201 S. Anaheim Blvd.
Suite #1003
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: MARCH 7, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: SECOND AMENDMENT TO THE FY 2021-2022 ANNUAL
ACTION PLAN TO INCORPORATE SUPPLEMENTAL
AMERICAN RESCUE PLAN HUD FUNDING
ATTACHMENT (Y/N): YES ITEM # 05 GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the Second Amendment to the FY 2021-2022 Annual Action Plan to incorporate supplemental HOME Investment Partnership funds for the HOME-American Rescue Plan (HOME-ARP) allocation, totaling $5,476,903 and designate the Director of the Housing & Community Development Department, or her designee, as the Certifying Official authorized to execute all documents related to the administration, management, and implementation of the supplemental HOME Investment Partnership funding including discretion to the Director, or her designee, to reallocate funds to eligible activities as deemed necessary to address greatest needs.
DISCUSSION:
The HOME American Rescue Plan (HOME-ARP) is a grant program implemented by the Department of Housing and Urban Development (HUD) to assist vulnerable populations. In fiscal year 2021/22, HUD awarded the City of Anaheim (City) an allocation of $5,476,903 to provide homelessness assistance and supportive services through eligible activities, which include acquisition and development of non-congregate shelter; tenant based rental assistance; supportive services; HOME-ARP rental housing; administration and planning; and nonprofit operating and capacity building assistance.
These funds must assist the following qualifying populations:
▪ Sheltered and unsheltered homeless populations
▪ Those currently housed populations at risk of homelessness ▪ Those fleeing or attempting to flee domestic violence or human trafficking ▪ Those at greatest risk of housing instability or in unstable housing situations ▪ Other families requiring services or housing assistance or to prevent homelessness
In order to use the funding, the City developed the HOME-ARP Allocation Plan (Plan) to identify the areas of greatest need in the qualifying areas along with the proposed Second Amendment to the FY 2021-2022 Annual Action Plan March 7, 2023
methodology to address those needs. The Plan was developed through informed stakeholder consultation and public participation.
Consultation
To develop this Plan, the City launched an in-depth collaborative effort to include both county-wide and one-on-one meetings with the Orange County Health Care Agency and the Office of Care Coordination. The City further collected information on service needs among the qualifying populations through provider surveys.
Public Participation
A public notice for the HOME-ARP Allocation Plan was published in the Anaheim Bulletin on February 9, 2023. The draft Allocation Plan was made available for public comment from February 13, 2023 – March 1, 2023. On March 1, 2023, the Housing & Community Development Commission held a public hearing on the draft FY 2021-2022 Second Amendment Annual Action Plan and voted to recommend that the City Council approve the Plan.
Overall, the City found that the area of highest need in the qualifying populations in Anaheim is affordable housing with wrap-around supportive services. Safe and affordable housing, coupled with supportive services, will have the highest impact on the homeless, and those at risk of homelessness, by addressing some of the physical and mental barriers to remaining permanently housed.
Use of HOME-ARP Funding: The City of Anaheim will fund one or both of the following affordable rental development projects:
Studio 6 Motel: The City has acquired the Studio 6 Motel located at 1251 North Harbor Boulevard, Anaheim, CA. The motel is an approximately 37,000 square foot, 3-story building with 118 units and one manager unit sitting on a 1.44-acre site. The City is using the site as a temporary Non-Congregate Shelter (NCS). The development team, consisting of LINC Housing, American Family Housing, and the City of Anaheim, will submit an application for tax-credit funding to convert the motel to permanent supportive housing (PSH). When additional funding is secured, both tax-credit and HOME-ARP funds will be used in the rehabilitation to convert the property to permanent housing. Ultimately, the project will cost roughly $36 million to convert the motel to 114 PSH units, 89 of which will be available to the City’s homeless population (29 for chronically homeless, 60 for general homeless), and the remaining 25 will convert to general affordable housing units for low-income households. The units will remain affordable for 55 years.
Tampico Motel: The Tampico Motel located at 120 South State College Boulevard, Anaheim, CA, consisting of 32 rooms that sit on a half-acre lot is currently in escrow, and scheduled to be acquired in April 2023. When the purchase of the property is complete, the City intends to release a Request for Proposals to solicit developer plans to convert and rehabilitate the property to 36-units of affordable housing. The unit will be primarily for seniors, and possibly homeless individuals, including transitional aged youth.
Second Amendment to the FY 2021-2022 Annual Action Plan March 7, 2023
The HOME-ARP funds will be incorporated as a Substantial Amendment to the FY 2021-2022 Annual Action Plan. Action Plan as follows:
Activity Proposed Funding Amount
Development of Affordable Rental Housing
(Tampico and Studio 6 Motel Conversions)
$4,656,903
Administration $820,000
Total $5,476,903
IMPACT ON BUDGET:
Sufficient appropriation is included in the Housing & Community Development Department’s FY 22/23 budget.
Respectfully submitted,
Grace Stepter
Director of Housing &
Community Development Department
Attachment:
1. Second Amendment to the FY 2021-2022 Annual Action Plan