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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: AUGUST 26, 2025
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE FIRST AMENDMENT OF THE ENCAMPMENT
RESOLUTION FUNDING (ERF) SUBRECIPIENT AGREEMENT
AND ASSOCIATED BUDGET MODIFICATION, AND APPROVE
THE HOMELESS HOUSING ASSISTANCE AND PREVENTION
(HHAP) SUBRECIPIENT AGREEMENT WITH THE MARIPOSA
WOMEN AND FAMILY CENTER FOR THE ANAHEIM
COMPREHENSIVE ENCAMPMENT SOLUTIONS PROGRAM
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the First Amendment to Encampment Resolution Funding Subrecipient Agreement with Mariposa Women and Family Center, in substantial form, to extend the operation of the Anaheim Comprehensive Encampment Solutions program for an additional six months expiring May 31, 2027, and the associated budget modification;
2. Approve the Homeless Housing, Assistance Prevention Subrecipient Agreement with Mariposa Women and Family Center, in substantial form, in the amount of $963,801.10, for the operation of the Anaheim Comprehensive Encampment Solutions program, for a term expiring May 31, 2027;
3. Authorize the Anaheim Housing and Community Development Department Director, or her designee, to execute the agreements and other documents necessary to implement and administer the program on behalf of the City, provided that the maximum contract authority of $4,011,266.31 is not increased; and
4. Authorize de minimis changes that do not substantially change the terms and conditions of the agreements, as determined by the City Attorney’s Office.
BACKGROUND:
In April 2024, the City of Anaheim was awarded funding through the State of California’s Housing and Community Development (HCD) Encampment Resolution Funding Program (ERF-3R). The grant supports efforts to address encampments located at La Palma Park and near the 91 State Route Lemon Street exits. Anaheim’s approach, known locally as the Anaheim Comprehensive Encampment Solutions (ACES) program, First Amendment to Encampment Resolution Program Subrecipient Agreement August 26, 2025
emphasizes a structured pathway from homelessness to permanent housing, focusing on long-term, sustainable solutions for individuals living in these encampments.
In August 2024, the Anaheim Housing and Community Development Department (Anaheim HCD) issued a Request for Proposals to identify qualified service providers to assist in the operations of ACES. Following a competitive selection process, staff requested authorization to enter into a Subrecipient Agreement under the Encampment Resolution Funding program with Mariposa Women and Family Center (Mariposa Center) in the amount of $3,047,465.21 for ACES service delivery. The two-year term agreement commenced on November 1, 2024, and is currently scheduled to end on November 30, 2026. Under this agreement, the Mariposa Center will provide street outreach, interim shelter, and rapid rehousing services to households located at or near the designated encampment site.
In October 2024, the city finalized the purchase of the Crown Motel located at 1136 North La Palma Park Way. Given its proximity to the ERF-3R priority encampment sites, staff proposed operating the site as an ACES interim housing while long-term development plans are finalized.
Subsequently, staff sought City Council approval to execute a Right of Entry and License Agreement with Mariposa Women and Family Center (Mariposa Center) to operate the Crown Motel as an ACES interim housing project. The agreement was executed on May 29, 2025, granting Mariposa Center licensed use of the property. This shift in program design necessitated a revision to the existing Encampment Resolution Funding Subrecipient Agreement budget and the addition of available Homeless Housing Assistance and Prevention (HHAP) funding to incorporate the newly designated non-congregate interim housing site.
DISCUSSION:
In partnership with Mariposa Center, City staff developed the budget to include all operational elements of the ACES program for an additional six months, including street outreach, interim housing, and permanent housing through the end of the anticipated ACES program period. This amendment will change the program end date from November 30, 2026, to May 31, 2027.
Street Outreach
Under this proposed amendment, the street outreach component of the ACES program continues to be fully staffed with outreach personnel as outlined in the original agreement. As part of outreach operations, Mariposa Center is contracted to provide mobile case management and housing navigation to 95 households with the goal of permanently housing 75 of these households from the encampment site. This intervention is funded primarily by existing ERF-3R funds and supplemented by HHAP funds available to the City under the Anaheim HCD budget. HHAP dollars are proposed to help support program closeout during the extended program end date.
