Costa Mesa City Council
May 2, 2023

DRAFT

FY 2023-2024
Annual Action Plan
3/31/23
ATTACHMENT 3ATT
1 Annual Action Plan 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
Contents
Executive Summary ....................................................................................................................................... 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 3 PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 6 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 7 AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 15 Expected Resources .................................................................................................................................... 18 AP-15 Expected Resources – 91.220(c)(1,2) ........................................................................................... 18 Annual Goals and Objectives ...................................................................................................................... 22 Projects ................................................................................................................................................... 24 AP-35 Projects – 91.220(d) ..................................................................................................................... 24 AP-38 Project Summary .......................................................................................................................... 24 AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 29 Affordable Housing ..................................................................................................................................... 30 AP-55 Affordable Housing – 91.220(g) ................................................................................................... 30 AP-60 Public Housing – 91.220(h) ........................................................................................................... 31 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 32 AP-75 Barriers to affordable housing – 91.220(j) ................................................................................... 35 AP-85 Other Actions – 91.220(k) ............................................................................................................ 37 Program Specific Requirements .................................................................................................................. 40

ATTACHMENTS
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Annual Action Plan

3 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Costa Mesa is a recipient of federal Community Development Block Grant (CDBG) and Home Investment Partnerships Grant (HOME) funds; these funds are awarded to the City by the U.S.

Department of Housing and Urban Development (HUD). As a recipient of CDBG and HOME funds, the City must prepare a five-year strategic plan known as the Consolidated Plan. The Consolidated Plan identifies and prioritizes housing and community needs and establishes five-year goals and objectives to address identified needs. The City's current Consolidated Plan was approved by the City Council on May 19, 2020 and covers Fiscal Year 2020-2021 through Fiscal Year 2024-2025.

The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the goals and objectives identified in the City's 2020-2024 Consolidated Plan with the planned annual expenditure of CDBG and HOME funds over the next twelve months. The period covered by the 2023- 2024 Annual Action Plan begins July 1, 2023, and ends June 30, 2024. The City refers to this time frame as a Fiscal Year (FY).

The City will receive an allocation of $1,010,506 in CDBG funds and $509,260 in HOME funds for FY 2023-2024. Additionally, $78,797 in prior year uncommitted CDBG funds, a possible $600,000 in re- programmed CDBG funds and $40,000 in HOME Program Income (PI) funds are available for programming. Program income is generated by the repayment of prior funded housing rehabilitation loans and is available to fund eligible activities. The City will use CDBG resources to fund capital improvements (e.g., public facilities or street improvements), code enforcement, social services, and program administration. HOME resources will be used to fund owner-occupied housing rehabilitation, affordable rental housing (CHDO), Tenant Based Rental Assistance (TBRA) and program administration.

2. Summarize the objectives and outcomes identified in the Plan Based on an analysis of housing and community needs, market analysis, and input from the community, the following five-year goals and priorities have been identified for implementation in the 2020-2024 Consolidated Plan:
• Goal 1: Housing Preservation - To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation
• Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the living environment through improvements to public infrastructures and facilities DRAFT
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• Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for those experiencing homelessness and near homelessness
• Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and those with special needs, including fair housing services • Goal 5: Program Administration - To provide administration of the CDBG and HOME programs, ensuring effective and delivery of programs and services and complying with all HUD program requirements
Activities funded with CDBG and HOME funds will address the goals and objectives identified in the City's Consolidated Plan.

3. Evaluation of past performance
FY 2022-2023 (the current fiscal year) is the third year of the City's 2020-2024 Consolidated Plan cycle; year-end program accomplishments are not available at this time; however, one-year accomplishment data for FY 2021-2022 is available. This information is provided in table format as Attachment 1.

4. Summary of Citizen Participation Process and consultation process For the preparation of the 2023-2024 Annual Action Plan, the following opportunities for public participation were taken:
• Ad-hoc Housing and Public Services Grant Committee public meeting to receive input regarding public service needs and to prioritize funding for FY 2023-2024 public service grants (March 15, 2023)
• Public Notice – 30-day comment period and public hearing • Public Hearing – City Council Public Hearing to receive additional public input and to approve the FY 2023-2024 Annual Action Plan (May 2, 2023).
• A Housing Affordability Survey was advertised via City social media outlets, at the Community Senior Center during grocery pick-up, in the Community Senior Center newsletter, through NHS Outreach workers and at the Fair Housing Workshop for Spanish Speakers held on on March 23rd, 2023.
.

Summary of public comments
See Attachment 2.

6. Summary of comments or views not accepted and the reasons for not accepting them DRAFT
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See Attachment 2.

7. Summary
The Action Plan serves to implement the Consolidated Plan objectives which were developed to address priority housing and community needs using federal resources (i.e., CDBG and HOME). The Annual Action Plan provides specific information regarding the resources and activities the City will utilize to address priority needs and specific objectives identified in the Consolidated Plan during the 12 month Action Plan period. The 2023-2024 Action Plan begins July 1, 2023, and ends June 30, 2024. The Annual Plan will also serve as the City's application to HUD for $1,010,506 in CDBG and $509,260 in HOME funds for FY 2023-2024.

The Action Plan is also the expenditure plan for HUD grant funds, prior year grant funds, and anticipated program income resources.

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PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan CDBG Administrator COSTA MESA Housing & Community Dev/Development Services HOME Administrator COSTA MESA Housing & Community Dev/Development Services Table 1 – Responsible Agencies

Narrative (optional)
The City's Housing and Community Development (HCD) Division of the Development Services Department is primarily responsible for preparing the Consolidated Plan, Annual Action Plan, and for the administration of CDBG and HOME funds.

Consolidated Plan Public Contact Information
Mikelle Daily, Grant Administrator: 77 Fair Drive, Costa Mesa, CA 92628 (714) 754-5678 - [email protected]

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AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The Annual Action Plan preparation process requires jurisdictions to contact and consult with other public and private agencies and residents when developing respective plans. For the FY 2023-2024 Annual Action Plan, the City consulted with the public and private agencies listed below. Also listed below are the steps taken by the City to solicit the input of community residents.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Costa Mesa does not own or manage public housing. Similarly, the City does not administer the Housing Choice Voucher or Section 8 Certificate rental assistance programs, however, Costa Mesa has an executed MOU with the Orange County Housing Authority (OCHA) to participate in their Housing Choice Voucher (HCV) Set-Aside Program, which makes available HCV’s only for participating jurisdictions. Rental assistance voucher/certificate programs are administered in the City of Costa Mesa by OCHA. The City is a member of the OCHA Cities Advisory Committee, which provides OCHA staff with direct input regarding program policies.

