201 S. Anaheim Blvd.
Suite #1003
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4360
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JUNE 18, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE FISCAL YEAR 2024-2025 ANNUAL ACTION PLAN
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the Fiscal Year 2024-2025 Annual Action Plan (AAP) for federal Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) funds totaling $9,422,112; 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.
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.
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 (AAP), which provide a concise summary of the actions, activities, and the 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 2024-2025 (aligns with the City’s Fiscal year, which starts on July 1st).
Fiscal Year 2024-2025 Annual Action Plan
June 18, 2024
DISCUSSION:
On May 7, 2024, HUD announced the final grant allocations for CDBG, HOPWA, HOME, and ESG funds. The City will receive $9,422,112 for the 2024-2025 Fiscal Year. The allocation includes $ 4,122,426 of CDBG funds, $3,608,623 of HOPWA funds, $1,314,088 of HOME, and $376,975 of ESG funds. The CDBG and HOME Program have decreased compared to the prior fiscal year while ESG and HOPWA have slightly increased. See the table below for a year-to-year comparison.
Proposed Activities
The AAP for FY 2024-2025 identifies how the City will utilize the total allocation and any applicable carryover funds which supplement programming budgets for the year. Proposed programs and activities include:
CDBG New Allocation
Code enforcement $1,326,959
Fair housing services $90,000
Public facility and infrastructure
improvements to improve neighborhood parks
and libraries
$1,591,959
Community and public services for
children/youth programs, families, disabled,
seniors and disenfranchised populations (15%
maximum)
$603,379
Administration $734,485
Total $4,346,782
HOME New Allocation
Preservation and expansion of affordable
housing through rehabilitation, production,
and tenant based rental assistance $1,217,113
Administration $131,409
Total $1,348,522
Program FY 2023-24 FY 2024-25
CDBG $ 4,289,196 $ 4,122,426
HOPWA $ 3,590,476 $ 3,608,623
HOME $ 1,665,695 $ 1,314,088
ESG $ 373,660 $ 376,975
Total $ 9,919,027 $ 9,422,112
Fiscal Year 2024-2025 Annual Action Plan
June 18, 2024
ESG New Allocation
Assistance for the homeless, including
emergency shelters, housing services, case
management, rapid -rehousing and
homelessness prevention $414,602
Administration $28,273
Total $442,875
HOPWA New Allocation
Housing & supportive services for persons
living with HIV/AIDS including tenant based
rental assistance (Countywide) $2,238,000
Housing development for persons living with
HIV/AIDS $1,262,364
Administration $108,259
Total $3,608,623
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.
The proposed FY 2024-2025 budget includes carry over funds as follows:
Program Carryover Funds
CDBG $1,056,856
HOPWA $4,158,024
HOME $2,668,602
ESG $431,990
Total $8,315,472
When carryover funds are combined with the HUD allocation for the 2024-2025 Fiscal Year, the AAP represents a commitment of $18,062,274 for housing and community development activities.
Fiscal Year 2024-2025 Annual Action Plan
June 18, 2024
COMMUNITY INPUT
A public notice for the first of two Public Hearings for the FY 2024-2025 Annual Action Plan was published in the Anaheim Bulletin and the OC Register in English and Spanish on February 23, 2024, notifying community members of the opportunity to provide views and opinions regarding the City’s community development and housing needs. Comments provided were taken into consideration in funding allocations for the draft AAP which was then 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 45 days from April 1, 2024 – May 15, 2024. On May 15, 2024, the Housing & Community Development Commission (HCDC) held the second public hearing on the draft FY 2024-2025 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 2024-2025 Annual Action Plan are anticipated to be fully funded by HUD grants and are included in the proposed FY 2024-2025 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 Department
Attachments:
1. FY 2024-2025 Funding Recommendations
2. FY 2024-2025 Annual Action Plan