection with the negotiation and preparation of this Agreement and the consummation of the transaction contemplated hereby. Buyer represents to Seller that Buyer has not engaged the services of any consultants, finders or real estate brokers in connection with the purchase of the Real Property from the Seller. Seller represents to Buyer that Seller has not engaged the services of any consultants, finders or real estate brokers in connection with the sale of the Real Property to the Buyer.

11. Prorations; Withholding.
(a) All revenues (if any) and expenses relating to the Real Property (including, but not limited to, property taxes, utility costs and expenses, water charges and sewer rents and refuse collection charges) shall be prorated as of the Closing Date; provided that all de linquent taxes shall be satisfied at the expense of Seller. Not less than five (5) business days prior to the Closing, Seller shall deliver to Buyer a tentative schedule of prorations for Buyer’s approval (the “Proration and Expense Schedule”). If any pr orations made under this Section shall require final adjustment after the Closing, then the parties shall make the appropriate adjustments promptly when accurate information becomes available and either party hereto shall be entitled to an adjustment to correct the same. Any corrected or adjustment proration shall be paid promptly in cash to the party entitled thereto.
(b) In the event Seller does not qualify for an exemption from California withholding tax under Section 18662 of the California Revenue and Taxation Code (the “Tax Code”) as evidenced by the delivery to Buyer at Closing of the California Exemption Certificate duly executed

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8 by Seller, (i) Title Company shall withhold three and one-third percent (3-1/3%) of the Purchase Price on behalf of Buyer at Closing for payment to the California Franchise Tax Board in accordance with the Tax Code, (ii) Buyer shall deliver three (3) duly executed copies of California Form 593 to Title Company at or immediately after Closing, (iii) two (2) copies of California F orm 593 shall be delivered by Title Company to Seller, and (iv) on or before the 20 th day of the month following the month title to the Real Property is transferred to Buyer (as evidenced by the recording of the Deed), Title Company shall remit such funds withheld from the Purchase Price, together with one (1) copy of California Form 593 to the California Franchise Tax Board on behalf of Buyer. Buyer and Seller hereby appoint Title Company as a reporting entity under the Tax Code, authorized to withhold an d remit the withholding tax contemplated under the Tax Code, together with such other documents required by the Tax Code (including, without limitation, California Form 593), to the California Franchise Tax Board.

12. Closing Procedure. When the Title Company is ready to issue the Buyer’s Title Policy and all required documents and funds have been deposited with Seller, Seller shall immediately close Escrow in the manner and order provided below.
(a) Recording. Seller shall cause the Deed to be recorded pursuant to applicable law in the county in which the Real Property is located and obtain conformed copies thereof for distribution to Buyer and Seller.
(b) Disburse Funds. Seller shall debit or credit (as provided herein) all Buyer’s Costs and Debited Amounts, Sell er’s Costs and Debited Amounts and General Expenses, prorate matters and withhold funds as provided herein. The Purchase Price, less any applicable debits or credits (as provided herein) shall be distributed via account transfers to Seller. Seller shall request demands for payment and to make such payments from the Purchase Price (or such other funds, if any, as are advanced by Seller) to defray the cost of removing deeds of trust, liens and other encumbrances.
(c) Documents to Seller. Seller shall receive a conformed copy of the Deed, and documents, if any, recorded on behalf of any lender, as duly recorded among the official land records of the County of Orange, and a copy of each other document (or copies thereof) provided by Buyer pursuant hereto.
(d) Documents to Buyer . Seller shall deliver to Buyer the original California Exemption Certificate (as applicable), and a conformed copy of each of the Deed as duly recorded among the official land records of the County of Orange, and each other document (or copies thereof) deposited by Seller pursuant hereto, including, without limitation, those documents referenced in Section 8.
(e) Title Company. Seller shall cause the Title Company to issue the Buyer’s Title Policy to Buyer.
(f) Informational Reports. Seller shall file any information reports required by Internal Revenue Code Section 6045(e), as amended.
(g) Possession. Possession of the Real Property shall be delivered to Buyer at the Closing.

