Ukiah City Council
December 3, 2025

City Council
Regular Meeting
AGENDA
(to be held both at the physical and virtual locations below) Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/81684888938 Or you can call in using your telephone only:
• Call (toll free) 1-888-788-0099
• Enter the Access Code: 816 8488 8938
• To Raise Hand enter *9
• To Speak after being recognized: enter *6 to unmute yourself Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings.

December 3, 2025 - 5:15 PM

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

4.a. Presentation of Donation Check to the Mendocino County Fire Safe Council.

Recommended Action: Receive presentation.

Attachments:

1. Attachment 1 - 2025 Mendocino Co. Homebrew Festival

5. PETITIONS AND COMMUNICATIONS

6. APPROVAL OF MINUTES

6.a. Approval of the Minutes for the November 19, 2025, Regular Meeting.

Recommended Action: Approve the minutes for the November 19, 2025, Regular Meeting.

Attachments:

1. 2025-11-19 Draft Minutes

7. RIGHT TO APPEAL DECISION

Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged.

8. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council.

Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations.

8.a. Notification of Change Order to Ghilotti Construction, Inc. for Emergency Repair of the Water Main on East Smith Street and Utility Work on the Urban Core Rehabilitatation Project, Specification No. 23-07, in the Amount of $175,060.99, and Approval of Corresponding Budget Amendment.

Recommended Action: Receive notification of change order to Ghilotti Construction, Inc. for emergency repair of the water main on East Smith Street and utility work on the Urban Core Rehabilitatation Project, Specification No. 23-07, in the amount of $175,060.99, and approve the corresponding budget amendment.

Attachments:

1. Ghilotti Bid

2. CCO-No-27 Spec 23-07 EXECUTED

8.b. Notification of Change Order to Ghilotti Construction, Inc. for Utility Conflict Work on the Fairgrounds Storm Drain Replacement Project, Specification No. 25-02 in the Amount of $98,580.50 and Approval of Corresponding Budget Amendment Recommended Action: Receive notification of change order to Ghilotti Construction, Inc. for utility conflict work on the Fairgrounds Storm Drain Replacement Project, Specification No. 25-02 in the amount of $98,580.50 and approve corresponding budget amendment Attachments:

1. 7/16/25 Approving ASR

2. CCO-No-1 Spec 25-02 SIGNED

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

10. COUNCIL REPORTS

11. CITY MANAGER/CITY CLERK REPORTS

12. PUBLIC HEARINGS (5:30 PM)

12.a. Conduct a Public Hearing to Receive Public Comment; Discuss Final Grantee Performance Under State Community Development Block Grant 21-CDBG-HA-00001; Adopt Resolution Confirming Program Closeout and Reimbursement of Grant Expenses from the California Department of Housing and Community Development; and Approve any Corresponding Budget Amendments Required as Part of the Grant Closeout Process.

Recommended Action: 1) Receive report from Staff on final performance related to State Community Development Block Grant 21-CDBG-HA-00001; 2) conduct a public hearing to receive public comment; 3) consider and adopt a Resolution acknowledging accomplishments, confirming activity completion, and confirming approval of grant reimbursement funds from the

State; and 4) approve any corresponding budget amendments required as part of the grant closeout process.

Attachments:

1. Resolution 2021-12

2. Standard Agreement 21-CDBG-HA-00001

3. Program Marketing Materials

4. Program Application Packet

5. Proposed Resolution

13. UNFINISHED BUSINESS

13.a. Approval of Plans and Specifications for the Corporation Yard Monitoring Well Abandonment Project, Specification 25-06, and Direct Staff to Advertise for Bids.

Recommended Action: Approve the plans and specifications for the Corporation Yard Monitoring Well Abandonment Project, Specification 25-06, and direct Staff to advertise for bids.

Attachments:

1. Original PS&E Approval

2. Bid Rejection

3. Spec 25-06 Abandonment of Environmental Monitoring and Remediation Wells

4. Plans for Remediation System Decommissioning, Site Restoration, and Well Abandonment

5. Engineers Estimate of Cost

14. NEW BUSINESS

14.a. Discussion, Direction, and Authorization to Staff Regarding the Utility’s Proposed Electric Service Center Solar and Battery Project.

Recommended Action: Discuss, provide direction, and authorize Staff to proceed with the proposed Electric Service Center Solar and Battery Project.

Attachments:

1. Californias Energy Mix 2023

2. RFP-PV-Hastings-251117

14.b. Adoption of a Resolution Authorizing an Interfund Loan from the Pension Debt Service Fund (Fund 130) to the Wastewater Utility Enterprise Fund in the Amount of $3,000,000, Approval of the Interfund Loan Agreement, Approval of the Illustrative Amortization Schedule, and Authorize the Finance Director to Implement and Administer the Loan.

Recommended Action:

1. Adopt a resolution authorizing an interfund loan from the Pension Debt Service Fund (Fund 130) to the Wastewater Utility Enterprise Fund in the amount of $3,000,000, approve the Interfund Loan Agreement, approve the illustrative Amortization Schedule, and authorize the Finance Director to implement and administer the loan.

2. (Alternative) Revise the resolution and its exhibits, and adopt.

3. (Alternative) Do not approve but provide direction to Staff.

Attachments:

1. Resolution and Interfund Loan Agreement

14.c. Receive and File First Quarter Financial Report.

Recommended Action: Receive and file First Quarter Financial Report (preliminary unaudited quarter-end results).

Attachments: None

14.d. Consideration of Adoption of Amended Resolution Providing Council Rotation Guidelines; and Annual Appointment of Mayor, Vice Mayor, and Council Reorganization.

Recommended Action: 1) Adopt an amended resolution providing Council rotation guidelines; and 2) Nominate and appoint the positions of Mayor and Vice Mayor, and select seating for the remaining Councilmembers for the year 2026, starting at the December 17, 2025, meeting.

Alternate action: Take only partial action, and/or continue this item to the December 17, 2025, Council meeting.

Attachments:

1. Council Rotation Guidelines Proposed Resolution - Redline & Clean

14.e. Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s).

Recommended Action: Receive report(s). The Council will consider modifications to committee and ad hoc assignments along with the creation/elimination ad hoc(s).

Attachments:

1. 2025 City Council Special Assignments and Ad Hocs

15. CLOSED SESSION - CLOSED SESSION MAY BE HELD AT ANY TIME DURING THE MEETING

15.a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)

15.b. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Nui Rising Moon Trust v. City of Ukiah, et al.; Case No. 3:25-cv-08320

15.c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200

15.d. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC

15.e. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 170-030-05; 170-030-03; 170-010-05; 170-020-07; 170-020-11; 170-040- 03; 170-020-08
Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Project Ovis LLC
Under Negotiation: Price & Terms of Payment

15.f. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

16. ADJOURNMENT

Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.

Araceli Sandoval, Deputy City Clerk
Dated: 11/26/25

Agenda Item No: 4.a.

MEETING DATE/TIME: 12/3/2025

ITEM NO: 2025-1324

AGENDA SUMMARY REPORT
SUBJECT: Presentation of Donation Check to the Mendocino County Fire Safe Council.

DEPARTMENT: Community Services PREPARED BY: Jake Burgess, Community Services Supervisor PRESENTER:

Michael Maldonado, Assistant Facility
Administrator and McKenzie Nelson, Event
Coordinator
ATTACHMENTS:

1. Attachment 1 - 2025 Mendocino Co. Homebrew Festival
Summary: Council will receive a presentation on the Homebrew Festival and present a donation check to the Mendocino County Fire Safe Council.

Background: The Mendocino County Homebrew Festival was held at the Ukiah Valley Conference Center from 2017 through 2019. These events raised funds for the Good Farm Fund, which is a community organization that provides direct economic development support to small farmers in Mendocino and Lake Counties. In 2022, the event leaders pivoted to benefit the Mendocino County Fire Safe Council (MCFSC) and hosted a Wildfire Preparedness Expo at the outdoor beer park at Anderson Valley Brewing Company. While the event was a success, it was not financially sustainable in that format and was discontinued in 2023.

Community Services Staff identified the Homebrew Festival as an event that was formerly held at the Conference Center and could potentially return. Meetings were held with the Mendocino Fire Safe Council team, who had managed the Homebrew Festival previously, and they agreed to partner with the Conference Center on the event moving forward.

Discussion: The 2025 Homebrew Festival was held on Saturday, November 15, and featured over twenty separate entries including various types of beer, cider, and mead. Staff solicited eleven festival sponsors and sold over one hundred tickets. The festival featured food provided by Slam Dunk Pizza and jerky sampling by Randy’s Gourmet Jerky. KZYX’s DJ set the mood with vibrant music, and over $300 worth of prizes were raffled off.

The attached Homebrew Winners Wrap Up (Attachment 1) has the complete list of winners for all categories and all sponsors. As a result of this event, the City of Ukiah is proud to present the Mendocino County Fire Safe Council with a check for $2,500. The MCFSC is a non-profit organization that helps those who live in wildland areas prepare for the inevitable threat of wildfires. They inform, empower, and help mobilize county residents to survive and thrive in our current environment.

Recommended Action: Receive presentation.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: Yes / No GRANT: Yes / No

PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Michael Maldonado and McKenzie Nelson (UVCC) DIVERSITY-EQUITY INITIATIVES (DEI): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

Mendocino co.

Homebrew festival
by Ukiah Valley Conference Center
· BENEFIT FUNDRAISER ·

Sponsors and Partners

Event Photos:

Event Photos:

Mixin’ 80's hits:

Beneficiary:
mcfc had ample reading material for attendees and
even supplied a lively questionnaire; not only
educational, but interactive for attendees to
complete together!

Raffle table prizes courtesy of:

Anderson valley brewing company, North coast brewery, Ukiah on ice Ukiah brewing company, Mendocino bounty, and Chamber/Visit ukia

Winning brewer’s and their brews!

Proof that having fun and doing good go hand in hand!
We are immensely proud and gracious to give $2,500 in proceeds to the Mendocino fire safe cou May this further support their vital work in our community and help ensure Mendocino Co. rema a safe and resilient place to call home.

Thank you.

AGENDA ITEM 6a

CITY OF UKIAH

CITY COUNCIL MINUTES
Regular Meeting

CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom.us/j/89884146226 November 19, 2025
5:15 p.m.

1. ROLL CALL
Ukiah City Council met at a Regular Meeting on November 19, 2025, having been legally noticed on November 14, 2025. The meeting was held in person and virtually at the following link:
https://us06web.zoom.us/j/89884146226. Mayor Crane called the meeting to order at 5:16 p.m. Roll was taken with the following Councilmembers Present: Mari Rodin, Heather Criss, Juan V. Orozco, Susan Sher, and Douglas, F. Crane. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk.

MAYOR CRANE PRESIDING.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Crane.

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Proclamation of the Ukiah City Council Recognizing November as Native American Heritage Month in the City of Ukiah.

Presenter: Mayor Crane.

No public comment was received.

Clerk stated that the proclamation would be delivered to Debra Ramirez, Redwood Valley Little River Band of Pomo Indians.
b. Report on the Dia de los Muertos Event.

Presenters: Marianne Aranda, Senior Recreation Coordinator and Maria Ceja, Administrative Analyst.

A PowerPoint presentation was given.

No public comment was received.

Presentation was received.

5. PETITIONS AND COMMUNICATIONS
City Clerk, Kristine Lawler, stated that no communications had been received.

City Council Minutes for November 19, 2025, Continued:

6. APPROVAL OF MINUTES
a. Approval of the Minutes for the November 5, 2025, Regular Meeting.

Motion/Second: Orozco/Sher to approve Minutes of November 5, 2025, a regular meeting, as submitted. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None. ABSENT: None. ABSTAIN: None.

7. RIGHT TO APPEAL DECISION
Mayor Crane stated the right to appeal.

8. CONSENT CALENDAR
a. Adoption of an Ordinance Amending the Ukiah City Code by Adding Article 11.5 to Division 9, Chapter 2, to Establish and Regulate the Open Space (O-S) Zoning District – Community Development.

ORDINANCE NO. 1262

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW ARTICLE

11.5 TODIVISION9, CHAPTER 2 TO UKAHCITYCODETO ESTABLISH ANDREGULATE THE OPEN-SPACE (O-S) ZONING DISTRICT.
b. Adoption of an Ordinance Prezoning 1 Carousel Lane (APN 167-280-15) to the Public Facilities (PF) Zoning District for Future Use by the City of Ukiah as its Municipal Corporation Yard Following Annexation into the City’s Jurisdiction – Community Development.

ORDINANCE NO. 1263
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH PREZONING 1 CAROUSEL LANE (APN 167-280-15) TO PUBLIC FACILITIES (PF) WITH A GENERAL PLAN DESIGNATION OF PUBLIC (P) IN ANTICIPATION OF THE “CITY OF UKIAH – CORPORATION YARD ANNEXATION”
c. Approval of Contract Amendment (2526-095-A1) with Ryan Jackson to Increase the Scope of Work by an Additional $40,000 to Revise the Total Not-to-Exceed Amount From $40,000 to $80,000, and Approve Corresponding Budget Amendment – Information Services. d. Approval of Budget Amendment in the Amount of $318,074.37 and Approval of the Notice of Completion for the Recycled Water Project Phase 4 Specification 23-01, and Final Payment of 5% Retention of Ghilotti Construction Co., Inc. – Water Resources. e. Approval of Purchase (P.O. 48932) of Multiple Fleet Vehicles and Equipment from the Willow County Water District in the Amount of $219,670 Plus Tax, and Approval of Corresponding Budget Amendment – Finance.
f. Adoption of Resolution (2025-57) Authorizing the City of Ukiah to Submit a Regional Payment Program Application on Behalf of Itself as Lead Participant and All Non-Lead Participants for All City/County Payment Programs with CalRecycle – Public Works.

Motion/Second: Criss/Rodin to approve Consent Calendar Items 8a-8f, as submitted. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None.

ABSENT: None. ABSTAIN: None.

City Council Minutes for November 19, 2025, Continued:

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
Public Comment: Jared Soinila – Ordinance 1250, vacant and abandoned properties program.

10. COUNCIL REPORTS
Presenters: Councilmembers Rodin, Orozco, and Criss.

11. CITY MANAGER/CITY CLERK REPORTS
Presenters: Sage Sangiacomo, City Manager; and
 School Street Multimodal Transportation Project – Shannon Riley, Deputy City Manager; Handout was given.
 Construction Update – Andrew Stricklin, Senior Engineer.

12. PUBLIC HEARINGS (5:30 PM)
a. Review and Consider Introduction by Title Only of an Ordinance Adding Chapter 9 to Division 2 of Ukiah City Code to Regulate Sidewalk Vending on Public Property and in the Public Right-of-Way.

Presenters: Jesse Davis, Chief Planning Manager and Darcy Vaughn, Assistant City Manager.

PUBLIC HEARING OPENED AT 6:35 P.M.

Public Comment: Pinky Kushner and John McCowen.

PUBLIC HEARING CLOSED AT 6:40 P.M.

Council Consensus to direct Staff to take discussed feedback and direction from Council and bring back to a future meeting for further discussion and possible introduction in early 2026.

RECESS: 6:41 - 6:49 P.M. to address technical issues.

13. UNFINISHED BUSINESS
a. Status Report from Owner of the Palace Hotel.

Presenter: Tom Carter, Palace Hotel Owner.

Public Comment: Dennis Crean.

Report was received.

14. NEW BUSINESS
a. Receive Presentation on 2025 Ukiah Valley Fire Authority Fuels Crew Accomplishments and Authorize the City Manager to Negotiate and Execute a Memorandum of Understanding Between the City of Ukiah and the Mendocino County Fire Safe Council for the Use of the Ukiah Valley Fire Authority Fuels Crew.

Presenter: Justin Buckingham, Battalion Chief.

No public comment was received.

Motion/Second: Criss/Rodin to authorize the City Manager to negotiate and execute Memorandum of Understanding (2526-149) between the City of Ukiah and the Mendocino County Fire Safe Council for the use of the Ukiah Valley Fire Authority Fuels Crew. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None. ABSENT: None. ABSTAIN:

None.

City Council Minutes for November 19, 2025, Continued:

b. Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s); Including the Possible Disbandment of the Zoning Reform Ad Hoc, and the Creation of an Airport Infill Policy Ad Hoc.

Presenters: Sage Sangiacomo, City Manager and Vice Mayor Sher.

No public comment was received.

Motion/Second: Rodin/Sher to disband the Zoning Reform Ad Hoc. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None. ABSENT: None.

ABSTAIN: None.

Motion/Second: Rodin/Sher to establish an Airport Infill Policy Ad Hoc consisting of Councilmember Criss and Mayor Crane. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None. ABSENT: None. ABSTAIN: None.

Motion/Second: Sher/Criss to form an Energy Resilience Ad Hoc consisting of Vice Mayor Sher and Councilmember Orozco. Motion carried by the following roll call votes: AYES: Rodin, Criss, Orozco, Sher, and Crane. NOES: None. ABSENT: None. ABSTAIN: None.

15. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC d. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 184-080-37;184-080-36; 184-090-01; 184-090-07; 184-090-06; 184-100-04 Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Henry's Original
Under Negotiation: Price & Terms of Payment
e. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 170-030-05; 170-030-03; 170-010-05; 170-020-07; 170-020-11; 170-040- 03; 170-020-08
Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Project Ovis LLC
Under Negotiation: Price & Terms of Payment
f. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

City Council Minutes for November 19, 2025, Continued:

16. ADJOURNMENT
There being no further business, the meeting adjourned at 8:03 p.m. ________________________________
Kristine Lawler, CMC
City Clerk

Agenda Item No: 8.a.

MEETING DATE/TIME: 12/3/2025

ITEM NO: 2025-1336

AGENDA SUMMARY REPORT
SUBJECT: Notification of Change Order to Ghilotti Construction, Inc. for Emergency Repair of the Water Main on East Smith Street and Utility Work on the Urban Core Rehabilitatation Project, Specification No. 23-07, in the Amount of $175,060.99, and Approval of Corresponding Budget Amendment.

DEPARTMENT: Public Works PREPARED BY: Seth Strader, Administrative Analyst PRESENTER: Tim Eriksen, Public Works Director/City Engineer ATTACHMENTS:

1. Ghilotti Bid

2. CCO-No-27 Spec 23-07 EXECUTED
Summary: Council will receive notification of change order to Ghilotti Construction, Inc. for emergency repair of the water main on East Smith Street and utility work on the Urban Core Rehabilitatation Project, Specification No. 23-07, in the amount of $175,060.99, and consider approval of the corresponding budget amendment.

Background: On March 6, 2024, Council awarded Ghilotti Construction Co., Inc the Urban Core Rehabilitation Project, Spec 23-07, in the amount of $13,138,330.43, including 10% contingency (Attachment 1). The Urban Core Rehabilitation Project is a major project consisting of utility and road reconstruction on three primary streets: Gobbi, Main, and Perkins.

Discussion: During construction on Main Street, a vehicular accident involving a commercial vehicle and fire hydrant on East Smith Street caused a water hammer event, which ruptured the water main and lifted the street. As Ghilotti Construction Co., Inc. was already mobilized in the area, they were directed to immediately repair the water main to restore water access in that area, and they have recently completed the repairs to the street. See Attachment 2 for the change order for this work. Staff have submitted an insurance claim with the involved parties, but the results of that claim have not been finalized.

Staff requests that Council approve the requested budget amendment of $175,060.99, as these costs were not originally budgeted in the project total. Some if not all costs are expected to be reimbursed from insurance and claims against the party involved.

Recommended Action: Receive notification of change order to Ghilotti Construction, Inc. for emergency repair of the water main on East Smith Street and utility work on the Urban Core Rehabilitatation Project, Specification No. 23-07, in the amount of $175,060.99, and approve the corresponding budget amendment.

BUDGET AMENDMENT REQUIRED: YES
CURRENT BUDGET AMOUNT: 82127113.80230.18435: $0.00
PROPOSED BUDGET AMOUNT: 82127113.80230.18435 :$175,060.99 FINANCING SOURCE: Water Reserve Funds
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: 2324170
COORDINATED WITH: Andrew Stricklin, Senior Engineer and Tim Eriksen, Director of Public Works/City Engineer

STRATEGIC PLAN (SP): SP 2A - Continue the development and maintenance of a comprehensive Capital Improvement Plan that considers the climate impacts of those improvements.

