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September 9, 2025
ITEM TITLE
Grant Amendment and Appropriation: Approve an Amended HUD HOME-ARP Plan and Appropriate Additional Allocation
Report Number: 25-0199
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Under the National Environmental Policy Act (NEPA) the activity is exempt pursuant to Title 24, Part 58.34(a)(2)&(3) of the Code of Federal Regulations and purs uant to the U.S. Department of Housing & Urban Development Environmental Guidelines.
Recommended Action
Adopt a resolution : 1) Approving the Amended HUD HOME-ARP Plan; 2) Authorizing the acceptance and appropriation of HOME-ARP Program Grant funds; 3) Authorizing the City Manager to execute any additional HUD documents related to the grant; and 4) Appropriating funds for that purpose. (4/5 Vote Required)
SUMMARY
The HOME-ARP program was created in 2021 as part of the American Rescue Plan Act. It was designed to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supp ortive services, and non -congregate shelter, to reduce homelessness and increase housing stability. The City was notified in June 2025 that there had been a miscalculation and the allocation should have been $4,703 higher. This action would approve the amended HOME-ARP plan as well as accept and appropriate the additional allocation amount.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Under the National Environmental Policy Act ( NEPA), the activity is exempt pursuant to Title 24, Part
58.34(a)(2)&(3) of the Code of Federal Regulations and pursuant to the U.S. Department of Housing & Urban Development Environmental Guidelines. Thus, no further environmental review is necessary at this time.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The American Rescue Plan (ARP) provided $5 billion nationally to assist individuals or 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 across the country. These grant funds are administered through the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME). As an entitlement jurisdiction for a fiscal year 2021 HOME program allocation, the City of Chula Vista (City) was eligible to receive an additional HOME-ARP grant allocation for the fiscal year 2021 program year. Using the same HOME Program allocation formula HUD has determined that the City receiv ed an allocation of $3,139,777. Since then, the City was notified in June 2025 t hat there had been an error in the entitlement amount and it should have been $3,144,480, an increase of $4,703 from the initial allocation.
The use of HOME -ARP funds is critical for Chula Vista at a time when the need for affordable housing and housing assistance is greater than ever. The City currently has an annual population growth of 1.1 percent, and is expected to increase by 17.4 percent by 2050 , per SANDAG’s 2025 Regional Growth Forecast with Sustainable Communities Land Use Pattern . This rapid growth brings added pressure to existing housing challenges and homelessness within the City. The City has committed the existing HOME-ARP funds towards the development of permanent supportive housing through a p revious Council item on June 11, 2024 . A Request for Proposals was issued, as outlined in the HOME -ARP plan, and the funds were awarded to Wakeland, an organization developing 95 affordable units restricted to households at 60% of Area Median Income. The HOME -ARP allocation is being leveraged with additional Federal and Local funds to ensure project success.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
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CURRENT-YEAR FISCAL IMPACT
There are no current year f iscal impacts to the General Fund as a result of this action. The differences in original and amended funding are outlined below. This action will increase the fiscal year 2025-26 budget of the Federal Grants Fund for a total HOME-ARP Program by $4,703.
Category Original Allocation Amended Allocation
Administration $470,966.55 $471,672
Program $2,668,810.45 $2,672,808
Total $3,139,777 $3,144,480
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as all costs associated with the administration of the HOME-ARP program are covered by the grant.
ATTACHMENTS
1. Amended HOME-ARP Plan
Staff Contact: Dania Gonzalez, Principal Management Analyst Stacey Kurz, Housing and Homeless Services Director