The City's Network for Homeless Solutions (NHS) is a task force comprised of representatives of various City departments, nonprofit service agencies, and representatives of faith-based service providers. The main focus of the NHS is to find workable solutions to address the needs of those experiencing and at- risk of homelessness, especially those with close ties to Costa Mesa. Additionally, the City works closely with other Orange County HUD-grantee communities to develop regional plans and share program management data. The City also has a strong partnership with local behavioral health providers like Share Our Selves (SOS) and College Hospital, who participate in the City’s Network for Homeless Solutions and attend monthly NHS meetings.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

Since 2014, the Network for Homeless Solutions (NHS) has directly addressed homeless issues in Costa Mesa. As outlined above, the NHS is a working group of City staff, representatives of service providers, and faith-based organizations. The NHS is focused on establishing direct links to services for the homeless, especially those with strong ties to Costa Mesa, facilitating access to services and housing options. The NHS also serves as a liaison to the business community and resident groups.

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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not assist the OC CoC with determining ESG allocations, evaluating the outcomes, or developing policies and procedures for administering the regional Homeless Management Information System (HMIS).

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
1 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Phone Calls
Email Correspondence
Provided data regarding households receiving
HUD rental assistance and regarding
households on the waitlist for housing
assistance
2 Agency/Group/Organization City of Costa Mesa
Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Strategy
Non-Homeless Special Needs
Anti-poverty Strategy
Lead-based Paint Strategy
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Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Survey
Conference Calls
In Person Meetings
Zoom Meetings
Email Correspondence
Various City departments, commissions,
Housing & Public Service Grants committee and
City Council provided a variety of data and
information. Also played a key role in
identifying priorities and the allocation of HUD
funds
3 Agency/Group/Organization City of Santa Ana
Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Non-Housing Community Development
Strategy
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Phone Calls
Email Correspondence
This consultation provided the stakeholder an
opportunity to actively participate in the
planning effort. The City requested input
concerning the topics highlighted above from
this stakeholder
4 Agency/Group/Organization City of Garden Grove
Agency/Group/Organization Type Other government – Local What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Non-Housing Community Development
Strategy
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Phone Calls
Email Correspondence
This consultation provided the stakeholder an
opportunity to actively participate in the
planning effort. The City requested input
concerning the topics highlighted above from
this stakeholder
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5 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Service-Fair Housing; Nonprofit What section of the Plan was addressed by
Consultation?
Impediments to Fair Housing
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
In Person Meetings/Workshops
Phone Calls
Quarterly Reporting
Provided data regarding fair housing issues in
the community and input regarding
impediments to fair housing, and assisted in
developing action steps to address
impediments to fair housing
6 Agency/Group/Organization Mercy House Transitional Living Centers Agency/Group/Organization Type Services-homeless; Nonprofit What section of the Plan was addressed by
Consultation?
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Zoom Meetings
Phone Calls
Quarterly Reporting
Agency runs the City shelter and helped identify
needs and provided input regarding the those
experiencing homelessness and those at risk of
becoming homeless
7 Agency/Group/Organization Families Forward
Agency/Group/Organization Type Services-homeless; Nonprofit What section of the Plan was addressed by
Consultation?
Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
Zoom Meetings
Email Correspondence
Monthly & Quarterly Reporting
Agency helped identify needs and assisted with
the implementation of the City's homeless
service/housing strategy with a focus on
families with children experiencing
homelessness
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8 Agency/Group/Organization Project Hope Alliance
Agency/Group/Organization Type Services-Children; Nonprofit What section of the Plan was addressed by
Consultation?
Youth Services
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
In Person Meetings
Email Correspondence
Quarterly Reporting
Agency helped identify the needs of school-age
children and provided input on the gaps in
services for McKinney Vento youth and their
families
9 Agency/Group/Organization Trellis
Agency/Group/Organization Type Services - Elderly Persons; At-risk of Homelessness; Nonprofit
What section of the Plan was addressed by
Consultation?
Senior Services; At-Risk Services
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
In Person Meetings
Email Correspondence
Quarterly Reporting
Agency helped identify needs and provided
input regarding the City's seniors and low-
income residents, specifically low-income
tenants
10 Agency/Group/Organization Youth Employment Services
Agency/Group/Organization Type Services-Employment; Nonprofit What section of the Plan was addressed by
Consultation?
Economic Development
Youth Services
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
In Person Meetings
Email Correspondence
Quarterly Reporting
Agency helped identify needs and provided
input regarding the City's youth, specifically
employment needs/opportunities for youth age
16 to 24
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11 Agency/Group/Organization Community SeniorServ, Inc.

Agency/Group/Organization Type Services-Elderly Persons; Nonprofit What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Anti-poverty Strategy
Briefly describe how the
Agency/Group/Organization was consulted.

What are the anticipated outcomes of the
consultation or areas for improved
coordination?
In Person Meetings
Survey
Email Correspondence
Monthly & Quarterly Reporting
Agency helped identify needs and provided
input regarding the City's special needs
populations, specifically seniors and frail elderly
Table 2 – Agencies, groups, organizations who participated

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Identify any Agency Types not consulted and provide rationale for not consulting The City made an effort to have an open consultation process. No agency/service type was knowingly excluded from the process.

Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Development Services Department, Housing and Community Development Division at 714-754-5678 or at [email protected].

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Orange County 211
Provides regional and local point in time homeless survey data, development of the regional 10-Year Plan to End Homelessness, and development of the regional Discharge Plan
City of Costa Mesa
Housing Element City of Costa Mesa Provides housing priorities and program goals City of Costa Mesa Capital
Improvement Plan City of Costa Mesa Identifies priority capital improvement projects which may be CDBG-eligible 5-Yr. & 1-Yr. PHA Plan Orange County Housing
Authority
Identifies OCHA resources to address the housing needs of lower-income renter householders in the County and City
Analysis of Impediments
to Fair Housing
Orange County HUD Grantee
Cities and the County of Orange
Countywide document that identifies fair housing impediments within participating cities and outlines a plan to address fair housing issues Table 3 – Other local / regional / federal planning efforts

Narrative (optional)
The City has a monthly NHS meeting with City staff, representatives of service providers and nonprofit organizations, faith-based organizations and formerly homeless residents to discuss the City’s need, approach and strategy for outreach and support of individuals experiencing or at-risk of homelessness. The Housing & Community Development Division works with subrecipients of CDBG and HOME funds to ensure a coordinated effort among service agencies in the City to address the needs of Costa Mesa residents, including chronically homeless individuals, at-risk families with children, seniors, veterans, unaccompanied youth, and persons who were recently homeless, but now live in permanent housing.