CLIMATE INITIATIVES (CI):

GENERAL PLAN ELEMENTS (GP):

ATTACHMENT 1

Approved 09/03/2025
8:45:18 AM
ATTACHMENT 2

Agenda Item No: 8.b.

MEETING DATE/TIME: 12/3/2025

ITEM NO: 2025-1314

AGENDA SUMMARY REPORT
SUBJECT: Notification of Change Order to Ghilotti Construction, Inc. for Utility Conflict Work on the Fairgrounds Storm Drain Replacement Project, Specification No. 25-02 in the Amount of $98,580.50 and Approval of Corresponding Budget Amendment
DEPARTMENT: Public Works PREPARED BY: Seth Strader, Administrative Analyst PRESENTER: Tim Eriksen, Director of Public Works/City
Engineer
ATTACHMENTS:

1. 7/16/25 Approving ASR

2. CCO-No-1 Spec 25-02 SIGNED
Summary: Council will receive notification of change order to Ghilotti Construction, Inc. for utility conflict work on the Fairgrounds Storm Drain Replacement Project, Specification No. 25-02, in the amount of $98,580.50 and consider approval of corresponding budget amendment Background: City Council approved the Fairgrounds Storm Drain Replacement Project at the July 16, 2025 City Council Meeting. See Attachment 1. The contract amount at time of award was $591,205, which was to be shared between the City and the Ukiah Fairgrounds. The storm drain was originally installed in a joint effort between the two organizations in 1962.

Discussion: During the construction of the storm drain line, contractors encountered a few utilities that were not discovered when design was in process. This is very common for underground work. Engineering staff worked with the contractor to explore options that would remedy the issue and then value-engineered the solutions to determine the most cost-effective path forward. The change order amount, $98,580.50, is a reflection of all construction changes that occurred on this project. See Attachment 2. From the original contract amount, $572,624.00 was spent; with the $98,580.50 change order, the total cost of the project was $671,204.50. Per the agreed-upon cost-sharing agreement, the fairgrounds will pay one-third of the total cost.

Staff recommends Council receive this report of change order to Ghilotti Construction, Inc. for utility conflict work Fairgrounds Storm Drain Replacement Project, Specification No. 25-02 and approve the corresponding budget amendment.

Recommended Action: Receive notification of change order to Ghilotti Construction, Inc. for utility conflict work on the Fairgrounds Storm Drain Replacement Project, Specification No. 25-02 in the amount of $98,580.50 and approve corresponding budget amendment
BUDGET AMENDMENT REQUIRED: YES
CURRENT BUDGET AMOUNT: 25124210.80230.18511: $0.00
PROPOSED BUDGET AMOUNT: 25124210.80230.18511: $98,580.50 FINANCING SOURCE: City Special Project Reserve Fund/CalTrans LPP Formulaic Funds/Fairground Funds REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: 2526088

COORDINATED WITH: Andrew Stricklin, Senior Engineer and Tim Eriksen, Director of Public Works/City Engineer; Myles Fisette, Purchasing Manager
STRATEGIC PLAN (SP): SP 2A - Continue the development and maintenance of a comprehensive Capital Improvement Plan that considers the climate impacts of those improvements.

CLIMATE INITIATIVES (CI):

GENERAL PLAN ELEMENTS (GP):

Agenda Item No: 8.i.

MEETING DATE/TIME: 7/16/2025
ITEM NO: 2025-829

AGENDA SUMMARY REPORT
SUBJECT: Authorize City Manager to Award Contract for the Fairgrounds Storm Drain Replacement Project, Specification 25-02, to Ghilotti Construction Company Inc, as the Apparent Low Bidder in the Amount of $591,204, Upon the City Manager Completing Negotiation of a Satisfactory Agreement with the Redwood Empire Fairgrounds ("Fairgrounds") Sharing Costs of Construction and Other Matters Concerning the Ongoing Use and Maintenance of the Storm Drain and Related Facilities, and Approve All Necessary Budget Amendments.

DEPARTMENT: Public Works PREPARED BY: Myles Fisette, Purchasing Manager PRESENTER: Tim Eriksen, Public Works Director/City Engineer ATTACHMENTS:

1. Bid Tabulation Spec 25-02 Fairgrounds Storm Drain Replacement

2. Ghilotti Bid
Summary: Council will consider authorizing the City Manager to award a contract to Ghilotti Construction Company Inc. in the amount of $591,204 for the Fairgrounds Storm Drain Replacement Project, Specification 25-02 upon completing negotiation of a satisfactory agreement with the Ukiah Fair Grounds sharing costs of construction and other matters concerning the ongoing use and maintenance of the storm drain and related facilities, and approval of all necessary budget amendments.

Background: In March 2014, City Staff presented an item to the City Council concerning the storm drain that runs through and services the Fairgrounds. The storm drain system was originally installed as a joint effort between the City of Ukiah and the Fairgrounds, with construction occurring in or shortly after 1962.

Since its installation, the storm drain has reached the end of its expected service life and is now exhibiting deterioration typical of infrastructure of this age. At the time the issue was brought to City Staff in 2014, a small sinkhole had developed in the western upper dirt parking lot near State Street. Following extensive discussions regarding maintenance responsibility, the City took the lead and hired a professional civil engineer to design a replacement system for the aging storm drain infrastructure. Design efforts continued for several years; however, the engineer was ultimately unable to complete the project due to impending development by the Fairgrounds. There was a proposed project on the upper parking lot that was important to avoid storm drain pipe realignment. The exact location was undetermined and the final pipe alignment was never determined.

Recently, the Fairgrounds staff have raised concerns with the deterioration of the pipe. Given that the proposed development still had not occurred, City Staff agreed to revisit and complete the design plans that had been initiated nearly a decade earlier.

Discussion: On June 4, 2025, Council instructed Staff to proceed with a Request for Bid. The Request for Bid was released on June 5, 2025, and was advertised in the Ukiah Daily Journal and posted to Bidnet Direct and the City website.

The City received nine (9) construction bids for this project (Attachment 1). Ghilotti Construction Company Inc. was the lowest responsible bidder with a bid amount of $591,204. A copy of Ghilotti Construction Company ATTACHMENT 1

Inc.'s bid is provided (Attachment 2).

Staff reccomends that pursuant to Public Contract Code Section 22034(c) the City Council authorize the City Manager to award the contract to Ghilotti Construction Company Inc.upon the City Manager completing negotiation of a satisfactory agreement with the Ukiah Fairgrounds sharing costs of construction and other matters concerning the ongoing use and maintenance of the storm drain and related facilities.

Funding for the project is anticipated to come from a combination of CalTrans Local Partnership Program (LPP) formulaic funds, contributions from the Fairgrounds, and City Special Project Reserve resources. Staff further requests Council authorization to process any necessary budget amendments based on the negotiated cost-sharing agreement, calculated from the low bid amount plus a 10% contingency, without the need to return to Council for additional approval.

Recommended Action: Authorize the City Manager to award a contract for the Fairgrounds Storm Drain Replacement Project, Specification 25-02, to Ghilotti Construction Company Inc., as the apparent low bidder in the amount of $591,204, upon completion of a satisfactory agreement with the Fairgrounds regarding costsharing and ongoing maintenance of the storm drain and related facilities; and authorize the City Manager to execute all necessary budget amendments based on the negotiated cost-sharing arrangement, including a 10% contingency, without the need for further Council approval.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: $0
PROPOSED BUDGET AMOUNT: $0
FINANCING SOURCE: City Special Project Reserve Fund/CalTrans LPP Formulaic Funds/Fairground Funds REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Andrew Stricklin, Senior Engineer; Seth Strader, Management Analyst II – Public Works
STRATEGIC PLAN (SP): SP 2A - Continue the development and maintenance of a comprehensive Capital Improvement Plan that considers the climate impacts of those improvements.

CLIMATE INITIATIVES (CI):

GENERAL PLAN ELEMENTS (GP):

Approved 10/20/2025
12:57:01 PM
ATTACHMENT 2

Agenda Item No: 12.a.

MEETING DATE/TIME: 12/3/2025

ITEM NO: 2025-1346

AGENDA SUMMARY REPORT
SUBJECT: Conduct a Public Hearing to Receive Public Comment; Discuss Final Grantee Performance Under State Community Development Block Grant 21-CDBG-HA-00001; Adopt Resolution Confirming Program Closeout and Reimbursement of Grant Expenses from the California Department of Housing and Community Development; and Approve any Corresponding Budget Amendments Required as Part of the Grant Closeout Process.

DEPARTMENT: Community
Development PREPARED BY: Jim Robbins, Housing and Grants Manager PRESENTER: Jim Robbins, Housing and Grants Manager
ATTACHMENTS:

1. Resolution 2021-12

2. Standard Agreement 21-CDBG-HA-00001

3. Program Marketing Materials

4. Program Application Packet

5. Proposed Resolution
Summary: Council is requested to conduct a public hearing to receive a report from Staff on performance and accomplishments from State Community Development Block Grant # 21-CDBG-HA-00001; receive public comment related to the City's performance on this grant program; adopt a Resolution acknowledging program accomplishments and confirming activity completion; and approve any corresponding budget amendments required as part of the grant closeout process.

Background: On April 7, 2021 the Ukiah City Council adopted Resolution No. 2021-12 (Attachment 1) authorizing the submittal of a State Community Development Block Grant (CDBG) application in response to the 2021 CDBG Notice of Funding Availability (NOFA) issued by the State Department of Housing and Community Development (HCD). The authorizing Resolution for application included a Housing Rehabilitation Program ("current program") and a Code Enforcement Services Program. The two CDBG-funded programs were awarded in separate standard agreements.

The City was awarded $500,000 in State CDBG funds for the current program, which included no additional CDBG Program Income. The City executed Standard Agreement 21-CDBG-HA-00001 for the City of Ukiah Housing Rehabilitation Program on November 27, 2022 (Attachment 2).

Housing Rehabilitation Program Application Background and Need The goal of the program was to improve living conditions for low- and moderate-income individuals and households by conducting a Housing Rehabilitation Program citywide. The City’s aged and deteriorating housing stock, coupled with historically low vacancy rates and lack of new homeownership inventory, had over time produced a situation where many low- and moderate-income (LMI) renters were living in substandard conditions and older owner-occupants on fixed incomes could not afford to make critical health and safety repairs. In a Community Housing Survey conducted by the City of Ukiah in 2018, over 70 percent of survey respondents listed the two biggest issues or barriers with obtaining suitable housing to be “home/rent prices” (54.9 percent) or “lack of available housing inventory” (17 percent).

Further, the City of Ukiah’s 2019-2027 Housing Element, certified by HCD in December 2019, cited that “over 90 percent of all housing stock in the City of Ukiah was built in 1989 or earlier” and “only 3.3 percent of housing stock is newer (built in the year 2000 or later).” The City of Ukiah Housing Element also noted the City should pursue funding for a housing rehabilitation program and code enforcement activities and look to link the two activities to better address housing conditions overall.

City of Ukiah Program Innovations
The combination of a CDBG Housing Rehabilitation Program with a CDBG Code Enforcement Program, funded by a simultaneous but separate grant, was a City of Ukiah innovation that has been recognized by the state as a model for other cities and counties, and HCD now requires CDBG Code Enforcement grants to be combined with Housing Rehabilitation Programs. The Code Enforcement Program helped to identify distressed residential properties and encouraged homeowners to apply for the Housing Rehabilitation Program.

The other innovative approach deployed by the City in this funding cycle was to fully integrate Community Development Department Building Services staff- namely, the Chief Building Official and Building Inspectorinto implementation of the housing rehabilitation program. Staff in the Building Services Division performed work write-ups, cost estimates, project inspections, managed the bidding process, and oversaw the work of the building contractors performing the housing rehabilitation projects.

Discussion: Through the awarded CDBG Housing Rehabilitation Program, the program funds were used by low-and moderate income (LMI) beneficiaries for repairs, rehabilitation, reconstruction, and/or weatherization of existing single-family homes located in the incorporated areas of the City.

Grant Program Deliverables and Status at Completion
Deliverable 1- Complete marketing materials as outlined within the City of Ukiah Housing Rehabilitation Marketing Plan (completed, see Attachment 3).

Deliverable 2- Complete initial launch of marketing effort based on the Housing Rehabilitation Program Marketing Plan (completed).

Deliverable 3- Complete Housing Rehabilitation Program application packet (completed, see Attachment 4).

Deliverable 4- Complete application intake activities, including income determination process and recommendations of approval for applicants based on Housing Rehabilitation program guidelines (completed).

Deliverable 5- Complete work write-ups/estimates (completed).

Deliverable 6- Complete NEPA site-specific Tier 2 reviews for qualified housing units (completed).

Deliverable 7- Complete bid solicitations for qualified housing units (completed).

Deliverable 8- Complete Loan Committee Review Reports (LCRs) and present LCRs to City of Ukiah Loan Committee (completed).

Deliverable 9- Complete final loan and/or grant files for qualified Housing Rehabilitation Program recipients (completed).

Deliverable 10- Complete final setup/completion reports and final drawdown requests to HCD for approved loans and grants (completed).

As noted above, all program deliverables have been completed through Staff's implementation of the CDBGgrant funded Housing Rehabilitation Program between December 2022 and November 2025. The program marketing efforts have been completed, including the creation of a program brochure in English and Spanish, which was advertised in hard copy and on the City’s website. The application packet was developed and advertised in English and Spanish as well, including on the City’s website. Thirty (30) individuals expressed interest in the program and reviewed the brochure and application materials provided by Staff. Eleven (11) individuals submitted preliminary application materials but chose not to move forward with the program. Five (5) applicants continued with the full application process and completed their housing rehabilitation projects and related loan and grant processes.

The total amount of 21-CDBG-HA-00001 grant Activity funds expended by the program on five residential rehabilitation projects was $308,742, representing an expenditure rate of 77% of total available Activity grant funds. $100,000 in Activity Delivery funds were also expended.

Staff recommends Council receive this report, conduct a public hearing to receive public comment on the City’s performance related to grant 21-CDBG-HA-00001, and adopt a Resolution acknowledging accomplishments, confirming activity completion, and confirming receipt of grant reimbursement funds from the State (Attachment 5).

Recommended Action: 1) Receive report from Staff on final performance related to State Community Development Block Grant 21-CDBG-HA-00001; 2) conduct a public hearing to receive public comment; 3) consider and adopt a Resolution acknowledging accomplishments, confirming activity completion, and confirming approval of grant reimbursement funds from the State; and 4) approve any corresponding budget amendments required as part of the grant closeout process.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: State CDBG Grant
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: State CDBG Grant
REVENUE: No GRANT: Yes
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Craig Schlatter, AICP, Director of Community Development; Matt Keizer, MCP, Chief Building Official
STRATEGIC PLAN (SP):SP 1A - Build neighborhoods that provide access for all to a compatible balance of housing, employment, commercial, medical, education, and recreational resources. SP 1B - Provide services that support a high quality of life for all residents, including fostering diverse, inclusive, sustainable, and accessible neighborhoods.SP 3C - Instill diversity, equity, and inclusion as essential core elements of policymaking, accountability, and delivery of City services.

CLIMATE INITIATIVES (CI):

GENERAL PLAN ELEMENTS (GP):GP-A8 - Housing Element (2019-2027); Policy 1-5, Implementation Program 1.a Implement a residential rehabilitation program.

ATTACHMENT 1

SAGE SANGIACOMO CITY MANAGER
Nov 22, 2022
ATTACHMENT 2

11/27/2022

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022

AUTHORITY, PURPOSE AND SCOPE OF WORK

1. Authority & Purpose
This Standard Agreement (hereinafter "Agreement") will provide official notification of the conditional reservation of funds under the State of California's administration of the federal Community Development Block Grant Program for non-entitlement jurisdictions (hereinafter, "CDBG" or the “Program") by the Department of Housing and Community Development (hereinafter the "Department") pursuant to the provisions of 42 U.S. Code (U.S.C.) 5301, et seq., 24 Code of Federal Regulations (CFR) Part 570, Subpart l , California Health and Safety Code Section 50825, et seq., and the California State CDBG Program Guidelines in effect as of October 15, 2019, all as may be amended from time to time. The Program is listed in the Catalog of Federal Domestic Assistance as 14.228 - CDBG -Community Development Block Grant Program. In accepting this conditional reservation of funds by executing this Agreement, the Grantee agrees to comply with the terms and conditions of this Agreement, the Notice of Funding Availability (NOFA) under which the Grantee applied, as identified in this document footer, the representations contained in the Grantee's application (the "Application") for this funding allocation, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. For activities funded outside of a NOFA, including activities funded through Program Income, and activities funded through Urgent Need, the Grantee agrees to comply with the terms and conditions of this Agreement, the representations contained in the Grantee’s Application for activity funding, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. Any changes made to the submitted and awarded Application after this Agreement is executed must receive prior written approval from the Department. For purposes of this Agreement, use of the term "Grantee" shall be a reference to "Contractor".

2. Scope of Work
A. The Grantee shall perform the funded activities described in the Scope of Work (Work), including applicable National Objectives as represented in Exhibit E Sections I through IV, and the Application which is on file with the Department, and which is incorporated herein by reference. All written materials or alterations submitted as addenda to the original Application, and which are approved in writing by the Department are hereby incorporated as part of the Application. The Department reserves the right to require the Grantee to modify any or all parts of the Application in order to comply with CDBG requirements. The Department

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
reserves the right to monitor all Work to be performed by the Grantee, its contractors, and subgrantees in relation to this Agreement. Any proposed revision to the Scope of Work must be submitted in writing for review and approval by the Department and may require an amendment to this Agreement.

Approval shall not be presumed unless such approval is made by the Department in writing.

B. For the purposes of performing the Scope of Work, the Department agrees to provide the amount(s) identified in Exhibit B, and as detailed in Exhibit E, Section V, Budget Worksheet. Unless amended in writing, the Department shall not be liable for any costs in excess of the total approved budget. The Department shall not, under any conditions, be liable for any unauthorized or ineligible costs or activities.

C. Except for General Program Administration, grant activity(ies) must meet one of the following three CDBG National Objectives:
1) Benefit to Low/Moderate Income Persons or Households, 2) Urgent Need, or
3) Elimination of Slums or Blight as defined in 24 CFR 570.483.

3. Effective Date and Commencement of Work
A. This Agreement is effective upon approval by the Department as evidenced by the Department representative’s signature on page one of the fully executed Standard Agreement, STD 213.

B. The CDBG Grantee agrees that no Work toward the implementation of the project activity or program activity, as identified in Exhibit E, Section I through V, shall commence without prior written authorization from the Department prior to the execution of this Agreement by the Department.

4. Term of Agreement and Performance Milestones
A. Term of Agreement: With the exception of the Grant Closing Requirements set forth in Exhibit B, Section 6, the Grantee shall complete the grant activity and/or activities on or before 36 months (three (3) years) from the Department’s execution date identified on the STD 213 of this Standard Agreement. Any

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
extensions beyond the 36 months will require the Department’s approval and a contract amendment.

B. Expenditure Deadline: All Program funds shall be expended no later than 36 months (three (3) years) from the final Department execution date of this Agreement as identified on the STD 213. All requests for funds must be submitted prior to the Expenditure Deadline.
1) Reporting Deadlines:
a) All activities except activities in support of new housing construction and activities in support of economic development must report final beneficiaries no later than thirty (30) days after the expiration of the Expenditure Deadline, unless otherwise indicated and explained in Exhibit E. Extensions for final reporting must be approved in writing by the Department.
b) For activities in support of new housing construction and economic development where housing units or jobs are dependent on off-site infrastructure development, the activity shall have an extended reporting term of two years (24 months) from the expenditure deadline to complete reporting of units constructed and occupied or jobs created or retained. Activities that do not meet the reporting deadline will be deemed ineligible and the Grantee will be required to repay all grant funds expended on the activity.

C. Milestones: Grantee shall timely adhere to project milestones as established in Exhibit E, Section V.
1) Failure to Meet Milestones:
a) Failure to meet the first milestone identified in Exhibit E, Section V, is a material breach and will result in a for-cause termination of this Agreement. All funds, including program income, reimbursed for this activity prior to the termination shall be returned to the Department no less than thirty (30) days from the written notification of termination.
b) Failure to meet any given subsequent milestones identified in Exhibit E, Section V, may result in loss of program eligibility and will

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
restrict the Grantee from applying for additional CDBG funding until the activity is corrected and put back on schedule, or the activity is completed, or the activity is canceled.
2) Any milestone or deadline except the first milestone, the final activity report milestone, and the expenditure deadline may be revised administratively with the approval of the Department without incurring penalty, provided the revision request is received in advance of the original milestone due date.