Funds from all rounds of HHAP are currently available to the City under the Anaheim HCD budget, with a new round of HHAP Round 6 funding to become available in the Spring of 2026.
Interim Housing
This intervention reflects the most significant change in programming and budget with the introduction of the Crown Motel and the centralization of the interim housing component of the program. Proposed activities originally included placing clients at satellite motels throughout the First Amendment to Encampment Resolution Program Subrecipient Agreement August 26, 2025
city and providing mobile case management to help move them from the motels to housing. Under the reprogramming with Crown Motel, this category now includes light rehabilitation to bring substandard units at the Crown Motel to habitable standards; around-the-clock operations of the site, including on-site staff and security personnel; and property maintenance. As the Licensee to the property, Mariposa Center is charged with procuring services and executing on the necessary elements to operate the Crown Motel as interim housing.
The addition of the ACES interim housing site will require modification to the existing Encampment Resolution Funding (ERF) Subrecipient Agreement to reallocate funding within the existing ERF line items. This modification, specifically, shifts funds from rapid rehousing to interim housing operations starting in FY2025/2026. This budget modification does not increase the total amount of ERF funds, but redistributes existing funds to align with the updated program design. This reallocation is necessitated by both the extension of the program and the infusion of Homeless Housing, Assistance and Prevention (HHAP) funds, which will supplement remaining operations through the end of the program and support new operating costs associated with the centralization of services at the Crown Motel site.
Permanent Housing
Under the original ERF-3R program, permanent housing was budgeted under rapid rehousing, an intervention designed to be time-limited and that utilizes existing market rate units to quickly rehouse people experiencing homelessness. This proposed amendment will reduce the budget previously allocated to rapid rehousing, which in turn will reduce the number of ACES participants placed in fair market rental units. In anticipation of this reduction, staff have prioritized placements for ACES-linked households that are both sheltered and unsheltered in the Azure Apartments, the City’s new permanent supportive housing project located less than a mile away from the encampments and the Crown Motel. The Azure Apartments, is scheduled for lease up by Fall 2025.
The connection to a deeper subsidy increases housing stability for ACES households and reduces the risk of recidivism that can be a challenge for those entering rapid rehousing directly from unsheltered homelessness. Rapid rehousing remains a housing option under the new proposed budget for households that choose to engage in this intervention as their housing of choice or who are unsuccessful in being placed at Azure Apartments. The rapid rehousing intervention is projected to be covered by the existing ERF-3R funds, as available, through the end of the program period in May 2027.
The table below summarizes the program’s new total budget, by funding source, with the inclusion of the Crown Motel operations and extended program end date.
The proposed activities support the City’s Strategic Plan Goal B: Enhance Livability, Strategy 9:
Maintain and expand services to address homelessness and its impacts.
Grant Type FY 24-25 FY 25-26 FY 26-27 Total Budget
Encampment
Resolution Funding
(ERF)
$341,511.43 $1,975,022.87 $730,930.91 $3,047,465.21
Homeless Housing,
Assistance and
Prevention (HHAP)
$0 $441,167.36 $522,633.74 $963,801.10
Total Budget $341,511.43 $2,416,190.23 $1,253,564.65 4,011,266.31 First Amendment to Encampment Resolution Program Subrecipient Agreement August 26, 2025
IMPACT ON BUDGET:
The Housing & Community Development Department’s FY 2025/2026 budget will include available ERF-3R and HHAP funding for the proposed activities as the department is in the process of preparing for a budget carryover. The proposed activities funded by HHAP 6 will require a department modification commensurate to the amount of the HHAP 6 award which will be brought to City Council for ratification and approval once available. There is no impact on the General Fund.
Respectfully submitted,
Grace Ruiz-Stepter
Housing & Community Development Director
Attachments:
1. First Amendment of the Anaheim Comprehensive Encampment Solutions Agreement between City of Anaheim and Mariposa Women and Family Center
2. Anaheim Comprehensive Encampment Solutions Agreement between City of Anaheim and Mariposa Women and Family Center
3. Homeless Housing Assistance and Prevention Subrecipient Agreement between City of Anaheim and Mariposa Women and Family Center
4. Exhibit - Right of Entry and License Agreement – Anaheim Comprehensive Encampment Solutions Program Interim Shelter