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To promote economic opportunities for low-income residents, the City partners with subrecipient nonprofit organizations providing career planning and job training for at-risk youth. Additionally, the City ensures that information is disseminated through appropriate channels to connect job opportunities for low-income individuals with HUD-assisted projects consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.

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AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

The City of Costa Mesa’s Housing and Public Service Grants Ad Hoc Committee meets twice a year with further meetings scheduled on an as- needed basis to help promote community understanding of the activities funded by the U.S. Housing and Urban Development Department (HUD) and Community Development Block Grants (CDBG) with a focus on social service grants. Every March, members of the Committee hear presentations from several nonprofit organizations to determine which will receive CDBG funds in the upcoming fiscal year. Their recommendations are then presented to the City Council. During the March meeting, nonprofit organizations provide information about the services they provide and the gaps in services that exist for Costa Mesa low-income residents and those experiencing homelessness in Costa Mesa. The Housing and Public Service Grants Committee meeting is a public meeting where citizen participation is encouraged during public comment. Members of the public have a second opportunity to participate in the planning process during the Public Hearing at City Council or by providing comment on the posted Draft Annual Action Plan during the 30-day comment period prior to the Public Hearing. Efforts made to broaden citizen participation this year included three Public Hearings held for the HOME-ARP allocation plan, which informed the goal-setting for the Annual Action Plan, a Fair Housing workshop presented in Spanish and promoted by local community leaders, and a survey on rental housing affordability in the City.

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Citizen Participation Outreach
Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
1 Public
Meeting
Non-
targeted/broa
d community
Housing and
Public Services
Grant
Committee - 5
committee
members in
attendance,
discussed
priority public
service needs
(3/15/23)
11 representatives
of nonprofit
organizations
spoke in
support of
grant
applications
submitted for
CDBG funding
None NA
2 Newspaper Ad
Non-English
Speaking -
Specify other
language:

Spanish

Non-
targeted/broa
d community
30-day public
comment period
(4/2/23-5/2/23)

TBD NA NA
3 Public Hearing
Non-
targeted/broa
d community
5/2/23 Regular
City Council
Meeting

TBD NA NA
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Sort Or
der
Mode of Outr
each
Target of Outr
each
Summary of
response/attend
ance
Summary of
comments rece
ived
Summary of com
ments not
accepted
and reasons
URL (If applicable)
4 Internet
Outreach and
flyers
distributed
Non-
targeted/broa
d community
Non-English
Speaking -
Specify other
language:

Spanish

39 surveys
received to date TBD NA
https://www.surveymonkey.com/r/
JN3QZ7B
https://www.surveymonkey.com/r/
HVS9MHR

Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City will receive an allocation of $1,010,737 in CDBG funds and $509,260 in HOME funds for FY 2023-2024. Additionally, $78,797 in prior year uncommitted CDBG funds, a possible $600,000 in re-programmed CDBG funds and $40,000 in HOME Program Income (PI) funds are available for programming. The possible $600,000 in re-programmed CDBG funds would be a reallocation of funds from the Westside Residential Street Improvements Project as listed in the FY 2022-2023 Annual Action plan due to the potential for an alternative grant funding source to be identified during the Action Plan preparation process. If re-programmed, the funds would be allocated toward Infrastructure and Facility Improvements consistent with the Consolidated Plan. Eligible improvements include:
- Public Facilities
o accessibility & facility improvements
- Park Facility Improvements
o Park improvements – various parks in CDBG eligible areas; equipment replacement, fencing, signage, trail restoration o Park expansion/development – various parks in CDBG eligible areas; master plan updates; management and restoration plans - Homeless Shelter Improvements
- Community Center Improvements
- Fire station Improvements
- Library Improvements
- Other public facilities that serve special needs populations The activity (facility improvement) will be listed in the final Annual Action Plan following the public comment period and the City Council Public Hearing. The final Annual Action Plan will be submitted to HUD. The City's application for funds is in the federal Standard Form 424 (SF-424).

Fluctuations in CDBG and HOME funding make it difficult to estimate the amount available over the five years of the Consolidated Plan.

Anticipated funds that may be available to implement the Consolidated Plan are remaining one-time CDBG-CV funds to prepare, prevent or DRAFT
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respond to the impacts of the Coronavirus; one-time HOME-ARP funds, Housing Authority (former redevelopment successor agency) funds, the general fund for the homeless shelter, and housing voucher/certificate resources via OCHA.

Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public
Improvements
Public Services
$1,010,737 0 $678,797 $1,689,303 1,000,000
Remainder estimate is
based on an annual
allocation of $1,000,000.

HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner rehab
Multifamily rental
new construction
Multifamily rental
rehab
New construction
for ownership
TBRA
$509,260 $40,000 $549,260 500,000
Remainder estimate is
based on an annual
allocation of $500,000.

Table 5 - Expected Resources – Priority Table
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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
For the foreseeable future, the City will continue to allocate General Fund and the local Housing Authority (as the City's Successor Agency) resources for homeless services. Additionally, the City has a partnership with Newport Beach to support the ongoing operations of the Bridge Shelter that was previously vacant warehouse in 2019. Primarily CDBG funding was used for the rehabilitation of the warehouse in 2019.

The City also has a small CalHome owner-occupied housing rehabilitation loan program. CalHome-funded rehab loans are leveraged with HOME funds, which provides a source of match for the City's HOME program. If available, the City will use CalHome to fund rehab loans during FY 2023- 2024. The CDBG program does not have a match requirement.

Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG and HOME funds to leverage appropriate state, local and private resources. An example of such a project is the Motel 6 Housing Project, a conversion from a 94 guest room motel into 88 units of permanent affordable housing for veterans, senior citizens and other individuals previously experiencing homelessness.

The project includes State funding from the California Department of Housing and Community Development (HCD) Homekey Program, VASH Vouchers and LMIHAF funds from OCHA, MHSA funds from Orange County, and American Rescue Plan Act (ARPA) funds from the City in addition to City HOME funding. The City closed on financing for this 88-unit Permanent Supportive Housing Project during FY 2022-2023. This project and similar projects provide additional sources of match for the City’s HOME program.