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9 13. Representations and Warranties.
(a) Seller’s Representations and Warranties. In consideration of Buyer entering into this Agreement and as an inducement to Buyer to purchase the Real Property, Seller makes the following representations and warranties as of the Effective Date and as of the Closing, each of which is material and is being relied upon by Buyer (and the truth and accuracy of which shall constitute a condition precedent to Buyer’s obligations hereunder), and all of which are material inducements to Buyer to enter into this Agreement (and but for which Buyer would not have ent ered into this Agreement) and shall survive Closing ; provided that each of the representations and warranties of Seller is based upon the information and belief of the Executive Director of the Buyer:
(i) Seller believes that it has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated, subject to the approval of the Oversight Board and, as may be applicable, DOF. (ii) Subject to the approval of the Oversight Board and , as may be applicable, DOF, Seller believes that a ll requisite action (corporate, trust, partnership or otherwise) has been taken by Seller in connection with entering into this Agreement and the instruments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby.
(iii) Subject to the approval of the Oversight Board and, as may be applicable, DOF, the individual executing this Agreement and the instruments referen ced herein on behalf of Seller has the legal power, right and actual authority to bind Seller to the terms and conditions hereof and thereof.
(iv) Seller believes that neither the execution or delivery of this Agreement or the documents or instruments referenced herein, nor incurring the obligations set forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement or the documents or instruments referenced herein or therein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, lease or other agreement or instrument to which Seller is a party or that affect the Real Property, including, but not limited to, any of the Title Documents or the Property Documents. (v) There is no pending litigation nor, to the best of Seller’s knowledge, threatened litigation, which does or will adversely aff ect the right of Seller to convey the Real Property. There are no claims which have been received by Seller that have not been disclosed to Buyer.
(vi) Seller has made no written or oral commitments to or agreements with any governmental authority or agency ma terially and adversely affecting the Real Property, or any part hereof, or any interest therein, which will survive the Closing. (vii) There are no leases or rental agreements in effect as to the Real Property.
(viii) Seller is not in default of its obligations under any contract, agreement or instrument to which Seller is a party pertaining to the Real Property.

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10 (ix) There are no mechanics’, materialmen’s or similar claims or liens presently claimed or which will be claimed against the Real Property for work performed or commenced for Seller or on Seller’s behalf prior to the date of this Agreement. (x) There are no undisclosed contracts, licenses, commitments, undertakings or other written or oral agreements for services, supplies or materials concerning the use, operation, maintenance, or management of the Real Property that will be binding upon Buyer or the Real Property after the Closing. There are no oral contracts or other oral agreements for services, supplies or materials, affecting the use, operation, maintenance or management of the Real Property. (xi) There are not as of the Effective Date, nor will there be as of the Closing, any written or oral leases or contractual right or option to lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Real Property or any part thereof, and no person other than Buyer shall have any right of possession to the Real Property or any part thereof as of the Closing.
(xii) No person, excepting Seller, has possession or any rights to possession of the Real Property or portion thereof.
(b) Subsequent Changes to Seller’s Representations and Warranties . If, prior to the Closing, Buyer or Seller should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or wa rranty of Seller set forth herein incorrect or untrue in any respect (collectively, the “Seller Representation Matter”), then the party who has learned, discovered or become aware of such Representation Matter shall promptly give written notice thereof to the other party and Seller’s representations and warranties shall be automatically limited to account for the Representation Matter. Buyer shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to S eller if Buyer reasonably disapproves any such change. If Buyer does not elect to terminate this Agreement, Seller’s representation shall be qualified by such Seller Representation Matter and Seller shall have no obligation to Buyer for such Seller Representation Matter.
(c) Buyer’s Representations and Warranties. In consideration of Seller entering into this Agreement and as an inducement to Seller to sell the Real Property, Buyer makes the following representations and warranties as of the date hereof and a t and as of the Closing, each of which is material and is being relied upon by Seller (and the truth and accuracy of which shall constitute a condition precedent to Seller’s obligations hereunder), and all of which shall survive Closing:
(i) Buyer has the lega l power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby.
(ii) All requisite action has been taken by Buyer in connection with entering into this Agreement and the ins truments referenced herein; and, by the Closing, all such necessary action will have been taken to authorize the consummation of the transaction contemplated hereby.

