Agenda packet — Aliso Viejo City Council, May 4, 2022 (part 2 of 2)

Background:

The 2018-2022 Consolidated Plan, as approved by the City Council on July 18, 2018, established a multi-year strategy for using CDBG funds in the community. CDBG funding supports the development of viable urban communities by supporting projects and activities that create or enhance the availability of decent housing, suitable living environments, and expansion of economic opportunities, principally for low- and moderate-income persons. The Annual Action Plan identifies specific projects and activities to be funded through CDBG for each year of the Consolidated Plan. The FY 2022-2023 Annual Action Plan is an expenditure plan using the upcoming year’s CDBG allocation for activities outlined in the Consolidated Plan.

Discussion:
2022-2023 Annual Action Plan
The 2022-2023 Annual Action Plan proposes to use CDBG funding toward three priorities:
public facilities and improvements, public services, and program administration. The following activities are identified in the Action Plan:
 Public Facilities and Improvements: $175,626
Last fiscal year, the City exercised its first right of refusal option to purchase a low- income housing unit. The City utilized Affordable Housing In-lieu funds for this purchase. The City leased this unit to Family Assistance Ministries (“FAM”), which has managed the unit as supportive housing for a homeless family with children.

The City has an opportunity to acquire one or two additional low-income units. The acquisition of real property for use as supportive housing is an eligible use of CDBG funds (i.e., public facility).
 Public Services:
o Fair Housing Services: $3,500
Fair housing services costs can be reimbursed through CDBG funds as a public service. Services include fair housing outreach, education, and enforcement services to reduce and eliminate impediments to fair access to housing opportunities.
o Case Management and Supportive Services: $7,500
As described above, the City has leased a unit to FAM for use as supportive housing for a homeless family with children. FAM will use CDBG public services funds to provide case management and support services for the resident family.
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 Administration: $43,400
Administration costs related to implementing approved CDBG projects are an allowable reimbursable expense. The City’s allocation of administration funding will reimburse staff costs associated with program oversight and coordination, direct program costs, and CDBG program consulting services.

Since HUD has not announced FY 2022-2023 CDBG allocation, the draft FY 2022-2023 Action Plan indicates, and staff recommends, funding for activities listed above will be increased or decreased by a uniform percentage based on the final FY 2022-2023 CDBG grant.

Environmental:

Staff recommends the City Council find the proposed action is not a project as defined by the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15378(b)(5). The action is an administrative activity of the City that involves a report to a federal agency on the potential use of CDBG funds. The report itself does not authorize any development or changes to land use; thus, the project would not result in any direct or indirect changes to the environment. Consequently, this action is not classified as a project under CEQA.

Public Notice:

Consistent with HUD and local requirements to provide a 30-day public review period, a 1/8-page public hearing notice was published in the O.C. Register on April 4, 2022. The City’s draft Action Plan was posted on the City website and was available to the public at City Hall and the Aliso Viejo Public Library.

City Attorney:

The City Attorney reviewed and had no comments on this report.

Attachments:

1. FY 2022-2023 Annual Action Plan

2. Presentation
209
Draft April 4, 2022
2022-2023 ANNUAL ACTION PLAN
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Annual Action Plan i
OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Contents
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................................................ ..... 1 PR-05 Lead & Responsible Agencies – 91.200(b) ................................................................ .................. 4 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................ ............... 5 AP-12 Participation – 91.105, 91.200(c) ............................................................................................. 13 Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2) ....................................................................................... 14 Annual Goals and Objectives
AP-20 Annual Goals and Objectives ................................................................................................... 17 AP-35 Projects – 91.220(d)................................................................................................................. 19 AP-38 Project Summary ..................................................................................................................... 20 AP-50 Geographic Distribution – 91.220(f) ......................................................................................... 23 Affordable Housing
AP-55 Affordable Housing – 91.220(g) ............................................................................................... 24 AP-60 Public Housing – 91.220(h) ...................................................................................................... 25 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ......................................................... 26 AP-75 Barriers to affordable housing – 91.220(j) ................................................................................ 28 AP-85 Other Actions – 91.220(k) ........................................................................................................ 29 Program Specific Requirements ............................................................................................................. 31 A
ttachments
Attachment 1: Summary of Past Performance
Attachment 2: Public Notice and Summary of Public Comments Attachment 3: Map of CDBG Eligible Areas
Attachment 4: Analysis of Impediments to Fair Housing Plan (Excerpt) Appendices
Certifications and SF-424
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1 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The 2022-2023 Annual Action Plan for the City of Aliso Viejo satisfies the requirements to receive Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low- and moderate-income.

Regulations governing the CDBG program require that each activity undertaken with CDBG funds must meet one of the three national objectives:
• Benefit low- and moderate-income persons,
• Aid in the prevention or elimination of slums and blight, or • Meet a community development need having a particular urgency (i.e., federally declared disaster)
As a recipient of CDBG funds, the City must prepare a five-year strategic plan that identifies housing and community needs, prioritizes these needs, and develops a strategic plan to address priority needs. This document is called the Consolidated Plan. The City’s current Consolidated Plan covers the fiscal years of 2018-2019 to 2022-2023. On an annual basis, the City prepares an expenditure plan that identifies the specific activities the City will undertake with its annual CDBG allocation to meet the priority needs identified in the Consolidated Plan. Fiscal Year (FY) 2022-2023 is the fifth year of the current Consolidated Plan cycle.

HUD has not announced CDBG funding levels for FY 2022-2023; however, the City anticipates receiving $217,000 in CDBG funds. A grant balance of $13,026 in prior year funds is also available for programming.

2. Summarize the objectives and outcomes identified in the Plan The City’s Consolidated Plan identifies activities to be carried out with CDBG funding over five years and identifies five-year goals and outcomes. A summary of these five-year goals and outcomes is listed below:
• Public Infrastructure Improvements: 12,000 City residents will benefit from the installation or rehabilitation of CDBG-funded public infrastructure improvements • P ublic Facility Improvements : 6,000 City residents will benefit from the installation or rehabilitation of CDBG-funded public facilities such as community centers, parks, and other public and private facilities
• S ingle -Family Housing: assist 15 owner-occupied units with CDBG-funded program resources 212
Annual Action Plan 2
OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 • Homeless Services: Presently, the City uses general fund resources to assist agencies that provide housing and services to homeless individuals and individuals at risk of homelessness. In future years, CDBG funds could be used to assist up to 75 individuals • Public Services: Presently, the City supports various social service programs that serve seniors, youths, victims of domestic violence, and other lower-income persons with City general funds.

