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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
DATE: JUNE 9, 2026
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: ACCEPTANCE OF $5 MILLION IN REAP 2.0 GRANT FUNDS
FROM THE SOUTHERN CALIFORNIA ASSOCIATION OF
GOVERNMENTS (SCAG) FOR THE ANAHEIM LOCAL HOUSING
TRUST FUND (A-LHTF) AND AMENDMENTS TO THE A-LHTF
PROGRAM GUIDELINES
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council:
1. By Resolution, accept $5,000,000 in Regional Early Action Planning (REAP 2.0) grant funds from the Southern California Association of Governments (SCAG) for the Anaheim Local Housing Trust Fund, and authorize the Director of Housing and Community Development, or designee, to enter into and administer all agreements and related documents necessary to implement the grant on behalf of the City;
2. By Motion, approve amendments to the Anaheim Local Housing Trust Fund Program Guidelines to incorporate REAP 2.0-required underwriting criteria and program requirements; and
3. By Motion, amend the Housing and Community Development Department budget, in the amount of $5,000,000, in the fiscal year in which grant funds are received.
DISCUSSION:
In 2024, the City of Anaheim established the Anaheim Local Housing Trust Fund (Trust Fund) to locally support a variety of affordable housing programs including financing affordable communities, providing down payment assistance for first-time homebuyers and helping those at risk of eviction to stay housed.
Funding for the Trust Fund can come from a variety of sources including grants, private contributions, in-lieu fees, philanthropic donations and other government sources. In Fall 2024, the City received a U.S. Department of Housing and Urban Development (HUD) PRO Housing grant which provided $1 million for gap financing for the Trust Fund and established the Anaheim Livability Lab, an in-house innovation team dedicated to Acceptance of REAP 2.0 Grant Funds
June 9, 2026
increasing the supply of affordable housing, expanding attainable homeownership opportunities, and sourcing additional funding for the Trust Fund. Supported by the research and data from the Livability Lab, the City continues to actively pursue external grant opportunities to expand the Trust Fund’s capacity to provide gap financing for future affordable housing developments.
The Southern California Association of Governments (SCAG) administers funding through the Regional Early Action Planning (REAP 2.0) Program, which was established by the State of California to address the statewide housing affordability crisis while supporting climate goals through infill housing development and reductions in greenhouse gas emissions and vehicle miles traveled (VMT). The program prioritizes projects that accelerate housing production near jobs, transit, and services.
In response to SCAG’s Notice of Funding Availability for the REAP 2.0 Program, the City team, spearheaded by the Livability Lab, submitted a competitive application seeking funding to expand the Trust Fund’s workforce housing gap financing within the Build More Homes Initiative that supports financing affordable communities. Anaheim submitted one of the-highest scoring applications in the funding round and was the only city, with a city-operated Local Housing Trust Fund in the SCAG region selected for the award. The City was awarded $5 million in REAP 2.0 grant funding, the program’s maximum award.
The REAP 2.0 award significantly expands the Trust Fund’s ability to provide gap financing for affordable and workforce housing developments over the five-year grant implementation period.
The funding is intended to help accelerate housing production by reducing financing gaps that often delay or prevent projects from moving forward. This grant will augment the existing $4 million in allocated funds for the Build More Homes initiative, increasing the total available gap financing within the Trust Fund to $9 million.
The City anticipates utilizing these funds to support upcoming workforce housing developments within Anaheim’s growing affordable housing pipeline, including planned affordable housing developments on Anaheim Housing Authority-controlled sites near Harbor Boulevard/Karcher Way and along the Beach Boulevard corridor. The funding will help position multiple sites to move forward simultaneously. Allocation of the grant funds to specific developments will require a future approval action by the City Council.
As part of the grant criteria, SCAG is requiring that the Anaheim Local Housing Trust Fund Program Guidelines (Guidelines) be updated to incorporate REAP 2.0-specific underwriting criteria and compliance standards for those projects receiving the grant funds from the Trust Fund.
These modifications will ensure that any future projects receiving REAP 2.0 funding satisfy State and SCAG requirements related to affordability, fair housing, greenhouse gas reduction, and long- term compliance monitoring. These requirements do not conflict with existing Trust Fund guidelines and continue to provide the City with local control over fund allocation.
This action supports two of the City’s Strategic Plan Goals – A: Maintain Fiscal Responsibility, Strategy 2 – continue proactive pursuit of state and federal grant funds and B: Enhance Livability, Strategy 2 - to stabilize and expand affordable, workforce, and homeownership housing opportunities for low-income residents.
Acceptance of REAP 2.0 Grant Funds
June 9, 2026
IMPACT ON BUDGET:
The $5 million grant funds shall be deposited into the Build More Homes Initiative of the Anaheim Local Housing Trust Fund to be utilized for gap financing of new affordable housing units. The Housing and Community Development Department budget for revenue and expenditure shall be amended in the fiscal year in which grant funds are received.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development
Attachments:
1. Resolution
2. Amended Anaheim Local Housing Trust Fund Program Guidelines