D. Scope of Work Revisions and Amendments
1) Contract Revisions: Adjustments to the Scope of Work that do not require:
a) An increase or reduction of activity scope, a change in National Objective, or
b) A change in the type of beneficiaries assisted may be completed as a Contract Revision. Contract Revisions must be approved by the Department prior to implementation. If approved, contract revisions shall automatically be deemed a part of, and incorporated into, this Agreement. Approval shall be provided either through the online grant management system, or in writing, as appropriate. 2) Contract Revisions shall include but not be limited to:
a) Adjustments that:
i. Itemize the scope of work
ii. Revise milestone deadlines, except for first and last milestones; and/or
iii. Change the scope of work in a manner that does not change the overall budget, National Objective, or change type or reduce count of estimated beneficiaries.
b) Adjustments that increase the estimated number of beneficiaries without increasing or decreasing the scope of work and without changing the overall budget.

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
3) Contract Amendments: Adjustments to the Scope of Work that:
a) Require an increase or a reduced scope of work;
b) That change the National Objective, or
c) Change the type or reduces the number of beneficiaries assisted shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.
4) Contract Amendments shall include but not be limited to:
a) Adjustments that:
b) Add scope beyond what was included in the original application; c) Reduce scope such that the activity is materially different from the original application, or
d) Reduce estimated beneficiary counts.
e) Adjustments that change the scope in a manner that requires a change to awarded activity budget, including adding funds from other State CDBG funded activities, adding Program Income, and reducing funds from either State CDBG awarded funds or Program Income.
5) HUD Matrix Codes: If HUD changes an activity matrix code(s) or if there is an error in recording the activity code, the Grantee shall be notified in writing and the correction shall not require an amendment to this Agreement.

E. State CDBG Program Contract Management
1) Department Contract Manager: For purposes of this Agreement, the State CDBG Program Contract Manager for the Department is the Program Manager of the State CDBG Program in the Division of Federal Financial Assistance, or such person’s designee. Written communication regarding this Agreement shall be directed to the State CDBG Program Contract

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
Manager at the following address*:

State CDBG Program Contract Manager
Division of Federal Financial Assistance
Department of Housing and Community Development
P.O. Box 952054
Sacramento, California 94252-2054
Ph: (916) 263-2711
Email: [email protected]
*Due to the emergency telework policy in place for the State of California communications should be done electronically to ensure timely response. 2) Contract Management: Day-to-day administration of this Agreement shall take place through the online grant management system, including but not limited to:
a) Financial Reports (Funds Requests);
b) Activity Reports;
c) Semi-Annual Reports;
d) Annual Reports;
e) Submittal of any and all requested supporting documentation; f) Standard Agreement Revisions (non-material contract changes); and,
g) Standard Agreement Amendments (material contract changes). 3) Grantee Contract Administrator: The Grantee's Contract Administrator (must be a Grantee employee) is identified in Exhibit E, Profile. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be directed to the Grantee’s Contract Administrator at the contact information identified in Exhibit E, Profile.

Written communication shall be directed to the Grantee’s Contract Administrator as identified in the Grantee Profile as referenced in Exhibit E.

City Ukiah
21-CDBG-HA-00001

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
4) Capacity to Contract: Contractor has the capacity and authority to fulfill the obligations required of it hereunder and nothing prohibits or restricts the right or ability of Contractor to carry out the terms hereof. 5) Authority to Execute: Each person executing this Agreement represents and warrants to the Department that he or she is duly authorized to execute and deliver this Agreement on behalf of the Contractor, and that such authority is evidenced by a binding authorization. The person executing this Agreement, and the Contractor, acknowledge that the Department is materially relying upon the foregoing representation and warranty in agreeing to enter into this Agreement. In the event of a defect in any resolution submitted to the Department in connection herewith, then this provision shall be deemed satisfactory and admissible evidence of the authority of the signer to bind Contractor to this Agreement and Contractor shall remain fully bound to the terms hereof. In the event the Department determines in its sole discretion that a resolution submitted by the Contractor is deficient in any way, then within thirty (30) days of the Department’s request, Contractor shall resubmit a new resolution which is satisfactory to the Department. Failure by the Contractor to timely provide such resolution to the Department shall constitute a default under this Agreement.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Budget
A. Budget Detail: The activity shall follow the budget as detailed in Exhibit E, Section V.

B. Program Income: All Program Income is state administered CDBG funding and is subject to the same federal requirements for financial administration as open grant awards. Program Income, including both cash-on-hand and future projected receipts, if identified as a funding source for any given activity, must be included in the activity budget and must be substantially expended prior to drawing grant award funds. Program Income must be identified separately from grant funds in the activity budget and must be broken out into activity and general administration funding, as applicable. The Department will not encumber locally administered Program Income against NOFA grant funds in the state’s accounting system. Only new grant awards made under a NOFA or in conjunction with an Urgent Need application will be encumbered in the state’s accounting system.

Funding in this Agreement may include either or both:
1) the total new grant award from the NOFA to be encumbered by the Department from grand funds,
2) total locally held Program Income to be included in the activity budget but that will not be encumbered by the Department. This Agreement is for the sum total of funds to be used in the activity including grant funds and Program Income, as applicable. Program Income receipts must be reported no less than quarterly.

C. Other Non-State CDBG Funding Sources: The Grantee shall report on the value of other contributions included as leverage for each activity via the Financial Reports required for such activity. The Financial Reports shall be accessed through the online grant management system and are the reports which convey the information needed to complete financial transactions in HUD’s

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
Integrated Disbursement and Information System (IDIS).

2. Availability of Funds
The Department’s provision of funding to Grantee pursuant to this Agreement is contingent on the continued availability of CDBG funds and continued federal authorization for CDBG activities, as well as the conditions set forth in Exhibit D, Section

33. The Department’s provision of funding is subject to amendment or termination due to lack of funds or authorization. This Agreement is subject to written modification or termination as necessary by the Department in accordance with requirements contained in any future state or federal legislation and/or state or federal regulations. All other modifications must be in written form and approved by both parties.

3. Eligible Costs
A. No activity costs may be incurred, or funds reimbursed until the Grantee has documented compliance with the applicable National Environmental Protection Act (NEPA) requirements established in 24 CFR 50, 24 CFR 58, and 42 USC 4321, et seq.

B. Allowable Costs: Allowable costs shall mean those necessary and proper costs under 2 CFR 200.400 through 475, and as identified in the Grantee’s application and as detailed in Exhibit E, Section VI, and as approved by the Department unless any or all such costs are disallowed by the State of California or HUD.

Allowable costs include necessary and proper activity and administration costs incurred prior to the execution of this Agreement. All costs incurred prior to the execution of this Agreement must be eligible to be considered allowable and suitable for reimbursement. Eligible costs must, at a minimum, be costs incurred according to the procurement requirements of 2 CFR 200.317, et seq. and be costs required for the activity in this Agreement to meet a National Objective.

C. Priority of Funds: The Grantee agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. To the extent available, the Grantee must disburse funds available from locally held funding CDBG grant resources such as, but not limited to Program Income,

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments from the grant award.

D. Withholding Funds: The Department reserves the right to withhold payments pending timely delivery of program reports or documents as may be required under this Agreement. Payments are contingent upon the Grantee's financial management system meeting the requirements of 2 CFR 200.302, and the internal control requirements of 2 CFR 200.303. Payment may be suspended or terminated, in whole or in part, by the Department in its sole discretion in the event of a default by Grantee.

E. Disencumbering Funds: The Grantee agrees that funds determined by the Department to be surplus upon completion of the activity, or that have not been spent prior to the Expenditure Deadline will be subject to disencumbrance by the Department.

F. Indirect Costs: If Grantee wishes to charge for indirect costs, the Grantee must develop an indirect cost allocation plan for determining the appropriate CDBG share of such indirect costs and submit such plan to the Department for approval prior to submission of requests for any payments for the indirect cost expenditures.

G. Pre-Agreement Costs: Pre-Agreement Costs are eligible costs incurred prior to the award of funds as defined in Exhibit D, Section 1. Eligible Pre-Agreement costs as identified in Exhibit E, Section VI, Project Budget, may only be reimbursed upon the full execution of this Agreement and verification that the costs meet all eligibility criteria. Pre-Agreement costs may include both activity delivery and general program administration.

The Grantee agrees that any Pre-Agreement costs not previously identified in Exhibit E, Section V, Project Budget, will not be paid with CDBG funds.

4. Method of Payment
The Department will not authorize payments unless it has determined the costs incurred are in compliance with the terms of this Agreement. Funds requested through the

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
Financial Reports must be for a minimum of $$100.00 and be in whole dollar amounts, with the exception of the final funds request, which must be marked “Final”. Payments will be issued to the agency identified on the Taxpayer Identification Form (TIN) provided by the Grantee to the Department.

A. Reimbursements: The Department will reimburse the Grantee its allowable costs for the services identified in this Agreement in Exhibit E, Section V, upon presentation of invoices which Grantee certified are true and correct copies of payments due on behalf of the Grantee for the activity covered by this Agreement and made in accordance and compliance with Exhibit A, Scope of Work. The Grantee may not request reimbursements under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount documented as having been incurred. 1) To receive reimbursement for grant activities, including reimbursement for eligible Pre-Agreement costs, the Grantee must submit all Department required forms according to the applicable deadlines. Financial Reports and Activity Reports are due no less than quarterly, within 15 days of the end of the quarter. Financial Reports and Activity Reports may be submitted more frequently at the Grantee’s discretion. Financial Reports shall include the level of documentation specified by the Department, including proof of expenditure, and proof of cost eligibility. Grantees must submit documentation supporting cost amounts and cost eligibility with each funds request as part of the Financial Report.
2) Grantees shall submit Financial Reports (funds requests) no less than quarterly. If no funds have been expended, the Grantee shall provide a detailed description of work completed and an explanation of why no funds have been expended, and when anticipated date when funds will next be requested
B. Advances: The Grantee must receive prior written approval from the Department before submitting an advance request. All advances are subject to the Department’s consent, which may be given or withheld on its sole discretion. No advances will be issued prior to full Agreement execution.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
C. Final Payment Requests:
1) Grantees on the Reimbursement Payment System: All requests for final reimbursement must be submitted before the Expenditure Deadline referenced in Exhibit A, Section 4 of this Agreement.
2) Grantees on the Advance Payment System: The last advance payment must be submitted to the Department no later than sixty (60) days prior to the Expenditure Deadline of this Agreement.
3) Return of Unexpended Funds: All funds received by the Grantee but not expended by the Expenditure Deadline must be accounted for and returned to the Department within thirty (30) days after the Expenditure Deadline. Funds shall be returned in accordance with the current State CDBG Grants Management Manual. All returned funds will be disencumbered.
4) All Funds Not Previously Requested: If the final funds disbursement request for costs expended during the term of this Agreement has not been received by the Department before the Expenditure Deadline, and the Grantee has not requested an extension per Exhibit A Section 4, (Term of Agreement and Performance Milestones), the Department may disencumber any funds remaining and grant funds will no longer be available for the Grantee.

5. Budget Revisions and Amendments
Budget line-item adjustments may be made in accordance with the following:

A. Budget Revisions: Adjustments to the Budget that do not require an increase or reduction of total activity budget, a change in National Objective, or a change in the type or a reduction in number of beneficiaries assisted may be completed as a Budget Revision. Budget Revisions shall include but not be limited to:
1) Adjustments that reallocate funds between budget line items, including between General Administration funding, activity funding, and Program Income resources, including both Program Income cash on hand, and Program Income projected receipts, but that otherwise does not change the overall budget total, the scope of work, the National Objective, and

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
type and count of estimated beneficiaries. Reallocations involving General Administration funding are subject to applicable General Administration caps identified in the Notice of Funding Availability.
2) Adjustments that increase or decrease the detail included in the submitted lined item budgets, including adding and removing budget line items, without increasing or decreasing the scope of work and without changing the overall budget.

Budget Revisions must be approved by the Department prior to implementation.

Approval shall be provided either through the online grant management system, or in writing, as appropriate. If approved, Budget Revisions shall automatically be deemed a part of, and incorporated into, this Agreement.

B. Budget Amendments: Adjustments to the Budget that result in an increased or a reduced total activity budget shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.

6. Grant Closing Requirements
A. Expenditure Deadline:
1) All Program funds shall be expended no later than the Expenditure Deadline as defined in Exhibit A, Section 4. All requests for funds must be submitted prior to the Expenditure Deadline.
2) The Final Financial Report for the activity must be marked final and submitted before the Expenditure Deadline. Financial Reports submitted after the Expenditure Deadline will not be eligible for reimbursement.

Closeout Procedure: The Grantee must submit the following at the completion of the activity:

I. A Final Activity Report that includes all required reporting data for the activity;
II. A filed Notice of Completion (if applicable);

City of Ukiah
21-CDBG-HA-00001

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
III. Evidence, satisfactory to the Department, of compliance with any and all other Special Conditions of this Agreement as set forth in Exhibit E hereto; and,
IV. Pursuant to the Citizen Participation Requirements for the State’s Annually Appropriated Federal Programs, Plans and Reports and the federal regulations at 24 CFR 570.486(a)(5), proof of publication of public hearing/meeting held during or at completion of the CDBG funded activity in which the Grantee describes the accomplishments of the activity and confirms that the activity is complete.

If the Grantee identified an extended reporting period will be required to meet the National Objective for the activity in the Application, the above closeout requirements shall be submitted upon the completion of the activity, or within twenty-four (24) months after the Expiration Deadline, whichever comes first. If no extended reporting period is required, the above closeout requirements shall be submitted within thirty (30) days after the Agreement's Expenditure Deadline.

Upon receipt of the above documentation, the Department will close out this Agreement and finalize the activity in IDIS for final reporting to HUD.

B. Ongoing Reporting: Grants that have been closed may, as applicable, have continued reporting requirements, including Program Income reporting, performance reporting, beneficiary reporting, asset reporting, and other federally required reports as identified in Exhibit D, Section 22.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022

CDBG PROGRAM TERMS AND CONDITIONS
Federal Grant Identification
HUD Grant No.: B-21-DC-06-0001
CFDA Number: 14.228
Date HUD Grant Agreement Signed: 09/03/2021
2020-2021 Annual Action Plan January 2021 Substantial Amendment

1. Definitions
A. "Activity" means one of the following HUD eligible activities as per 42 U.S.C. 5305.
1) Acquisition (§ 5305 (a)(1))
2) Public Improvements (§ 5305 (a)(2))
3) Public Facilities (§ 5305 (a)(2) and (5))
4) Code Enforcement (§ 5305 (a)(3))
5) Housing Rehabilitation (§ 5305 (a)(4))
6) Public Services (§ 5305 (a)(8))
7) Planning and Technical Assistance (Section 105(a)(12), (14) and (19) 8) Business Financial Assistance (§ 5305 (a)(17))
9) Microenterprise Assistance (§ 5305 (a)(22))
10) Homeownership (§ 5305 (a)(24))
B. “Activity Budget” means the budget included in Exhibit E, Section VI, Project Budget, as referenced by Exhibit B, Budget Detail, and Payment Provisions.

C. "Activity Delivery" (AD) means any reasonable and necessary costs that are not directly related to labor and/or direct construction and/or direct activity implementation costs. The Grantee may expend up to the indicated AD as identified the NOFA that is associated with this Agreement or any relevant CDBG Management Memo. CDBG funds for AD cannot be drawn down unless CDBG

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
activity costs have previously been drawn down or are being drawn down on the same funds request.

D. “Activity Reports” are the activity reports that must be submitted at least quarterly that describe program or project progress and/or beneficiaries served during a given reporting period.

E. “Department” means the California Department of Housing and Community Development.

F. "Funds Request" is also identified as a Financial Report and refers to the forms and processes required to request the drawdown of CDBG funds. Funds disbursements must be completed no less than quarterly for each open activity, including Program Income funded activities.

G. "General Administration" refers to eligible administrative expenses as provided in 42 U.S.C. 5305(a)(13).

H. “Grantee” means the jurisdiction that applied for CDBG funding and has legal authority to sign this Agreement and commit to compliance with all federal requirements regarding the administration of federal funds, as identified in 2 CFR 200.

I. “Pre-Agreement Costs” are pre-award costs as defined at 2 CFR 200.458 and 24 CFR 570.489(p) and are costs that are eligible per 2 CFR 200.400 et.seq. that have been itemized on the approved activity budget as identified in Exhibit E, Section VI, Project Budget, as referenced by Exhibit B, Budget Detail and Payment Provisions.

J. "Program" means an eligible activity that provides direct assistance to eligible participants within a defined service area. Programs include public services, housing assistance to households, and instances where an eligible person, household, or area is directly assisted with a unit of service.

K. “Program Guidelines” means the CDBG Program Guidelines adopted in October 2019 that replaced the California state regulations regarding the operation of the State CDBG program, as per Health and Safety Code 50826.1(a) that states that the regulations are repealed upon adoption of guidelines.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
L. “Program Income”, as defined in 24 CFR 570.489(e), means gross income received by the Grantee that is directly generated from the use of CDBG funds.

When such income is generated by an activity that is only partially assisted with CDBG funds, the income shall be prorated to reflect the percentage of CDBG funds used.

M. "Project" means eligible capital improvements to public facilities, infrastructure, assets, and right-of-way. Projects may also include eligible capital improvements to privately owned facilities, infrastructure, and assets that serve the public or that provide a public good, including shelters, community-based facilities, and utilities.

2. Eligible Activities
Grantee will only use funds under this Agreement for the activity identified in Exhibit E.

All activities must be eligible CDBG activities as authorized under 42 U.S.C. 5305 and 24 CFR 570.482.

3. National Objectives
Grantee will only use funds in support of the National Objective identified in in Section I of Exhibit E. All CDBG funded grant activities must meet a National Objective as defined in 42 U.S.C. 5304(b)(3), as amended, and 24 CFR Part 570.483.

Real Property acquired in whole or in part with CDBG funds must be used to meet the same National Objective for which it was purchased for no less than five years from the date of acquisition. The Department may require a Use Restriction Agreement be recorded against real property acquired or improved in whole or in part with CDBG funds.

4. Termination and Remedies for Noncompliance
Awards as secured by this Agreement may be terminated by the Department in whole or in part as per federal regulation at 2 CFR 200.339. All terminations shall include written notification setting forth the reason(s) for such termination, the effective date, and the portion to be terminated in the case of partial terminations and will follow termination notification requirements identified in 2 CFR 200.340.

A. Termination without Cause: Agreements may be terminated without cause in

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
whole or in part by the Department only with the consent of the Grantee. In the case of a whole agreement termination, the two parties shall agree upon termination conditions, including the effective date. In the case of partial termination, the two parties shall agree upon termination conditions, including the portion to be terminated and the effective date.

B. Noncompliance and Termination with Cause: The Department may terminate this Agreement for Grantee’s failure to comply with the terms and conditions of this Agreement. Terminations for material failure to comply with the Agreement terms and conditions must be reported by the Department to the appropriate federal program integrity and performance system accessible through the System for Award Management (SAM) as per 2 CFR 200.339(b).
1) The Department may initiate remedies for noncompliance as identified in 2 CFR 200.338 at any time it has been determined that the Grantee is no longer meeting the terms and conditions of this Agreement. Remedies for noncompliance may be required in addition to, in lieu of, or prior to termination.
2) Prior to terminating this Agreement for cause or noncompliance, the Department shall submit written notice specifying noncompliance and/or specifying the event or events that if not cured would constitute an event of default. The Department’s written notice shall identify remedies for cure.