The final Action Plan containing the final adjusted funding allocations per City Council on May 2, 2023 to projects and activities will be posted at Housing and Community Development | City of Costa Mesa (costamesaca.gov) If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
Costa Mesa is considered a built-out community with little vacant land available for new development. The City has begun to recycle land to accommodate growth. The City's Housing Element identifies City-owned and State-owned properties, and considers various options for the sites.

Development opportunities are identified in the Housing Element. The most recent Housing Element covers years 2021 through 2029 and includes updates to the development opportunities to address the needs identified in the Consolidated Plan. For example, the Housing Element DRAFT
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identifies the City’s Senior Center property as a potential opportunity for redevelopment to accommodate affordable housing units including for seniors. In addition, the Housing Element identifies the State’s Fairview Developmental Center site as a potential housing opportunity site. In December 2022, an agreement between the City and the State was signed which provided $3.5 Million in State funds to the City for land use planning and zoning at the Fairview Developmental site focused on accommodating housing for households at all income levels, including permanent supportive housing.

In 2019, the City utilized over $6,000,000 in non-HUD funds to purchase a property that has been rehabilitated to provide 50 to 100 emergency shelter beds for adult men and women experiencing homelessness. The addition of these shelter beds help address priority needs identified in the City's Consolidated Plan.

Discussion
Funding resources to implement the City's 2023-2024 Annual Action Plan are limited. For FY 2023-2024, the City will receive an allocation of $1,010,737 in CDBG funds and $509,260 in HOME funds. Prior year funds for CDBG and HOME are also available. HOME housing rehabilitation loan repayments have provided the City with additional funding in the past; however, this source of revenue is susceptible to the fluctuations of the economy and is unpredictable.

The City will continue to support OCHA's efforts to secure new rental assistance resources and provide HOME funded tenant based rental assistance as long as funding is available. For the foreseeable future the City will continue to support homeless service programs serving individuals with strong ties to Costa Mesa with local funds. City, State and funds from Newport Beach will be used to operate the homeless shelter.

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Annual Goals and Objectives

AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Housing
Preservation
2020 2024 Affordable
Housing
Citywide Housing
Preservation
HOME:
$337,104
CDBG:
$410,000
Homeowner Housing Rehabilitated:
11 Housing Units
Housing Code
Enforcement/Foreclosed Property
Care: 200 Housing Units
Rental unit acquisition/ rehabilitated:
1 Household Housing Unit
2 Infrastructure and
Facility
Improvements
2020 2024 Non-Housing
Community
Development
Citywide
CDBG
Eligible
Areas
Public Facilities
and
Infrastructure
CDBG:
$925,627
Public Facility or Infrastructure
Activities other than Low/Moderate
Income Housing Benefit: 5,000
Persons Assisted
3 Homeless
Continuum of
Care
2020 2024 Homeless Citywide Homeless
Services and
Housing
HOME:
$150,000
CDBG:
$15,000
Tenant Based Rental Assistance: 5
Households
Homeless service activities as Public
Services: 44 Persons Assisted
Homeless Persons Overnight Shelter:
0 Persons Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
4 Public Social
Services
2020 2024 Non-Homeless
Special Needs
Citywide Public Services CDBG:
$136,575
Public service activities other than
Low/Moderate Income Housing
Benefit including Fair Housing: 800
Persons Assisted
5 Program
Administration
2020 2024 Program
Administration
Citywide Program
Administration
CDBG:
$202,101
HOME:
$50,926
N/A

Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Housing Preservation
Goal Description To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation 2 Goal Name Infrastructure and Facility Improvements
Goal Description To enhance the suitability of the living environment through improvements to public infrastructures and facilities 3 Goal Name Homeless Continuum of Care
Goal Description To provide supportive services and housing assistance for the homeless and near homeless 4 Goal Name Public Social Services
Goal Description To provide services for low- and moderate-income persons and those with special needs 5 Goal Name Program Administration
Goal Description To provide administration of the CDBG and HOME programs, including fair housing services and ensuring effective and efficient delivery of programs and services and complying with all HUD program requirements

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Projects
AP-35 Projects – 91.220(d)
Introduction

Projects
# Project Name
1 CDBG Administration
2 CDBG Fair Housing
3 CDBG Housing Rehabilitation Administration
4 CDBG Public Services
5 CDBG Special Housing Code Enforcement
6 CDBG Capital Improvement Projects
7 HOME Administration
8 HOME Affordable Housing (CHDO)
9 HOME Housing Rehabilitation
10 HOME TBRA
Table 7 - Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City recognizes that special needs populations (i.e., seniors, disabled, and households with extremely low-income) are more likely at risk to become homeless because they have limited incomes and have other issues that require housing and supportive services; therefore, the City considers services for those already homeless a high need to merit funding. The City is allocating 100 percent of its non-administrative CDBG and HOME funds for FY 2023-2024 to projects and activities that benefit low- and moderate- income people throughout the City.

The primary obstacles to meeting the underserved needs of low- and moderate- income residents include a lack of funding from federal, state and local sources, and the high cost of housing combined with the low vacancy rate in Costa Mesa and throughout Orange County.

AP-38 Project Summary
Project Summary Information
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1 Project Name CDBG Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Planning and Administration
Funding CDBG: $182,101
Description CDBG Program oversight
Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities Program oversight and coordination
2 Project Name CDBG Fair Housing
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $20,000
Description Fair housing outreach, education and enforcement services Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
186 individuals
Location Description Citywide
Planned Activities Community outreach, education, and enforcement of fair housing laws
3 Project Name CDBG Housing Rehabilitation Administration Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $50,000
Description CDBG funds staff costs associated with the direct delivery of owner- occupied housing rehabilitation loans and grants
Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A – The number of households to be assisted is accounted for under the HOME program – this activity is to pay for a portion of the administrative expenses associated with the HOME-funded Housing Rehabilitation Program
Location Description Citywide
Planned Activities Staff costs associated with the delivery of housing rehabilitation loans and grants

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4 Project Name CDBG Public Services
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding $151,575

Description
Provide public services designed to affirmatively further fair housing choice and provide youth, seniors and low-income families with services such as food, case management, educational and employment activities. Provide public services for with special needs and services for seniors so elderly residents can live as independently as possible.

Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
800 individuals
Location Description Citywide

Planned Activities
Public Services
(City Program and Nonprofits providing public services to be listed here after Council approval in the final draft of the Annual Action Plan)
5 Project Name CDBG Special Housing Code Enforcement
Target Area CDBG Eligible Areas
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $360,000
Description Enforcement of housing and building codes and connecting residents with housing-related resources
Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
200 housing units
Location Description 77 Fair Drive, Costa Mesa, CA – City Hall

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6 Project Name CDBG Capital Improvements Project
Target Area CDBG Target Area
Goals Supported Infrastructure and facility Improvements Needs Addressed Improve public facilities and infrastructure Funding $925,627

Description
Improve public facilities and infrastructure to benefit low- and moderate- income residents or those presumed under HUD
regulations to be low- and moderate- income such as the elderly and disabled adults. This includes facilities owned and operated by the City of Costa Mesa that are open and available to residents as well as facilities owned and operated by nonprofit organizations serving the public that are open to the public during normal business hours.

Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
TBD
Location Description Citywide

Planned Activities
Rehabilitation of public facilities and/or infrastructure.

Project TBD in final Annual Action Plan
Eligible planned projects are listed in the 2020-2024 Consolidated Plan
7 Project Name HOME Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Planning and Administration
Funding HOME: $50,926
Description HOME funds for program oversight and coordination Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa, CA
Planned Activities HOME Program oversight and coordination

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8 Project Name HOME Affordable Housing (CHDO)
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $76,389
Description HOME-CHDO funds reserved for eligible housing project (to be determined)
Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
1 housing unit – Goal entered for data input purposes only Location Description TBD
Planned Activities TBD
9 Project Name HOME Housing Rehabilitation
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $271,945
Description HOME funds for owner-occupied housing rehabilitation loans and grants.

Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
11 low- and moderate- income homeowners (1 loan and 10 grants) Location Description Citywide
Planned Activities Housing rehabilitation loans and grants to address deferred property improvements and building code deficiencies
10 Program Name HOME Tenant Based Rental Assistance (TBRA) Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding HOME: $150,000

Description
The City will use HOME funds for tenant based rental assistance to assist low-income residents with rental assistance to make renting more affordable.

Target Date 6/30/24
Estimate the number and
type of families that will
benefit from the
proposed activities
5 households
Location Description Citywide
Planned Activities HOME funds will be used to provide tenant-based rental subsidies.

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Geographic Distribution
Target Area Percentage of Funds
Citywide 68
CDBG Eligible Areas 32
Table 8 - Geographic Distribution

Rationale for the priorities for allocating investments geographically HUD funding will primarily be allocated on a citywide basis as the City's primary intent is to serve eligible Costa Mesa households in need of housing and services regardless of where they live. As the City's CDBG-eligible areas tend to be older sections of the City, area-wide activities will help to improve and sustain these neighborhoods and encourage property owners to also invest in their properties.

Discussion
As indicated above, CDBG and HOME funds will be focused on programs that serve eligible residents regardless of where they live. It is also expected that the City's investment in neighborhoods will create a synergy whereby other property owners will also invest in their homes and community.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
During FY 2023-2024, proposed activities to be funded with CDBG and HOME funds will meet the housing needs of the following households
One Year Goals for the Number of Households to be Supported Homeless 4
Non-Homeless 11
Special-Needs 0
Total 15
Table 9 - One Year Goals for Affordable Housing by Support Requirement

One Year Goals for the Number of Households Supported Through Rental Assistance 5
The Production of New Units 0
Rehab of Existing Units 11
Acquisition of Existing Units 0
Total 16
Table 10 - One Year Goals for Affordable Housing by Support Type

Discussion
The City will focus FY 2023-2024 HOME funds on the rehabilitation of existing owner-occupied housing units, TBRA and affordable housing. While not the program's primary focus, some special-needs households (seniors and disabled) may be assisted during the year via the City's Housing Rehabilitation Program.

Since 2020, the City has allocated nearly $1.8M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs. It is anticipated that OCHA will continue to provide rental assistance to approximately 570 Costa Mesa renter households during FY 2023-2024.

In an effort to preserve and increase affordable housing opportunities for lower income households, the City solicited applications in FY 2022-2023 for funding and/or selecting developers by issuing a Request for Proposal (RFP) for the development of permanent affordable rental housing in the City using HOME Program funds. The RFP included program income and prior year uncommitted HOME program funds.

The City recently closed financing on an 88-unit Permanent Supportive Housing project and is worked with another developer to complete an 8-unit affordable housing project for households with minor children using a separate funding source.

FY 2023-2024 HOME CHDO funds are included in the Annual Action Plan for Affordable Housing projects; however, no specific project has been identified at this time.

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AP-60 Public Housing – 91.220(h)
Introduction
Costa Mesa does not own or manage public housing.

Actions planned during the next year to address the needs to public housing Not applicable.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.

Discussion
Not applicable.

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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
As outlined in the 2020-2024 Consolidated Plan, the City's homeless strategy is to support programs that prevent homelessness by providing safety net services. These programs will help households, especially extremely low-income households, maximize the amount of income they have available for housing.

Additionally, both HUD and City resources will be allocated to provide access to a continuum of services and housing to assist those experiencing homelessness and with strong ties to the community.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Costa Mesa Network for Homeless Solutions (NHS) is an eight person team of outreach workers who meet people where they are to forge genuine relationships, get people connected to services, and, ultimately, facilitate their transition into permanent housing. Partnering agencies are CityNet, PATH (Orange County North and Central Service Planning Area (SPA) contracted outreach provider, Save Our Selves (SOS), Lighthouse Church, Mercy House, Trellis, Chrysalis, Project Hope Alliance, Meals on Wheels OC, Families Forward, Serving People In Need (SPIN), and Someone Cares Soup Kitchen. The City has been and continues to use one-time CDBG-CV funds to respond to the increased outreach needs of those experiencing or at-risk of homelessness due to the impacts of the Coronavirus pandemic.

Addressing the emergency shelter and transitional housing needs of homeless persons The City owns and operates a 70-bed emergency shelter. The facility is funded in partnership with the City of Newport Beach. Mercy House, a nonprofit organization, is the Shelter Operator and Bracken’s Kitchen, a nonprofit organization, operates the full-service commercial kitchen. Shelter partners are Mercy House, Bracken’s Kitchen, Trellis, Orange County Housing Authority (OCHA), Santa Ana Housing Authority (SAHA), Anaheim Housing Authority (AHA) and Garden Grove Housing Authority (GGHA). The City utilized CDBG funds to repurpose a warehouse into the shelter facility in 2019 and CDBG public service funds have been applied to a portion of the security costs at the shelter. Since that time, the Bridge Shelter has assisted over 350 individuals with emergency shelter and associated services.

