CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: AUGUST 26, 2025
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE FOURTH AMENDMENT TO THE FY 2021-2022
ANNUAL ACTION PLAN AND SUBSTANTIAL AMENDMENTS TO
THE HOME INVESTMENT PARTNERSHIPS PROGRAM
AMERICAN RESCUE PLAN ALLOCATION PLAN
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the Fourth Amendment to the United States Department of Housing and Urban Development Fiscal Year 2021-2022 Annual Action Plan to incorporate substantial amendments to the HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) Allocation Plan; designate the Director of the Housing and Community Development Department, or her designee, as the Certifying Official authorized to execute all documents related to the administration, management, and implementation of the HOME-ARP program; and increase the Housing and Community Development Department budget by $8,239, commensurate with the corrected HOME-ARP award amount.
BACKGROUND:
The City of Anaheim receives an annual funding allocation from the United States Department of Housing and Urban Development (HUD) for four major programs:
Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA). These funding programs address critical, unmet local needs in the areas of affordable housing, public facilities, homelessness, infrastructure, economic development, and public services.
In Fiscal Year (FY) 2021-2022, the passage of the American Rescue Plan (ARP) awarded the city an additional $5,476,903 of HOME Investment Partnerships Program (HOME) funding known as HOME-ARP dollars. The primary purpose of the HOME-ARP funds is to assist individuals of households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services and non-congregate shelter to reduce homelessness and increase housing stability. The City went through an extensive planning process as a condition of receiving the funding that resulted in the development of the HOME-ARP Allocation Plan that outlines the city’s intended use of HOME-ARP dollars. The HOME-ARP funding and HOME-ARP 201 S. Anaheim Blvd.
Tenth Floor
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4360
www.anaheim.net
Approval of Fourth Amendment to the FY 2021-2022 Annual Action Plan and HOME-ARP Allocation Plan August 26, 2025
Allocation Plan were both included in a March 2023 substantial amendment to the FY 2021-2022 Annual Action Plan which reflected both the awarded funds and proposed planned activities.
Overall, the city found that the highest need for the qualifying populations in Anaheim was for additional affordable rental housing with wrap-around supportive services; tenant- based rental assistance and homelessness prevention; supportive and housing-related services; emergency shelter; and permanent supportive housing. The city initially identified two potential projects for infusion of HOME-ARP dollars:
1. The former Studio 6 motel site off Harbor Boulevard and the 91 freeway that was used as temporary non-congregate shelter under the State’s Homekey program; and
2. The Tampico Motel located off State College Boulevard that was a nuisance site for the surrounding community.
Funding was allocated towards both programs with the former Studio 6 motel project electing not to pull HOME-ARP funding due to achieving gap financing from other sources. The Tampico Motel project is on track to expend HOME-ARP dollars with the development of a 32-unit permanent supportive housing site dedicated to transition-aged youth. The development is scheduled to start construction in the Fall 2025 and upon completion, have an affordability period of 55 years.
DISCUSSION:
In June 2025, City staff were alerted by HUD of an administrative correction to the City’s HOME-ARP allocation that increases the overall award by $8,239 from the initial $5,476,903 to $5,485,142. To publicly receive these dollars, the city is amending our HOME-ARP Allocation Plan to reflect this new total.
Additionally, as part of a substantial amendment to the HOME-ARP Allocation Plan, the city is recommending the addition of a new supportive services activity for households in tenant-based rental assistance programs. Under this substantial amendment, staff recommend a total allocation of $164,942.56 in supportive services contracts to operators of the City’s Homeless Individuals Program (HIP) and Homeless Assistance Program – Families (HAP-F) programs. Both programs were previously funded, in part, through HUD Emergency Solutions Grant (ESG) dollars but carried the requirement for use of the regional Coordinated Entry System (CES) for placement into the program. CES has historically proven to be both burdensome to navigate and lacks the urgency needed to respond to the pressing housing needs of residents at risk and experiencing homelessness in Anaheim. The removal of the ESG component of the program necessitates the use of HOME-ARP dollars to continue providing housing navigation, case management, and two years of housing stability services to households enrolled in HIP and HAP-F. All other elements of the original HOME-ARP Allocation Plan remain the same.
Approval of Fourth Amendment to the FY 2021-2022 Annual Action Plan and HOME-ARP Allocation Plan August 26, 2025
A public notice for the Fourth Amendment to the FY 2021-2022 Annual Action Plan and HOME-ARP Allocation Plan was originally published on the Anaheim Bulletin on July 31, 2025. A sequent revised notice published August 7, 2025. The draft Allocation Plan was made available for public comment from August 5, 2025 to August 20, 2025. On August 20, the Housing & Community Development Commission (HCDC) held a public hearing on the draft FY 2021-2022 Fourth Amendment to the Annual Action Plan and HOME-ARP Allocation Plan. HCDC voted to recommend that the City Council approve the substantial amendment.
These requests directly support 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 Department FY 2025/26 budget will increase by $8,239. In the event grant funds are reduced or eliminated, the Annual Action Plan and HOME-ARP Allocation Plan would be amended to only support activities that are fully funded by available grant allocations.
Respectfully submitted,
Grace Ruiz-Stepter
Housing and Community Development Director
Attachment:
1. Proposed Substantial Amendment to FY 2021-2022 Annual Action Plan and HOME- ARP Allocation Plan
Table 1 – Proposed 2021-2022 Annual Action Plan and HOME ARP Allocation Plan Amendment Project Name Proposed
Budget HUD Eligibility Goals Supported
HOME-ARP Development of
Affordable Rental Housing
Provides funds for development of
permanent supportive housing for
households with special needs.
$4,497,428.14 Housing
Development
Increased Housing
Opportunities
Provide Housing for
Persons with Special
Needs
HOME-ARP Supportive Services
(Added)
Provides supportive and housing
stabilization services for participants of
tenant-based rental assistance programs.
$164,942.56 Supportive
Services
Increased Housing
Opportunities
Provide Housing for
Persons with Special
Needs
HOME-ARP Administration and
Planning
$822,771.30 Program
Administration
N/A
Total Amended Funds $5,485,142