In future years, CDBG funds could be used to serve up to 750 lower-income individuals • Fair Housing Services: HUD requires the City to eliminate impediments to fair housing choice.

The City will use CDBG funding to support fair housing outreach, education, and enforcement services. An estimated 300 households will benefit from this CDBG-funded activity • Program Administration: The City will provide resources to ensure oversight and coordination of the CDBG program

3. E valuation of past performance
Attachment 1 summarizes Consolidated Plan accomplishments through FY 2020-2021, i.e., three years of the current Consolidated Plan cycle. Fiscal Year 2021-2022 is the fourth year of the City’s current Consolidated Plan cycle and is not complete.

4. Summary of Citizen Participation Process and consultation process Consistent with the City’s Citizen Participation Plan, residents, local and regional organizations, and other stakeholders were encouraged to participate in preparing the City’s 2022-2023 Annual Action Plan. It is important to note that COVID-19 public health concerns may have limited opportunities to meet with residents and local service providers; nonetheless, the City implemented the following measures to obtain public input:
• A 2022-2023 Action Plan draft was available for a 30-day public comment period from April 4 to May 3, 2022.
• The City Council adopted the Annual Action Plan after considering public comments received during a hearing on May 4, 2022.

5. Summary of public comments
See Attachment 2.

6. Summary of comments or views not accepted and the reasons for not accepting them See Attachment 2.

7. Summary
The Consolidated Plan is a strategic plan that utilizes data and public input to determine priority housing and community needs. The Action Plan is a component of the Consolidated Plan that acts as the annual expenditure plan for using CDBG funds to address identified priority needs. To address priority needs, 213
Annual Action Plan 3
OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Aliso Viejo will utilize $230,026 in CDBG funds during FY 2022-2023 to carry out several CDBG- eligible activities, including public services, public facility improvements (acquisition), and program administration.
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OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
City of Aliso Viejo City of Aliso Viejo Planning Services Table 1 – Responsible Agencies
N
arrative (optional)
The City’s Planning Services Department is primarily responsible for preparing the Consolidated Plan, Annual Action Plan, performance reports, and the general administration of CDBG funds.

Consolidated Plan Public Contact Information
Ms. Rose Rivera, Senior Planner
Phone: (949) 425-2528 / Fax: (949) 425-3899 / [email protected] 215
Annual Action Plan

5 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The consolidated planning process (i.e., the Annual Action Plan process) requires that the City contact and consult with other public and private agencies when developing the plan. The plan itself must include a summary of the consultation process, including identifying the agencies that participated in the process. Below is a summary of the City’s efforts to coordinate interaction with other public and private agencies.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Aliso Viejo works closely with the County of Orange Housing Authority (OCHA), which assists renter households with HUD-funded housing assistance vouchers and certificates. As housing development opportunities evolve, City staff works closely with developers to explore and create housing opportunities for lower-income residents. It is important to note that Aliso Viejo is a master- planned community and is built out. Limited opportunities exist to develop new housing units; however, the City encourages the development of affordable housing opportunities when possible. For example, a 200-unit senior housing development was completed during the current Consolidated Plan cycle. This project provides affordable housing opportunities to 148 low-income and 50 very low-income senior households. There is no plan to develop additional affordable housing units during FY 2022-2023; however, the City is negotiating to purchase housing units that are currently subject to affordability covenants to preserve long-term affordability. CDBG funds are allocated to assist with acquiring one or more units that will serve as city-owned interim housing (i.e., public facility), managed by a local community-based organization.

Additionally, through the annual City-funded Community Assistance grants allocation process, City staff can ascertain the services Aliso Viejo residents need (e.g., senior services, youth services) and develop partnerships with local agencies to deliver quality services.

Describe coordination with the Continuum of Care and efforts to address homeless persons' needs (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Orange County Continuum of Care (OC-CoC) is the regional coordinator of the homeless housing and support services delivery system. The OC-CoC is responsible for conducting the biennial Point In Time Survey of the County’s homeless. The OC-CoC conducted the 2022 Point-In-Time Survey (PITS) in February 2022. The 2019 PITS is the most current homeless count; it identified one unsheltered homeless individual in the City.
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Annual Action Plan

6 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 The City will continue its relationships with local service providers to address the needs of the City’s homeless and residents who are at risk of becoming homeless. The City will also continue to support OC- CoC efforts to address regional homeless issues. During FY 2022-2023, the City will allocate CDBG funds to support housing and services for homeless families. Additionally, the City will allocate general fund resources to regional homeless service providers to address local homeless issues.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Aliso Viejo is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not help the OC-CoC determine ESG allocations, evaluate grant outcomes, or develop policies and procedures for the regional administration Homeless Management Information System (HMIS).

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities (see Table 2)
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7 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Impediments to Fair Housing Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency provided data and information that helped identify the needs of households requiring fair housing services and provided input regarding the City's strategy to address impediments to fair housing
2 Agency/Group/Organization 211 Orange County
Agency/Group/Organization Type Services-homeless
Regional organization
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homeless Management Information System (HMIS)
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Regional Continuum of Care coordinator and HMIS administrator – also provided information regarding regional and City homeless populations and shelter resources 3 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type Public Housing Authority What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
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Annual Action Plan

8 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Provided information regarding the number and type of households receiving rental assistance, and the number of households requesting housing assistance 4 Agency/Group/Organization City of Aliso Viejo
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
Non-Homeless Special Needs
Economic Development
Market Analysis
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Various City departments and City Council provided community-based data and information - also played a crucial role in identifying priorities and the allocation of CDBG funds
5 Agency/Group/Organization Family Assistance Ministries Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Families with children
Homelessness Needs – Veterans
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Helped identify the housing and service needs of persons at risk of becoming homeless and those already homeless
219
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9 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 6 Agency/Group/Organization Laura's House
Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency helped identify the needs of victims of domestic violence 7 Agency/Group/Organization Camino Health Center
Agency/Group/Organization Type Services-Health
What section of the Plan was addressed by
Consultation?
Anti-poverty Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency helped identify the medical and dental needs of lower-income persons and households
8 Agency/Group/Organization Age Well Senior Services
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency helped identify the needs of senior and frail elderly persons and households 220
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10 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 9 Agency/Group/Organization South County Outreach
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Families with children
Anti-poverty Strategy
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Helped identify the housing and service needs of persons at risk of becoming homeless and those already homeless

Identify any Agency Types not consulted and provide rationale for not consulting The City had an open consultation process; no agency was prevented from participating.

