I have resolved the issue. Dumb mistake. There was a 3rd option to set AllowOverride All in httpd.conf. Once I set it in the code below, it worked.
Code:
# Further relax access to the default document root:
<Directory "/var/www/html">
#
# Possible values for the Options directive are "None", "All",
# or any combination of:
# Indexes Includes FollowSymLinks SymLinksifOwnerMatch ExecCGI MultiViews
#
# Note that "MultiViews" must be named *explicitly* --- "Options All"
# doesn't give it to you.
#
# The Options directive is both complicated and important. Please see
# http://httpd.apache.org/docs/2.4/mod/core.html#options
# for more information.
#
Options Indexes FollowSymLinks
#
# AllowOverride controls what directives may be placed in .htaccess files.
# It can be "All", "None", or any combination of the keywords:
# Options FileInfo AuthConfig Limit
#
AllowOverride All
#
# Controls who can get stuff from this server.
#
Require all granted
</Directory>