No FY 2023-2024 CDBG funding is allocated for transitional housing, however, CDBG funding is allocated for supportive services of families receiving transitional housing services through Families Forward.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that DRAFT

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individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The Network for Homeless Solutions (NHS) includes an eight-person team of Outreach Workers, a 70- bed emergency shelter, and the provision of affordable/supportive housing. Each one of these components seeks to engage with those experiencing homelessness to ensure full access to all available resources and a smooth transition into permanent housing. This constant engagement shortens one’s length of homelessness and ensures those that have secured permanent housing are able to thrive in their new environments. Since April 2019, the City of Costa Mesa has assisted 275 formerly homeless people to secure permanent housing. Additionally, the City utilizes HOME funds to provide tenant based rental assistance to low and very-low income households both experiencing and at-risk of homelessness.

The City is committed to increasing access to affordable housing units through advocacy for and development of affordable and supportive housing units. The City recently closed financing on an 88- unit Permanent Supportive Housing project and worked with another developer to complete an 8-unit affordable housing project for households with minor children. The City’s COC partners include Mercy House, Families Forward, Illumination Foundation, Jamboree Housing, Trellis, CityNet, SPIN, Orange County Office of Care Coordination, Orange County Housing and Community Development, HUD, State HCD, and Orange County Housing Finance Trust.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City's homeless strategy is based on the proposition that it is less expensive and disruptive for a household to remain housed in their existing home than to be rehoused. To this end, the City will focus its resources on agencies that provide various safety-net services to prevent households from becoming homeless. The City will support programs that provide low-cost meals, counseling, and employment/job skills development services for lower-income individuals. Safety-net services allow households to save a portion of income previously spent on food, clothes, etc. and preserve their housing. Additionally, the City implemented a pilot TBRA program in 2021 and released an RFP 2023 to remove the “pilot” status from the program and continue to provide HOME funded rental assistance and/or security deposit assistance to low-income City residents that are severely rent burdened and at-risk of homelessness.

The City has also used and continues to use (until funds are expended) CDBG-CV and ARPA funds to provide emergency rental assistance to low-income residents facing financial hardships as a result of the Coronavirus pandemic and its subsequent impact to the economy. Since 2020, the City has allocated DRAFT

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nearly $1.8M to provide rapid rehousing and homelessness prevention services through City-wide rental assistance programs.

Discussion
The City has a well-developed strategy to address homelessness in the community. This strategy includes outreach and assessment services for homeless and chronic homeless individuals. Program staff will attempt to link individuals to appropriate housing, support services, and public assistance programs (e.g., VA benefits, SSI). To undertake this effort, the City partners with local nonprofit service providers and community-based volunteers. Based on assessments, individuals or households are referred to appropriate housing/service providers. City staff will coordinate the delivery of services and housing with providers to reduce the number of homeless individuals in the community. Both HUD and City funds will be used to carry out these activities, including outreach, emergency shelter, and the provision of affordable and supportive housing.

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AP-75 Barriers to affordable housing – 91.220(j)
Introduction
A strategy to address barriers to affordable housing and actions to overcome these barriers is provided in the City's Housing Element and Consolidated Plan. The current Housing Element covers the eight-year planning cycle of 2021-2029 and provides updated strategies to address barriers to affordable housing since the completion of the consolidated planning process. The City will continue efforts to address these barriers, incorporating the updated strategies, during the 2023-2024 Program Year.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
According to the City's Housing Element, governmental agencies' actions or policies can impact the private sector's ability to provide adequate housing to meet consumer demands. Local governments exercise regulatory and approval powers that directly impact residential development within their respective jurisdiction. These powers establish the location, intensity, and type of units that may or may not be developed. The City's General Plan, zoning regulations, project review and approval procedures, development, and processing fees all play important roles in determining the cost and availability of housing opportunities in Costa Mesa.
• Ge
neral Plan and Zoning: The Costa Mesa General Plan and Zoning Ordinance establish the location and amount of land allocated to residential development and the intensity of development (in terms of unit densities and the total number of units) that will be permitted.

Densities and other development standards can affect the cost of developing housing and thus the ultimate cost.
• Local Entitlement Processing and Fees: T
wo aspects of local government that have been
criticized as placing undue burdens on building affordable housing are the fees or other exactions required of developers to obtain project approval and the time delays caused by the review and approval process. Critics contend that lengthy review periods increase financial and carrying costs and that fees and exactions increase expenses. These costs are typically passed onto the prospective homebuyer in the form of higher purchase prices or higher rents in the case of tenants.
• Proce
ssing Procedures: The time required to process a project varies tremendously from one project to another and is directly related to the size and complexity of the proposal and the number of actions or approvals needed to complete the process. • Planning and D
evelopment Fees: The developer is required to pay certain fees for only the net increase of residential units on site. Fees, land dedications, or improvements are also required in public improvements (streets, sewers, and storm drains) to support the new development. Fees are based on the significance of the necessary public works improvements, thus vary from DRAFT

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project to project. While such costs are charged to the developer, most, if not all, additional costs are passed to the ultimate product consumer in the form of higher prices or rents. Various governmental agencies also charge fees depending on the service and the location of the project • On /Off -Site Improvement Standards: Costs associated with site improvements are an important component of new residential development costs. Site improvement costs are applied to provide sanitary sewer and water service to a project, make necessary transportation improvements, and provide the infrastructure. The City may require the payment for various offsite improvements as part of project mitigation measures (e.g., payment toward an offsite traffic signal). The City's on- and off-site improvement requirements are typical for urban development in a highly developed community. While these improvements add to housing costs, they do not constrain housing development as these improvements are similarly required in all surrounding communities.

If available, subsidies may also be provided for qualified, affordable housing projects (e.g., HOME funds).

Th
ere is no local tax.

Discussion:

The City's Housing Element outlines the City's plan to address barriers to affordable housing. The Consolidated Plan mirrors the Housing Element, which provides resources and incentives to developers willing to dedicate developed units for lower-income households.