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11 (iii) The individuals executing this Agreement and the instruments referenced herein on behalf of Buyer have the legal power, right and actual authority to bind Buyer to the terms and conditions hereof and thereof.
(iv) Neither the execution and delivery of this Agreement and the documents and instruments referenced herein, nor incurring the obligations s et forth herein, nor the consummation of the transaction contemplated herein, nor compliance with the terms of this Agreement and the documents and instruments referenced herein conflict with or result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or instrument to which Buyer is a party or by which any o f Buyer’s properties are bound.
(d) Subsequent Changes to Buyer’s Representations and Warranties . If, prior to the Closing, Seller or Buyer should learn, discover or become aware of any existing or new item, fact or circumstance which renders a representation or warranty of Buyer set forth herein incorrect or untrue in any respect (collectively, the “Buyer’s Representation Matter”), then the party who has learned, discovered or become aware of such Buyer’s Representation Matter shall promptly give written noti ce thereof to the other party and Buyer’s representations and warranties shall be automatically limited to account for the Buyer’s Representation Matter. Seller shall have the right to approve or disapprove any such change and to terminate this Agreement by written notice to Buyer if Seller reasonably disapproves any such change. If Seller does not elect to terminate this Agreement, Buyer’s representation shall be qualified by such Buyer’s Representation Matter and Buyer shall have no obligation to Seller for such Buyer’s Representation Matter.

14. Fair Value Price. Each of Buyer and Seller believe that the Purchase Price represents a fair value price for the Real Property.

15. Surplus Lands Act. The Property is subject to the requirements of the Surplus Lands Act. Accordingly, pursuant to Government Code section 54233, if 10 or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the parcels shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915 of the Government Code. Buyer expressly agrees and consents that the requirements of this section shall be contained in a covenant or restriction recorded against the Property prior to land use entitlement of the project, and the covenant or restriction shall run with the land and shall be enforceable against any owner who violates a covenant or restriction, and each successor in in terest who continues the violation, by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the Government Code.

16. General Provisions.
(a) Condemnation. If any material portion of the Real Property shall be taken or appropriated by a public or quasi-public authority exercising the power of eminent domain, Buyer

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12 shall have the right, at its option, to (i) terminate this Agreement or (ii) proceed with the purchase of the Real Property and receive all of the award or payment made in connection with such taking. (b) Notices. All notices, demands, requests or other communications required or permitted hereunder (collectively, “Notices”) shall be in writing, shall be addressed to the receiving party as provided in the Basic Terms sect ion above, and shall be personally delivered, sent by overnight mail (Federal Express or another carrier that provides receipts for all deliveries), sent by certified mail, postage prepaid, return receipt requested, or sent by facsimile transmission (provi ded that a successful transmission report is received). All Notices shall be effective upon receipt at the appropriate address. Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refus al to accept or the inability to deliver because of changed address of which no Notice in accordance with this Section was given shall be deemed to constitute receipt of such Notice. The providing of copies of Notices to the parties’ respective counsels is for information only, is not required for valid Notice and does not alone constitute Notice hereunder.
(c) Waiver, Consent and Remedies . Each provision of this Agreement to be performed by Buyer and Seller shall be deemed both a covenant and a condition and shall be a material consideration for Seller’s and Buyer’s performance hereunder, as appropriate, and any breach thereof by Buyer or Seller shall be deemed a material default hereunder. Either party may specifically and expressly waive in writing any por tion of this Agreement or any breach thereof, but no such waiver shall constitute a further or continuing waiver of a preceding or succeeding breach of the same or any other provision. A waiving party may at any time thereafter require further compliance by the other party with any breach or provision so waived. The consent by one party to any act by the other for which such consent was required shall not be deemed to imply consent or waiver of the necessity of obtaining such consent for the same or any s imilar acts in the future. No waiver or consent shall be implied from silence or any failure of a party to act, except as otherwise specified in this Agreement.

All rights, remedies, undertakings, obligations, options, covenants, conditions and agreement s contained in this Agreement shall be cumulative and no one of them shall be exclusive of any other.