Local government consultation with broadband internet service providers engaged in narrowing the digital divide: The City of Aliso Viejo consulted with BroadbandNow, a web-based organization dedicated to providing information regarding internet service. BroadbandNow’s stated mission is to help ensure broadband internet is available to all Americans. To this end, the organization created a database of internet providers and the availability and cost of services. BroadbandNow reports that as of April 2021, approximately 78% of Americans, 96% of Californians, and 98% of Orange County residents have access to broadband internet service. Furthermore, approximately 93% of Aliso Viejo residents have access to two or more broadband service providers, with 7% of households limited to one provider or no broadband access.

AT&T Internet and Cox Communications are Aliso Viejo's most widely available wired broadband options. For lower-income residents, the cost of internet service can be cost-prohibitive. AT&T’s Access program offers internet connections for qualified low-income customers for $5 to $10 per month. All installation and equipment fees are waived for eligible households, that is, a home where at least one person receives food stamps. Cox Communication’s Connect2Compete program provides internet service for $9.95 per month. Families are eligible for the program if at least one child in kindergarten through 12th-grade qualifies for the reduced-price school lunch program. 221
Annual Action Plan

11 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 The Federal Communications Commission implemented the Emergency Broadband Benefit program to help households struggling to afford internet service during the COVID-19 pandemic. This program provides a discount of up to $50 per month towards broadband service for eligible households. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet.

Consultation with agencies primary responsibilities for the management of flood-prone areas, public land or water resources, and emergency management agencies: The City’s current General Plan includes a Safety Element, which contains an assessment of certain hazards, including:
• Seismically induced conditions including ground shaking, surface rupture, ground failure, and tsunami • Slope instability leading to mudslides and landslides • Subsidence (e.g., sinkholes) and other geologic hazards • Flooding
• Wildland and urban fires
• Evacuation routes, water supply requirements, and design standards for new development related to fire, seismic, and geologic hazards Respective assessments were developed in consultation with national, state, regional, and local agencies such as the State Geologist, Orange County Fire Authority, and the City’s Emergency Operations Plan. The City’s Safety Element is slated for updating within two years.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Orange County 211 Helped the City analyze the needs of Aliso Viejo homeless. Includes regional 2019 Point-In-Time Survey and 10-Year Plan to End Homelessness (including Discharge Plan)
City of Aliso Viejo Housing Element City of Aliso Viejo Provided housing priorities and program goals City of Aliso Viejo 5 Year Strategic
Plan Fiscal Years 2015-2020
City of Aliso Viejo Multi-year capital improvement plan helped identify priority capital projects that may be CDBG-eligible
5-Yr. & 1-Yr. PHA Plan Orange County Housing
Authority
Identified OCHA resources to address the housing needs of lower-income renter householders in the City
Orange County Analysis of
Impediments to Fair Housing
Orange County and
Orange County cities
Countywide document identifies impediments to fair housing within participating cities and outlines a plan to address impediments 222
Annual Action Plan

12 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 City of Aliso Viejo Safety Element City of Aliso Viejo Addresses natural conditions and human activities that can potentially threaten public health and safety
Table 3 – Other local / regional / federal planning efforts

Narrative (optional)
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13 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

COVID-19 public health protocols have limited some traditional means of obtaining public input; nonetheless, the City implemented the following efforts to obtain public input during the preparation of the Action Plan:

Notices/Website: The City published notices in a local newspaper of general circulation (Orange County Register). The City also posted the draft Action Plan on its website for public review and comment. A copy for public review was also available at City Hall and the library during the required 30-day public comment period (see Attachment 2).

Public Hearings: C onsistent with HUD’s regulations, the City Council held a public hearing at a regularly noticed and scheduled meeting (May 4, 2022) to obtain public input regarding the draft Annual Action Plan and authorize staff to submit the document to HUD. Attachment 2 includes a summary of public comments.

Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Newspaper Ad Non-
targeted/broad
community
30-day public
comment period and
public hearing notice
TBD TBD Not
Applicable
2 Public Hearing Non-
targeted/broad
community
5/4/22: Public
hearing to approve
the 2022-2023 Action
Plan and to authorize
submission of the
Action Plan to HUD
TBD TBD Not
Applicable
Table 4 – Citizen Participation Outreach
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14 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
HUD has not announced CDBG allocations for FY 2022-2023; however, for planning purposes, the City anticipates it will receive $217,000 in CDBG funds for FY 2022-2023. An additional $13,026 in prior year funds is also available. The City will use CDBG funds for public services, property acquisition, and program administration. The table below summarizes anticipated resources that will be available during FY 2022- 2023.

In addition to CDBG funding, housing voucher/certificate resources (via OCHA) and “Community Assistance Grants” (i.e., social service grants from the City’s General Fund) will be available to carry out activities that support the goals of the City’s Consolidated Plan. Past housing development activity generated significant In-lieu Affordable Housing Fee resources; however, this resource has been exhausted.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 5 Expected Amount
Available
Remainder of
ConPlan $
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public
-
federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public Improvements
Public Services
$217,000 $0 $13,026 $230,026 $0
Annual CDBG
allocation
Table 5 - Expected Resources – Priority Table

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15 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City has identified other resources that will be available to carry out activities that address the goals of the Consolidated Plan:
• OCHA reports that as of January 2022, 127 Aliso Viejo households received rental assistance. The City anticipates that a similar number of households will be assisted during FY 2022-2023.
• The City allocates General Fund resources to support various community social service programs annually. Funded services include homelessness prevention and interim housing for homeless families with children and services for victims of domestic violence. The City allocates approximately $10,000 per year for these social services. • Prior condo conversions and new housing development activities have generated affordable housing resources. These activities generated approximately $2.5 million in Affordable Housing In-lieu fees. These funds have been used to develop affordable housing or preserve existing housing affordability.

