201 S. Anaheim Blvd.
Suite #1003
Anaheim, CA 92805
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Fax: (714) 765-4360
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: MAY 16, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE FY 2023-2024 ANNUAL ACTION PLAN AND THE UPDATED OPERATING GUIDELINES FOR TWO PROGRAMS:
THE HOMELESS ASSISTANCE PROGRAM FOR FAMILIES AND
THE RESIDENTIAL REHABILITATION PROGRAM
ATTACHMENT (Y/N): YES ITEM # 03
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Fiscal Year 2023-2024 Annual Action Plan (AAP), substantially in the form attached, for federal Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) funds totaling $9,919,027; 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 CDBG, HOME, ESG, and HOPWA programs; and further authorize the Director, or her designee, to reallocate funds to eligible activities as necessary to address the greatest need; and
2. Approve the update to the operating guidelines for the Homeless Assistance Program for Families (HAP-F); and
3. Approve the update to the operating guidelines for the Residential Rehabilitation Program (RRP).
BACKGROUND:
The U.S. Department of Housing and Urban Development (HUD) awards grants to entitlement communities to carry out a wide range of community development activities directed toward revitalizing neighborhoods, addressing affordable housing needs, economic development, and providing improved community facilities and services.
Entitlement communities develop their own programs and funding priorities. The City of Anaheim is an entitlement community and receives funds deriving from four different HUD grant programs.
Fiscal Year 2023-2024 Annual Action Plan and The Updated Operating Guidelines for Two Programs May 16, 2023
To comply with HUD requirements, the City is required to develop and adopt a Five-year Consolidated Plan (Con Plan). The Con Plan is a planning tool used to identify local needs and to make data-driven, place-based investment decisions. The Con Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. Attachment II of the staff report contains the full Annual Action Plan for the City of Anaheim for Fiscal Year 2023-2024 (aligns with the City’s Fiscal Year, which starts on July 1st).
DISCUSSION:
On February 27, 2023, HUD announced the final grant allocations for CDBG, HOPWA, HOME, and ESG funds. The City will receive $9,919,027 for the 2023-2024 Fiscal Year.
The allocation includes $4,289,196 of CDBG funds, $3,590,476 of HOPWA funds, $1,665,695 of HOME, and $373,660 of ESG funds. With the exception of the HOME Program, funding for all programs received slight increases. See the table below for a year- to-year comparison.
Proposed Activities
The AAP for FY 2023-2024 identifies how the City will utilize the total allocation.
Proposed programs and activities include:
CDBG New allocation
Code enforcement & residential rehabilitation $1,326,959 Fair housing services $90,000
Public facility and infrastructure
improvements to improve neighborhood parks
and libraries
$1,460,722
Community and public services for
children/youth programs, families, disabled,
seniors and disenfranchised populations (15%
maximum)
$643,379
Administration $767,839
Total $4,288,899
Program FY 2022-23 FY 2023-24
CDBG $ 4,251,477 $ 4,289,196
HOPWA $ 3,257,373 $ 3,590,476
HOME $ 1,672,684 $ 1,665,695
ESG $ 368,201 $ 373,660
Total $ 9,549,735 $ 9,919,027
Fiscal Year 2023-2024 Annual Action Plan and The Updated Operating Guidelines for Two Programs May 16, 2023
HOME New allocation
Preservation and expansion of affordable
housing through rehabilitation, production,
and tenant based rental assistance $1,499,125
Administration $166,570
Total $1,665,695
ESG New allocation
Assistance for the homeless, including
emergency shelters, housing services, case
management, rapid -rehousing and
homelessness prevention $314,602
Administration $28,025
Total $342,627
HOPWA New allocation
Housing & supportive services for persons
living with HIV/AIDS including tenant based
rental assistance (Countywide) $2,038,000
Housing development for persons living with
HIV/AIDS $1,444,762
Administration $107,714
Total $3,590,476
Refer to Attachment 1 for the detailed funding recommendations.
USE OF CARRYOVER FUNDS
In addition to the annual funding allocations from HUD, the department makes use of funds carried over from previous years that are available to supplement any unmet need that is not fully funded by the current year allocation.
Carryover funds derive from various sources including previous year loan payoffs or funds that were unused by service providers, programs and/or projects. In the case of funds intended to support the development of affordable housing, it is often necessary to accumulate funds over time as a single year allocation is not enough to support the level of gap financing necessary to advance a project.
Fiscal Year 2023-2024 Annual Action Plan and The Updated Operating Guidelines for Two Programs May 16, 2023
The proposed FY 2023-2024 budget includes carry over funds as follows:
Program Carryover Funds
CDBG $1,675,000
HOPWA $3,269,114
HOME $1,850,020
ESG $36,292
Total $6,830,426
When carryover funds are combined with the annual HUD allocation of $9,919,027 for the 2023-2024 Fiscal Year, the AAP represents a commitment of $16,749,453 for housing and community development activities.