Grantee shall have thirty (30) calendar days from receipt of notice to fully cure. This period may be extended at the Department’s discretion for a reasonable period of time if the Grantee is acting in good faith to cure the noncompliance or cause. Any extension of the cure period must be communicated in writing by the Department.
3) The Department’s remedies for Grantee’s noncompliance with a federal statute or regulation, a state statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere may include, as appropriate:
a) Temporarily withhold cash payments pending correction of the deficiency by the Grantee.
b) Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
c) Wholly or partly suspend or terminate the current award for the Grantee’s program or project, as applicable.
d) Withhold further and/or future awards of CDBG funds. e) Request that HUD initiate federal suspension debarment proceedings.
f) Take other remedies that may be legally available, including, but not limited to:
(g) In the case of costs incurred without meeting a National Objective, require repayment of all funds reimbursed, including General Administration, Activity Delivery, and any and all Program Income, as appropriate.
4) In taking an action to remedy noncompliance, the Department will provide the Grantee an opportunity for such hearing, appeal, or other administrative proceeding to which the Grantee is entitled under any statute or regulation applicable to the action involved as per 2 CFR 200.341.

C. Effects of Suspension and Termination: Grantee costs resulting from obligations incurred by the Grantee or any of the Grantee’s contractors, subrecipients, or subgrantees during a suspension or after termination of an Agreement are not allowable unless otherwise authorized by the Department in written notice or as allowable in 2 CFR 200.342. Termination and remedies for noncompliance identified in this Section do not preclude a Grantee or any of the Grantee’s contractors, subrecipients, or subgrantees from being subject to nonprocurement debarment and suspension requirements at 2 CFR 2424. CDBG funds may not be provided to excluded or disqualified persons pursuant to 24 CFR 570.489(l).

D. Remedies: All remedies of the Department hereunder are cumulative and not exclusive.

5. Severability
A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.

B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it which affects or may affect this Agreement or the Department and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department.

6. Waivers
No waiver or any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce, at any time, the provisions of this Agreement or to require, at any time, performance by the Grantee of these provisions shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.

7. Uniform Administrative Requirements
The Grantee, its agencies or instrumentalities, and Subgrantees shall comply with the policies, guidelines and Administrative Requirements of 2 CFR Part 200 et seq., as applicable, as they relate to the cost principles, audit requirements, acceptance and use of federal funds.

A. Single Audit Compliance: Funds will not be disbursed to any Grantee identified by the State Controller's Office (SCO) as non-compliant with the Federal Single Audit Act, as described in the Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards at 2 CFR 200 Sub-Part F. No funds may be disbursed until compliance with the Uniform Administrative Requirements is demonstrated to the satisfaction of the Department.

B. Accounting Standards: Grantee agrees to comply with, and administer the activity in conformance with, 2 CFR Part 200.300 et seq, and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
C. Suspension and Debarment: By executing this Agreement, Grantee verifies and affirms that it has not been suspended or debarred from participating in or receiving federal government contracts, subcontracts, loans, grants or other assistance programs.

8. Compliance with State and Federal Laws and Regulations A. Grantee, its agencies or instrumentalities, contractors, sub-grantees, and subrecipients shall comply with all local, state, and federal laws, statutes, and regulations, as well as policies and guidelines established by the Department for the administration of the CDBG program.

B. Grantee shall comply with the requirements of the Housing and Community Development act of 1974 (HCDA) as amended and codified at Title 42 United States Code (U.S.C.) §5301 et. seq., and Subpart 1 of the Federal CDBG Regulations, found at Title 24 Code of Federal Regulations (CFR) 570.480 et seq., the Housing and Urban Development (HUD) regulations concerning State administered Community Development Block Grants, 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Guidance, as adopted by HUD at 2 CFR 200, and all federal regulations and policies issued pursuant to these regulations. The Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

9. Affirmatively Furthering Fair Housing
Grantee shall affirmatively further fair housing, in accordance with the Civil Rights Act of 1964 (42 U.S.C 2000a, et seq.), and the Fair Housing Act (42 U.S.C. 3601, et seq.), according to 42 U.S.C. 5306, et seq. and in compliance with California statute (Gov.

Code sections 65583, et seq.). Grantee shall comply with the Fair Housing Amendment Act of 1988 (Public Law 100-430).

10. Equal Opportunity Requirements and Responsibilities Grantee agrees that it undertakes hereby the same obligations to the Department that the Department has undertaken to HUD pursuant to the Department’s CDBG certifications. The obligations undertaken by Grantee include, but are not limited to, the obligation to comply with all applicable federal laws and regulations described in Subpart K of 24 CFR Part 570 and specifically with each of the following:

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
A. The Housing and Community Development Act of 1974 (Public Law 93-383) that authorized the CDBG program, as amended, and legislative changes contained in the Housing and Urban-Rural Recovery Act of 1983 that authorized the state administered CDBG program for non-entitlement communities, and the Architectural Barriers Act of 1968 (42 U.S.C. Section 4151) that requires publicly funded facilities be accessible to the public;
B. Title VI of the Civil Rights Act of 1964 (Public Law 88-352) prohibiting discrimination based on protected class, as amended, Title VIII of the Civil Rights Act of 1968 (Public Law 90-284) prohibiting discrimination in housing, as amended; the Civil Rights Restoration Act of 1987 (Public Law 100-259) requiring expanded compliance with civil rights laws for jurisdictions receiving federal funding; Section 104(d) regarding relocation and displacement and Section 109 of Title 1 of the Housing and Community Development Act of 1974 prohibiting discrimination in CDBG funded programs, as amended; Section 504 of the Rehabilitation Act of 1973 prohibiting recipients of federal funds from discrimination against persons with disability; the Americans With Disabilities Act of 1990 prohibiting all public discrimination against persons with disabilities; the Age Discrimination Act of 1975 prohibiting age-based discrimination in federally funded activities; Executive Order 11063 prohibiting discrimination in disposition of properties owned or financed with federal funds, as amended by Executive Order 12259; and Executive Order 11246 regarding fair employment, as amended by Executive Orders 11375, 11478 and 12086; and HUD regulations heretofore issued or to be issued to implement these authorities relating to civil rights;
C. The Equal Employment Opportunity Act of 1972 that created the Equal Employment Opportunity Commission, Equal Employment Opportunity and Affirmative Action requirement (EEO/AA); Grantee shall, in all solicitations or advertisements for employees placed by or on behalf of the Grantee, state that it is an Equal Opportunity or Affirmative Action employer.

11. Relocation, Displacement, and Acquisition
Grantee shall comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, in 24 CFR Part 42, 49 CFR Part 24, and 42 U.S. §5304(d) as they apply to the performance of this Agreement. Grantee agrees to comply with 24 CFR 570.606 relating to the acquisition and disposition of all

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
real property utilizing grant funds and to the displacement of persons, businesses, nonprofit organizations and farms occurring as a direct result of any acquisition of real property utilizing grant funds.

12. The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance (Section 3):

The Grantee and any of its Subrecipients and/or Contractors shall comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and implementing regulation at 24 CFR, Part 75. The responsibilities outlined in 24 CFR Part 75.19 include:

A. Implementing procedures designed to notify Section 3 workers about training and employment opportunities generated by Section 3 covered assistance and Section 3 business concerns about contracting opportunities generated by Section 3 covered assistance.

B. Notifying potential Contractors for Section 3 covered projects of the requirements of Part 75, Subpart C and incorporating the Section 3 clause set forth below in all solicitations and contracts in excess of $100,000 as required at 24 CFR 75.27.

Section 3 Clause
The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

The parties to this contract agree to comply with HUD's regulations in 24 CFR. Part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 75 regulations.

The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 75 and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 75.

The contractor acknowledges that subrecipients, contractors, and subcontractors are required to meet the employment, training, and contraction requirements of 24 CFR 75.19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.

The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 75.

Noncompliance with HUD's regulations in 24 CFR Part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

The contractor agrees to submit, and shall require its subcontractors to submit to them, annual reports detailing the total number of labor hours worked on the Section 3 Project, the total number of labor hours worked by Section 3 Workers, and the total number of hours worked by Targeted Section 3 Workers, and any affirmative efforts made during the quarter to direct hiring efforts to low- and very low-income persons, particularly persons who are Section 3 workers and Targeted Section 3 workers.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
C. Facilitating the training and employment of Section 3 workers and the award of contracts to Section 3 business concerns by undertaking activities such as described in 24 CFR Part 75.25(b), as appropriate, to reach the goals set forth in 24 CFR Part 75.23 and in Federal Register Vol. 85, No. 189, page 60909, until superseded by HUD in a subsequent publication. As of September 29, 2020, the minimum Section 3 benchmark is twenty-five (25) percent or more of the total number of labor hours worked by all workers on a Section 3 project are Section 3 workers; and five (5) percent or more of the total number of labor hours worked by all workers on a Section 3 project are Targeted Section 3 workers.

D. Documenting actions taken to comply with the foregoing requirements, the results of those actions taken and impediments, if any.

13. Environmental Compliance
A. Grantee shall comply with the California Environmental Quality Act (CEQA) (Pub.

Resources Code § 21000, et seq.) requirements as they apply to this project.

CEQA reviews and determinations are the responsibility of local agencies and shall be administered by the Grantee as applicable.

B. Grantee shall comply with the Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251, et seq., as amended, and 33 U.S.C. § 1318 relating to inspection, monitoring, entry, reports, and information, and all regulations and guidelines issued thereunder.

C. Grantee shall comply with the requirements of the Clean Air Act, as amended, 42 U.S.C. 7401, et seq.

D. Grantee shall comply with Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50 regarding air quality protections, as amended.

E. Grantee shall comply with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001). Grantee shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, that flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation).

F. Grantee shall comply with the requirements of the Residential Lead-Based Paint

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
Hazard Reduction Act of 1992 and Section 401(b) of the Lead-Based Paint Poisoning Prevention Act of 1971. Grantee agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBGassisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of leadbased paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead-based paint is found on the property, abatement measures may be required.

G. Grantee shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), the Archaeological and Historical Preservation Act of 1974 (Public Law 93-291), and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement. Grantee shall also comply with federal Executive Order 11593 on the protection and enhancement of the cultural environment. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a federal, state, or local historic property list.

H. Grantee shall comply with all National Environmental Protection Act (NEPA) requirements as applicable to the performance of this Agreement as found in 24 CFR Part 50, 24 CFR Part 58, as applicable, and 40 CFR 1500 – 1508. Grantee shall not receive authority to incur activity costs until they have successfully documented compliance with the applicable NEPA requirements, including public noticing and publishing.

I. This Agreement does not constitute a commitment of funds or site approval, and the commitment of funds or approval may occur only upon satisfactory completion of environmental review and receipt by the Grantee of an approval of the request for release of funds and certification from the Department under 24 CFR Part 50, 24 CFR Part 58, and 40 CFR 1500 - 1508. The provision of any

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
funds to the project is conditioned on the Grantee’s determination to proceed with, modify or cancel the project based on the results of the environmental review. The Grantee will not receive appropriate notice to proceed until they have successfully documented compliance with the applicable NEPA requirements, including public noticing and publishing.

14. Procurement
The Grantee shall comply with the procurement provisions in 2 CFR Part 200.317 – 200.326, Procurement Standards, as well as all other Administrative Requirements for Grants and Cooperative Agreements to state, local and federally recognized Indian tribal governments as set forth in 2 CFR 200, et al, as applicable.

15. Procurement of Recovered Materials
A. Grantee and the Grantee’s contractors shall comply with Section 6002 of the Solid Waste Disposal Act of 1965, as amended by the Resource Conservation and Recovery Act. The Contractor shall procure items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, unless the Contractor determines that such items:
1) are not reasonably available in a reasonable period of time; 2) fail to meet reasonable performance standards, which shall be determined on the basis of the guidelines of the National Institute of Standards and Technology, if applicable to the item; or
3) are only available at an unreasonable price.

B. This clause shall apply to items purchased under this Agreement or subsequent contract where:
1) the Contractor purchases in excess of $10,000.00 of the item under this Agreement; or
2) during the preceding federal fiscal year, the Contractor:
a) purchased any amount of the items for use under a contract that

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
was funded with Federal appropriations and was with a Federal agency or a State agency or agency of a political subdivision of a State; and
b) purchased a total of in excess of $10,000.00 of the item both under and outside that contract.

16. Contracting and Labor Standards
A. Grantee shall comply with the Davis-Bacon Act (40 U.S.C. §§ 3141-3148) and 29 CFR Subtitle A, Parts 1, 3 and 5, as applicable, to construction, alteration, and repair contracts over $2,000.00.

B. Grantee shall ensure that all contracts comply with the Anti-Kickback Act of 1986 (41 U.S.C. §§ 51-58) that prohibits attempted as well as completed "kickbacks," which include any money, fees, commission, credit, gift, gratuity, thing of value, or compensation of any kind.

C. Grantee shall ensure all contracts comply with the Contract Work Hours and Safety Standards Act of 1962 (40 U.S.C. § 3702) which requires that workers receive overtime compensation at a rate of one and one-half (1-1/2) times their regular hourly wage after they have worked forty (40) hours in one week.

D. Grantee shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Department for review upon request.

17. Prevailing Wages
A. Where funds provided through this Agreement are used for construction work, or in support of construction work, the Grantee shall ensure that the requirements of California Labor Code, Chapter 1, commencing with Section 1720, Part 7 [California Labor Code Sections 1720-1743] (pertaining to the payment of prevailing wages and administered by the California Department of Industrial Relations) are met.

B. Where funds provided through this Agreement are used for construction work or in support of construction work, the Grantee shall also ensure that the federal requirements of the Davis Bacon Act codified at 40 U.S.C. 3141, et seq. (as

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
amended), pertaining to federal labor standards and compliance, are met and documented. Grantee recognizes that multiple labor standards (both state prevailing wage and federal Davis-Bacon Act) may apply to the project and both standards must be satisfied.

C. For the purposes of this requirement "construction work" includes, but is not limited to, rehabilitation, alteration, demolition, installation or repair done under contract and paid for, in whole or in part, through this Agreement. All construction work shall be done through the use of a written contract with a properly licensed building contractor incorporating these requirements (the "construction contract"). Where the construction contract will be between the Grantee and a licensed building contractor, the Grantee shall serve as the "awarding body" as that term is defined in the California Labor Code. Where the Grantee will provide funds to a third party that will enter into the construction contract with a licensed building contractor, the third party shall serve as the "awarding body." Prior to any disbursement of funds, including but not limited to release of any final retention payment, the Department may require a certification from the awarding body that prevailing wages have been or will be paid.

D. The applicable wage rate determination on construction work will be the more restrictive of the rate prescribed in the California Labor Code Sections 1770- 1784, or the Davis-Bacon Wage Determination.

18. Contractors and Subrecipients
A. Grantee shall comply with 24 CFR Part 2424 and shall not enter into any agreement, written or oral, with any contractor or subrecipient without the prior determination that the contractor or subrecipient is eligible to receive CDBG funds and is not listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors.

B. Any agreement between the Grantee and any contractor or subrecipient shall include the terms and conditions in Appendix II of 2 CFR 200.

C. Grantee shall ensure that any contract or subrecipient agreement includes clauses requiring the maintenance of workers’ compensation insurance, as applicable, as well as general liability insurance. Contract or subrecipient agreements must require that the Grantee is notified in the event that any required insurance is canceled, expired, or otherwise invalidated during the

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
performance period of the contract or subrecipient agreement.

D. Grantee shall require that contractors and subrecipients comply with the Drug-Free Workplace Act of 1988.

19. Requirements for Economic Development Activities
A. Public Benefit Standards for Economic Development Activities: Per 24 CFR 570.482 (e) (f), (g) and 570.483(b)(4), the Grantee must comply with federal underwriting standards and must meet the public benefit standards for all CDBG Economic Development activities under 42 U.S. §5305(a)(17). The use of public benefit standards is mandatory.

B. Anti-Job Pirating Certification: Pursuant to 24 CFR 570.482(h) CDBG funds may not be used to directly assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one labor market area to another labor market area if the relocation is likely to result in a significant loss of jobs in the labor market area from which the relocation occurs. Job loss of more than 500 employees is always considered significant. Job loss of 25 or fewer positions is never considered significant.

20. Rights to Inventions Made Under a Contract or Agreement Grantee shall comply with and require the following in contracts and subrecipient agreements: If a Federal award meets the definition of “funding agreement” under 37 CFR 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of recipient or subrecipient must comply with requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,“ and any implementing regulation issued by the awarding agency.

21. Prohibition Against Payments of Bonus or Commission The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of:

A. Obtaining the Department's approval of the Application for such assistance or additional assistance; or,

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
B. Securing any other approval or concurrence of the Department required under this Agreement, Title I of the Housing and Community Development Act of 1974, or the State regulations or Program Guidelines with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.

22. Reporting Requirements
A. Requirements: During the term of this Agreement, the Grantee must submit all CDBG program reports required by the Department, including quarterly activity, financial, and Program Income reports, semi-annual labor and compliance reports, annual performance reports, and other reports required by the Department or HUD. The Department reserves the right to request additional detail and support for any report made. Reports must be made according to the dates identified, unless otherwise specified at the discretion of the Department.

The Grantee's performance under this Agreement will be evaluated in part on whether it has submitted the reports on a timely basis.

B. Reporting Period: Grantee shall submit reports quarterly, and as required for semi-annual and annual reports, and shall continue to submit reports until such time that the activity is complete, a National Objective has been met and beneficiaries have been identified. The reporting period for this activity may extend beyond the Expenditure Deadline as defined in Exhibit A.

C. Final Reporting Deadline: Grantee shall complete all required reporting for this activity no later than thirty (30) days after the Expenditure Deadline, unless the nature of the activity requires more than thirty (30) days as indicated in Exhibit E.

Extensions for final reporting must be approved in writing by the Department. Grantee shall complete all required reporting for this activity no later than five (5) years from the execution date of this Agreement as identified on the STD 213.

D. Asset Reporting: Grantee shall report annually on the status of all assets (real and personal property, equipment, and vehicles) purchased in whole or in part with CDBG funds for no less than five years from the completion of the activity that generated the asset. Reporting shall continue until the property is disposed, fully depreciated, or, in the event of real property, the five-year commitment to a

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
National Objective has been completed.

23. Fiscal Controls
Grantee shall be responsible for the internal control and monitoring of fiscal and programmatic/operational goals and procedures. The Grantee shall establish and maintain such fiscal controls and fund accounting procedures as required by federal regulations, or as may be deemed necessary by the Department to ensure the proper disbursal of, and accounting for, funds paid to the Grantee under this Agreement.

A. Deposit of Funds: Grantee shall maintain separate accounts within established bookkeeping systems for the deposit of CDBG funds. All cash advances must be deposited in an interest-bearing account; any interest earned in excess of $100.00 per year (which may be retained for related administrative expenses) must be returned at least quarterly to HUD via the Department. Deposits in minority banks are encouraged.

B. Fund Management: Grantee shall deposit funds in an account requiring two signatures for disbursement and shall submit to the Department specimen signatures for all authorized signatories prior to receipt of funds; C. Fiscal Liability: Grantee shall be liable for all amounts which are determined to be due by the Department including, but not limited to, disallowed costs which are the result of Grantee’s or its contractor’s conduct under this Agreement. Grantee shall be notified in writing and shall be permitted to respond regarding any controversy or proceeding between the Department and HUD arising from this Agreement.

D. Fiscal Records: All financial transactions must be supported by complete and verifiable source documents. Records shall provide a clear audit trail and shall be maintained as specified in Section 25 of this Agreement.

E. Program Income: Any and all Program Income received by Grantee during the administration of this Agreement must be receipted and deposited into a separate Program Income account. Program Income funds may not be comingled with CDBG grant funds in a single account.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022

24. Reversion of Assets
Upon expiration of this Agreement, Grantee shall transfer to the Department any CDBG funds, excluding Program Income, in Grantee’s control at the time of expiration. Further, any real property under Grantee’s control that was acquired and/or improved in whole or in part with CDBG funds (including CDBG funds provided to the Grantee in the form of a loan and Program Income) in excess of $25,000.00 shall be either:

A. Used to meet one of the National Objectives in 24 CFR Part 570 until five (5) years after expiration or closure of this Agreement, the length of time to be further prescribed by mutual agreement of the parties.

B. Disposed of in such manner that Grantee is reimbursed in the amount of the fair market value of the property at the time of disposition of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition and/or improvement of such property. The proceeds from such disposition is Program Income.

If the Grantee provides funds for the purchase or improvement of real property to a subrecipient that is a private non-profit organization, that subrecipient must further agree to a voluntary lien on above-referenced real property as to any CDBG funds received and that such lien will be notarized and recorded in the Office of the County Recorder where the real property is located.