CDBG does not require matching funds.
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16 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Aliso Viejo is a nearly built-out city with limited remaining vacant land. The City’s current Housing Element identifies vacant and underutilized sites suitable for housing development - one of the sites is developed (i.e., Vantis Apartments). The Housing Element also identifies two parcels zoned for business park development but suitable for high-density Mixed-Use residential. These two sites were rezoned and subsequently developed (i.e., Vintage Aliso and Liberty at Aliso). An additional location (The Commons) is zoned currently zoned for housing. This project is in the early predevelopment stages; however, no development is contemplated for at least two years.

During the current fiscal year, the City may exercise its first-right of refusal option to purchase one or two condominiums that are subject to first-time homebuyer resale restrictions. The City will lease units to Family Assistance Ministries (FAM). FAM will operate the unit as interim supportive housing for a homeless family with children. FAM will also provide case management and support services for the resident family – the City has allocated CDBG funds to assist with the acquisition and supportive services.

Discussion
The City anticipates receiving $217,000 in CDBG funds from HUD for FY 2022-2023. The City will also carry forward $13,026 in prior year funds to undertake activities in FY 2022-2023. The City will continue to support OCHA’s efforts to secure new rental assistance resources. The City will also continue to support social service programs serving City residents with Community Assistance Grants for the foreseeable future. As outlined above, an inventory of vacant and underutilized land suitable for housing development has been prepared, but no projects are slated for construction during FY 2022-2023. 227
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17 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort Order Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Public Facility
Improvements
2022 2023 Non-Housing
Community
Development
Citywide Public
Improvements
CDBG: $175,626 Public Facility or
Infrastructure Activities for
Low/Moderate Income
Housing Benefit:
2 Households Assisted
2 Fair Housing
Services
2022 2023 Public Services Citywide Public Services CDBG: $3,500 Other: 62 Other 3 Homeless
Services
2022 2023 Public Services Citywide Public Services CDBG: $7,500 Public service activities other than Low/Moderate Income
Housing Benefit:
8 Persons Assisted
4 Program
Administration
2022 2023 Administration Citywide Administration CDBG: $43,400 Other: 1 Other Table 6 – Goals Summary

Goal Descriptions
1 Goal Name Public Facility Improvements
Goal
Description
Improvements to eligible public facilities and non-public facilities that primarily benefit low- and moderate-income residents
2 Goal Name Fair Housing Services
Goal
Description
Fair housing outreach, education, and enforcement services 228
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18 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 3 Goal Name Homeless Services
Goal
Description
Homeless housing and support services, including homelessness prevention services 4 Goal Name Program Administration
Goal
Description
CDBG program oversight and coordination
Table 7 – Goal Descriptions
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b)
The City is not a HOME program participating jurisdiction.

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19 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Projects
AP-35 Projects – 91.220(d)
Introduction
For FY 2022-2023, the City is allocating CDBG funding for the activities listed in Table 8. Note that allocations will be adjusted by a factor equal to the difference between the anticipated and actual 2022 CDBG allocated to the City by HUD.

Projects
# Project Name
1 Public Facility Acquisition
2 Fair Housing Foundation
3 Family Assistance Ministries
4 CDBG Program Administration
Table 8 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City recognizes that households with extremely low-income and special needs populations are more likely to become homeless because they have limited incomes and issues that may require housing and supportive services. The City considers supportive services for these populations a high priority, and supportive services are also considered a top priority in the OC-CoC.

The City anticipates that the greatest obstacle to meeting the underserved needs of extremely low- income and special needs populations will be a lack of financial resources for supportive services and housing. (A common need reported by service providers is affordable housing.) To this end, the City will support OCHA’s efforts to obtain additional Housing Choice Vouchers and Certificates, encourage affordable housing development, and fund activities to assist at-risk and homeless families.

230
2022-2023 Annual Action Plan

20 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22

AP-38 Project Summary
Project Summary Information
Table 9 – Project Summary
1 Project Name Public Facility Acquisition
Target Area Citywide
Goals Supported Public Facility Improvements
Needs Addressed Public Improvements
Funding CDBG: $175,626
Description Acquisition of interim housing for lower-income households Target Date 6/30/2023
Estimate the number and type of
families that will benefit from the
proposed activities
1 housing unit
Location Description TBD
Planned Activities CDBG funds to assist with the acquisition of residential property to be used as interim housing for families with children exiting rapid rehousing
2 Project Name Fair Housing Foundation
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Public Services
Funding CDBG: $3,500
231
2022-2023 Annual Action Plan

21 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Description Fair housing outreach, education, and enforcement services to reduce and eliminate impediments to the fair access to housing opportunities
Target Date 6/30/2023
Estimate the number and type of
families that will benefit from the
proposed activities
62 individuals
Location Description Citywide
Planned Activities Fair housing outreach, education, and enforcement services, including landlord, tenant, and property management fair housing training
3 Project Name Family Assistance Ministries
Target Area Citywide
Goals Supported Homeless Services
Needs Addressed Public Services
Funding CDBG: $7,500
Description Interim housing (6 to 12 months) and support services for families with children experiencing homelessness
Target Date 06/30/2023
Estimate the number and type of
families that will benefit from the
proposed activities
8 individuals
Location Description Citywide
Planned Activities Case management and support services such as financial counseling, linkages to healthcare, and food assistance for families that are experiencing homelessness

232
2022-2023 Annual Action Plan

22 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 4 Project Name CDBG Program Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Administration
Funding CDBG: $43,400
Description CDBG program oversight and coordination
Target Date 6/30/2023
Estimate the number and type of
families that will benefit from the
proposed activities
Not applicable
Location Description City Hall: 12 Journey, Suite 100 Aliso Viejo, CA Planned Activities CDBG program administration, including preparation of required applications and reports

233

2022-2023 Annual Action Plan

23 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed All activities slated for CDBG-funding during FY 2022-2023 are available on a citywide basis. These activities include public facilities acquisition, public services, and program administration. Future activities may be limited to specific areas of the City (i.e., Block Groups) where a significant percentage of residents meet HUD’s program income limits. Attachment 3 is a map of the City’s current CDBG- Eligible Areas.

Geographic Distribution
Target Area Percentage of Funds
CDBG census tracts 0
Citywide 100
Table 10 - Geographic Distribution

Rationale for the priorities for allocating investments geographically The City’s primary intent is to serve lower-income households regardless of where they live in the City; therefore, CDBG funding is primarily distributed on a citywide basis.