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AP-85 Other Actions – 91.220(k)
Introduction:

As outlined in the City's Consolidated Plan, the City will implement the following actions during FY 2023- 2024 to address the "Other Actions" or sub-strategies identified in the Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs The City will allocate a portion of its CDBG and HOME funds for activities that address the housing and service needs of the elderly and lower-income households. Additionally, the City will encourage and support OCHA's efforts to obtain additional rental assistance funding, especially for senior and low- income households. OCHA reports that as of January 2023, 392 Costa Mesa households received rental housing assistance. (This total includes disabled households, elderly households, and families, among these populations are 11 homeless and 24 Veterans households). The City's housing rehabilitation program will also assist elderly homeowners in improving their residences to address specific household needs.

Actions planned to foster and maintain affordable housing The City of Costa Mesa has identified the actions it will undertake during FY 2023-2024 to foster and maintain affordable housing. The Annual Action Plan identified programs such as Owner-Occupied Housing Rehabilitation assistance as the means to maintain and improve housing currently available to low- and moderate-income residents. By providing deferred payment loans and grants, lower-income households can rehabilitation their residence to meet basic housing quality standards and incur zero or minimal additional housing costs. An estimated 11 housing units will be assisted with HOME funds during FY 2023-2024. Additionally, the City has allocated HOME CHDO funds to accommodate a potential housing project. The City recently closed financing on an 88-unit Permanent Supportive Housing project and worked with another developer to complete an 8-unit affordable housing project for households with minor children.

Actions planned to reduce lead-based paint hazards
Based on past housing rehabilitation program statistics, only a small percentage of housing units rehabilitated with City resources contain lead-paint hazards. To ensure compliance with all current HUD lead-based paint regulations, all housing units constructed before 1978, which are rehabilitated with City resources, will be tested for lead-paint hazards. If needed, additional grant funds may be allocated to a project to ensure all lead-based hazards are mitigated.

Actions planned to reduce the number of poverty-level families The City will assist programs and services that combat poverty. During FY 2023-2024, the City will fund DRAFT

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the following activities to support the implementation of this strategy:
• Implement housing programs (including housing rehabilitation assistance) for lower-income senior and disabled homeowners
• Support rental assistance programs provided by the OCHA for very low-income renters and provide tenant based rental assistance to residents who are severely housing burdened • Support services for individuals presently housed but at risk of losing their residence. Also, assist those already homeless in need of shelter and continue coordinating services with nonprofit partners
• Support safety-net public services programs to improve the quality of life for seniors, youth, disabled, homeless, and other populations that may be severely impacted by the cost of living in the region
Actions planned to develop institutional structure
The City has made an effort to establish an institutional structure to help identify and access resources to improve the community. For example, the City will continue to work with nonprofit entities to deliver public services. As a member of the Orange County Continuum of Care Community Forum, the City will provide critical information to the County of Orange to prepare the County's Continuum of Care Homeless Assistance grant application to HUD. Costa Mesa will also continue to fund activities that help address gaps and needs in the regional system of care. Finally, the City will continue to assist the Orange County Housing Authority in implementing its Five-year PHA plan.

Actions planned to enhance coordination between public and private housing and social service agencies
The City of Costa Mesa does not operate public housing. The Orange County Housing Authority provides rental assistance in the community. Federal legislation requires that the Housing Authority prepare a five-year and a one-year plan that highlights its mission, goals and objectives related to public and assisted housing programs. The City will review the Authority's plans and provide OCHA the opportunity to review and consult with the City regarding its Consolidated Plan/Annual Action Plan. The goal of this cross-consultation is to provide consistent and coordinated housing services for City residents. Ongoing consultation with local nonprofits also assists the City in coordinating the efficient and effective use of limited federal resources.

Discussion:

HUD-funded grant recipients are required under various laws not to discriminate in housing or services directly or indirectly based on race, color, religion, sex, national origin, age, familial status or disability.

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opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, national origin, and other personal or familial attributes; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate region-wide fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document utilized for this purpose. In addition to identifying impediments, a strategy to overcome barriers much be developed and implemented - accomplishments are reported annually. The City participated in developing a county-wide AI, which the City Council adopted in May 2020. A summary of impediments to fair housing and the action steps the City will take during FY 2023-2024 are found in Attachment 4.

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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0

Other CDBG Requirements

1. The amount of urgent need activities 0

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City is not proposing to utilize HOME funds in a form that is not delineated in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City has not and does not plan to utilize HOME funds for homebuyer assistance; however, if funds are redirected to such a program, steps will be taken to ensure program guidelines comply with the applicable resale and recapture regulations.

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3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

If a CHDO project comes to fruition, the applicable loan agreement(s) will be prepared to comply with the resale/recapture requirements delineated in 24 CFR 92.254.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

If a CHDO project comes to fruition, program staff will ensure that all applicable program policies are followed, including establishing refinancing guidelines.

Discussion
The City will meet the CDBG Program's overall 70% benefit for low- and moderate-income requirement over three program years: 2023-2024, 2024-2025, and 2025-2026.

With respect to HOME affordable homeownership limits for the area (i.e., 95 percent of the median area purchase price as set forth in 24 CFR 92.254(a)(2)(iii), the City will utilize HUD’s HOME affordable homeownership limits for its HOME-funded mobile home rehabilitation program. For single-family, owner-occupied housing rehabilitation, the City conducted a survey in order to establish a maximum property value that is reflective of the local market median home purchase prices, which exceed HUD’s published limit. This information will be provided as Attachment 5 in the final Annual Action Plan.

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ATTACHMENT 1
Grantee Name: City of Costa Mesa
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2021 Housing Units 11 6 54.55%
50 13 26.00%
2021 Housing Units 1 0 0.00%
5 0 0.00%
2021 Housing Units 0 0 0.0%
0 0 0.00%
2021 Housing Units 200 135 67.50%
1,250 368 29.44%
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2021 Individuals 185 309 167.03%
2,500 889 35.56%
2021 Individuals 325 516 158.77%
1,250 752 60.16%
2021 Individuals 173 205 118.50%
750 378 50.40%
2021 Individuals A 0 0 0.0%
7,500 0 0.00%
2021 Individuals C 500 0 0.00%
2,500 0 0.00%
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2021 Individuals *
300 474 158.00%

NA NA NA
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2021 Individuals 282 389 137.94%
150 389 259.33%
2021 Individuals 196 264 0.00%
250 264 105.60%
2021 Individuals 30 23 76.67%
100 23 23.00%
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2021 Year of Admin 1 1 100.00%
5 2 40.00%
* Accomplishments also reported separately as Youth accomplishments.

