City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0349
REQUEST FOR CITY COUNCIL ACTION
DATE: 05/04/2022
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
SUBJECT:
Public Hearing for City Council consideration of the Allocation Plan for Community HOME Investment Partnerships American Rescue Plan funds.
EXECUTIVE SUMMARY:
The HOME American Rescue Plan Act funds are one-time monies provided to participating jurisdictions by the United States Department of Housing and Urban Development in furtherance of pandemic relief efforts. As a participating jurisdiction, the City of Corona has been allocated $1,799,854. To receive the funds, an Allocation Plan must be prepared with funding recommendations and the plan must be made available to the public prior to holding a public hearing. Having met all HUD planning requirements, the public hearing on the HOME-ARP Allocation Plan is scheduled, at which time the City Council will vote on the funding recommendations. The City’s HOME-ARP Allocation Plan will then be sent to the Department of Housing and Urban Development for approval.
RECOMMENDED ACTION:
That the City Council:
a. Approve the HOME-ARP Allocation Plan and authorize the City Manager, or his designee, to submit this document and any necessary amendments to the United States Department of Housing and Urban Development (HUD).
b. Authorize a one-time appropriation in the amount of $1,799,854 within the HOME Investment Partnership Program Fund 432 for the HOME-ARP Allocation Plan. c. Authorize the City Manager, or his designee, to prepare and process all necessary budgetary transactions to receive the funds included in the HOME-ARP Allocation Plan. d. Authorize the City Manager, or his designee, to negotiate, execute, and amend contracts with City of Corona Page 1 of 4 Printed on 4/27/2022
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File #: 22-0349
d. Authorize the City Manager, or his designee, to negotiate, execute, and amend contracts with sub-recipients, developers, contractors, or professional service providers as necessary to implement the HOME-ARP Allocation Plan using funds identified in the HOME-ARP Allocation Plan.
BACKGROUND & HISTORY:
The City of Corona received a one-time allocation of $1,799,854 of HOME-American Rescue Plan Act (HOME-ARP) funding from the United States Department of Housing and Urban Development (HUD).
In order to receive the HOME-ARP allocation, the City developed the draft HOME-ARP Allocation Plan that will become part of the City’s FY2021 HUD Annual Action Plan by substantial amendment, as required by HUD.
HUD required the City to engage in consultation with stakeholders and the public. Outreach efforts included direct communication and collaboration with the City’s Homeless Program Coordinator, and the network of Riverside County homeless service providers, inclusive of the Continuum of Care, County Housing Authority, and service providers of fair housing, domestic violence, veterans, behavioral health, etc. To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, staff and LDM Associates, the City’s HOME-ARP consultant, hosted a virtual consultation session, surveyed stakeholders, and made the draft HOME-ARP Allocation Plan available for a 15-day public comment period, and a public hearing.
ANALYSIS:
The City of Corona is a participating jurisdiction for HOME Investment Partnerships (HOME) funds through HUD. Accordingly, the City was awarded a one-time $1,799,854 grant of HOME-American Rescue Plan Act (HOME-ARP) funding pursuant to the American Rescue Plan Act of 2021 (ARPA).
As a prerequisite for receiving the HOME-ARP allocation, the City is required to submit a HOME-ARP Allocation Plan that includes: 1) a summary of the consultation process and the results of consultation; 2) a summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reason why; 3) a description of HOME-ARP qualifying populations within the jurisdiction; 4) an assessment of unmet needs of each qualifying population; 5) an assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system; and 6) a summary of planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations.
ARPA defines qualifying individuals or families, including Veterans, as: 1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act; 2) at risk of homelessness, as defined in section 401 of the McKinney-Vento Homeless Assistance Act; 3) fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR
5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and 4) part of other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would prevent a family’s homelessness or serve those with the greatest risk of housing instability.
Under the law, HOME-ARP funds may be used by the City of Corona to benefit qualifying populations City of Corona Page 2 of 4 Printed on 4/27/2022
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File #: 22-0349
through the following program types:
1. Tenant-based Rental Assistance (TBRA);
2. Development and support of affordable housing;
3. Provision of supportive services;
4. Acquisition and development of non-congregate shelter;
5. Nonprofit capacity building and operating assistance; and
6. Program planning and administration.
City HOME-ARP projects considered for Funding Recommendation Through analysis of data and consultation with stakeholders, staff’s recommendation for the highest and best use of this allocation to assist individuals and families, is to allocate the funds to the development of affordable housing.
After consultation, staff identified an eligible affordable housing development project that is planned to include permanent supportive housing units on 4.82 acres owned by the Corona Housing Authority located at the southwest corner of Buena Vista Avenue and Second Street (APNs 118-270-002 & 118 -270-003). The City previously assembled land for the project and has informally discussed the structures to be built. A highly qualified developer was identified through an RFP process to develop the project. The planned project anticipates making at least 25 permanent supportive housing units available to households at or below 30 percent of the area median income (AMI) and at least 109 affordable housing units available to households ranging from at or below 30 percent AMI to at or below 70 percent AMI. The HOME-ARP funds would fill a gap in project funding, ensuring that the permanent supportive housing is built.
Permanent supportive housing is an evidence-based housing intervention that combines on-going rental assistance with supportive services such as health and mental health care for chronically homeless households. Accordingly, the identified use of HOME-ARP funds resulting from the analysis and consultation conducted to prepare the HOME-ARP Allocation Plan will serve individuals or families, including Veterans, that are homeless. This allocation of HOME-ARP funds will be used for the construction of a portion of the project as outlined below.
Proposed Uses of HOME-ARP Funding Amount
Requested
Affordable Rental Housing (permanent supportive housing portion) $1,529,875 Administration and Planning $269,979
Total HOME-ARP Funding Available $1,799,854
Staff recommends that $1,529,875 of the HOME-ARP allocation be allocated to the development of affordable housing units and permanent supportive housing units on 4.82 acres owned by the Corona Housing Authority located at the southwest corner of Buena Vista Avenue and Second Street (APNs 118-270-002 & 118-270-003). In addition, staff recommends that $269,979 (15 percent of funds as allowed by HOME-ARP guidelines) are allocated to administration and planning activities to City of Corona Page 3 of 4 Printed on 4/27/2022
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File #: 22-0349
be carried out by the Community Services Department, Community Assistance Division.
FINANCIAL IMPACT:
Approval of the recommended actions will result in an appropriation in the amount of $1,799,854 within the HOME Investment Partnership Program Fund 432. HOME-ARP funds will be appropriated into separate CIPs as follows:
a. Affordable Rental Housing (PSH) - $1,529,875
b. HOME ARP Administration & Planning - $269,979
Fund 07/01/21 Est.
Fund Balance
Budgeted
Revenues/
Sources
Budgeted
Expenditures/
Uses
Fund Balance
Impacts
06/30/22 Est.
Fund Balance
HOME Fund 432 $3,041,845 $446,500 ($480,801) Appropriation ($1,799,854)
$1,207,690
ENVIRONMENTAL ANALYSIS:
The creation of required plans and the allocation of CDBG and HOME funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969, as amended. Additionally, these activities are not considered to be a “project” under the California Environmental Quality Act.
PREPARED BY: CYNTHIA LARA, COMMUNITY ASSISTANCE MANAGER & SARA
FARRAR, LDM CONSULTANT
REVIEWED BY: ANNE K. TURNER, COMMUNITY SERVICES DIRECTOR Attachments:
1. Exhibit 1 - Draft HOME-ARP Allocation Plan.
City of Corona Page 4 of 4 Printed on 4/27/2022
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