Discussion
As indicated above, CDBG funds are focused on programs that serve lower-income residents regardless of where they live in the City.
234

2022-2023 Annual Action Plan

24 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City's only HUD funding resource is CDBG. HUD regulations limit CDBG funding to specific housing activities (i.e., acquisition and rehabilitation). As outlined in the Consolidated Plan, the City may consider implementing a home improvement program in the future; however, for FY 2022-2023, CDBG funds are allocated for public facilities acquisition (housing to be used as interim housing).

One Year Goals for the Number of Households to be Supported Homeless 1
Non-Homeless 0
Special-Needs 0
Total 1
Table 11 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 1
Total 1
Table 12 - One Year Goals for Affordable Housing by Support Type

Discussion
For FY 2022-2023, the City will use CDBG funds to assist with acquiring a housing unit (public facility) that will be preserved as long-term affordable housing. The City will also support OCHA’s implementation of the federal rental assistance voucher and certificate program in Aliso Viejo. An estimated 130 Aliso Viejo households may benefit from this program. 235

2022-2023 Annual Action Plan

25 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-60 Public Housing – 91.220(h)
Introduction
The City does not own or manage public housing.

Actions planned during the next year to address the needs to public housing Not applicable.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
The City does not own or manage public housing.
236

2022-2023 Annual Action Plan

26 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
As outlined in the Consolidated Plan, the City’s homeless strategy emphasizes preventing homelessness. According to HUD’s Strategies for Preventing Homelessness, “Homelessness prevention is an essential element of any effort to end homelessness either locally or nationwide.” This HUD report indicates that keeping a household housed in place is less expensive and disruptive.

The City will continue to use CDBG-Coronavirus (CDBG-CV) funds to provide rental and utility assistance to Aliso Viejo households impacted by COVID-19 and CDBG funds to support safety-net services. The City will also support local agencies with General Fund resources that provide various services for lower- income households. These services include food banks and housing, and services for victims of domestic violence. These programs may help households maintain their current housing situation and prevent homelessness.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Aliso Viejo does not use CDBG to fund homeless outreach services; however, the City supports agencies that work directly with sheltered and unsheltered homeless populations. Agencies such as Family Assistance Ministries conduct extensive outreach and vulnerability assessments throughout Aliso Viejo and neighboring communities. Other agencies conduct similar outreach and assessment services for specific homeless populations, such as domestic violence victims. The City will continue the partnership with the Orange County Sheriff for homeless street outreach services.

Addressing the emergency shelter and transitional housing needs of homeless persons The City will not allocate FY 2022-2023 CDBG funding to support emergency housing services; however, it will partner with Family Assistance Ministries (FAM) to support its interim housing program. In addition to leasing a housing unit to FAM to provide interim/bridge housing (housing for six to 12 months), the City will also provide CDBG funds to assist with the cost of case management.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals 237

2022-2023 Annual Action Plan

27 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City will use a portion of CDBG resources for homeless services during FY 2022-2023. Significant CDBG funding is allocated to assist with acquiring a housing unit that will provide interim housing opportunities for families with children recovering from homelessness. Community Assistance Grants (funded with City General Funds) may be available to local nonprofits that provide housing and supportive services. The City will continue to provide referrals to public assistance programs offered by other agencies to prevent homelessness. It will also continue to support OCHA and its efforts to secure additional Veterans Affairs Supportive Housing (VASH) vouchers, Shelter Plus Care (homeless) housing vouchers, and rental assistance vouchers and certificates for lower-income special need populations.

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

The City’s strategy is to help a household at risk of becoming homeless to stay housed. The City supports regional homeless planning efforts, including the OC-CoC’s Discharge Plan, which aims to prevent individuals from leaving institutions, hospitals, etc., from becoming homeless. As of January 2022, OCHA reports that three households that receive federal rental assistance were homeless when they entered the program. Additionally, as previously outlined, the City will partner with FAM to provide interim supportive housing for homeless families with children.

Discussion
The City’s homeless strategy is to prevent homelessness and support local service providers’ efforts to assist regional and local homeless populations. For FY 2022-2023, the City will allocate CDBG resources to help acquire additional housing and support services for homeless families. City General Funds will also support local agencies that provide homelessness prevention, housing, and supportive services.

238

2022-2023 Annual Action Plan

28 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

Barriers to affordable housing and actions to overcome the obstacles are listed in the City’s Housing Element and are reflected in the City’s Consolidated Plan.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
Notwithstanding the limitation of available land for development, Chapter 15.58 of the City’s Zoning Code, entitled “Affordable Housing Incentives,” establishes the City’s plan to address barriers to affordable housing development. The chapter aims to “… provide incentives for the production of housing for very low, lower, and moderate-income, or senior households in accordance with California Government Code.” Provisions outlined in the Zoning Code are intended to facilitate affordable housing development and implement the goals, objectives, and policies of the City’s Housing Element. Incentives for the production of housing delineated in the Housing Element include the following:
• A density bonus with the possibility of additional waivers or modifications to development standards provided the waiver/modification does not adversely impact health, safety, or the physical environment.
• An additional density bonus is possible for a residential development project that includes affordable housing.
• A reduction in development standards (e.g., coverage, setback, zero lot line and/or reduced parcel sizes, and/or parking requirements).
• Approval of mixed-use zoning for housing projects if the nonresidential land uses will reduce the housing project cost.
• Other regulatory incentives or concessions that are proposed by the applicant or the City that will result in identifiable cost reductions.
• Direct financial incentives include providing publicly owned land, fee waivers, or the waiver of dedication requirements.

There is no local tax that may act as a barrier to affordable housing.

Discussion:

The City’s Housing Element outlines a comprehensive plan to address affordable housing barriers - the Consolidated Plan mirrors this plan. While incentives are available to developers, there are no housing projects slated for construction during FY 2022-2023 that will take advantage of these incentives. 239

2022-2023 Annual Action Plan

29 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 AP-85 Other Actions – 91.220(k)
Introduction:

Outlined below are the actions the City will implement during FY 2022-2023 to address the sub- strategies of the Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs During FY 2022-2023, the City will encourage and support OCHA’s efforts to obtain additional rental assistance funding, especially for senior and very low-income households. CDBG-funded is allocated to assist homeless families with children to regain self-sufficiency. Fair housing services will ensure households have access to safe and decent housing that they can afford, regardless of race, color, religion, gender, sexual orientation, disability, age, source of income, or other characteristics protected by laws.

