201 S. Anaheim Blvd.
Suite #1003
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: NOVEMBER 28, 2023
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: ACCEPTANCE OF CALOPTIMA HEALTH GRANT FOR
REHABILITATION OF NORTH HARBOR APARTMENTS
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve to 1) ratify the submission of the CalOptima Health Capital Grant application and authorize the Housing Authority Executive Director, or her designee, to submit the grant application, 2) approve the grant agreement with Orange County Health Authority dba CalOptima Health in the amount of $3,878,420, substantially in the form attached authorizing the Anaheim Housing Authority to use these funds for the rehabilitation of the North Harbor Apartments for affordable housing, 3) authorize the Housing Authority Executive Director, or her designee, to execute all documents and agreements, required to receive and administer this grant and related activities, and 4) increase the Housing and Community Development Department’s Fiscal Year 2023/24 revenue and expenditures budget by $3,878,420.
DISCUSSION:
The Anaheim Housing Authority (AHA) seeks to enter into an agreement with CalOptima Health to accept a grant award in the amount of $3,878,420 for the rehabilitation and conversion of the North Harbor Apartments to permanent supportive housing (PSH). PSH merges affordable housing assistance with services to aid individuals experiencing homelessness.
CalOptima Health released a Notice of Funding Opportunity (NOFO) on June 22, 2023, for capital projects that demonstrate the ability to increase the number of people connected to permanent housing or increase the number of permanent housing units in Orange County. The funding for this opportunity derives from the State’s Housing and Homelessness Incentive Program (HHIP), which prioritizes addressing the social determinants of health and health disparities for people at risk or currently experiencing homelessness.
On October 20, 2023, staff was notified that the application was successful and a grant award in the amount of $3,878,420 was approved. The funds will serve as last mile funding to complete the rehabilitation of the North Harbor site.
CalOptima Health Grant for Rehabilitation of North Harbor Apartments November 28, 2023
As additional background, in May 2022, AHA was awarded a State Homekey grant which provided funding to acquire the North Harbor Apartments site. The property was a former Studio 6 Extended Stay motel that was lightly rehabilitated and is currently serving as interim non-congregate shelter. The Project is now transitioning to permanent supportive housing (Phase II). The goal of the Homekey Program is to expediently house people experiencing homelessness and increase the supply of PSH throughout the state.
The grant award term is December 1, 2023 to December 1, 2025. To accept the $3,878,420 grant from CalOptima Health, the Housing Authority must meet the following reporting requirements of the agreement:
Semi-annual progress reports due June 30, 2024; December 30, 2024; and June 30, 2025
Final project close out report due December 30, 2025
The availability of CalOptima Health capital funds allows the Housing Authority to continue to increase affordable housing development activities. Initially, City of Anaheim HOME ARP (American Rescue Plan) funds were earmarked for this development. These funds can now be used to advance yet another affordable development project in the Housing Authority pipeline, thus continuing to grow the stock of permanent supportive housing units in Anaheim.
IMPACT ON BUDGET:
The Housing and Community Development Department’s FY 2023/24 revenue and expenditures budget will be increased by $3,878,420 by accepting the grant award.
Respectfully submitted,
Grace Stepter
Executive Director of Anaheim Housing Authority
Attachment:
1. CalOptima Health HHIP Round 2 Agreement for North Harbor Apartments