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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: MARCH 4, 2025
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN THIRD AMENDMENT AND FISCAL YEAR 2024-2025 ANNUAL ACTION
PLAN FIRST AMENDMENT
ATTACHMENT (Y/N): YES ITEM # 06 GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Third Substantial Amendment to the Fiscal Year 2021-2022 Annual Action Plan allocating $367,398 in Housing Opportunities for Persons With AIDS (HOPWA) funds to Facility-Based Housing Development activities;
2. Approve the First Substantial Amendment to the Fiscal Year 2024-25 Annual Action Plan allocating $3,000,000 in HOME Investment Partnerships Program (HOME) funding to Housing Development activities and $250,000 in Community Development Block Grant (CDBG) funding to a Multi-Family Garage Conversion Project; and
3. Designate the Director of the Housing & Community Development Department as the Certifying Official authorized to execute all documents related to the administration, management, and implementation of the funding.
BACKGROUND:
The City of Anaheim’s Housing and Community Development Department is a formula grantee of the U.S. Department of Housing and Urban Development (HUD) and receives annual funding allocations under four grant programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA).
These program funds are used to address critical, unmet local needs in the areas of affordable housing, public facilities, infrastructure, economic development, and public services.
As a recipient of HUD funding, federal regulation 24 CFR 91.200(a) requires the City to have an established Consolidated Plan. The Consolidated Plan serves as a five-year long- range plan that outlines the City’s priorities for the use of HUD funding. The City’s current Consolidated Plan covers the period of 2020-2024 and was approved by the City Council in July 2020. Each year, an Annual Action Plan (AAP) is developed to outline specific projects and activities that align with the Consolidated Plan’s goals. The Annual Third Amendment to the Fiscal Year 2021-22 and First Amendment to Fiscal Year 2024-25 Annual Action Plans March 4, 2025
Action Plan covers a federal fiscal year (FY) that runs from July 1 to June 30 of the following year.
DISCUSSION:
HUD regulations stipulate that it is necessary to amend the Annual Action Plan whenever the City desires to make substantial changes to an Annual Action Plan to fund a new activity or project not previously stated in the original plan. For that reason, the City is now processing two amendments to the FY2021-22 and FY2024-25 AAP’s program activities and budgets to reflect new projects.
Fiscal Year 2021-22 Annual Action Plan Third Amendment:
The FY2021-22 Annual Action Plan was originally adopted by City Council on June 22, 2021 and has since been amended twice. The first amendment was made to reflect program income to the CDBG grant as the result of the sale of property at Beach Boulevard and Lincoln Avenue of which the proceeds were used to improve public facilities at Betsy Ross Park, Maxwell Park, and Rio Vista Park. The second amendment was made to reflect an infusion of HOME American Rescue Plan (HOME-ARP) dollars as a result of the COVID-19 pandemic. These funds have restrictions to be earmarked for housing activities that benefit individuals at-risk or are currently experiencing homelessness. HOME-ARP funds have been allocated to existing permanent supportive developments that meet the requirements of the funding.
This amendment serves as the third amendment to the FY2021-22 AAP which proposes the use of HOPWA dollars to a new permanent supportive housing development named Azure Apartments.
The development is currently under construction and is scheduled to be completed in September 2025. The summary of the proposed change can be found in Table 1 below.
Fiscal Year 2024-25 Annual Action Plan First Amendment:
The FY2024-25 Annual Action Plan was originally adopted by City Council on June 18, 2024 and this report serves as the first amendment to this plan. The proposed amendment looks to allocate HOME funds to a new affordable housing development project at the southeast corner of Beach Boulevard and Lincoln Avenue. Additionally, the amendment proposes funding a pilot program as a potential strategy to help address parking issues in congested neighborhoods. Multi-family property owners of multiplex buildings may receive a grant not to exceed $25,000 to ensure garages are being used for their intended parking purpose. Funds can be used to convert enclosed garages to open carports and for minor associated property enhancements that would facilitate the use of garages for parking. The City has found this to be an effective strategy through previous experience converting enclosed garages to open carports in prior neighborhood improvement efforts in Hermosa Village and the Avon Dakota neighborhood. A summary of the proposed changes can be found in Table 2 below.
Table 1 – Proposed FY2021-2022 Annual Action Plan Project Addition Project Name Proposed
Budget
HUD
Eligibility Goals Supported
HOPWA 2021-2024 Facility-Based Housing
Development CAH21F010 (CoA) (Added)
Provides funds for development of permanent supportive
housing for households with special needs.
$367,398
Facility-
Based
Housing
Development
Increased Housing
Opportunities
Provide Housing for Persons
with Special Needs
Total Amended Funds $367,398
Third Amendment to the Fiscal Year 2021-22 and First Amendment to FY 2024-25 Annual Action Plans March 4, 2025
Table – 2 Proposed FY2024-25 Annual Action Plan Project Additions and Amendments Project Name Proposed
Budget
HUD Eligibility
National
Objectives/
Goals Supported
HOME Unallocated HOME Funds City of Anaheim
Housing Development (Amended)
The City is proposing to use unallocated HOME funds
on an affordable housing project in conjunction with a
local Community Housing Development Organization
(CHD). The City will extend gap financing to acquire
and support the construction or rehabilitation of
affordable permanent rental housing.
$3,000,000 Housing
Development
Increased Housing
Opportunities
CDBG24 Community Enhancement Pilot Program
(Added)
Provides grants to owners of multi-family properties to convert enclosed garages to open carports and for minor associated property enhancements.
$250,000
Matrix Code: 14 B
Rehabilitation:
Multi-unit
Residential
Low- and
moderate-income
area
Total Amended Funds $3,250,000
Public Participation:
In accordance with the Citizen Participation Plan, the draft version of these AAP amendments were published for a public comment period of 30 days from January 9, 2025 to February 10, 2025. On February 19th a public hearing was held at the Housing and Community Development Commission meeting for members of the public that would like to provide comments on the proposed changes.
Staff did not receive any public comments on this item.
The FY2021-22 AAP Third Amendment and FY2024-25 AAP First Amendment supports the City’s Strategic Plan Goal B: Enhance Livability, Strategy 2: Develop strategies to stabilize and expand affordable, workforce, and home ownership housing options for low-income residents, and Strategy 9: Maintain and expand services to address homelessness and its impacts.
IMPACT ON BUDGET:
The Housing and Community Development FY 2024/25 budget includes sufficient funds for the proposed activities. There is no impact on the City budget.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing & Community Development
Attachment:
1. Proposed Fiscal Year 2021-22 Annual Action Plan Third Amendment and Fiscal Year 2024- 25 Annual Action Plan First Amendment