25. Monitoring Requirements
The Department shall perform a program and/or fiscal monitoring of the CDBG grant no less than once during the thirty-six (36) month expenditure period of this Agreement.

The Grantee shall be required to resolve any monitoring findings to the Department's satisfaction by the deadlines set by the Department to maintain program eligibility.

Grantees and applicable subrecipients shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a minimum period of five (5) years after the Department notifies the Grantee that the HCD contract has been closed according to the record retention requirements at 2 CFR 200.333.

Grantees and applicable subrecipients shall permit the State, federal government, the state Bureau of State Audits, the Department, and/or their representatives, upon reasonable notice, unrestricted access to any or all books, records, accounts,

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
documentation, and all other materials relevant to this Agreement for the purpose of monitoring, auditing, or otherwise examining said materials.

26. Inspections of Grant Activity
The Department reserves the right to inspect any grant activity(ies) performed hereunder to verify that the grant activity(ies) is being and/or has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement.

A. The Grantee shall inspect any grant activity performed by contractors and subrecipients hereunder to ensure that the grant activity(ies) is being and has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement.

B. The Grantee agrees to require that all grant activity(ies) found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to its contractor or subcontractor, respectively, until it is so corrected.

27. Signs
If the Grantee places signs stating that the activity is funded with private or public dollars and the Department is also providing financing, it shall indicate in a typeface and size commensurate with the Department's funding portion of the project that the Department is a source of financing through the CDBG Program.

28. Insurance
A. The Grantee shall have and maintain in full force and effect prior to the start of work, and at all times during the term of this Agreement such forms of insurance, at such levels as may be determined by the Grantee and the Department to be necessary for specific components of the grant activity(ies) described in Exhibit E. Prior to the commencement of any work, Grantee shall provide to the Department acceptable proof(s) of insurance confirming the required insurance coverages are in effect and naming the Department as an additional insured, where applicable. No insurance policy may be cancellable on less than thirty (30) calendar days prior notice to the insured and the Department. Grantees are responsible for requiring sufficient insurance, including but not limited to liability

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
and workers compensation insurance, from all contractors and subrecipients.

Grantees are recommended to be listed as an additional insured on policies held by contractors or subrecipients for the implementation of this award. Where a Grantee insurance policy is required to be purchased specifically for the execution or implementation of the activity funded through this award, the Department must be listed as an additional insured on the declarations page of the policy.

B. Additional Coverages. In the event that Grantee, and/or any of its Subrecipients or Contractors, will be engaging in any Hazardous Activity as part of the Collective Work contemplated by this Agreement, then the party(ies) engaging in any Hazard Activity(ies) shall provide to the Department, prior to commencement of any such activity(ies), such insurance coverages in such forms and in such amounts as the Department may require in its sole discretion. Such coverages are in addition to all other insurance coverages required by this Agreement and shall be imposed on any Subrecipient and/or Contractor pursuant to the Subrecipient Agreement or Contract. For purposes of the provision, the term "Hazardous Activity" includes the following: (a) the removal, storage, and/or transportation of any "hazardous material", as such term is defined under federal, state, or local law, ordinance, regulation, or guideline, (b) the removal, storage, or transportation of lead-based paint, (c) blasting, (d) any activity which by its nature is abnormally dangerous, and (d) any "ultrahazardous activity" as defined in California case law. In addition to providing proof of such required coverages, the party(ies) engaging in the Hazardous Activity(ies) shall procure, at its expense prior to the commencement of any work, all required permits, licenses, consents, and approvals that are required for the lawful conduct of such activities and shall provide adequate written proof thereof to the Department. No Hazardous Activity work may be commenced, or contracted for, prior to the provision of the required insurance coverages and licensure proof to the Department.

29. Anti-Lobbying Certification
Grantee shall comply with and require that the language of this certification be included in all contracts or subcontracts entered into in connection with this grant activity(ies) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and no more than $100,000.00 for such failure.

A. No federally appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

30. Conflict of Interest
Pursuant to 24 CFR 570.489(h), no member, officer, or employee of the Grantee, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, including members and delegates to the Congress of the Unites States may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to a CDBG-assisted activity or its proceeds, either for themselves or those with whom they have business or immediate family ties, during their tenure, or for one (1) year thereafter. The Grantee shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section.

31. Obligations of Grantee with Respect to Certain Third-Party Relationships Grantee shall remain fully obligated under the provisions of this Agreement notwithstanding its designation of any third party or parties for the undertaking of all or

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
any part of the Program with respect to which assistance is being provided under this Agreement to the Grantee. The Grantee shall comply with all lawful requirements of the Department necessary to ensure that the Program, with respect to which assistance is being provided under this Agreement to the Grantee, is carried out in accordance with the Department's Assurance and Certifications, including those with respect to the assumption of environmental responsibilities of the Department under Section 104(g) of the Housing and Community Development Act of 1974 [42 U.S.C. 5304(g)].Energy Policy and Conservation Act

32. This Agreement is subject to mandatory standards and policies relating to energy efficiency which are contained in the State Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871).

State Contract Manual Requirements (Section 3.11, Federally Funded Contracts (Rev. 3/03):

A. All contracts, except for State construction projects that are funded in whole or in part by the Federal government, must contain a thirty (30)-day cancellation clause and the following provisions:
1) It is mutually understood between the parties that this contract may have been written for the mutual benefit of both parties before ascertaining the availability of congressional appropriation of funds to avoid program and fiscal delays that would occur if the contract were executed after that determination was made.
2) This Agreement is valid and enforceable only if sufficient funds are made available to the State by the United States Government for the purpose of this Program. In addition, this contract is subject to any additional restrictions, limitations, or conditions enacted by the Congress or to any statute enacted by the Congress that may affect the provisions, terms, or funding of this contract in any manner.
3) The parties mutually agree that if the Congress does not appropriate sufficient funds for the program, this contract shall be amended to reflect any reduction in funds.
4) The Department has the option to invalidate the contract under the thirty (30) day cancellation clause or to amend the contract to reflect any reduction in funds.

City of Ukiah
21-CDBG-HA-00001

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 01/29/2021; Amended on 05/17/2021 and on 12/27/2021 Approved Date: 02/02/2022
Prep. Date: 08/03/2022
B. Exemptions from provisions A.1 through A.4 above may be granted by the Department of Finance provided that the director of the State agency can certify in writing that Federal funds are available for the term of the contract.

C. California Government Code § 8546.4(e) provides that State agencies receiving federal funds shall be primarily responsible for arranging for federally required financial and compliance audits, and shall immediately notify the Director of Finance, the State Auditor, and the State Controller when they are required to obtain federally required financial and compliance audits.

Applications: City of Ukiah Housing Rehabilitation Program

EXHIBIT E
Award Number
21-CDBG-HA-00001
PO Number
Profile
[email protected]
Section I
Activity Category
Programs
Activity (Programs)
14A Rehab: Single-Unit Residential
National Objective (H)
(LMH) Low/mod housing benefit
Section II
Measure Indicator (H)
Housholds/Housing Units
Detailed information on performance measurements can be located in HUD's Basically CDBG manual Chapter 13:
https://files.hudexchange.info/resources/documents/Basically-CDBG-Chapter-13-Performance-Measurement.pdf Number of Beneficiaries
25 Please indicate the proposed number of beneficiaries of this activity:

LMA- Number of LMI persons in service area that will benefit.

LMC- Number of LMI persons that will benefit
LMH- Number of households that will benefit
LMJ- Number of jobs created/retained
Presumed Benefit Types
Elderly Persons, Adults Meeting Bureau of Census' Definition of Severly Disabled Persons Additional Benefit Types
Single Adults, Single Men, Single Women, Families, Veterans, Victims of Domestic Violence, Duly Diagnosed Section III
Organization Name
City of Ukiah
Project/Program Census Location
The Census information in this section will be used for legislative and congressional district tracking. Please use the Census information of your primary facility or the designated address of the responsible organization. If you are doing a LMA activity, you will be asked to provide additional Census information specific to your service area. It is ok if the information is duplicative.

Use the HUD LMSI mapping tool located at https://hud.maps.arcgis.com/apps/webappviewer/index.html?id=ffd0597e8af24f88b501b7e7f326bedd to gather the required census tract information as identified by the address below. For instructions on using the mapping tool visit:
https://hud.maps.arcgis.com/home/item.html?id=ffd0597e8af24f88b501b7e7f326bedd County Code
045
Exhibit E
City of Ukiah
21-CDBG-HA-00001

Census Tract
116
Census Block Group(s)
01, 02, 03
Does this activity occur on more than one Census Tract and Block Group? Address
300 Seminary Avenue Ukiah, CA 95482
Section IV
Activity Project/Program Title
City of Ukiah Housing Rehabilitation Program
Activity Address, Building Number:
300
Activity Address, Street Name:

Seminary Avenue
Activity Address, Suite Number:

Activity Address, City:

Ukiah
Activity Address, State:

California
Activity Address, Zip Code:
95,482
Enter a detailed description of your activity which should include at a minimum: what the activity is, why it is needed, who the beneficiaries will be, where will it take place, how it will be done and when it will be complete. This should be a similar description provided for the NEPA. Additionally, please indicate if this will be a new activity, a modification to an existing activity, or if a new type of assistance will be added to an existing activity.

By completing the narratives below the applicant is demonstrating a knowledge of need for the activity and the steps needed to achieve the desired outcome.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

Activity Description
The City of Ukiah proposes the funding of a 2021 CDBG Housing Rehabilitation program to address a critical need citywide to improve the living conditions for low- and moderate-income individuals and households. The City’s aged and deteriorating housing stock, coupled with historically low rental vacancy rates and lack of new homeownership inventory, has produced a situation where many LMI renters are living in substandard conditions and older owner-occupants on fixed incomes cannot afford to make critical health and safety repairs. In a Community Housing Survey conducted by the City of Ukiah in 2018, over 70 percent of survey respondents listed the two biggest issues or barriers with obtaining suitable housing to be “home/rent prices” (54.9 percent) or “lack of available housing inventory” (17 percent).

The City of Ukiah’s 2019-2027 Housing Element, certified by HCD in December 2019, cited that “over 90 percent of all housing stock in the City of Ukiah was built in 1989 or earlier” and “only 3.3 percent of housing stock is newer (built in the year 2000 or later).” The City of Ukiah Housing Element also noted the City should pursue funding for a housing rehabilitation program and code enforcement activities and look to link the two activities to better address housing conditions overall. With the significant recent demand for housing and the corresponding increase in development activity, the cost of construction has increased. The Ukiah community thus faces an aging and deteriorating housing stock, with increasing costs of construction. For LMI owneroccupants in particular, this situation makes many necessary health and safety repairs costly and out of reach.

The City is proposing a $538,000 Housing Rehabilitation Program to provide $438,000 in financial assistance, consisting of $400,000 from 2021 CDBG grant funds and $38,000 in anticipated Program Income, to up to 25 LMI owner-occupants and/or owner-investors. Funds would be used by LMI beneficiaries for repairs, rehabilitation, reconstruction and/or weatherization of existing single-family (1-4 units) homes located in the incorporated areas of the City of Ukiah, which consists of census tract 114, block groups 1, 4, and 6; census tract 115, block groups 1-5; and census tract 116, block groups 1, 3, and 4. A maximum of $80,000 will be available per qualified household to address code violations, make barrier-free modifications, promote energy efficiency and conservation, and address other repairs to residential units. A grant program for urgent repairs will be extended to income qualified single-family homeowners regardless of the age of the home, capped at $7,500.

Although City staff implementing the Housing Rehabilitation program have extensive experience in CDBG, HOME, and housing rehabilitation programs and projects, a 2021 CDBG Housing Rehabilitation program would be new for the City. The Building Official, who has former experience as a general contractor with CDBG housing rehabilitation programs, will serve as the co-lead implementer of the Housing Rehabilitation program, focusing on the building side of the program- inspections, estimating, work write-ups, etc. The Community Development Director, who has designed and implemented housing rehabilitation programs and has strengths in CDBG housing programs underwriting and lending, will be the other co-lead implementer. The City is proposing up to $100,000 in Housing Rehabilitation Administration (Activity Delivery) for these implementation services. Because the Building Official and his staff also handle building code permitting and inspections, the redesigned implementation model effectually provides a “turnkey” service designed to quickly and efficiently move the applicant through the entire process, resulting in more timely repairs to their housing unit. The Housing Rehabilitation program is scheduled to begin in October 2021 and implemented over a three-year period, concluding in July 2024 or prior.

Provide a detailed narrative describing the steps to be taken to complete the activity. (i.e.: Task 1- create marketing plan; Task 2- hold a town hall meeting; Task 3- analyze feedback… etc.). This task narrative should indicate your knowledge of the steps and actions necessary to complete your activity. Narrative should include all actions taken to reach readiness through actions necessary for closeout.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

Detailed Scope of Work - Task Narrative
Task 1- Launch marketing plan, including making flyer available at all locations, education and training regarding the program to all customer counter staff, and releasing press release.

Task 2- Develop application packet (concurrent to the launching of the marketing plan), utilizing adopted Housing Rehabilitation Program guidelines.

Task 3- Application intake and interviews with applicants. The City Community Development Department (CDD) will perform income qualifications and review underwriting and property eligibility in accordance with Underwriting Requirements and Housing Rehabilitation guidelines and meet with applicants to fully explain the program and review the program application packet/all forms.

Task 4- initial inspection/work write-up/estimate. CDD Building Division staff will perform the property inspection and walkthrough with the owner-occupant and/or owner-investor, completing a work write-up and preliminary estimate upon completion. Note: If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP. LBP hazards will need to be fully addressed in accordance with HUD/CDBG regulations.

Task 5- Performance of site-specific Tier 2 NEPA environmental review of housing unit.

Task 6- Bid solicitation. CDD staff will release a Notice Inviting Bids to general contractors on behalf of the owner-occupant or owner-investor for bids on the proposed project. Bids received must be reasonable, i.e. within 10% of the cost estimate. The City will encourage the owner-occupant or owner-investor to select the lowest responsible and responsive bid.

Task 7- pre-construction conference, loan request/approval, project start/inspections. After a contractor’s bid is selected, the City will host the pre-construction conference, then request a loan or grant amount from the loan committee, execute a construction contract and issue a Notice to Proceed. The City’s Building Division staff will perform inspections to check the status of the work progress, including for approval of progress payments, and at the conclusion of the project the release of retention. The City’s Housing Division will also submit a project set-up report to HCD.

Task 8- after finalizing the total project amount (construction contract amount minus/plus any change orders), Housing Division staff will schedule a loan closing and execute the final loan documents for recording. The deed of trust will be recorded at the County Assessor/Recorder’s office.

Task 9- submit completion report and final project drawdown request to HCD.

The City expects to submit monthly funds requests, annual performance reports, and other required reports from execution of the standard agreement to close-out for the housing rehabilitation activity.

Provide a detailed narrative of the measurable objectives for the project and how they will be achieved and measured based on the activity. (i.e. will provide quarterly reports to HCD; will maintain accurate and complete procurement files, will submit feasibility study to Board of Supervisors…. etc.) Exhibit E
City of Ukiah
21-CDBG-HA-00001

Detailed Scope of Work - Deliverable Narrative
The task narrative described above is expected to achieve 100% expenditure of funding before the three-year performance period of the standard agreement. The City expects significant demand for the program within the first six months to one year of program implementation and the initial marketing effort. Measurable objectives associated with tasks listed above include the following:

Deliverable 1- Complete marketing materials as outlined within the City of Ukiah Housing Rehabilitation Marketing Plan (Task 1).

Deliverable 2- Complete initial launch of marketing effort based on the Housing Rehabilitation Program Marketing Plan (Task 2).

Deliverable 3- Complete Housing Rehabilitation Program application packet (Task 3).

Deliverable 4- Complete application intake activities, including income determination process and recommendations of approval for applicants based on Housing Rehabilitation program guidelines (Task 4).

Deliverable 5- Complete work write-ups/estimates. For housing units built prior to 1978, complete any Lead Based Paint testing or presume the housing unit has Lead Based Paint and outline steps for remediation with associated cost estimates (Task 5).

Deliverable 6- Complete NEPA site-specific Tier 2 reviews for qualified housing units. Accordingly update Broad-Level Tiered Environmental Review Record Appendix (Task 6).

Deliverable 7- Complete bid solicitations for qualified housing units (Task 7).

Deliverable 8- Complete Loan Committee Review Reports (LCRs) and present LCRs to City of Ukiah Loan Committee (Task 8).

Deliverable 9- Complete final loan and/or grant files for qualified Housing Rehabilitation Program recipients (Task 9).

Deliverable 10- Complete final setup/completion reports and final drawdown requests to HCD for approved loans and grants (Task 10).

With the exception of the initial marketing effort, which is designed to both market and announce the program to the community, the remaining deliverable objectives will continue throughout the course of the three-year period. Marketing efforts per the City’s marketing plan will also be ongoing.

From a program administration standpoint, measurable objectives include:
• Monthly, semi-annual, and annual performance reports and funds requests to HCD • Set-up/completion reports for qualified housing rehabilitation projects • Report to City Council on City’s final overall performance implementing the program • Submittal of final closeout package to HCD
Section V
Certain activities will need more than 30 days after the expenditure deadline to complete beneficiary reporting, for example; reporting for activities that are in support of housing or economic development where it is likely that there will be a time gap between completion of the activity and reportable beneficiaries.

Will you need more than 30 days after the expenditure deadlines to complete your activity reporting? No
Do you want to add additional optional milestones?
Yes
If you select YES, please provide each milestone for the project as well as the anticipated completion date. There are spaces for 10 milestones however only the first and last are mandatory. The first milestone is the proposed activity start date and the last milestone is the proposed notice of completion or completion date of the activity. Additional milestones are optional. Milestones provided in this section will become part of the Standard Agreement Milestone #1
Housing Rehabilitation Program activity start date: no later than 60 days after execution of the STD 213.

Milestone #1 must be completed no later than 60 days after execution of the STD 213 Milestone #2 (optional)
25% expenditure
Milestone #3 (optional)
50% expenditure
Milestone #4 (optional)
75% expenditure
Exhibit E
City of Ukiah
21-CDBG-HA-00001

Milestone #5 (optional)
100% expenditure
Milestone #6 (optional)
Milestone #7 (optional)
Milestone #9 (optional)
Confirmation of Closeout - Milestone #10
Confirmation of closeout: no later than 90 days after the expenditure deadline of STD 213.

Milestone #10 must be completed no later than 90 days after confirmation of closeout Readiness Criteria
Do you have guidelines for your program?
Yes
Are guidelines adopted or draft?
Adopted
Please upload adopted or draft guidelines.

Ukiah Housing Rehabiliation Guidelines- adopted 4-7-21.pdf Do you have a marketing plan?
Yes
A good marketing plan should include the program’s target beneficiaries (i.e characteristics of persons and/or housing stock in the service area) and how there is a need for the activity to support those beneficiaries, how they will be reached, what other organizations may be providing the same services and how beneficiaries will benefit from your program. The marketing plan needs to include a description of how Fair Housing and Equal Opportunity and Limited English Proficiency (LEP) requirements will be met.

Select all applicable components of your marketing plan Fair housing protections, Anti-discrimination plan, Target population analysis Upload Marketing Plan
City of Ukiah Housing Rehab Marketing Plan.pdf
Do you have HUD compliant loan underwriting requirements? Yes
Select all applicable components of your underwriting requirements Acceptable property criteria, Income qualification criteria, Loan to value standards Upload Underwriting Requirements
Ukiah Housing Rehab Underwriting Requirements.pdf
Do you have a loan servicing plan?
Yes
Select all applicable components of your loan servicing plan Loan default clauses, Long term servicing obligations, Loan transfer requirements Loan Servicing plan
City of Ukiah Housing Rehab Loan Servicing Plan.pdf
Is this a new program, additional program type, or program that has not been in continuous operation? Yes
Exhibit E
City of Ukiah
21-CDBG-HA-00001

Upload supporting documentation for Need/Demand
City of Ukiah Housing Rehab Supporting Doc.pdf
The Subrecipient Agreements must meet the requirements of 24 CFR §570.503: https://www.law.cornell.edu/cfr/text/24/570.503. Contracts must be in compliance with 2 CFR §§200.317-200.326: https://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1.4.31&rgn=div7 Contracts should include language required in Appendix 2 of 2 CFR 200: https://www.law.cornell.edu/cfr/text/2/appendix-IItopart_200 Do you have a signed agreement with a contractor/subrecipient? N/A (no contract needed)
Please include a narrative describing your staff and/or contractor/subrecipient expertise Craig Schlatter, Community Development Director for the City of Ukiah, will administer the CDBG Housing Rehabilitation Program, including coordination, compliance monitoring, and the completion of semi-annual and annual reports, project set-up/completion reports, and drawdown requests. He will be assisted by Mr. Jesse Davis, Planning Manager and Mary Horger, Financial Services Manager. Mr. Schlatter will also serve as a co-lead activity implementer, with Mr. Matt Keizer, for the City’s CDBG housing rehabilitation program, focusing in the areas of underwriting analysis and income qualification, loan preparation and presentation to the City of Ukiah loan committee, and loan setup/processing.