Except as otherwise specified herein, either party hereto may pursue any one or more of its rights, options or remedies hereunder or may seek damages or specific performance in the event of the other party’s breach hereunder, or may pursue any other remedy at law or equity, whether or not stated in this Agreement.
(d) Cooperation. Buyer and Seller agree to execute such instruments and documents and to diligen tly undertake such actions as may be required in order to consummate the purchase and sale herein contemplated and shall use all reasonable efforts to accomplish the Closing in accordance with the provisions hereof and, following Closing. (e) Time. Time is of the essence of every provision herein contained. In the computation of any period of time provided for in this Agreement or by law, the day of the act or event from which said period of time runs shall be excluded, and the last day of such period shall b e included, unless it is a Saturday, Sunday, City closure, or legal holiday, in which case the period shall be deemed to run until 5:00 p.m. of the next day that is not a Saturday, Sunday, City closure, or legal holiday. Except as otherwise expressly provided herein, all time periods expiring on a specified date or period herein shall be deemed to expire at 5:00 p.m. on such specified date or period. (f) Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of whic h shall be deemed an original, but all of which, together, shall

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13 constitute but one and the same instrument. A n electronic signature shall be deemed an original signature.
(g) Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.
(h) No O bligations to Third Parties . The ex ecution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties to this Agreement to, any person or entity other than the parties hereto. (i) Amendment to this Agreement . The terms of this Agreement may no t be modified or amended except by an instrument in writing executed by each of the parties hereto. (j) Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. (k) Applicable Law . This Agreement shall be governed by and construed in accordance with the local law of the State of California, with venue in Orange County. (l) Exhibits and Schedules . The exhibits and schedules attached hereto are incorporated herein by this reference for all purposes. (m) Entire Agreement . This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between, and the final expression of, Buyer and Seller with respect to the subject matter hereof. The parties hereto expressly agree and confirm that this Agreement is executed without reliance on any oral or written statements, representations or promises of any kind which are not expressly contained in thi s Agreement. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. (n) Successors and Assigns . This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the parties hereto. (o) Assignment. This Agreement may not be assigned without the prior written consent of the other party hereto, which consent shall not be unreasonably withheld. [signatures begin on the following page]

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14 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.

ATTEST:

By:

Successor Agency Secretary
“SELLER”

SUCCESSOR AGENCY TO THE

FORMER COMMUNITY

REDEVELOPMENT AGENCY OF THE

CITY OF SANTA ANA

By:

Executive Director

ATTEST:

By:

Clerk of the Council
“BUYER”
CITY OF SANTA ANA, a charter city and
municipal corporation organized under the
Constitution and laws of the State of California

By:

Kristine Ridge
City Manager

APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney

By:

Ryan O. Hodge
Assistant City Attorney

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A-1

EXHIBIT A

LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Orange, described as follows:
[legal description: to come].

APN: 005-142-35; 005-142-47; and 005-142-58

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B-1

EXHIBIT B
DEED

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Attn: _________________

APN: 005-142-35; 005-142-47; and 005-142-58 [Space above for recorder.]

EXEMPT FROM PAYMENT OF DOCUMENTARY

TRANSFER TAX (TRANSFER BETWEEN PUBLIC

AGENCIES)

GRANT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana (“Grantor”), hereby grants to the City of Santa Ana, a charter city and municipal corporation organized under the Constitution and laws of the State of California , that certain real property located in the County of Orange, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this ref erence (the “Property”), subject to existing easements, restrictions and covenants of record.

IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of __________, 2022.

SUCCESSOR AGENCY TO THE FORMER

COMMUNITY REDEVELOPMENT AGENCY

OF THE CITY OF SANTA ANA
By:

Name: _______________
Its: Executive Director

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Attachment No. 1 to Exhibit B

ATTACHMENT NO. 1 TO GRANT DEED

LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of Orange, described as follows:
[legal description: to come].

APN: 005-142-35; 005-142-47; and 005-142-58

City Council
28 –
30 9/6/2022

Certificate of Acceptance

CERTIFICATE OF ACCEPTANCE

This is to certify that the interest in real property conveyed under the foregoing Grant Deed by the Successor Agency to the Former Community Redevelopment Agency of the City of Santa Ana to the City of Santa Ana, a charter city and municipal corporation organized under the Constitution and laws of the State of California (“City”) as to the following property:

Real property in the City of Santa Ana, County of Orange, State of California, described as follows:

[legal description: to come]

APN: 005-142-35; 005-142-47; and 005-142-58

is hereby accepted by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the City Council of the City by Resolution No. _____________ of the City Council, and the City as grantee consents to recordation thereof by its duly authorized officer.