Rental Housing Acquisition/Rehabilitation to expand and/or improve the number of rental housing units for lower income renter households HOME 5-Yr Con Plan Goal
Rental Housing New Construction to expand the number of rental housing units for lower income renter households HOME
5-Yr Con Plan Goal
No 5-year goals for CDBG-funded Economic Opportunity were established in the Consolidated Plan; however, CDBG funds have been allocated for public service programs that expanded economic opportunities for low-income youth and disabled adults (i.e., Youth Employment Services)
Financial assistance to prevent homelessness such as a short-term financial subsidy to prevent eviction and/or utility termination, and for the provision of provide support services
CDBG
NA
Objective
Economic Opportunity
5-Yr Con Plan Goal
Special Code Enforcement activity to inspect and enforce housing and building codes for residential properties located in the City's CDBG- eligible areas
CDBG
5-Yr Con Plan Goal
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
CDBG
CDBG
Improvements to public facilities that address a community priority including but not limited to repairs, replacement and/or upgrades (including ADA compliance) to neighborhood parks, centers and other public facilities
Improvements to public infrastructure that address a community priority including but not limited to repairs, replacement and/or upgrades (including ADA compliance) to streets, alleys, sidewalks, flood/storm water drains, and other public improvements
Five-Year and One-Year Summary of Accomplishments
Decent Housing
HOME
5-Yr Con Plan Goal
Owner Occupied Housing Rehabilitation Loans and Grants to assist homeowners improve primary residence to correct code violations, address deferred property improvements and improve neighborhood aesthetics
Objective
CDBG
5-Yr Con Plan Goal
Other (O-1)
Objective
CDBG
5-Yr Con Plan Goal
Short-term emergency shelter and support services (up to 3 months) for individuals that are in immediate need of shelter and services Rapid Rehousing and case management services to stabilize homeless households in permanent housing (may encompass TBRA is a low priority)
CDBG program oversight, coordination and administration CDBG
Suitable Living Environment
Objective
5-Yr Con Plan Goal
Services will help seniors and the frail elderly maintain their independent living situation or ensure they are provided services that improve quality of life
Services to assist lower income families with children by providing access to youth programs and services at reduced or no cost.

Services that assist low and moderate-income households and individuals with safety net services such as access to medical, food, case management, and employment services. Supported agencies should provide households with access to programs and services at reduced or no cost - including fair housing services
5-Yr Con Plan Goal
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
Continuum of Care
Objective

DRAFT

Attachment 2

SUMMARY OF PUBLIC COMMENTS

March 15, 2023 Housing & Public Service grant Committee The H&PSG Committee held an in-person meeting to obtain additional public comments regarding CDBG public service grants, and to develop funding recommendations. No written comments were received.

30—Day Public Comment Period
TBD

May 2, 2023 Public Hearing
TBD
DRAFT
ATTACHMENT 3

ORANGE COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE August 6, 2020

REGIONAL PROPOSED AI GOALS AND STRATEGIES
To address the contributing factors described above, the AI plan proposes the following goals and actions:

Regional Goals and Strategies”
Goal 1: Increase the supply of affordable housing in high opportunity areas.1 Strategies:

1. Explore the creation of a new countywide source of affordable housing.

2. Using best practices from other jurisdictions, explore policies and programs that increase the supply affordable housing, such as linkage fees, housing bonds, inclusionary housing, public land set-aside, community land trusts, transit-oriented development, and expedited permitting and review.

3. Explore providing low-interest loans to single-family homeowners and grants to homeowners with household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with affordability restriction on their property.

4. Review existing zoning policies and explore zoning changes to facilitate the development of affordable housing.

5. Align zoning codes to conform to recent California affordable housing legislation.

Goal 2: Prevent displacement of low- and moderate-income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities.

Strategies:

1. Explore piloting a Right to Counsel Program to ensure legal representation for tenants in landlord-tenant proceedings, including those involving the application of new laws like A.B. 1482.

Goal 3: Increase community integration for persons with disabilities.

Strategies:

1. Conduct targeted outreach and provide tenant application assistance and support to persons with disabilities, including individuals transitioning from institutional settings and individuals who are at risk of institutionalization. As part of that assistance, maintain a database of housing that is accessible to persons with disabilities.

2. Consider adopting the accessibility standards adopted by the City of Los Angeles, which require at least 15 percent of all new units in city-supported Low-Income Housing Tax Credit (LIHTC) projects to be ADA- accessible with at least 4 percent of total units to be accessible for persons with hearing and/or vision disabilities.
1 The term “high opportunity areas” generally means locations where there are economic and social factors and amenities that provide a positive impact on a person’s life outcome. This is described in more detail in Section iii, Disparities in Ac cess to Opportunity.

ATTACHMENT 4
Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness.

Strategies:

1. Reduce barriers to accessing rental housing by exploring eliminating application fees for voucher holders and encouraging landlords to follow HUD’s guidance on the use of criminal backgrounds in screening tenants.

2. Consider incorporating a fair housing equity analysis into the review of significant rezoning proposals and specific plans.

Goal 5: Expand access to opportunity for protected classes.

Strategies:

1. Explore the voluntary adoption of Small Area Fair Market Rents or exception payment standards in order to increase access to higher opportunity areas for Housing Choice Voucher holders.

2. Continue implementing a mobility counseling program that informs Housing Choice Voucher holders about their residential options in higher opportunity areas and provides holistic supports to voucher holders seeking to move to higher opportunity areas.

3. Study and make recommendations to improve and expand Orange County’s public transportation to ensure that members of protected classes can access jobs in employment centers in Anaheim, Santa Ana, and Irvine.

4. Increase support for fair housing enforcement, education, and outreach.

CITY OF COSTA MESA PROPOSED AI GOALS AND STRATEGIES

1. In collaboration with the Orange County Housing Authority (OCHA):
a. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.
b. Support OCHA's affirmative fair marketing plan and de-concentration policies by providing five-year and annual PHA plan certifications.
c. In coordination with OCHA and fair housing services provider, conduct landlord education campaign to educate property owners about State law prohibiting discrimination based on household income.

2. Through the City's fair housing contractor:
a. Provide fair housing education and information to apartment managers and homeowner associations on why denial of reasonable modifications/accommodations is unlawful. b. Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and property management companies. Methods of outreach may include workshops, informational booths, presentations to community groups, and distribution of multi-lingual fair housing literature.