Mr. Schlatter has 15 years' experience with the California CDBG non-entitlement program and has designed and implemented Homeownership Assistance, Housing Rehabilitation, and Business Assistance programs through the CDBG program, as well as Owner Occupied Rehabilitation, Tenant Based Rental Assistance, First Time Homebuyer programs, and Rental New Construction projects through the HOME Investment Partnerships Program. Mr. Schlatter has also designed and implemented CDBG planning and technical assistance studies, multi-family housing rehabilitation and reconstruction projects, infrastructure and public improvement projects, economic development and housing debt restructuring projects, and public facility improvement projects.

Mr. Schlatter has training and experience in State and Federal Davis Bacon and Related Acts prevailing wage monitoring, as well as training through HUD in NEPA compliance and environmental reviews, and serves as the NEPA Certifying Officer for CDBG and HOME for the City of Ukiah.

Matthew Keizer, Building Official for the City of Ukiah, will be the co-lead for the housing rehabilitation activity implementation with Mr. Schlatter, focusing on general contractor coordination, building inspections/code compliance, work write-ups, estimating, and property/rehabilitation eligibility. Mr. Keizer has over 20 years’ experience in the construction industry as a licensed general contractor and currently holds a General B license in good standing with the CSLB. As a building inspector, Mr. Keizer has completed over 40 International Code Council (ICC) certifications and recently achieved the designation as a Master Code Professional from the ICC, considered the “gold standard” for demonstrating proficiency in the building code profession.

In addition to his construction and building inspection experience, Mr. Keizer also has experience working as a general contractor with Bay Area cities’ CDBG housing rehabilitation programs, including the Cities of Hayward, San Leandro, Pleasanton, Union City, Walnut Creek, Lafayette, and Dublin. This varied construction, inspection, and CDBG rehabilitation experience allows Mr. Matthew Keizer to understand the CDBG Housing Rehabilitation program from a unique perspective, enabling the City to take advantage of key economies of scale in delivering program services.

Mr. Jesse Davis, Planning Manager for the City of Ukiah, will assist Mr. Schlatter and Mr. Keizer in implementation of the program activity, specifically in the areas of NEPA environmental analysis for Tier 2 site-specific reviews and preparation of marketing materials. Mr. Davis will also assist in CDBG program administration and reporting. Mr. Davis has experience in federal grants management and environmental analysis, including work oversees as a Peace Corps volunteer, work as a regional grants officer for the Rotary Foundation, and significant work experience in community planning and environmental analysis.

Mary Horger, Financial Services Manager for the City of Ukiah, will assist in the processing of funds requests and documentation of eligible expenses. Ms. Horger has approximately 20 years’ experience in all aspects of procurement, budgeting, and vendor management, for both private and public organizations. Ms. Horger also has experience with CDBG and HOME financial management, including accounting and tracking.

Erica Christopherson, Community Development Technician, will be primarily responsible for application intake and coordination with the Building Official and Community Development Director related to applicant communication, coordination, and interviews.

Ms. Christopherson has over 15 years’ experience in customer service, including three and a half years’ experience in building and construction services.

To meet eligibility requirements applicants must have at least one of the following four documents. Plans that have been approved for other funding organizations are acceptable. ###### Program Guidelines- (NOTE: For all housing loan and economic development programs DRAFT program Exhibit E
City of Ukiah
21-CDBG-HA-00001

guidelines are mandatory). A grantee must develop and follow a detailed plan which details the rules and regulations under which the program will operate.###### Activity Implementation Plan- An implementation plan is the document that you use to define your implementation strategy. It outlines the activities and decisions necessary to turn the strategic goals into reality, and the execution plan is a schedule of concrete actions and activities to achieve goals and drive success.###### Strategic Plan- A document that articulates both the decisions made about the organization's goals and the ways in which the organization will achieve those goals. ###### Operating Plan- An operating plan can be defined as a plan that clearly defines actions it will take to support the strategic objectives and plans of upper management.

Do you have adopted:

Program guidelines
Upload your adopted program documentation
Reso. No. 2021-15 and Adopted Housing Rehab Guidelines.pdf Have you enacted limitations on residential construction other than establishing agricultural preserves or limitations based on health and safety needs?
No
View Budget Worksheet
https://portal.ecivis.com/#/peerBudget/C4823CED-1BF0-489C-97A8-1DB6D67740FF View Application Goals
Average Score
360.00
Application Goals
View Application Goals
https://portal.ecivis.com/#/peerGoals/187DD0AC-5A44-4140-8148-7D1C9AA5E84A # of Reviews
1 # of Denials
0 Original Submission Date (for re-submissions)
Applications: File Attachments
Please upload adopted or draft guidelines.

Ukiah Housing Rehabiliation Guidelines- adopted 4-7-21.pdf Upload Marketing Plan
City of Ukiah Housing Rehab Marketing Plan.pdf
Upload Underwriting Requirements
Ukiah Housing Rehab Underwriting Requirements.pdf
Loan Servicing plan
City of Ukiah Housing Rehab Loan Servicing Plan.pdf
Upload supporting documentation for Need/Demand
City of Ukiah Housing Rehab Supporting Doc.pdf
Upload your adopted program documentation
Reso. No. 2021-15 and Adopted Housing Rehab Guidelines.pdf Exhibit E
City of Ukiah
21-CDBG-HA-00001

1 Community Development Block Grant
(CDBG)

HOUSING REHABILITATION PROGRAM

GUIDELINES
Adopted by City Council: April 7, 2021
Exhibit E
City of Ukiah
21-CDBG-HA-00001

Table of Contents
FAIR HOUSING .............................................................................................................. 1 OUTREACH/APPLICANT LIST ....................................................................................... 1 Outreach ...................................................................................................................... 1 Applicant List ............................................................................................................... 1 TEMPORARY RELOCATION ......................................................................................... 2 CONFLICT OF INTEREST .............................................................................................. 2 APPLICANT ELIGIBILITY ............................................................................................... 3 Owner-Occupied Applicant ........................................................................................ 3 Owner-Investor Applicant ........................................................................................... 3 INCOME ELIGIBILITY ..................................................................................................... 3 Owner Occupant .......................................................................................................... 3 Owner Investor ............................................................................................................ 3 Tenant ............................................................................................................................. 4 PROPERTY ELIGIBILITY ............................................................................................... 4 Location ....................................................................................................................... 4 Property Taxes ............................................................................................................ 4 Evidence of Ownership ................................................................................................ 4 Property Types ............................................................................................................ 4 Environmental Review ................................................................................................. 5 REHABILITATION STANDARDS .................................................................................... 5 PROPERTY IMPROVEMENTS ...................................................................................... 5 LEAD-BASED PAINT ...................................................................................................... 6 MANUFACTURED HOUSING UNIT/MOBILE HOME REHABILITATION ....................... 6 RECONSTRUCTION ...................................................................................................... 6 RESIDENCY REQUIREMENTS ..................................................................................... 7 Owner Occupant .......................................................................................................... 7 Owner Investor ............................................................................................................ 8 FINANCING .................................................................................................................... 9 Maximum Loan Amount ............................................................................................... 9 Maximum Loan-to-Value Ratio .................................................................................... 9 Loan Security ............................................................................................................... 9 Financing Terms ........................................................................................................ 10 Owner-Occupied Property ............................................................................................. 10 Exhibit E
City of Ukiah
21-CDBG-HA-00001

Owner Investor .............................................................................................................. 11 Restrictions ................................................................................................................... 11 Maintenance Agreement ............................................................................................... 12 Grants ........................................................................................................................ 12 LOAN REQUIREMENTS ............................................................................................... 13 Loan Documentation .................................................................................................. 13 Loan Approval ........................................................................................................... 13 Loan Settlement ........................................................................................................ 13 Loan Servicing ........................................................................................................... 14 DEFAULT AND FORECLOSURE ................................................................................. 14 INSURANCE ................................................................................................................. 14 Standard Property Insurance ..................................................................................... 14 Fire Insurance ............................................................................................................ 15 Flood Insurance ......................................................................................................... 15 CONTRACTING PROCEDURES .................................................................................. 15 DISPUTE RESOLUTION/APPEALS PROCEDURE ..................................................... 16 SWEAT EQUITY ........................................................................................................... 18 AMENDMENTS ............................................................................................................. 18 EXCEPTIONS/PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES .................. 18 CURRENT HUD/INCOME LIMITS ................................................................................ 19 ATTACHMENT A .......................................................................................................... 20

HOUSING REHABILITATION PROGRAM SINGLE FAMILY TEMPORARY
RELOCATION PLAN ................................................................................................. 20 Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities .................................................................... 21 Lead Based Paint Mitigation Which Causes Temporary Relocation ............................. 22 Temporary Relocation of Owner Occupants ................................................................. 23 Temporary Relocation of Residential Tenants .............................................................. 24 Rehabilitation Activities Requiring Permanent Displacement ........................................ 25 Rehabilitation Which Triggers Replacement Housing ................................................... 26 Record Keeping and Relocation Disclosures/Notifications ............................................ 27 General Information Notice ........................................................................................ 28 Notice of Non-Displacement ...................................................................................... 28 Disclosure to Occupants of Temporary Relocation Benefits ...................................... 29 Other Relocation/Displacement Notices .................................................................... 29 Exhibit E
City of Ukiah
21-CDBG-HA-00001

ATTACHMENT B .......................................................................................................... 30 ANNUAL HOUSEHOLD INCOME DEFINITION ........................................................ 30 ATTACHMENT C .......................................................................................................... 32 LOAN SERVICING POLICES AND PROCEDURES ................................................. 32 Loan Repayments and Discounting of Notes ................................................................ 32 Payment of Property Taxes and Insurance ................................................................... 33 Required Request for Notice of Default ......................................................................... 34 Required Rent Limitation Agreement for Investor Properties ........................................ 35 Annual Occupancy Restrictions and Certifications ........................................................ 35 Required Noticing and Restrictions on Any Changes of Title or Occupancy ................. 36 Owner-Occupant to Owner-Occupant ........................................................................ 36 Owner Occupant to Owner Investor ........................................................................... 37 Requests for Subordinations ......................................................................................... 37 Process for Loan Foreclosure ....................................................................................... 38 Lender as Senior Lien holder ........................................................................................ 39 Exhibit E
City of Ukiah
21-CDBG-HA-00001

1 CITY OF UKIAH

COMMUNITY DEVELOPMENT BLOCK GRANT

HOUSING REHABILITATION PROGRAM GUIDELINES
The City of Ukiah Housing Rehabilitation Program, (here after called “Lender”), funded by State Community Development Block Grant (CDBG) Program, is designed to expand the supply of decent, safe, sanitary and affordable housing; to correct health and safety hazards in deteriorated housing; and to extend the useful life of existing housing units.

Loans and grants are available to achieve cost-effective repairs for low-income owner-occupied homes or for units occupied by low-income tenants of owner-investors jurisdiction wide.

FAIR HOUSING
This program will be implemented in ways consistent with the Lender’s commitment to Fair Housing. No person shall be excluded from participation in, denied the benefit of, or be subjected to discrimination under any program or activity funded in whole or in part with Community Development Block Grant (CDBG) funds on the basis of their religion or religious affiliation, age, race, color, creed, ancestry, national origin, gender, marital or familial status (children), physical or mental disability, medical condition, sexual orientation, or other arbitrary cause.

OUTREACH/APPLICANT LIST
Outreach
When loan funds are available, the Lender shall conduct a periodic program to advertise and promote the Housing Rehabilitation Program so that all those in need of rehabilitation assistance are aware of the Lender’s program. Efforts will be made to contact special needs households such as: elderly, single parent households, women, disabled, and minorities.

Applicant List
 Applications shall be received and processed as quickly as possible.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

2  Applicants shall be placed on the Applicant list at the time they apply for the program.
 Applicants shall provide information needed for the income and property verification process and what improvements are needed in a timely manner. If information is not forthcoming in a reasonable time, the Applicant shall be informed that their position on the Applicant list may be affected.  Unless there are emergency conditions that warrant more immediate action, projects will be funded based on the order of which the applications are received and deemed eligible.

TEMPORARY RELOCATION
Unit occupants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of tenant or public danger or is otherwise undesirable because of the nature of the project.

Relocated tenants will receive compensation for increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the “Housing Rehabilitation Program Single Family Temporary Relocation Plan” attached at the end of these Guidelines. Owner occupants are not eligible for temporary relocation benefits unless health and safety threats are determined to exist by the project coordinator/construction supervisor.

CONFLICT OF INTEREST
No member of the governing body of the locality and no other official, employee, or agent of the City government who exercises policy, decision-making functions, or responsibilities in connection with the planning and implementation of the program shall directly or indirectly be eligible for this program, unless the application for assistance has been reviewed and approved according to applicable California Department of Housing and Community Development (HCD) guidelines. This ineligibility shall continue for one year after an individual's relationship with the City ends.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

3 A contractor with a vested interest in the property cannot bid on a rehabilitation job.

Such a contractor may act as owner/builder, subject to standard construction procedures. (Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by Community Development Department staff to be part of the scope of work.

Owner/builders are not reimbursed for labor.) The City reserves the right to determine if the owner is capable of owner/builder rehabilitation work.

APPLICANT ELIGIBILITY

1. Owner-Occupied Applicant
o Must be existing homeowner and occupy the residence. Proof of occupancy will be required.

2. Owner-Investor Applicant
o Must be existing property owner and rent the residence to income eligible renter.

INCOME ELIGIBILITY
Income eligibility is based on the occupant’s gross annual income and must be less than 80 percent of the area’s median income. These limits can be located on the HCD website.

Owner Occupant
To be eligible, household income must be equal to, or less than, the applicable HCD income guidelines. Owner will be required to provide income documentation as detailed in the “Annual Household Income Definition/Income Limits” attached at the end of these Guidelines.

Owner Investor
There are no restrictions on the income of the owner investor unless the owner investor’s household falls within income guidelines and is interested in qualifying for a Deferred Payment Loan (DPL).

Exhibit E
City of Ukiah
21-CDBG-HA-00001

4 Tenant
If a rental property is currently occupied, the tenant's household income must be equal to, or less than, the applicable HCD income guidelines. Tenant will be asked to cooperate by providing income documentation as detailed in the “Annual Household Income Definition/Income Limits” attached at the end of these Guidelines.

PROPERTY ELIGIBILITY
Location
Units to be rehabilitated must be located within City of Ukiah city limits.

Property Taxes
Property Taxes must be paid and current to be eligible for a rehabilitation loan.

Evidence of Ownership
“Ownership” means any of the following interests in residential real property:
 Fee simple interest
 99-year leasehold interest in the property
 Ownership or membership in a condominium, cooperative or mutual housing project.

Property Types
To be eligible, the housing must be the primary residence of income-eligible occupants.

Eligible property types of residence can include:
 1-4 housing units where at least one unit is occupied by income-eligible homeowner or tenants
 Traditional single-family housing, condominiums, manufactured or mobile homes.
 Structures may be either attached or detached.

If CDBG funds are used to assist units in a two-to-four-unit property, where some of the units are occupied by ineligible tenants, then CDBG funds can only be used on the LMI occupied units.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

5 Environmental Review
The environmental review process is required for all HUD-assisted projects to ensure that the proposed project does not negatively impact the surrounding environment and that the property site itself will not have an adverse environmental or health effect on end users. Not every project is subject to a full environmental review (i.e., every project's environmental impact must be examined, but the extent of this examination varies). Every project must be in compliance with the National Environmental Policy Act (NEPA), and other related Federal and state environmental laws. The environmental review must be completed prior to any loan approval.

REHABILITATION STANDARDS
All repair work will meet Uniform Building Code standards. The priority will be the elimination of health and safety hazards. Additionally, all repair work will comply with any special design or construction standards established by the City to preserve historic buildings. Rehabilitation work should incorporate energy efficient/green building materials.

In the case of 2-4 unit property in which the owner occupant is income eligible, but a tenant is not, the rehabilitation shall be limited to those that benefit the overall structure (roof, exterior changes) and the interior changes for the income eligible household only.

The priority will be the elimination of health and safety hazards and code compliance.

PROPERTY IMPROVEMENTS
The goal of the Lender’s rehabilitation program is to remove deficiencies, improve energy efficiency, remediate lead-based paint, extend the useful life of the property and/or provide accessibility to comply with the Americans with Disabilities Act (ADA), and/or comply with any special design or construction standards established by the Lender to preserve historic buildings. All improvements must be physically attached to the property and permanent in nature. General property improvements should be limited to 15 percent of the rehabilitation loan amount. Luxury items are not permitted. If building materials that are normally considered “luxury items” are necessary due to a Exhibit E
City of Ukiah
21-CDBG-HA-00001

6 medical condition of a household member or for reasons of accessibility, the Lender may approve the use of such materials.

Examples of eligible improvements include foundation construction and repair, electrical repair or rewiring, plumbing repair, roof repair or replacement, heating system installation and repair, window and door replacement and repair, repair of structurally significant damaged wood, and floor coverings where it poses a hazard.

Examples of non-eligible improvements include swimming pools, patios and patio covers, room additions that are for leisure, landscaping upgrades, hot-tubs, custom cabinets, and high-end appliances.

Examples of general property improvements include improvements that bring the property into compliance with local zoning requirements, fence repairs, exterior paint, or items to improve the appearance of the property but are not health and safety items.

LEAD-BASED PAINT
Program participants rehabilitating homes constructed prior to January 1, 1978 must be provided with the proper disclosure notification concerning lead-based paint (LBP) hazards. Whenever pre-1978 houses are rehabilitated under CDBG, please refer to Title 24 Code of Federal Regulations (24 CFR) §570.608 , Lead-based paint for guidance. The costs associated with meeting these requirements may be eligible to be paid for with CDBG funds, if available.

MANUFACTURED HOUSING UNIT/MOBILE HOME REHABILITATION
CDBG funds may be used for the rehabilitation of an owner-occupied mobile home if it is considered part of the community’s permanent housing stock.

RECONSTRUCTION
CDBG funds may be used to demolish and reconstruct residential structures.

Reconstruction is defined as the demolition and construction of a structure. The City must document that the reconstruction costs are less than newly constructed housing Exhibit E
City of Ukiah
21-CDBG-HA-00001

7 and that the estimated cost of the reconstructed housing (including demolition, site preparation and temporary relocation) is less than the fair market value of the reconstructed housing and land combined.

RESIDENCY REQUIREMENTS
Owner Occupant
Owner occupants will be required to submit to the Lender between January 1 and 30 of each year for the term of the loan:

1. Proof of occupancy in the form of a copy of a current utility bill.

2. Statement of unit's continued use as a residence.

3. Declaration that other title holders do not reside on the premises, if applicable.

4. Proof that property insurance and taxes are paid current. o Note: If owner occupant has received financial assistance in the form of a loan from Lender, proof of property insurance must list Lender as lien holder in the amount of the Lender loan and for guaranteed replacement cost.

If an owner occupant sells, transfers title, or discontinues residence in the rehabilitated property, the loan is due and payable, unless one of the following applies:

1. If the owner occupant sells or otherwise transfers title of the property to a qualified income household, the Lender may consider refinancing the loan balance and subordinating the loan and continuing all or part of the lien as a Deferred Payment Loan.
o Note: transfer of title to qualified income household must first be approved by Lender, including the income certification process.

2. If the owner occupant dies, and if the heir to the property lives in the house and is income eligible, the heir may be permitted, upon approval of the Exhibit E
City of Ukiah
21-CDBG-HA-00001

8 Lender to refinance the loan at the rate and terms the heir qualifies for under current participation guidelines.
o Note: refinancing of the loan and/or transfer to heir must first be approved by Lender, including the income certification process.

