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: APRIL 18, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: RATIFY SUBMISSION OF AND ACCEPT AWARD OF
CALOPTIMA HEALTH GRANT FOR REHABILITATION OF
TAMPICO MOTEL
ATTACHMENTS (Y/N): YES ITEM # 24
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, 1) ratify the submission of the grant application and authorize the City Manager, or his designee, to submit the grant application, 2) approve the Grant Award Agreement with Orange County Health Authority dba CalOptima Health, in the amount of $2,000,000, substantially in the form attached authorizing the City of Anaheim (City) to use these funds for the rehabilitation of the Tampico Motel, located at 120 S. State College Boulevard, for affordable housing for a three-year term beginning May 1, 2023, 3) authorize the City Manager or his designee, to execute all documents and agreements, required to receive and administer this grant and related activities, and 4) increase the Housing & Community Development Department’s Fiscal Year 2022/23 revenue and expenditures budget by $2,000,000.
DISCUSSION:
The Housing and Community Development Department seeks to enter into an agreement with Orange County Health Authority dba CalOptima Health (CalOptima Health) to accept a grant award in the amount of $2,000,000 for the rehabilitation and conversion of the Tampico Motel (Motel) to permanent supportive housing (PSH). This grant is awarded through CalOptima Health’s participation in the State of California’s Department of Health Care Services (DHCS) Housing and Homelessness Incentive Program (HHIP). The DHCS’ development of HHIP incentivizes Medi-Cal Managed Care Providers (MCP), in partnership with local agencies and other service providers, to invest in addressing homelessness and keeping people housed.
In January 2023, Orange County’s sole MCP, CalOptima Health, released a Notice of Funding Opportunity seeking delivery and coordination of health and housing services for Medi-Cal members who are experiencing or are at-risk of homelessness under three funding priority categories: Equity, Capacity Building and Infrastructure, and Capital.
The City of Anaheim (City) was selected to receive a grant award under the Capital funding priority for the rehabilitation of the Motel. Grant funded projects must focus on CalOptima Health Grant – Tampico Motel
April 18, 2023
the development, renovation, and expansion of permanent housing units. PSH merges affordable housing assistance with services to aid individuals experiencing homelessness.
Supportive services typically help residents remain housed long term by offering opportunities for community socialization and connections to social services and public benefits, among other outcomes.
The grant award term is May 1, 2023 to April 30, 2026. To accept the $2,000,000 Capital grant from CalOptima Health, the City must meet the following objectives and goals. Increase supply of PSH by 30 to 32 units for those experiencing homelessness in Anaheim
Implement services to assist residents from falling back into homelessness Support residents find and retain employment or increased income opportunities Improve wellbeing of residents by providing housing and supportive services Currently, the site is in escrow. The purchase will be completed by April 26, 2023. Staff plans to release a Request for Proposal (RFP) to solicit proposals for the rehabilitation and conversion of the site to 30 to 32 studio and one-bedroom PSH units. Concurrently, staff is seeking additional financing to expedite the project. Upon completion of the RFP process, staff will present the selected proposal to the Governing Body for review and approval. It is anticipated that the City will enter into a Cooperation Agreement with the Anaheim Housing Authority at a later date for these funds to be incorporated into the Affordable Housing Agreement, which ultimately will result in the conversion of the Motel to PSH.
As additional background information, specifically on the funding already secured to develop the Motel, in April 2022, the City received a State earmark from Senator Tom Umberg’s Office for the acquisition of a motel as a means of expediating the production of affordable housing in Anaheim. Subsequently, the Governing Body of the Anaheim Housing Authority approved the purchase of the Motel located at 120 S. State College Boulevard on April 26, 2022. The Motel is conveniently located near community amenities, restaurants, employment hubs, and quality public transportation, thus facilitating the implementation of required services for a PSH development.
IMPACT ON BUDGET:
The Housing & Community Development Department’s FY 2022/23 Homeless Housing and Emergency Rental Assistance Fund revenue and expenditures budget will be increased by $2,000,000 by accepting the grant award.
Respectfully submitted,
Grace Ruiz-Stepter
Housing & Community Development Department Director
Attachments:
CalOptima Health Grant – Tampico Motel
April 18, 2023
1. CalOptima Health Grant Award Agreement
2. City of Anaheim CalOptima Health Grant Application