Actions planned to foster and maintain affordable housing As previously outlined, the City will use CDBG funds to support families transitioning from homelessness to self-sufficiency. The City will also continue supporting OCHA’s administration of HUD’s voucher and certificate rental assistance program. Additionally, the City will monitor properties and housing units subject to covenants to preserve affordability.

Actions planned to reduce lead-based paint hazards
Most of the City’s housing stock was constructed after 1980; nonetheless, the City will continue to make information available to community residents regarding the health impacts of lead-based hazards, especially for young children.

Actions planned to reduce the number of poverty-level families According to the U.S. Census Bureau, approximately 5.2% of the City’s population live below the poverty level, including 5.2% of children under 18 and 7.5% of seniors (age 65 and older). The City will support several activities that aim to reduce the number of households living in poverty:
• Fair housing services will help ensure lower-income residents and “protected class” households have access to housing in a fair, non-discriminatory manner. • OCHA’s administration of rental assistance programs for very low-income renters. • Social service programs that provide free or reduced-cost services to lower-income households. • Social service programs that assist households at risk of becoming homeless and those that are homeless.

Actions planned to develop institutional structure
The City has initiated efforts to build an institutional structure to help identify and access resources to improve and serve the community. Through the League of Orange County Cities and the City Managers’ 240

2022-2023 Annual Action Plan

30 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Association, the City participates in finding long-term solutions for the region’s homeless issues. The City will continue to assist OCHA in implementing its Five-year Public Housing Authority (PHA) Plan to provide rental assistance vouchers and certificates. The City will also join other CDBG grantee communities to explore and participate in regional planning and program initiatives. Additionally, the City will seek to build stronger working relationships with community-based organizations that address lower-income Aliso Viejo residents' needs.

Actions planned to enhance coordination between public and private housing and social service agencies
The City of Aliso Viejo does not operate public housing. OCHA provides rental assistance in the community. Federal legislation requires that the Housing Authority prepare five-year and one-year plans highlighting its mission, goals, and objectives related to public and assisted housing programs. The City will review the Authority’s plans and allow OCHA to review and consult with the City regarding its Consolidated Plan and Annual Action Plan. This cross-consultation aims to provide consistent and coordinated housing services for City residents.

Aliso Viejo has developed positive working relationships with local nonprofits and will continue expanding its CDBG program to provide public service grant funding to support the efficient and effective use of limited public resources.

Discussion:

HUD-funded grant recipients must not discriminate in housing or services directly or indirectly based on race, color, religion, sex, national origin, age, familial status, or disability. Grant recipients such as Aliso Viejo are required to: (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choices for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, national origin, and other personal or familial attributes; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate region-wide area fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document utilized for this purpose. In addition to identifying impediments, a strategy to overcome barriers must be developed and implemented - accomplishments are reported annually. The City participated in developing a county-wide AI, which the City Council adopted in May 2020. A summary of impediments to fair housing and the action steps the City will take during FY 2022-2023 are found in Attachment 4.
241

2022-2023 Annual Action Plan

31 OMB Control No: 2506-0117 (exp. 06/30/2018) Draft 4/4/22 Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Each HUD program covered by the Consolidated Plan regulations must address certain program-specific requirements. Below are the requirements for the CDBG program as prescribed by the Annual Action Plan template.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum
overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years
covered that include this Annual Action Plan.

100.00%

Discussion:

The City will meet the overall 70% benefit low- and moderate-income requirement of the CDBG program during the three years of Program Years 2020, 2021, and 2022. 242

SUMMARY OF 2018-2022 CONSOLIDATED PLAN PAST PERFORMANCE 3-YEAR TOTAL (FY 18-19 TO FY 20-21)
ConPlan
Goal Unit of Measure
Expected 5 Yr.

ConPlan
Goal
3-Year
Actual
3-Year
Percent
Complete
Expected FY
20-21
Program Year
Actual FY
20-21
Program Year
1 Yr.

Percent
Complete
Fair Housing
Services Persons Assisted 300 132 44.00% 60 44 73.33%
Homeless
Services
Households
Assisted 75 0 0.00% 0 0 0.00%
Program
Administration Other 5 3 60.00% 1 1 100.00%
Public Facility
Improvements Persons Assisted 6,000 3,392 56.53% 3,392 * 3,392 100.00% Public Infrastructure
Improvements Persons Assisted 12,000 0 0.00% 0 0 0.00%
Public
Services Persons Assisted 500 0 0.00% 0 0 0.00%
Housing Assistance Household Housing
Unit 15 0 0.00% 0 0 0.00%
* Figure represents completion of Aliso Viejo Ranch ADA Improvements. The project received 3 years of funding – completed in FY 20-21.

Attachment 1
1 of 1
243
Draft 3/24/22
Attachment 2
1 of 3
244
Draft 3/24/22
Attachment 2
2 of 3
245

SUMMARY OF PUBLIC COMMENTS
30-DAY PUBLIC COMMENT PERIOD
TBD
MAY 4, 2022, PUBLIC HEARING
TBD
Draft 3/24/22
Attachment 2
3 of 3
246

CITY OF ALISO VIEJO - MAP OF CDBG ELIGIBLE AREAS
Attachment 3
1 of 1
247

ORANGE COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE August 6, 2020

REGIONAL PROPOSED AI GOALS AND STRATEGIES
To address the contributing factors described above, the AI plan proposes the following goals and actions:

Regional Goals and Strategies”

Goal 1: Increase the supply of affordable housing in high opportunity areas 1 Strategies:

1. Explore the creation of a new countywide source of affordable housing.

2. Using best practices from other jurisdictions, explore policies and programs that increase the supply of affordable housing, such as linkage fees, housing bonds, inclusionary housing, public land set-aside, community land trusts, transit-oriented development, and expedited permitting and review.

3. Explore providing low-interest loans to single-family homeowners and grants to homeowners with household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with affordability restrictions on their property.

4. Review existing zoning policies and explore zoning changes to facilitate the development of affordable housing.

5. Align zoning codes to conform to recent California affordable housing legislation.

Goal 2: Prevent displacement of low- and moderate-income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities Strategies:

1. Explore piloting a Right to Counsel Program to ensure legal representation for tenants in landlord-tenant proceedings, including those involving the application of new laws like A.B. 1482.

Goal 3: Increase community integration for persons with disabilities Strategies:

1. Conduct targeted outreach and provide tenant application assistance and support to persons with disabilities, including individuals transitioning from institutional settings and individuals who are at risk of institutionalization. As part of that assistance, maintain a database of housing that is accessible to persons with disabilities.