3. If the owner occupant dies and the heir is not income eligible, the loan is due and payable.

4. If the owner occupant dies and the heir is not income eligible, but they elect to rent the unit to income qualified households and agrees to comply with owner investor restrictions, the heir may be permitted, upon approval of the Lender, to refinance the loan at the same rate and terms offered owner investors under current program guidelines. If the heir/owner investor does not elect to comply with owner investor restrictions, the loan is due and payable.

5. If an owner occupant wants to convert the rehabilitated property to a rental unit, the owner must notify the Lender in writing in advance. If the Lender approves the conversion of an owner-occupied unit to a rental, the owner will be required to comply with the provisions of the owner-investor guidelines, including rent limitation provisions and financing arrangements.

6. If an owner occupant wants to convert full use of the rehabilitated property to any commercial or nonresidential use, the loan is due and payable. Refer to “Loan Servicing Policies and Procedures” attached at the end of these Guidelines.

Owner Investor
An owner investor may convert a rental property to their primary residence and refinance the loan at the rate and terms offered owner-occupants under current program guidelines if all conditions below exist:

1. They can prove that the previous tenant was not evicted without cause.

2. The owner-investor is income eligible.

3. They request approval from the Lender in advance.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

9  If an owner investor converts a rehabilitated rental property to their primary residence, but they are not income eligible, the loan is due and payable.
 If an owner investor wants to convert the rehabilitated property to any commercial or nonresidential use, the loan is due and payable.  If an owner investor sells or transfers title of the rehabilitated property for any reason, the loan is due and payable.

FINANCING
Maximum Loan Amount
Loan amounts are between $5,000 and $80,000.

The loan amount may include:
 construction contract (the accepted bid price for the cost of materials and labor);
 construction contingency;
 drafting and engineering fees, if any;
 appraisal and termite inspection charges;
 credit report review fees;
 permit fees and related building fees,
 site preparation for replacement housing;
 escrow, closing and recording fees; title report and title insurance, title updates
CDBG funds may not be used to pay for property taxes.

Maximum Loan-to-Value Ratio
The maximum encumbrance is limited to 95 percent of the property’s afterrehabilitation value (determined by after rehab appraisal).

Loan Security

1. A Deed of Trust and Promissory Note will secure loans.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

10  A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 484 Statement of Lien, for mobile homes will be secured by HCD 480.7 –
Statement of Lien and include a Promissory Note and Loan Agreement.

2. All owners listed on the benefiting property title are required to sign the Deed of Trust, Promissory Note, rehabilitation contract documents, and other related loan documents, whether or not they reside on the property.

3. All Lender loans, which are not in first position on title, will require a Request for Notice of Default to be recorded as part of the transaction. a. If Lender changes address - a new Request for Notice of Default must be recorded to ensure any possible notice is sent to the current address of Lender.

Financing Terms
Owner-Occupied Property
Financing terms are made flexible to allow for maximum affordability. In addition to the Lender’s ability to do a fully deferred loan, there are three other types of financing available.

To the extent that an amortized loan payment will not cause housing costs plus all other monthly debt payments to exceed 49 percent of gross monthly income, rehabilitation costs will ordinarily be financed as a 0 percent simple interest rate loan (defined by Lender and dependent on the current market at loan close).

In the event the household cannot afford a loan payment, the rehabilitation loan will be financed at 0 percent simple interest (defined by Lender and dependent on the current market at loan close) with payments, including interest, deferred for a period up to 30 years.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

11 Very Low-income owner-occupants (making 50 percent of County Median) or persons who are elderly (age 65 or older) or permanent disabled heads of household will be eligible for 0 percent interest (defined by Lender and dependent on the current market at loan close) deferred payment loans.

Payments are deferred for up to 30 years.

Very Low-income owner-occupants or persons who are elderly (age 65 or older) or permanent disabled heads of household are also eligible for the Emergency Repair Grant program (see Page 12).

Owner Investor
The Lender offers a Below Market Interest Rate (BMIR) loan at 1.5 percent simple interest, amortized over a period with a maximum term of 15 years.

In certain situations, such as when the deterioration of the unit poses an imminent threat to the health and safety of the tenant and the owner investor does not have the financial ability to make monthly payments, the City of Ukiah Loan Committee may approve an exception to the interest or amortized nature of the loan, potentially allowing a lower interest rate and/or deferral of payment(s).

Payback is required if the Borrower sells or transfers title to the rehabilitated property.

Restrictions
Rent Limitation Agreement (RLA) - An owner investor who elects to rehabilitate a rental unit with CDBG financing must sign an RLA, which will be recorded. This agreement will specify:
 In no instance shall rents exceed the U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) schedule while the RLA is in effect.
 Base Rent – Vacant Unit - If the property is vacant, rent charges shall not exceed 30 percent of 80 percent of County median income for the appropriate household size in that unit. Owner investor shall affirmatively seek income qualified households by contacting the local housing Exhibit E
City of Ukiah
21-CDBG-HA-00001

12 authority. Where such contact does not result in eligible income qualified tenants, the owner investor shall contact the Lender for guidance.  Base Rent – Occupied Unit - If the property is occupied, rent charges shall not exceed 30 percent of the existing tenants’ household income; or, where, before rehabilitation, rents already exceed 30 percent of the existing tenants’ income, no rent increases shall be allowed which provide for rents plus utilities over 30 percent of the tenants’ income.  Term - Adherence to these rent limitations will be for the term of the loan.  Annual recertification of tenant’s income and rents paid from both the owner-investor and tenant.
 Compliance – Failure to comply with these terms and conditions will result in the loan becoming due and payable. If necessary, foreclosure proceedings will be instituted.

Maintenance Agreement
As specified in the Rehabilitation Loan Agreement, an owner-investor who participates in the program must maintain the property at post-rehabilitation conditions for a minimum of five years. Should the property not be maintained accordingly, the loan will become due and payable, and if necessary, foreclosure proceedings will be instituted.

Grants
Emergency Home Repair Grant
Very Low-income owner-occupants or persons who are elderly (age 65 or older) or permanent disabled heads of household are eligible for the Emergency Repair Grant program. The Emergency Repair Grant Program provides a grant of up to $7,500 for emergency home repairs to correct housing conditions posing an imminent threat to the health and safety of the owner occupant.

The Lender will require a signed grant agreement.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

13 LOAN REQUIREMENTS
Loan Documentation
The Lender shall determine the loan amount based on the consideration of:

1. The selected bid contractual amount

2. 10 to 20 percent contingency

3. Plan or drawing preparation if any

4. Pre-project inspections (termite report, LBP inspection)

5. Escrow and title policy costs
The Lender shall provide the owner-investor with the loan disclosure information.

Once the owner-investor has approved the disclosure, the Lender shall process the loan for approval. The approval process shall require approval by the City of Ukiah Loan Committee.

The Borrower or owner-investor shall be notified of approval and/or denial.

Loan Approval
A loan package will be prepared by the Lender that: confirms the Applicant and property eligibility; documents the equity in and the encumbrances on the property; lists the estimated loan and construction costs; and includes any other information particular to the loan. By preparing a loan package using all the income and property eligibility, the determination of the amount and rates and terms of the CDBG loan will be outlined for the City of Ukiah Loan Committee to review.

To obtain CDBG financing, Applicants must meet all property and eligibility guidelines in effect at the time of loan approval. Applicants will be provided written notification of approval or denial. Reason for denial will be included in a denial letter to the Applicant.

Loan Settlement

1. The Applicant shall sign the following: Deed of Trust, Promissory Note, Loan Estimate and Closing Disclosure Statement, Rescission Notice, Loan Agreement, Request for Notice of Default and Sale (if applicable) and Rent Limitation Agreement (if applicable).

Exhibit E
City of Ukiah
21-CDBG-HA-00001

14 2. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien.

3. The City Community Development Director, acting on the behalf of the Lender, shall sign the loan documents as required.

4. If the Applicant does not rescind the loan after the 3-day rescission period:

A. The Deed of Trust, Request for Notice, and Rent Limitation Agreement, as applicable, shall be recorded at the Mendocino County Recorder’s Office. The Applicant shall sign the Construction agreement and Notice to Proceed.

B. Title insurance shall be requested and received.

5. The original loan documents shall be filed with the City as applicable:

Promissory Note, Deed of Trust (recorded), Loan Agreement, Request for Notice of Default (recorded) and Rent Limitation Agreement (recorded).

6.The construction documents shall be filed with the City.

7. The Lender shall deposit loan funds into an escrow account with a reputable title company, unless the loan amount is too small to warrant incursion of escrow fees.

Loan Servicing
Refer to “Loan Servicing Policies and Procedures” attached at the end of these Guidelines.

DEFAULT AND FORECLOSURE
If a Borrower defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the CDBG Foreclosure Policy as described in the “Loan Servicing Policies and Procedures” attached at the end of these Guidelines.

INSURANCE
Standard Property Insurance
Borrower must maintain property insurance coverage naming the Lender as loss payee in first position or additional insured if the loan is a second mortgage. If Exhibit E
City of Ukiah
21-CDBG-HA-00001

15 Borrower fails to maintain the necessary insurance, the Lender is notified in writing by the insurance company. If this occurs, the Lender may take out forced place insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

Fire Insurance
The Borrower shall maintain fire insurance on the property for the duration of the loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Lender as Loss Payee for the amount of the loan(s). A binder shall be provided to the Lender. In the event the Borrower fails to make the fire insurance premium payments in a timely fashion, the Lender at its option may make such payments for a period not to exceed 60 days. The Lender may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period. Should the Lender make any payments, it may, in its sole discretion, add such payments to the principal amount that the Borrower is obligated to repay the Lender under this program.

Flood Insurance
In areas designated by HUD as flood prone (located in a 100-year flood plain) the Borrower is required to maintain flood insurance in an amount adequate to secure the Rehabilitation Loan. The policy must designate the Lender as Loss Payee. The premium may be paid by the Rehabilitation Loan for one year.

CONTRACTING PROCEDURES
 All housing rehabilitation work must be carried out using the adopted Housing Rehabilitation Program Guidelines.
 The Lender will prepare the bid package and assist the Borrower in negotiating the contract.
 The Borrower will select the contractor.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

16  All general and sub-contractors must be checked and cleared with HUD’S federal debarred list of contractors and have a DUNS number or Unique Entity Identifier (UEI).
 All general and sub-contractors must be actively licensed and bonded with the State of California.
 All general and sub-contractors must have public liability insurance to the Lender’s required limits, and if applicable, maintain Workers’ Compensation and Employer Liability insurance to the extent required by State Law.  All general and sub-contractors must comply with CDBG federal and state regulations.
 A Notice of Completion must be recorded with the County Recorder.

DISPUTE RESOLUTION/APPEALS PROCEDURE
Any person/household applying for a Rehabilitation Loan through the CDBG program has the right to appeal if their application is denied. In addition, during pre-construction, construction, or post-construction periods, the Borrower has a similar right to have any disputes heard and resolved.

Rehabilitation program representatives are primarily responsible to assure that the program is implemented in compliance with state and federal regulations in a timely and responsible manner. This includes developing accurate and professional files, work write-ups and contract documents. Program representatives attend the meeting between the homeowner and the contractor when the contract documents are signed and facilitate in the clarification and/or corrections of proposed work, so a clear understanding is established between both parties.

During and after completion of construction, the contractor's work is monitored for code compliance by the Lender’s Building Inspector and for quality by the Housing Rehabilitation Inspector.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

17 The contractual obligation for rehabilitation is ultimately between the contractor and the homeowner. If a situation occurs where the two parties are in conflict, the following procedure will occur:

Before any intervention occurs, the homeowner or contractor shall communicate perceived problems or complaints directly to the other party. To resolve the differences, each will give the other an opportunity to respond or correct the problem.

If the first attempt fails, the homeowner or contractor may ask the City of Ukiah Community Development Director or designee to informally intervene. This intervention might include telephone call(s) to the contractor or homeowner, meeting(s) at the job site or in the office, or other actions as seem appropriate, including such things as the establishment of written working guidelines, or other post-contractual agreement.

If the City of Ukiah Community Development Director or designee is unable to satisfactorily resolve the homeowner-contractor differences, the homeowner, contractor, or program representative, will contact HCD detailing the problem. In cases of building code compliance or questions of construction quality, the building official might also be contacted.

It must be recognized that the homeowner has other options which they may choose to utilize, including contacting the Contractors State Licensing Board and submitting a complaint.

Any controversy between the parties that cannot be settled through the informal intervention process outlined above shall be submitted to binding arbitration. Costs for the arbitration will be borne by the losing party, or subject to the terms of the arbitration agreement.

The parties shall attempt to agree on a single arbitrator to hear the dispute. If they cannot agree each party shall appoint an arbitrator. If the two arbitrators cannot reach Exhibit E
City of Ukiah
21-CDBG-HA-00001

18 an agreement, then they shall appoint a third arbitrator whose decision shall be final and binding.

The cost of the arbitration shall be borne by the losing party unless the arbitrator otherwise determines.

The arbitration shall be conducted in accordance with the rules of the American Arbitration Association then in force. The parties expressly agree that the arbitration shall be subject to and governed by, the Federal Arbitration Act, Title IX, USC 1 et seq.

SWEAT EQUITY
Participants who wish to perform sweat equity must obtain approval from the general contractor and sign a written commitment itemizing the work they will perform, a time schedule for completion and a dollar value of the contribution.

Owners that contribute sweat equity that involves painting will not participate in activities that include the abatement or mitigation of lead paint hazards without first being trained on Safe Work Practices as required by HUD and provide documentation of such in the project file.

AMENDMENTS
Amendments to these Guidelines may be made by the Lender.

EXCEPTIONS/PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an Applicant treated differently from others would be an exception.

In the event of extraordinary or special circumstances, the Loan Committee may grant an exception to the guidelines if the exception does not violate the regulations of the funding sources.

The Program staff may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including staff’s recommended course of action and any Exhibit E
City of Ukiah
21-CDBG-HA-00001

19 written or verbal information supplied by the Applicant. The request shall be presented to the Loan Committee for decision and consideration.

CURRENT HUD/INCOME LIMITS
For consistency in calculating household incomes, the Lender will use the most current income limits available when determining household income. The CDBG income limits are updated annually.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

20 ATTACHMENT A

HOUSING REHABILITATION PROGRAM SINGLE FAMILY TEMPORARY

RELOCATION PLAN
The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities that could lead to displacement of occupants whose property is receiving funds from these or any other federal funding source. Having been developed in response to both aforesaid federal legislations, this Plan is intended to inform the public of the compliance of the City of Ukiah with the requirements of federal regulations 24 CFR 570.606 under state recipient requirements and Section 104(d) of the Housing and Community Development Act of 1974 and 24 CFR 92 of the HOME federal regulations.

The Plan will outline reasonable steps, which the City will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements.

The City’s governing body has adopted this Plan via a formal resolution.

This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: HOME, CDBG, Urban Development Action Grant (UDAG), Special Purpose Grants, Section 108 Loan Guarantee Program, and such other grants as HUD may designate as applicable, which take place within the City of Ukiah limits.

The City of Ukiah will provide permanent relocation benefits to all eligible “displaced” households either owner occupied or rental occupied units which are permanently displaced by the housing rehabilitation program. In addition, the City will replace all eligible occupied and vacant occupiable low-income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Exhibit E
City of Ukiah
21-CDBG-HA-00001

21 Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR 570.496(a), Relocation, Displacement and Acquisition:

Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989.

All City programs/projects will be implemented in ways consistent with the City’s commitment to Fair Housing. Participants will not be discriminated against on the basis of race, creed, color, religion or religious affiliation, age, ancestry, national origin, gender, marital or familial status (children), physical or mental disability, sexual orientation, medical condition, or other arbitrary cause. The City will provide equal relocation assistance available 1) to each eligible income household displaced by the demolition or rehabilitation of housing or by the conversion of a eligible income household dwelling to another use as a direct result of assisted activities; and 2) to each eligible income person temporarily relocated as a direct result of activities funded by HUD programs.

Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities
Consistent with the goals and objectives of activities assisted under the Act, the City will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded by HUD programs:
 Provide proper notices with counseling and referral services to all tenants so that they understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood.
 Stage rehabilitation of assisted households to allow owner occupants and/or tenants to remain during minor rehabilitation.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

22  Encourage owner investors to temporarily relocate tenants to other available safe and sanitary vacant units on the project site area during rehabilitation or pay expenses on behalf of replaced tenants.
 Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation.  When necessary, use public funds, such as CDBG funds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities.

Lead Based Paint Mitigation Which Causes Temporary Relocation On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control (LBPHC) went into effect. Among other things, it requires that federally funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the tenant-occupant(s) be present in work areas or designated adjacent areas while LBPHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants will not be allowed to remain in their units during the time that lead-based paint hazards (LBPH) are being created or treated. Once LBPHC has been completed, and the unit passes clearance, the occupants can return. The tenant-occupants may not reoccupy a work area or adjacent area until post-lead hazard reduction clearance standards have been achieved and verified with laboratory results. The final rule allows for certain exceptions:
 The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or
 The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead-free entry; or
 The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or
Exhibit E
City of Ukiah
21-CDBG-HA-00001

23  The interior work will be completed within 5 calendar days, the work site is contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms.

If temporary relocation benefits are not provided because the {City/County} believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the {City/County} to ensure that the owner occupant or tenant in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants (tenants or owners) will be strongly encouraged to relocate. Even for just a few days until a final lead clearance can be issued by a certified lead-based paint assessor. Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities.

Temporary Relocation of Owner Occupants
Owner occupants are not allowed to stay in units which are hazardous environments during lead-based paint mitigation. When their home is having lead-based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits which will be provided as a grant. In the same way, a unit requiring substantial rehabilitation (with or without lead based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, then the family will be eligible for temporary relocation benefits which will be provided as a grant. The amount of the benefit to be paid should be cost appropriate to the conditions.

Owner occupants will be encouraged to move in with family or friends during rehabilitation, since they are voluntarily participating in the program. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form. This documents that the owner occupant Exhibit E
City of Ukiah
21-CDBG-HA-00001

24 understands that they must relocate during construction and what benefits they wish to be reimbursed for as part of their relocation.

Temporary Relocation of Residential Tenants
If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The program administrator or construction supervisor will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable.

Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. They may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred.

The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will ensure that each tenant occupied unit under the program will receive a General Information Notice (GIN) (as soon as possible after a loan application is received).

Additionally, the tenant will receive a Notice of Non-displacement (after loan approval), and each tenant occupied unit will have a temporary relocation benefits form completed for them. These notices will document that each tenant understands what their relocation rights are, and if they must relocate during construction, that they receive the proper counseling and temporary relocation benefits.

A tenant receiving temporary relocation shall receive the following:

1. Increased housing costs (e.g. difference in rent increase, security deposits) and

2. Payment for moving and related expenses, as follows:

Exhibit E
City of Ukiah
21-CDBG-HA-00001

25 a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified;
b. Packing, crating, unpacking, and uncrating of personal property; c. Storage of personal property, not to exceed 12 months, unless the grantee determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property; e. Insurance for the replacement value of personal property in connection with the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of moving (not through the fault of the displaced person, their agent, or employee) where insurance covering such loss, theft or damage is not reasonably available;
g. Reasonable and necessary costs of security deposits required to rent the replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling; i. Other moving related expenses as the grantee determines to be reasonable and necessary, except the following ineligible expenses:
i. Interest on a loan to cover moving expenses; or
ii. Personal injury; or
iii. Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Grantee; or iv. Costs for storage of personal property on real property already owned or leased by the displaced person before the initiation of negotiations.

Rehabilitation Activities Requiring Permanent Displacement The City of Ukiah rehabilitation program will not typically trigger permanent displacement and permanent displacement activities fall outside of the scope of this plan. If a case of permanent displacement is encountered, then the staff that is Exhibit E
City of Ukiah
21-CDBG-HA-00001

26 responsible for the rehabilitation program will consult with {City/County’s} legal counsel to decide if they have the capacity to conduct the permanent displacement activity. If local staff does not have the capacity, then a professional relocation consultant will be hired to do the counseling and benefit determination and implementation. If local staff does wish to do the permanent displacement activity, then they will consult and follow the HUD Relocation Handbook 1378.