UPDATES TO EXISTING PROGRAMS
Consistent with the AAP goals, local CDBG and HOME programs are used to support the preservation and expansion of affordable housing through rehabilitation, production, and financial assistance. Program funding is also used to assist in the intervention and prevention of homelessness. Over time, the Department has introduced various successful programs that support housing activities. Staff monitors these activities on an ongoing basis to ensure that limited resources are being maximized and recommends medication as needed. As part of the AAP update process, staff is recommending updates to the Operating Guidelines for the following two programs:
1. Homeless Assistance Program for Families (HAP-F)
In 2013, the City implemented a new Homeless Assistance Pilot Program (HAPP).
The HAPP was a tenant-based rental assistance program implemented with the goal of assisting homeless families with children attending schools in Anaheim transition into permanent supportive housing. The program consisted of supportive services, funded with ESG funds, and rental assistance funded with HOME funds. All Anaheim schools were eligible to refer homeless families through Anaheim Unified School District’s McKinney-Vento Liaisons directly to the designated service provider The Illumination Foundation. In partnership with The Illumination Foundation, the City’s HAPP was successful in housing over 160 families over an 8-year period. Data collected through the HAPP provided significant information that was used to modify and enhance the Homeless System of Care in Anaheim. Based on the success of the HAPP, the City removed the HAPP pilot status in 2020 and approved the continuation of ESG and HOME funds for the Homeless Assistance Program (HAP).
With the integration of the City’s Community Care Response Team (CCRT) and Be Well Orange County in 2020, staff identified the opportunity to expand the current HAPP program to include additional avenues for service providers to refer homeless clients directly from their street outreach teams. This required a name change and updated policies and procedures to accurately describe and administer the expanded program.
Fiscal Year 2023-2024 Annual Action Plan and The Updated Operating Guidelines for Two Programs May 16, 2023
The attached updated Policies and Procedures reflect the name change from “Homeless Assistance Pilot Program” to “Homeless Assistance Program for Families (HAP-F)”. Furthermore, the new guidelines designate the Homeless Intervention Services of Orange County as an authorized program service provider; establish a new referral process from the CCRT for homeless families; provide necessary operating structure for the program; and outline the roles and responsibilities of The Illumination Foundation and Homeless Intervention Services of Orange County as service providers for HAP-F.
2. Residential Rehabilitation Program
The Residential Rehabilitation Program (RRP) was designed to provide households with financial assistance to address code enforcement/ health & safety issues with one of the following:
Grant for up to $8,000 to owner-occupants of mobile homes registered with the State Housing & Community Development Department. Households can participate in the program no more than once every ten (10) years. A minor loan for up to $15,000 for health and safety repairs and correction of code violations forgivable after 10 years. Households can participate in the program no more than once every ten (10) years.
A major loan for up to $100,000 for extensive rehabilitation projects. The loan must be repaid in full by year thirty (30) and will carry a 3% simple interest rate.
Since the inception of the RRP for mobile home grants in 2020, most requests for repairs have exceeded the $8,000 program limit. Feedback from the Program Administrator, Habitat for Humanity, confirms that rising costs in construction over the last two years have significantly limited homeowners’ ability to complete projects. The $8,000 maximum loan limit per project is preventing mobile homeowners from participating in the program as intended. As a result, the program guidelines require modification to increase the maximum loan amount to $12,000 per mobile home project to allow more repair projects to qualify for the RRP. All other program requirements remain intact.
COMMUNITY INPUT
A public notice for the FY 2023-2024 Annual Action Plan was published in the Anaheim Bulletin in English and Spanish on March 30, 2023, notifying community members of the HUD allocation amounts for FY 2023-2024 and inviting all to view the AAP draft and provide comments. The draft AAP was made available online and hard copies were also accessible at Anaheim West Tower (Housing & Community Development Department), 201 S. Anaheim Blvd., Tenth Floor, and at the Anaheim Central Library Reference Desk, 500 W. Broadway, Anaheim, CA 92805 during the entirety of the public comment period.
The public comment period was open for a total of 35 days from March 30, 2023 – May 3, 2023. Staff hosted a virtual workshop on April 25, 2023, during the public comment period, to receive feedback and/or comments on recommended funding allocations. Several local agencies were in attendance and there were no comments during that meeting.
Fiscal Year 2023-2024 Annual Action Plan and The Updated Operating Guidelines for Two Programs May 16, 2023
On May 3, 2023, the Housing & Community Development Commission (HCDC) held a public hearing on the draft FY 2023-2024 Annual Action Plan and voted to recommend that the City Council approve the Plan. All public comments received during the public hearing were in appreciation and support of funding recommendations.
Notices, public meetings, and comments received can be viewed in Appendix A of the Annual Action Plan.
IMPACT ON BUDGET:
All activities in the FY 2023-2024 Annual Action Plan are anticipated to be fully funded by HUD grants and are included in the FY 2023-2024 Citywide budget. In the event grant funds are reduced or eliminated, the Annual Action Plan would be amended to only support activities that are fully funded by available grant allocations.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing & Community Development
Attachments:
1. FY 2023-2024 Funding Recommendations
2. FY 2023-2024 Annual Action Plan
3. Homeless Assistance Program for Families Operating Guidelines
4. Residential Rehabilitation Program Operating Guidelines