2. Consider adopting the accessibility standards adopted by the City of Los Angeles, which require at least 15 percent of all new units in city-supported Low-Income Housing Tax Credit (LIHTC) projects to be ADA-

1 The term “high opportunity areas” generally means locations where there are economic and social factors and amenities that provide a positive impact on a person’s life outcome. This is described in more detail in Section iii, Disparities in Access to Opportunity.

Attachment 4
1 of 2
248
accessible with at least 4 percent of total units to be accessible for persons with hearing and/or vision disabilities.

Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness Strategies:

1. Reduce barriers to accessing rental housing by exploring eliminating application fees for voucher holders and encouraging landlords to follow HUD’s guidance on the use of criminal backgrounds in screening tenants.

2. Consider incorporating a fair housing equity analysis into the review of significant rezoning proposals and specific plans.

Goal 5: Expand access to opportunity for protected classes Strategies:

1. Explore the voluntary adoption of Small Area Fair Market Rents or exception payment standards in order to increase access to higher opportunity areas for Housing Choice Voucher holders.

2. Continue implementing a mobility counseling program that informs Housing Choice Voucher holders about their residential options in higher opportunity areas and provides holistic support to voucher holders seeking to move to higher opportunity areas.

3. Study and make recommendations to improve and expand Orange County’s public transportation to ensure that members of protected classes can access jobs in employment centers in Anaheim, Santa Ana, and Irvine.

4. Increase support for fair housing enforcement, education, and outreach.

CITY OF ALISO VIEJO PROPOSED AI GOALS AND STRATEGIES

1. In collaboration with the Orange County Housing Authority (OCHA):
a. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.
b. Support OCHA's affirmative fair marketing plan and de-concentration policies by providing five-year and annual PHA plan certifications.
c. In coordination with OCHA and fair housing services provider, conduct landlord education campaign to educate property owners about State law prohibiting discrimination based on household income.

2. Through the City's fair housing contractor:
a. Provide fair housing education and information to apartment managers and homeowner associations on why denial of reasonable modifications/accommodations is unlawful. b. Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and property management companies. Methods of outreach may include workshops, informational booths, presentations to community groups, and the distribution of multi-lingual fair housing literature.

Attachment 4
2 of 2
249
Community Development
Block Grant (CDBG)
2022 – 2023 Annual Action Plan of Expenditures
City Council
May 4, 2022
250
2022 – 2023 CDBG Funding
• Fiscal Year 2022-2023 Allocation: Department of Housing and Urban Development (HUD) awarded the City $217,000 in
CDBG funds
• Additionally, the City has $13,026 of unused funding from prior year's allocation
251
2022 – 2023 Annual Action Plan of Expenditures
• Public Facilities and Improvements: $175,626
• Acquisition of low-income units for use as supportive housing • Public Services:
• Fair Housing Services: $3,500
• Fair housing outreach, education, and enforcement services to reduce/eliminate impediments to fair access of housing
• Case Management and Supportive Services: $7,500
• Family Assistance Ministries to provide case management and support services for households residing in interim housing • Administration: $43,400
• Reimbursable administrative expenses
252
Staff Recommendation to City Council

1.Conduct a public hearing;

2.Declare the City Council finds the FY 2022-2023 Annual Action Plan is not subject to the California Environmental Quality Act (“CEQA”) as the activity is not a project defined in Section 15378(b)(5) of the state CEQA Guidelines;

3.Approve and adopt the FY 2022-2023 Annual Action Plan (“Action Plan”) for the use of Community Development Block Grant (“CDBG”) funds; and

4.Authorize the City Manager to submit the Action Plan to the U.S.

Department of Housing and Urban Development (“HUD”), which executes the HUD contract and authorize the City Manage to submit all related documents with the implementation of the Action Plan.
253
Community Development
Block Grant (CDBG)
2022 – 2023 Annual Action Plan of Expenditures
City Council
May 4, 2022
254
City of Aliso Viejo

AGENDA ITEM
DATE: May 4, 2022
TO: Mayor and City Council
FROM: David Doyle, City Manager
SUBJECT: AMENDMENT TO CITY’S PUBLIC AGENCY RETIREMENT SYSTEM (PARS) DEFINED CONTRIBUTION PLAN TO COMPLY WITH

INTERNAL REVENUE SERVICE (IRS) REGULATIONS
______________________________________________________________________ Recommended Action:

Adopt a Resolution approving an amendment to the City’s PARS Plan to:

1. Conform the contribution rate to the City Council’s intent at the time the plan was adopted;

2. Correct Schedule A regarding employee contributions to the Plan; and

3. Eliminate Tier II of the Plan disallowing any future contributions.

Fiscal Impact:

There is no fiscal impact to amend the City’s PARS Plan.

However, in reviewing the Plan, it was identified that the employer contribution rates for part-time employees hired between April 1, 2018, and February 29, 2020, were inadvertently adjusted. As part of the corrective measures to comply with IRS regulations, the City will adjust payment contributions on behalf of specific employees identified by the IRS for a total cost of $13,415.87.

Background:

In 2015 the City adopted a Public Agency Retirement System (PARS) Defined Contribution Plan for the benefit of certain employees, mostly part-time employees. At the time, part-time and temporary City employees were forced to participate in Social Security. Social Security requires employer and employee contributions. In the case of the employee contribution, the City’s part-time employees were required to pay 7% of their pay into the Social Security System.

Social Security does not allow the employer to contribute on behalf of the employee.

For the benefit of the City’s part-time employees, the City enacted the PARS alternative retirement system. PARS allows the City to contribute the employee and employer 255

Page 2 of 2 ends

contribution, similar to how the City funds PERS, its retirement system for full-time employees. The additional benefit of PARS to part-time and temporary employees is that upon separation from the City, the employee has the option of cashing out the balance of their plan.

Discussion:

While performing a review of the City’s PARS Plan, it was determined that the City’s Plan may have been out of compliance with the latest IRS rules and regulations. At that time, the City availed itself of the IRS program to voluntarily initiate corrective measures without penalty.

Working with the City Attorney’s Office, the City and the IRS have developed a corrective action program to bring the Plan into compliance. By adopting the attached Resolution, the City will be in compliance with IRS rules.