Rehabilitation Which Triggers Replacement Housing
If the City of Ukiah rehabilitation program assists a property where one or more units are eliminated then under Section 104 (d) of the Housing and Community Act of 1974, as amended applies and the City is required to replace those lost units. An example of this would be a duplex unit converted into a single-family unit. In all cases where rehabilitation activities will reduce the number of housing units in the jurisdiction, then the City must document that any lost units are replaced, and any occupants of reduced units are given permanent relocation benefits. (This does not apply to reconstruction or replacement housing done under a rehabilitation program where the existing unit(s) is demolished and replaced with a structure equal in size without in loss number of units or bedrooms.)
Replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the City to provide funds for an activity that will directly result in such demolition or conversion, the City will make this activity public (through a noticed public hearing and/or publication in a newspaper of general circulation) and submit to the California Department of Housing and Community Development or the appropriate federal authority the following information in writing:
 A description of the proposed assisted activity;
 The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as targeted income group dwelling units as a direct result of the assisted activity; Exhibit E
City of Ukiah
21-CDBG-HA-00001

27  A time schedule for the commencement and completion of the demolition or conversion;
 The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units;  The source of funding and a time schedule for the provision of the replacement dwelling units;
 The basis for concluding that each replacement dwelling unit will remain a targeted income group dwelling unit for at least 10 years from the date of initial occupancy; and,
 Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a two-bedroom unit with two one-bedroom units) is consistent with the housing needs of targeted income group households in the jurisdiction.

The City of Ukiah CDBG Grants Administrator is responsible for tracking the replacement of housing and ensuring that it is provided within the required period. The City is responsible for ensuring requirements are met for notification and provision of relocation assistance, as described in Section 570.606, to any targeted income group displaced by the demolition of any dwelling unit or the conversion of a targeted income group dwelling unit to another use in connection with an assisted activity.

Record Keeping and Relocation Disclosures/Notifications The City will maintain records of occupants of Federally funded rehabilitated, reconstructed or demolished property from the start to completion of the project to demonstrate compliance with section 104(d), URA and applicable program regulations.

Each rehabilitation project, which dictates temporary or permanent or replacement activities, will have a project description and documentation of assistance provided. (See sample forms in HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD-40054)
Appropriate advisory services will include reasonable advance written notice of (a) the date and approximate duration of the temporary relocation; (b) the address of the Exhibit E
City of Ukiah
21-CDBG-HA-00001

28 suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (c) the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling.

Notices shall be written in plain, understandable primary language of the persons involved. Persons who are unable to read and understand the notice (e.g. illiterate, foreign language, or impaired vision or other disability) will be provided with appropriate translation/communication. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. The notices and process below are only for temporary relocation. If permanent relocation is involved, then other sets of notice and noticing process and relocation benefits must be applied (See HUD relocation handbook 1378 for those forms and procedures) The Temporary Relocation Advisory Notices to be provided are as follows:

General Information Notice
As soon as feasible when an owner investor is applying for Federal financing for rehabilitation, reconstruction, or demolition, the tenant of a housing unit will be mailed, or hand delivered a General Information Notice that the project has been proposed and that the tenant will be able to occupy their present house upon completion of rehabilitation. The tenant will be informed that the rent after rehabilitation will not exceed current rent or 30 percent of their average monthly gross household income. The tenant will be informed that if he or she is required to move temporarily so that the rehabilitation can be completed. Suitable housing will be made available and they will be reimbursed for all reasonable extra expenses.

The tenant will be cautioned that they will not be provided relocation assistance if they decide to move for personal reasons.

Notice of Non-Displacement
As soon as feasible when the rehabilitation application has been approved, the tenant will be informed that they will not be permanently displaced and that they are eligible for temporary relocation benefits because of lead based paint mitigation or substantial rehabilitation, or reconstruction of their unit. The tenant will also again be Exhibit E
City of Ukiah
21-CDBG-HA-00001

29 cautioned not to move for personal reasons during rehabilitation, or risk losing relocation assistance.

Disclosure to Occupants of Temporary Relocation Benefits This form is completed to document that the City is following its adopted temporary relocation plan for owner occupants and tenants.

Other Relocation/Displacement Notices
The above three notices are required for temporary relocation. If the City is attempting to provide permanent displacement benefits, then there are several other forms which are required. Staff will consult HUD’s Relocation Handbook 1378 and ensure that all the proper notices are provided for persons who are permanently displaced because of housing rehabilitation activities funded by CDBG or other federal programs.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

30 ATTACHMENT B

ANNUAL HOUSEHOLD INCOME DEFINITION
For the purposes of determining eligibility in accordance with HCD income guidelines, Annual Income will include, for all members of the household:
 Gross wages and salary before deductions.
 Net money income from self-employment.
 Cash income received from such sources as rental units, Social Security benefits, pensions, and periodic income from insurance policy annuities.  Periodic cash benefits from public assistance and other compensation, including Aid to Families with Dependent Children (AFDC), Supplemental Security Income (SSI), Worker's Compensation, State Disability Insurance and Unemployment benefits.
 Interest earned on savings and investments.

Annual Income will not include:
 Non-cash income such as food stamps or vouchers received for the purpose of food or housing.
 Capital gains or losses.
 One-time unearned income such as scholarship and fellowship grants; accident, health or casualty insurance proceeds; prizes or gifts; inheritances.  Payments designated specifically for medical or other costs, foster children, or their non-disposable income.
 Income from employment of children under the age of 18.  Payment for the care of foster children.

This is not meant to be a complete list.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

31 The City of Ukiah will make the final decision in situations where the classification of income is not clear-cut. Any exceptions or other deviations from this definition of annual income will be considered by the City of Ukiah.

The City shall use the Income Guidelines published each year by HUD and HCD.

The maximum gross annual income for an eligible household shall be 80 percent of the area median income for the household size.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

32 ATTACHMENT C

LOAN SERVICING POLICES AND PROCEDURES
The City of Ukiah here after called “Lender” has adopted these policies and procedures in order to preserve its financial interest in properties, whose “Borrowers” have been assisted with public funds. The Lender will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-bycase basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the follow areas: 1) making required payments or paying off a loan’s principle and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) required Rent Limitation Agreement and monitoring of investor properties; 5) loans with annual occupancy restrictions and certifications 6) required noticing and limitations on any changes in title or use of property; 7) required noticing and process for requesting a subordination during a refinance; 8) process of foreclosure in case of default on the loan.

Loan Repayments and Discounting of Notes
When the rehabilitation project is completed and the amount used to complete the project is less than the amount loaned, the Lender will notify the title company holding the escrow account to refund the unused balance to the Lender. The Lender will reduce the amount of principal accordingly and recalculate the interest.

The Lender will collect monthly payments from those Borrowers who are obligated to do so under an Installment Note, which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly date. The Lender will provide Exhibit E
City of Ukiah
21-CDBG-HA-00001

33 to the Borrower a debt amortization schedule and will maintain said schedule to account for the loan repayments and any penalties.

For Straight Notes, which are deferred payment loans; the Lender may accept voluntary payments on the loan. Loan payments will be credited to the interest first and then to principal. The Borrower may repay the loan accrued interest and principal at any time with no penalty.

The Lender will maintain an accurate listing of all loans including but not limited to the following information, Borrower’s name, address, loan closing date, amount of principal, interest rate, calculation of interest, total payoff amount, maturity date, property taxes and insurance current.

Lender is notified that the Borrower intends to pay off a loan, the Lender will provide a demand letter with the payoff amount. This includes the amount of principal, accrued interest, any recording or late fees or other penalties, and a per diem amount (interest per day) and an interest through date (typically the same date at the demand letter).

The Lender will process and record a Substitution of Trustee and Full Reconveyance upon loan satisfaction. A conformed recorded copy is mailed to the Borrower along with the original Deed of Trust and Promissory Note within 30-days of receipt of payoff funds. The original Deed of Trust and Promissory Note are to be stamped paid in full with the date and an initial of the responsible staff person processing the documents.

Copies of the reconveyance, deed, and promissory note, showing as paid in full are to be kept in the Borrower’s file.

Payment of Property Taxes and Insurance
As part of keeping the loan from going into default, Borrower must maintain property insurance coverage naming the Lender as loss payee in first position or additional insured if the loan is a second mortgage. If Borrower fails to maintain the necessary insurance, the Lender is notified in writing by the insurance company. If this occurs the Exhibit E
City of Ukiah
21-CDBG-HA-00001

34 Lender may take out forced place insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance. The City needs to ensure that interest on any costs added to the loan accrue interest from the point the cost was incurred.

When a property is located in a 100-year flood plain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance will be required at close of escrow. The lender may check the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes, then the lender may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan. Wherever possible, the Lender encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

All Borrowers will be evaluated semi-annually by the Lender to confirm timely payments of property taxes. In January and May of each year the Lender will access the County Treasurer-Tax Collector website and view the Borrower’s tax bill to determine if tax payments have been made.

Required Request for Notice of Default
When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lien holder listed in the notice to notify the lender of initiation of a foreclosure action. The Lender will then have time to contact the Borrower and assist them in bringing the first loan current. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third Exhibit E
City of Ukiah
21-CDBG-HA-00001

35 position and receives notification of foreclosure from only one senior lien holder, it is in their best interest to contact any other senior lien holders regarding the status of their loans.

Note: If Lender’s address has changed, a new Request for Notice of Default, signed by the appropriate City representative must be recorded. If this process is not completed, the Notice of Default will be mailed to the address on file and possibly never received by the Lender.

Required Rent Limitation Agreement for Investor Properties All owner investor properties which receive loans from the Lender will be required to enter into a rent limitation agreement (RLA), which restricts the tenants and the rents on the property for a fixed period of time, depending on the public funds used. The RLA will be recorded on title of the property and noncompliance with this agreement can lead to foreclosure action by the Lender. The RLA will be monitored annually to ensure that low or very low-income households occupy the owner investor units and that the rents charged to those households is affordable. Lender to contact both the tenant and the owner-investor to recertify annual income and rent charged. In some cases, the units must be inspected annually to ensure that they are up to minimum health and safety standards. At the end of the designated affordability period, the Lender will release the Borrower from the RLA, and the loan is due and payable.

Annual Occupancy Restrictions and Certifications
All owner-occupied Borrowers will be evaluated annually by the Lender to confirm continuous owner occupancy status. Borrowers will be required to submit to the City of Ukiah between January 1 and 30 of each year for the term of the loan:
 Proof of occupancy in the form of a copy of a current utility bill.  Statement, under penalty of perjury, of unit's continued use as a residence.  Declaration that other title holders do not reside on the premises.  Proof of property insurance, with the City of Ukiah named as additional insured and for guaranteed replacement cost.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

36  Proof of property taxes showing current paid status Lender to check their local Recorder’s Office online records and search to ensure the property title has not been transferred to another name – if so, loan is due and payable (perform every 6-12 months).

Lender to check with their local Coroner’s Office to ensure any borrower has not yet passed away. If it is found that a borrower has passed away, the loan is due and payable. Lender is contact family heirs to work on any option available up to and including foreclosure of the property.

These loan terms are incorporated in the original note and deed of trust. If a Borrower sells, transfers title, or discontinues residence in the rehabilitated property, the loan is due and payable.

Required Noticing and Restrictions on Any Changes of Title or Occupancy In all cases where there is a change in title or occupancy or use, the Borrower must notify the Lender in writing of any change. Lender and Borrower will work together to ensure the property is kept in compliance with the original program terms and conditions such that it remains available as an affordable home for low income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases, the Borrower may move and turn the property into a rental unit without notifying the Lender. Changes in title or occupancy must be in keeping with the objective of benefit to the income qualified families.

Owner-Occupant to Owner-Occupant
Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not low-income, the loan is not assumable, and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, Exhibit E
City of Ukiah
21-CDBG-HA-00001

37 the purchaser may assume all loan repayment obligations of the original owneroccupant, subject to the approval of the City of Ukiah Loan Committee.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on family size and household income, provided the heir is income qualified. If the heir intends to occupy the property and is not income qualified, the balance of the loan is due and payable. If the heir intends to act as an owner-investor, the balance of the loan may be converted to an owner/investor interest rate and loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Lender’s
Owner Occupant to Owner Investor
Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the Borrower or new owner investor requests that the existing loan be assumed and agrees to the current Lender rates and terms for owner investor properties and the RLA, then the outstanding balance may be refinanced, subject to the review and approval of the Lender’s Loan Committee.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business, but the family still resides in the property.

Partial conversions can be allowed, if it is reviewed and approved by all agencies required by local statute. If the use of the property is converted to a fully nonresidential use, the loan balance is due and payable.

Requests for Subordinations
When a Borrower has a primary mortgage recorded in a senior position to the City’s loan and wishes to refinance the primary loan, they must submit a written subordination Exhibit E
City of Ukiah
21-CDBG-HA-00001

38 request to the Lender (City of Ukiah). The Lender will only subordinate their loan when there is no “cash out” as part of the refinance. Cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no thirdparty debt payoffs or additional encumbrance on the property above traditional refinance transaction costs. Furthermore, the refinance should lower the housing cost of the family with a lower interest rate and the total indebtedness on the property should not exceed the current market value.

Upon receiving the proper documentation from the refinance agency, the request will be considered by the Loan Committee for review and approval. Upon approval, the escrow company will provide the proper subordination document
for execution and recordation.

Process for Loan Foreclosure
Upon any condition of loan default: 1) nonpayment; 2) lack of insurance or property tax payment; 3) violation of rent limitation agreement; 4) change in title or use without approval; 5) default on senior loans, the Lender will send out a letter to the Borrower notifying them of the default situation. If the default situation continues then the Lender may start a formal process of foreclosure.

When a senior lien holder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lien holder, may cancel the foreclosure proceedings by "reinstating" the senior lien holder. The reinstatement amount or payoff amount must be obtained by contacting the senior lien holder. This amount will include all delinquent payments, late charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lien holder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

39 If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lien holder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Lender does not have enough funds to pay the senior lien holder in full, then they may choose to cure the senior lien holder and foreclose on the property themselves. As long as there is sufficient value in the property, the Lender can afford to pay for the foreclosure process and pay off the senior lien holder and retain some or all of their investment.

If the Lender decides to reinstate, the senior lien holder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lien holder before five (5) days prior to the foreclosure sale date, the senior lien holder would then require a full payoff of the balance, plus costs, to cancel foreclosure. If the Lender, after exercising due diligence, determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lien holder to complete foreclosure, the Lender's lien may be eliminated due to insufficient sales proceeds.

Lender as Senior Lien holder
When the Lender is first position as a senior lien holder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
 Can the loan be cured, and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?  Can the Borrower refinance with a private lender and pay off the Lender? Exhibit E
City of Ukiah
21-CDBG-HA-00001

40  Can the Borrower sell the property and pay off the Lender?  Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
 Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent Below Market Interest Rate (BMIR) current or pay off a DPL).

At the end of 30 days, the Lender should contact and potentially procure reputable foreclosure services or local title companies to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lien holders.

The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

Community Development Block Grant Program (CDBG)
California Department of Housing & Community Development Serving the Area
Within the City Limits of the City of Ukiah

HOUSING REHABILITATION

PROGRAM

MARKETING PLAN

Exhibit E
City of Ukiah
21-CDBG-HA-00001

City of Ukiah CDBG Housing Rehabilitation Program
Marketing Plan 2
Housing Rehabilitation Program Marketing Plan Overview and Target Population The City has developed a marketing plan to make the Housing Rehabilitation program accessible to all qualifying community residents, including deployment of marketing approaches to target race and ethnic minorities, persons with limited English proficiency, persons with a disability, seniors, large families, single parent households, and other groups that may have accessibility or availability challenges. The marketing plan utilizes a variety of marketing methods to maximize participation and prevent discrimination.

Step 1: Develop program flyer and application in both English and Spanish languages.

The City’s Community Development Department will develop a one-page flyer announcing the housing rehabilitation program. The flyer will be in both English and Spanish and describe basic program information, including income limits.

The City’s Community Development Department will also develop a program application, utilizing adopted housing rehabilitation program guidelines. This application will be in both English and Spanish languages.

Step 2: Develop press release announcing program to community; and release to all major media outlets. Also translate into Spanish and release to Spanish-only media outlets.

Community Development Department staff will prepare and release a press release during the launch of the housing rehabilitation program announcing the program. The press release will also be posted on the City’s website.

Step 3: Distribute housing rehabilitation program flyers via in-person, mail, and email to households, individuals, and organizations throughout the community.

The City Manager’s Office will make the flyer and basic program information available through the City’s Facebook page and on the City’s website. The flyer will also be emailed to a list of local nonprofit service providers and partners, including service organizations that primarily represent and/or advocate on behalf of race and ethnic minorities, persons with limited English proficiency, persons with a disability, seniors, and other groups that may have accessibility or availability challenges.

Step 4: Directly mail and distribute flyers in-person to property owners with at least one code violation.

As code violations occur, Building Division/Code Enforcement staff will distribute housing rehabilitation program flyers to property owners. Community Service Officers within the Ukiah Police Department will assist in dissemination of flyers to the community. Offering housing rehabilitation services as a complement to code enforcement services is expected to generate better code compliance citywide.

Step 5: Release flyer at the planning, building, and housing public counters; and to contractors via contractor roundtables and workshops. Also release in customer utility bills.

Exhibit E
City of Ukiah
21-CDBG-HA-00001

City of Ukiah CDBG Housing Rehabilitation Program
Marketing Plan 3
The Planning, Building, and Housing public counters provide a source of local information to the owner/builder community and the general public. The Building Division also hosts contractor roundtable discussions and workshops to discuss key building code changes or updates. At each of these customer interface points, flyers will be made available to customers. Community Development Department administrative staff will be trained on basic information about the program and release this information to customers at the counter.

Additionally, flyers will be included in at least one month’s electrical, water, and sewer billing statements to customers. This ensures every Ukiah resident receives a flyer. One side of the flyer will be in English, and the other in Spanish.

Step 6: Ongoing direct outreach via Steps 3-4 above throughout the Housing Rehabilitation Program implementation period.

Throughout implementation of the Housing Rehabilitation Program, the City’s Community Development Department will continue direct engagement and outreach via phone and email to households, individuals, and organizations as outlined above in Steps 3-4. As needed, Community Development Housing and Building Division staff may host virtual or in-person meetings to explain the Housing Rehabilitation Program to potential clients.

Fair Housing
The City of Ukiah will display Fair Housing posters at the Community Development Planning, Building, and Housing customer counters, as well as listing the Fair Housing Complaint process and making available other literature on the Fair Housing Act.

Nondiscrimination and Inclusion
Title VI of the Civil Rights Act of 1964 requires that, “No person shall, on the grounds of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” The Marketing Plan outlined above is based on census information and a Housing Needs Assessment completed by the City in 2019 as a part of the City’s 2019-2027 Housing Element, certified by HCD in December 2019 and publicly available at the following link:
http://www.cityofukiah.com/projects/housing-element-update/ In providing the City of Ukiah Housing Rehabilitation Program, the City will continue to evaluate and revise its marketing strategy to ensure under-represented and non-English speaking families have a fair chance of receiving assistance. Such additional marketing steps deployed may include working with service providers that serve primarily race and ethnic minority groups to announce the availability of assistance to hard-to-reach residents; allowing non-English speaking residents an adequate amount of time to apply and gather the necessary documentation, and other language support services; and/or accessing COVID-19 racial equity and social justice resources provided by HCD at the following link:
https://www.racialequitytools.org/resources/fundamentals/resource-list/covid-19---racial-equityand-social-justice-resources Exhibit E
City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001

CDBG HOUSING REHABILITATION PROGRAM

LOAN SERVICING PLAN DESCRIPTION
The City of Ukiah is submitting two procedures to document its loan servicing plan.

Attachment 1 contains Loan Servicing Policies and Procedures specific to the CDBG Housing Rehabilitation Program. These Policies and Procedures are included in the adopted Housing Rehabilitation Guidelines as Attachment C.

Attachment 2 contains Loan Servicing Procedures for the City of Ukiah CDBG loan portfolio, which consists of CDBG Business Assistance loans, First Time Homebuyer loans, and possibly in the future Housing Rehabilitation loans.

Exhibit E
City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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City of Ukiah
21-CDBG-HA-00001


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Exhibit E
City of Ukiah
21-CDBG-HA-00001