CITY OF SANTA ANA

Kristine Ridge
City Manager

ATTEST:

Clerk of the Council

APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney

By:

Ryan O. Hodge
Assistant City Attorney

City Council
28 –
31 9/6/2022

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
________________________________ ___________________________ Title(s)
________________________________ ___________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:________________________________ _____

Signer is representing:

Name Of Person(s) Or Entity(ies)
________________________________ ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ Number Of Pages
________________________________ ___________________________ Date Of Documents
________________________________ ___________________________ Signer(s) Other Than Named Above

City Council
28 –
32 9/6/2022

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _____________________________ , before me, _______________________________ , Notary Public, (Print Name of Notary Public)
personally appeared

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the Stat e of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
________________________________ ___________________________ Title(s)
________________________________ ___________________________ Title Or Type Of Document
Partner(s) Limited General
Attorney-In-Fact
Trustee(s)
Guardian/Conservator
Other:________________________________ _____

Signer is representing:

Name Of Person(s) Or Entity(ies)
________________________________ ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ Number Of Pages
________________________________ ___________________________ Date Of Documents
________________________________ ___________________________ Signer(s) Other Than Named Above

City Council
28 –
33 9/6/2022

EXHIBIT 4

LOCATION MAP

SUCCESSOR AGENCY PROPERTY

CITY PROPERTY

SUCCESSOR AGENCY PROPERTY LINES

CITY PROPERTY LINES
LEGEND
925 N FLOWER ST
921 N FLOWER ST
915 N FLOWER ST
852 N GARNSEY ST
848 N GARNSEY ST
842 N GARNSEY ST

City Council
28 –
34 9/6/2022

City Council
www.santa-ana.org/city-council
Item # 30
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Police Officer Response to Calls
TITLE
Discuss and Consider Directing City Manager to Direct Staff to Draft a Revision of SAPD Policy to Require Officers to Update Calling Parties Upon Resolution of Calls For Service

DISCUSSION
Mayor Pro Tem Bacerra added the following councilmember requested item:

In response to concerns received from residents that they did not witness and/or were not aware of Santa Ana Police responding to calls for service, City Council shall discuss whether to update SAPD policy to require police officers that respond to a call for service to contact the calling party and notify them that the call has been addressed.

Currently, SAPD Policy 308 – “Officer Response To Calls” does not provide that officers are required to contact the calling party and notify them that the call has been addressed.

Updating SAPD policy to require police officers that respond to a call for service to contact the calling party will provide transparency and accountability that the call has been addressed and will present opportunities to directly provide customer service to calling parties, such as residents and business owners.

This item was discussed with Kristine Ridge, City Manager, and David Valentin, Santa Ana Police Department Chief.

Submitted By: Mayor Pro Tem Phil Bacerra

City Council
30 –
1 9/6/2022

City Council
2 –
1 9/6/2022

City Council
2 –
2 9/6/2022

Community Development Agency
santa-ana.org/cd
Item # 5
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Housing Authority Quarterly Report
AGENDA TITLE:

Quarterly Report for the Housing Choice Voucher Program for the Period of April 1, 2022 to June 30, 2022

RECOMMENDED ACTION
Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of April 1, 2022 to June 30, 2022.

DISCUSSION
The April 1, 2022 to June 30, 2022 quarterly report for the Housing Choice Voucher (HCV) Program provides statistics regarding the day-to-day activities of the Santa Ana Housing Authority. The report is divided into three (3) sections: Applicants, Participants, and Production.

Applicants
The Santa Ana Housing Authority accepted applications from May 2, 2022 through May 31, 2022 and received a total of 20,756 applications. A random lottery procedure was applied and the Santa Ana Housing Authority accepted 7,500 of the 20,0756 applications to establish a 2022 HCV Waiting List. Charts 1 and 2 depict the characteristics of those applicants currently on the Waiting List. As of June 30, 2022, the Housing Authority has not selected any applicants from the 2022 HCV Waiting List.

Chart 1 illustrates the percentage of applicants on the 2022 HCV Waiting List who live or work in Santa Ana.

These applicants are given a preference on the
Waiting List together with U.S. Military Veterans.

Live or
Work in
Santa Ana
95%
Veterans
who Live
or Work in
Santa Ana
5%

1. Residency Preference

City Council
5 –
1 9/6/2022

Housing Authority Quarterly Report
September 6, 2022