Attachments:

1. Resolution
256

Page 1 of 4 ends

RESOLUTION NO. 2022-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALISO

VIEJO, CALIFORNIA, APPROVING AN AMENDMENT TO THE CITY OF

ALISO VIEJO PUBLIC AGENCY RETIREMENT SYSTEM (PARS)

DEFINED CONTRIBUTION PLAN
WHEREAS, the City of Aliso Viejo (“Employer”) adopted the City of Aliso Viejo Public Agency Retirement System (PARS) Defined Contribution Plan (“Plan”) for the benefit of certain eligible employees, effective as of September 1, 2015; and WHEREAS, the Employer desires to amend the Plan to: (1) conform the contribution rate for Tier I participants to the City Council’s intent at the time the Plan was initially adopted; (2) correct Schedule A; and (3) freeze Tier II.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALISO VIEJO AS FOLLOWS:

Section 1: Incorporation of Recitals. The City Council finds and determines that the foregoing Recitals are true and correct and incorporates the Recitals herein.

Section 2: Amendment to Public Agency Retirement System (PARS) Defined Contribution Plan. The City Council hereby approves the amendment to the Plan set forth in Attachment 1, attached hereto and incorporated herein by reference, and authorizes the City Manager to execute the Plan amendment.

Section 3: Certification. The Mayor shall sign this Resolution and the City Clerk shall certify the adoption thereof.

PASSED, APPROVED AND ADOPTED this 4th day of May, 2022. ________________________________
Ross Chun
Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ ________________________________ Scott Smith Mitzi Ortiz, MMC
City Attorney City Clerk
257

Page 2 of 4 ends

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ALISO VIEJO )
I, MITZI ORTIZ, City Clerk of the City of Aliso Viejo, California, DO HEREBY CERTIFY that foregoing Resolution No. 2022-___ was duly passed and adopted by the City Council of the City of Aliso Viejo at their regular meeting held on the 4th day of May 2022, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

MITZI ORTIZ, MMC

CITY CLERK
(SEAL)
258

Page 3 of 4 ends

ATTACHMENT 1

AMENDMENT

TO THE CITY OF ALISO VIEJO

PUBLIC AGENCY RETIREMENT SYSTEM (PARS)

WHEREAS, the Employer has the right to amend the Plan in accordance with Section 7.3 of the Plan.

NOW THEREFORE, BE IT RESOLVED, that the Plan is hereby amended as follows effective as of the dates indicated below:

1. Effective as of September 1, 2015, the first paragraph, “Tier I,” of Section 2.1, “Amount of Employer Contributions,” of Article II, “Contributions,” of the Plan is amended in its entirety to read as follows:

Tier I:

There is hereby created and established and shall be maintained by the Plan Administrator the Employer Contribution Account. For each day that an Employee remains a Participant under Tier I of this Plan, the Employer shall make a contribution to the Plan in an amount equal to the applicable percentage of Compensation. For purposes of this Section 2.1, the term “applicable percentage” shall refer to the percentage equal to the employer normal cost rate, as set forth in the CalPERS actuarial valuation prepared for the Employer on an annual basis, plus the required normal member contribution for classic employees in effect each Plan Year. Such contribution shall be based on Compensation paid on or after August 1, 2015. This amount shall be credited to the Employer Contribution Account, and shall be made no later than the close of the Plan Year. Employer Contributions will be allocated to each Participant in the ratio that such Participant’s compensation bears to the compensation of all Participants. Employer contributions are subject to change at the discretion of the Employer.

2. Effective as of September 1, 2015, Schedule A to the Plan is hereby amended in its entirety to read as set forth in Schedule A to this amendment, incorporated herein by reference.

3. Effective as of July 28, 2021 the second paragraph, “Tier II,” of Section 2.2, “Amount of Employee Contributions,” of Article II, “Contributions,” of the Plan is amended by adding the following at the end of the section:
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Tier II shall be frozen and no Employee will make mandatory contributions to the Plan based on a percentage of his or her Compensation. In addition Schedule A is deleted.

4. All other terms and conditions under the Plan remain unchanged.

IN WITNESS THEREOF, this amendment to the City of Aliso Viejo Public Agency Retirement (PARS) Defined Contribution Plan is hereby executed as of the day of , 2022.

CITY OF ALISO VIEJO
By: __________________________________

APPROVED AS TO FORM AND CONTENT:

BEST BEST & KRIEGER LLP
By:__________________________________
Attorneys for Employer
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AMENDMENT

TO THE CITY OF ALISO VIEJO

PUBLIC AGENCY RETIREMENT SYSTEM (PARS)

WHEREAS, the Employer has the right to amend the Plan in accordance with Section 7.3 of the Plan.

NOW THEREFORE, BE IT RESOLVED, that the Plan is hereby amended as follows effective as of the dates indicated below:

Tier I:

2. Effective as of September 1, 2015, Schedule A to the Plan is hereby amended in its entirety to read as set forth in Schedule A to this amendment, incorporated herein by reference.

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Tier II shall be frozen and no Employee will make mandatory contributions to the Plan based on a percentage of his or her Compensation. In addition Schedule A is deleted.

4. All other terms and conditions under the Plan remain unchanged.

IN WITNESS THEREOF, this amendment to the City of Aliso Viejo Public Agency Retirement (PARS) Defined Contribution Plan is hereby executed as of the day of , 2022.

CITY OF ALISO VIEJO
By: __________________________________

APPROVED AS TO FORM AND CONTENT:

BEST BEST & KRIEGER LLP
By:__________________________________
Attorneys for Employer
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SCHEDULE A
Employee contributions to the Plan shall be based on the following schedule established by the Employer. The Employee shall contribute a percentage of his or her base salary to the Plan based on his or her participation in one of the following tiers. The percentage of the Employee contribution shall be fixed permanently and shall only be subject to change by a Plan amendment adopted by the Employer.

Schedule A shall be amended from time to time for the purpose of adding or deleting Employees from the schedule based on changes in their employment status.

Employee contributions (0-20% per pay period)
0% Contribution 11% Contribution
1% Contribution 12% Contribution
2% Contribution 13% Contribution
3% Contribution 14% Contribution
4% Contribution 15% Contribution
5% Contribution 16% Contribution
6% Contribution 17% Contribution
7% Contribution 18% Contribution
8% Contribution 19% Contribution
9% Contribution 20% Contribution
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Aliso Viejo City CouncilMay 4, 2022

Aliso Viejo City Council
May 4, 2022