Agenda Report
Fullerton City Council
MEETING DATE: MARCH 21, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: HOME INVESTMENT PARTNERSHIPS – AMERICAN RESCUE PLAN SUBMITTAL ______________________________________________________________________
SUMMARY
The U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships - American Rescue Plan Act of 2021 (HOME-ARP) has allocated $1,954,345 in funding to the City. The City must submit a HOME- ARP Allocation Plan to HUD by March 31, 2023.
RECOMMENDATION
Approve the HUD HOME-ARP Allocation Plan and direct staff to submit to HUD by March 31, 2023.
Accept and appropriate award of HOME-ARP grant amounts approved by HUD in Grants Fund (Fund 32).
CITY MANAGER REMARKS
The City Manager concurs with the Community Development Director recommendation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The City plans to use anticipated $1,954,345 award of HOME-ARP funds to support assisted housing programs ($550,000), homelessness and supportive services ($1,111,194) and administrative costs ($293,151). This does not impact the general fund.
DISCUSSION
The American Rescue Plan Act of 2021 received $5 billion to provide housing, services and shelter to individuals experiencing homelessness and other vulnerable populations. Jurisdictions qualifying for FY 2021-2022 HOME Investment Partnerships Program, including Fullerton, will receive an appropriation allocated by formula. Staff has conducted public meetings and consulted, at a minimum, with the County’s Continuum of Care, local non-profits, veterans’ groups and the Orange County Housing Authority, in an effort to encourage public participation.
HOME-ARP identifies four qualifying populations:
homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act, as amended (42 U.S.C. 11302(a)) McKinney-Vento at risk of homelessness, as defined in section 401 of McKinney-Vento fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking (for purposes of this report domestic violence) part of other populations where providing supportive services or assistance would prevent homelessness or would serve those with the greatest risk of housing instability. Veterans and families that include a veteran family member that meet the criteria in one of the four populations above may receive preference.
Activities to address the issues include:
development and support of affordable housing
Tenant-Based Rental Assistance (TBRA)
provision of supportive services
acquisition and development of non-congregate shelter
non-profit operating and capacity building assistance
program planning and administration.
The homeless number has gone down since the last 2019 County Point in Time (PIT) Summary, but still shows 202 unsheltered homeless individuals and an additional 70 in shelters in Fullerton. While the PIT did not breakdown the demographic composition of the 272 Fullerton individuals, it did provide data on the 5,718 homeless individuals in the County. Countywide the number of domestic violence cases has decreased slightly with more individuals in shelters. The number of those at risk of homelessness and other vulnerable populations increases as housing costs continue to increase. The PIT identifies all four qualifying populations as high priority and they will receive assistance in some manner. The Fullerton HOME-ARP allocation does not provide enough funding to develop additional affordable housing, acquire or rehabilitate units, however the City keeps the option available if it identifies other funding sources.
The City operates a tenant-based rental assistance (TBRA) program to assist low-income seniors living in mobile homes earning under 50% of the median-income and paying over 30% of their income into housing, The City can modify the two-year program by providing HOME-ARP funds to assist those coming out of homelessness, households paying more than 30% of their income into housing costs (with preference for those that pay more than 50%) and victims of domestic violence categories who experience housing / shelter crisis. Staff recommends setting aside $550,000 for TBRA programs.
Staff identified lack of supportive services as a high priority in all populations and is an eligible activity under the HOME-ARP program. The program will make funding available for all four qualifying populations. Supportive services cover a wide range of programs including, but not limited to:
homeless prevention services
housing counseling services
childcare services
employment assistance services
outpatient health services
mental health services
legal services
transportation.
Staff will present specific programs to City Council during the application process described as follows for funding. Staff recommends funding $1,111,194 for supportive services.
The program caps administrative expenses at 15% of the allocated amount ($293,151). Staff recommends the full amount to cover administrative, monitoring and compliance verification of the HOME-ARP program until completion in 2030.
The City will select projects through an application process much like the Community Development Block Grant funds. Interested organizations will submit applications during a specified period. Staff will review and present to the Community Development Citizens’ Committee and then present the Committee recommendations to City Council for final approval.
Attachments:
Attachment 1 – HOME-ARP PowerPoint
Attachment 2 – Draft HOME-ARP Allocation Plan
cc: City Manager Eric J. Levitt
Home Investment Partnerships – American Rescue Plan Submittal March 21, 2023 - Page PAGE \* MERGEFORMAT 2